The market’s growth is being propelled by a confluence of transformative industrial trends, led by the electric vehicle (EV) sector, which accounted for 22.9 million EV motor units produced in 2024, with demand forecast to rise to 28.1 million units in 2025. Permanent Magnet Synchronous Motors (PMSMs) dominate this surge, consuming over 37 kilotons of rare earth elements in 2024, highlighting their strategic importance across automotive and industrial applications.
Chicago, Jan. 14, 2026 (GLOBE NEWSWIRE) — The global permanent magnet market was valued at 32.86 billion in 2024 and is expected to reach US$ 67.25 billion by 2033, growing at a CAGR of 8.47% from 2025 to 2033.
The permanent magnet market is experiencing a transformative surge propelled by profound industrial revolutions, with the automotive sector emerging as the foremost force reshaping demand. In 2024 alone, electric vehicle motor production soared to an impressive 22.9 million units, with forecasts projecting a strong climb to 28.1 million units by 2025.
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A dominant share of this growth 19.7 million units in 2024, came from Permanent Magnet Synchronous Motors, highlighting their critical role. This rapid expansion translated to a substantial consumption of 37 kilotons of rare earth elements in 2024, with expectations to escalate to 43 kilotons in 2025. Industry frontrunners like Tesla and BYD, which surpassed production milestones of 2.1 million and 3 million electric vehicles, respectively, in 2024, exemplify this accelerating trend.
Demand is diversifying beyond automobiles in the permanent magnet market. The renewable energy sector is a major consumer. China’s new wind power installations alone totaled 80.45 gigawatts in 2024, requiring 9,735 metric tons of NdFeB magnets. Industrial automation further fuels growth, with China’s industrial robot production estimated to reach 941,000 units in 2025. Even established sectors contribute heavily; air conditioner production hit 270 million units in 2024, creating a demand for 21,000 metric tons of NdFeB magnets.
Power-Hungry Hyperscale Data Centers Drive Specialized Magnet Integration
The explosive growth of data infrastructure is creating a significant, non-obvious demand channel for the Permanent magnet market. In 2024 alone, construction began on more than 300 new hyperscale data centers globally. Each of these facilities requires thousands of high-efficiency motors for cooling. More than 1.5 million high-efficiency permanent magnet motors were installed in data center HVAC systems in 2024. The total power consumption for these new facilities is estimated to exceed 15 gigawatts by 2025. This intense energy usage is propelling innovation in cooling technology.
The adoption of direct-to-chip liquid cooling is a key trend, with an estimated 450,000 specialized magnetic-drive pumps deployed in these systems in 2024. Projections for 2025 show this number exceeding 700,000 units. These pumps deliver superior reliability and control. Furthermore, more than 25,000 magnetic levitation chillers were installed in data centers in 2024 for frictionless, efficient operation. The industry saw an investment of more than US$ 2 billion in 2024 specifically for upgrading legacy cooling systems to magnet-based solutions. In 2025, an estimated 50 petabytes of data will be generated every second, further driving the construction of these power-hungry facilities.
Urban Air Mobility Creates a High-Value Frontier for Permanent Magnets
A new high-value frontier is opening in the Permanent magnet market, pushed by aerospace modernization and the dawn of urban air mobility. In 2024, the development pipeline for electric vertical takeoff and landing (eVTOL) aircraft included more than 400 distinct prototypes globally. Major players in this space collectively placed pre-orders for more than 15,000 eVTOL aircraft by the end of 2024. Each aircraft needs between 8 to 16 lightweight, power-dense permanent magnet motors for propulsion. This translates to a near-term demand for more than 120,000 high-performance motors.
Investment in the urban air mobility sector surpassed US$ 7 billion in 2024. The “more-electric aircraft” (MEA) initiative in commercial aviation is also a key driver for the permanent magnet market. In 2024, Airbus and Boeing logged orders for more than 2,000 MEA-compliant aircraft, which replace heavy hydraulic systems with lighter electromechanical actuators using powerful magnets. More than 500,000 high-performance magnetic actuators were ordered for these new aircraft builds in 2024. Also, the booming satellite industry, which launched more than 2,500 new satellites in 2024, utilizes permanent magnets in reaction wheels and actuators for positioning. This demand is forecast to grow as an extra 12,000 satellites are planned for launch by the end of 2025.
