Permanent Magnet for EV Market size was valued at USD 1.91 billion in 2023 and is poised to grow from USD 2.34 billion in 2024 to USD 9.92 billion by 2032, growing at a CAGR of 19.8% during the forecast period (2025-2032).
The electric vehicle (EV) market is experiencing unprecedented growth, significantly boosting the demand for permanent magnets, which are crucial for electric motors and drivetrains. According to Skyquest’s findings, the global EV market is projected to reach $956.6 billion by 2030, driving a compound annual growth rate of 9.36% from 2024 to 2030 for permanent magnets. This surge is prompting increased investments and capacity expansions from key industry players. Notably, GKN Powder Metallurgy plans to manufacture up to 4,000 tons of permanent magnets annually by 2024, highlighting the proactive strategies being adopted to address the escalating demand fueled by the transition to sustainable mobility. The market is clearly aligning with the automotive industry's shift toward electrification.
Top-down and bottom-up approaches were used to estimate and validate the size of the Permanent Magnet for EV market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Permanent Magnet for EV Market Segments Analysis
Global Permanent Magnet for EV Market is segmented by Product Type, Application and region. Based on Product Type, the market is segmented into Ferrite Magnet, Neodymium Magnet, Samarium Cobalt Magnet and Aluminum Nickel Cobalt Magnet. Based on Application, the market is segmented into Automative, Electronics and Energy Generation. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Driver of the Permanent Magnet for EV Market
The growth of the permanent magnet market for electric vehicles is being significantly fueled by industry initiatives and heightened government support. This support includes subsidies, tax incentives, and regulatory measures that promote the adoption of electric vehicles. Numerous countries have actively introduced policies aimed at facilitating the transition to electric mobility, further driving demand for permanent magnets essential in EV production. As governments prioritize sustainability and the reduction of carbon emissions, the necessity for efficient and powerful components, such as permanent magnets, becomes increasingly critical in the electric vehicle sector, thereby catalyzing robust market expansion in this domain.
Restraints in the Permanent Magnet for EV Market
A significant challenge facing the permanent magnet market, particularly in the electric vehicle sector, is the volatility of raw material prices, notably for rare earth elements such as neodymium, praseodymium, and dysprosium, as well as other materials like cobalt. Fluctuations in these prices have a direct impact on production costs for magnet manufacturers, subsequently affecting profit margins and product pricing. According to a comprehensive study by SkyQuest, the prices of rare earth elements are highly unstable, influenced by various factors such as supply and demand dynamics and environmental regulations. Addressing this issue requires collaborative efforts from industry stakeholders, policymakers, and raw material suppliers to mitigate supply chain risks, establish transparent pricing mechanisms, and explore alternative sourcing strategies.
Market Trends of the Permanent Magnet for EV Market
The market for permanent magnets in the electric vehicle (EV) sector is experiencing a significant upward trend, driven by increased investments and capacity expansions by key players. Strategic acquisitions, such as Ara Partners' purchase of the German manufacturer Vacuumschmelze (VAC), exemplify the growing commitment to strengthen the rare earths value chain crucial for producing permanent magnets. This consolidation is set to enhance the supply of high-performance magnets essential for EVs. Moreover, robust government initiatives, including subsidies and tax incentives, are fostering a favorable regulatory environment, thereby accelerating the growth of the permanent magnet market for electric vehicles.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook