Permanent magnet market worth US$18M by 2018

The permanent magnet market will grow to US$18.8 billion by 2018, at a CAGR of 8.7% from 2013 to 2018 reveals MarketsandMarkets. The enormous potential of this market attracts various small and big level industry players. The Permanent Magnets market is globally growing at a rapid pace.

Though the market size is large in Asia-Pacific, it is growing at a fast pace due to rising demand from end-user industries, especially in countries such as China and Japan. The market is growing slowly in Europe, but will continue to grow at a significant rate in the North American region. The Permanent Magnet Market is still in its infancy in Africa and Latin America, but these regions are experiencing high growth on account of increased infrastructure spending and a low base effect. The market will experience an escalation in the demand of Permanent Magnets in the years to come.

The market experienced a boom in 2011, due to increased demand for rare earth Permanent Magnets. But as demand increased, the supply chain interruptions resulted in the scarcity of rare earth Permanent Magnets. This affected the market adversely and the market plunged in 2012. As the supply of rare earths became stable, the market became stable, and it is expected to further stabilise in future. This stabilisation would occur due to a reduction in the amount of dysprosium content in neo magnets as well as a marked improvement in overall magnetic properties of ferrite magnets. Globally, other countries have also started mining rare earth oxides so as to reduce their dependence on China. The initiatives and efforts of western governments might bear fruit in future, and these issues may be sorted in the next five to ten years.