In 2023, the market for rare earth elements was estimated to be worth USD 9,140.6 million. The market for rare earth elements is expected to expand at a compound annual growth rate (CAGR) of 12.1% from USD 10,417.5 million in 2024 to USD 26,049.7 million by 2032.
Due to their crucial role in creating new materials and components that satisfy exacting performance, durability, and weight requirements, rare earth elements are becoming much more in demand in the aerospace and defense industries. The production of strong yet lightweight permanent magnets, high-temperature-resistant alloys, and phosphors that are used in a variety of aerospace and defense applications depend heavily on rare earth elements including neodymium, samarium, dysprosium, and yttrium. Rare earth elements play a key role in the aerospace industry's development of high-strength magnets for electric actuators, sensors, and power generation systems—all of which need robust parts to increase efficiency and lighten aircraft. Utilizing magnets and alloys based on rare earth elements also improves performance, lowers emissions, and increases fuel efficiency. Furthermore, rare earth elements are essential to the development of electronic warfare systems, radar systems, laser guidance, and missile technology in the military industry. High-performance alloys and rare earth magnets are essential to these systems' accuracy, dependability, and capacity to function under challenging conditions.
Perspectives on Market Segments
Cerium, Dysprosium, Erbium, Europium, Gadolinium, Lanthanum, Neodymium, Praseodymium, Samarium, Terbium, Ytterbium, Yttrium, and Others are the product-based market segments for rare earth elements.
Magnets, Catalysts, Metallurgy, Polishing, Glass, Phosphors, Ceramics, and Others are the market segments based on application.
Automotive, Oil & Gas, Electronics, Renewable Energy, Defense and Aerospace, and Others are the end-use segments of the rare earth elements market.
Regional Perspectives
North America, Europe, Asia-Pacific, the Middle East & Africa, and South America make up the regions that make up the rare earth elements market. The market for rare earth elements in Asia-Pacific had the largest share and is anticipated to generate a sizable portion of revenue over the course of the forecast period. In terms of both supply and demand, the Asia Pacific (APAC) region leads the world market for rare earth elements. With more than 60% of the world's production, China is both the biggest producer and user of rare earth elements. As the largest provider of refined rare earth goods and the leading exporter of rare earth materials, China thus plays a significant role in determining the market dynamics.
Key Players
Lynas Rare Earths Ltd., Iluka Resources Ltd., Arafura Rare Earths, Shenghe Resources Holding Co., Ltd., Texas Mineral Resources Corp., IREL (India) Limited, Canada Rare Earth Corporation, MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., and ACS Material, LLC are the major companies involved in the rare earth elements market.
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