Superior Pull and Miniaturization Capabilities Cement NdFeB Market Leadership
Neodymium Iron Boron (NdFeB) magnets are the undisputed leaders in the permanent magnet market, commanding an impressive 48.02% market share. Their dominance stems from an exceptional energy product, which can exceed 55 MGOe, allowing for significant device miniaturization. For instance, their use in smartphone voice coil motors, measuring just a few millimeters, is critical for audio performance. A key driver is the electric vehicle (EV) sector, where a single EV traction motor often utilizes between 1.5 kg and 2.5 kg of NdFeB magnets. With global EV production estimated to surpass 20 million units annually by 2025, the demand is set to soar. In the renewable energy sector, a Vestas V164-10.0 MW offshore wind turbine requires approximately 2,000 kg of these powerful magnets, showcasing their role in large-scale energy generation.
The pull force of a small N52 grade NdFeB magnet, just 1 inch in diameter, can exceed 150 lbs, a testament to its power. This strength is vital in industrial robotics, where servo motors require high torque in compact designs, with some motors containing over 50 individual magnet pieces. Global production capacity across the permanent magnet market is expanding rapidly, with major manufacturers planning to add more than 30,000 tons of new capacity by the end of 2025 to meet escalating demand. The price of neodymium oxide, a key raw material, has seen fluctuations between US$ 90/kg and US$ 120/kg in 2024, directly impacting production costs.
Europe Accelerates Domestic Production to Secure Magnet Supply for EVs and Renewables
Europe is aggressively working to establish a regional and resilient Permanent magnet market, driven by strategic initiatives like the Critical Raw Materials Act. A landmark development is Solvay’s inauguration of a new rare earth processing line in La Rochelle, France, in April 2025, creating the largest separation facility outside China. The facility currently produces 4,000 metric tons of separated oxides annually and will start producing magnet-grade materials in 2025. By 2030, Solvay aims to satisfy 30% of European demand for these materials. These efforts are crucial as the continent’s demand continues to rise, fueled by its automotive and renewable energy sectors.
The end-market demand is robust across the permanent magnet market. In the UK, the September 2024 renewables auction awarded contracts for approximately 5.3 GW of new offshore wind capacity, a significant consumer of large permanent magnets. These projects are part of a larger award of 9.6 GW across 131 new green infrastructure projects. Germany, a primary importer of Chinese magnets, is also a major automotive producer, providing a substantial demand base. The focus is now on connecting these demand centers with nascent European production abilities, fostering a more secure and autonomous supply chain.
Permanent Magnet Market Major Players:
- TDK Corporation
- Shin-Etsu Chemical Co., Ltd.
- Daido Steel Co., Ltd .
- MP Materials Corp.
- Lynas Rare Earths Ltd.
- Ningbo Yunsheng Co., Ltd.
- Beijing Zhong Ke San Huan Hi-Tech Co., Ltd.
- VACUUMSCHMELZE GmbH & Co. KG (VAC)
- Arnold Magnetic Technologies
- Electron Energy Corporation
- Adams Magnetic Products Co.
- Hitachi Metals, Ltd.
- Other Prominent Players
Key Market Segmentation:
By Magnet Type
- Neodymium Iron Boron (NdFeB) Magnets
- Samarium Cobalt (SmCo) Magnets
- Alnico Magnets
- Ferrite Magnets
By Grade
- Low Grade
- Mid-Grade
- High Grade
By Manufacturing Process
- Sintered Magnets
- Bonded Magnets
- Injection Magnets
- Hot Pressed Magnets
By End User
- Automotive
- Consumer Electronics
- Industrial Equipment
- Aerospace & Defense
- Semiconductor
- Military
- Others
By Distribution Channel
- Online
- Offline
-
- Direct Sales
- Distributors
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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