Soft Magnetic Materials are Gaining Traction in Variety of Industrial Sectors
The demand for soft magnetic materials in the power and energy industry is increasing globally due to a growing global population, rapid infrastructure development, and increased manufacturing activities. Aside from that, there is a significant increase in the use of these materials in the automotive industry all over the globe. This can be attributed to the increased use of high-performance automotive components such as alternators, gearboxes, induction coils, and antenna cores. Soft magnetic materials are also becoming more popular in electric vehicles (EVs) due to their advantages such as compact design, silent operation, and energy savings. As a result, the growing global adoption of EVs is fueling demand for soft magnetic materials. Furthermore, they are used in switch reluctance motors, stepper motors, claw pole motors, brushless direct current (DC) motors, transformers, and alternators. Furthermore, numerous innovations in the development of procuring renewable energy and rising investments in the power distribution sector are driving the market.
Moreover, the permeability and saturation flux density of nanocrystalline soft magnetic materials and amorphous alloys are very high. Low core loss, low aging effects, high temperature resistance, and high frequency characteristics are among the other distinguishing characteristics. Power generation is increasing the demand for high frequency transformers and reactors. Core losses in electrical steel are extremely high in the high frequency range when compared to soft magnetic materials. This core loss converts to heat, raising the temperature of the surrounding area and increasing the demand for soft magnetic materials for use in high temperature environments.
Moreover, the permeability and saturation flux density of nanocrystalline soft magnetic materials and amorphous alloys are very high. Low core loss, low aging effects, high temperature resistance, and high frequency characteristics are among the other distinguishing characteristics. Power generation is increasing the demand for high frequency transformers and reactors. Core losses in electrical steel are extremely high in the high frequency range when compared to soft magnetic materials. This core loss converts to heat, raising the temperature of the surrounding area and increasing the demand for soft magnetic materials for use in high temperature environments.
Significant Automotive Industry Acceptance Drives Soft Magnetic Materials Market Growth
The automotive industry has generated a substantial demand for electronic components that aid in delivering increased efficiency and reliability. Components such as inductors, which take up a lot of space inside a car, have recently undergone dimensional reduction due to soft magnetic materials. These materials help in the reduction of the dimensions of electronic components, thereby increasing work efficiency. Soft magnetic materials' exceptional magnetic properties continue to encourage their application in the automotive sector, which remains at the forefront in terms of increasing demand for technically advanced materials. Soft magnetic materials are widely used in motor driven systems due to their ability to reduce vehicle weight when compared to conventional electric steel. Compact design, energy savings, and low noise will continue to drive demand for soft magnetic motors in electric and hybrid vehicles, boosting the growth of the global soft magnetic materials market in the near future.
Recent Trends in the Soft Magnetic Material Industry:
- New soft magnetic materials, including amorphous and nanocrystalline alloys, enhance efficiency and reduce losses.
- The rise in electric vehicles increases demand for high-performance soft magnetic materials.
- The emphasis on energy efficiency drives optimization of soft magnetic materials, reducing core losses.
- Soft magnetic materials enhance efficiency in renewable energy systems like wind turbines and solar inverters.
- The industry is developing soft magnetic materials with higher thermal stability and curie temperatures.
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The High Cost of Soft Magnetic Raw Material is Expected to Hinder Market Growth
The unexpected volatility in the prices of soft magnetic raw materials are expected to hinder the growth of the soft magnetic material market. As a result, the supply chain for soft magnetic raw materials has been disrupted, posing a challenge for manufacturers. However, the high research and development costs for advancing material science often limit the capacity of firms to innovate and enhance their product lines. The emergence of alternative materials, such as hard magnets or non-magnetic options, can suppress demand for soft magnetic materials by offering superior performance or cost advantages. Stringent environmental and safety regulations are escalating operational costs and complicating compliance, while the intricate integration of new materials into existing systems can delay market adoption. Additionally, the technical complexity and specialized equipment required for manufacturing high-performance soft magnetic materials can constrain production scalability. Limitations in high-frequency applications due to core loss and saturation further restrict their utility in advanced electronics and communication systems.
Advanced Iron Silicon Powder Enhances 3D Printing While Key Acquisitions Drive North American Manufacturing
Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In February 2024, Elkem unveiled a breakthrough in soft magnetic materials with a new iron silicon powder designed for 3D printing electric motor components. Developed through the EU-funded SOMA project, in collaboration with VTT, Siemens, Stellantis, and Gemmate Technologies, this powder overcomes previous challenges of brittleness in larger 3D-printed motor parts. Produced at Elkem’s Kristiansand pilot facility, the powder has demonstrated improved ductility and magnetic performance in initial tests, including a prototype for an electric scooter motor. The material is now accessible for small-scale commercial testing.
Furthermore, in October 2023, Ara Partners acquired Vacuumschmelze (VAC), a premier global producer of advanced magnetic materials and rare earth permanent magnets, from Apollo-managed funds. VAC, a key player in the soft magnetic material sector, serves diverse industries including automotive, renewable energy, and aerospace. With over a century of innovation and extensive patents, VAC is set to boost North American manufacturing through a new facility in partnership with General Motors. This move aims to support the electric vehicle market and drive significant CO2 reductions, aligning with global decarbonization goals.
Furthermore, in October 2023, Ara Partners acquired Vacuumschmelze (VAC), a premier global producer of advanced magnetic materials and rare earth permanent magnets, from Apollo-managed funds. VAC, a key player in the soft magnetic material sector, serves diverse industries including automotive, renewable energy, and aerospace. With over a century of innovation and extensive patents, VAC is set to boost North American manufacturing through a new facility in partnership with General Motors. This move aims to support the electric vehicle market and drive significant CO2 reductions, aligning with global decarbonization goals.
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China Continues to Offer an Opportunities for the Soft Magnetic Materials Market
Due to presence of iron ore mines, Asia-Pacific accounted for a significant share of the global soft magnetic materials market. In terms of production and consumption, developing countries such as China and India are the major contributors in the Asia-Pacific region. Soft magnetic materials manufacturers from North America and Europe are investing in the Asia-Pacific region due to the availability of cheap labour and the willingness to target untapped market areas. China is a major steel consumer and producer. The geographical strength of the Bayo Obo mines, which are rich in rare earth elements and iron ore, provides a significant advantage. Manufacturers from Japan and Germany hope to establish a free trade agreement with Mongolia in order to take advantage of its proximity to Bayo Obo. The factors driving the soft magnetic materials market in this region are robust industrialization across Asia-Pacific countries, as well as geographical advantages such as the presence of iron mines in India and China.
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The report provides a detailed overview of the soft magnetic material market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for soft magnetic material market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the soft magnetic material market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the soft magnetic material market. Some key country and region included in the soft magnetic material market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Austria, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Soft Magnetic Materials Market Research Report Covers In-depth Analysis on:
- Soft magnetic material market detailed segments and segment-wise market breakdown
- Soft magnetic material market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in soft magnetic material industry)
- Current, historical and forthcoming 10 years market valuation in terms of soft magnetic material market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Soft magnetic material market demand analysis
- Soft magnetic material market pricing analysis over forecast period (by key segment and by region)
- Soft magnetic material market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in soft magnetic material market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in soft magnetic material market
- Soft magnetic material market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on soft magnetic material market forecast by countries
- Mergers and acquisitions in soft magnetic material market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
How will technological advancements impact the soft magnetic material market in the next decade?
Technological advancements, such as the development of high-performance materials and miniaturization, are expected to drive innovation and growth in the soft magnetic material market over the next decade.
What are the key market drivers for the soft magnetic material industry?
Key market drivers include increasing demand for energy-efficient electronic devices, advancements in electric vehicles and the growing need for efficient power management solutions in various applications.
What are the major challenges facing the soft magnetic material market?
Challenges include the high cost of advanced materials, fluctuating raw material prices and competition from alternative materials with similar magnetic properties.
