Yttrium Market - Forecasts from 2024 to 2029

The global yttrium market is projected to witness a CAGR of 4.37% during the forecast period to reach a market size of US$106.201 million by 2029, increasing from US$85.764 million in 2024.

Yttrium is a rare-earth metal, a highly crystalline iron-gray, widely used as an additive in alloys. It increases the strength of aluminum and magnesium alloys. The use of yttrium is highly diversified, and it is a chief driver of the market, from pharmaceuticals to construction. The industry is investing in yttrium-based technology and is slowly moving towards experimenting and piloting with the application.

Moreover, the increasing incorporation of yttrium into the defense sector is a growing opportunity for the market. Yttrium oxide is added to the glass used to make camera lenses to make them heat - and shock-resistant. It is also used to make superconductors. The radioactive isotope yttrium-90 has medical uses, such as treating some cancers, including liver cancer. These manifold uses across several end-user industries are propelling the market ahead.

Geographically, the Asia-Pacific region is foreseen to dominate the market. China produces and consumes the largest amount of yttrium products. By product, alloys of yttrium have extensive uses in construction. By end-user industry, the consumer electronics division uses yttrium in many devices like televisions, cameras, etc., which are widely in demand.

• The global yttrium reserves are mainly distributed in Australia, Brazil, China, Russia, and Vietnam. At current production, global yttrium reserves are sufficient to meet near-term demand. However, due to the high demand for ion adsorption ores in Myanmar and China, as well as economic conditions, environmental factors, production licenses, and trade restrictions, these factors will still affect the availability and price of many rare earth elements, including yttrium.
• In September 2022, the Indian government announced its $10 billion Production Linked Incentive (PLI) scheme. This scheme provides up to 50% funding for project costs of building semiconductor and display fabs.
• The Chinese government gave income tax exemptions for advanced technology process nodes and established import duty exemptions for IC manufacturers. China’s $50 billion-plus state investment fund for chips. It also established a new National Science & Technology Commission led by the Party to coordinate its efforts in the semiconductor industry.

GLOBAL YTTRIUM MARKET DRIVERS:

Increase usage of electronics

Due to its physical properties, like electrical conductivity, heat stabilizing and resistant properties, and lightweight, yttrium is becoming integral to various applications in major commercial and industrial sectors. It is used in light bulbs, panels, and television sets. Plasma and flat panel displays are some other applications of yttrium. Producers worldwide are engaging themselves in improving the technology and efficiency of their electronic devices, which is anticipated to augment the global yttrium market’s growth in the coming years.

Application in the defense sector

Because of their physical and chemical properties, earth metals like yttrium have a wide variety of applications in defense operations. They are used in making electronics and lighting, lasers, phosphors, and the strong permanent magnets contained primarily in computer hard drives, as well as electric motors and actuators.

They are also used in fin actuators in missile guidance and control systems, disk drive motors installed in aircraft and tanks, satellite communications, and radar and sonar systems. The United States Military is one of the flag bearers using yttrium in its defense mechanisms.

Growing use in the semiconductor sector:

Yttrium oxide's role in optical coatings and semiconductor production technology equipment has been explored; thus, the functionalities of these critical components provide diverse applications. Products are produced from Yttrium Oxide for semiconductor wafer processing applications. The demand for semiconductors has been growing due to their applications in automotive, industrial, and consumer markets.

According to the Semiconductor Industry Association (SIA), the market growth signifies changes in demand trends in the chip industry. Companies committed billions in new investments throughout the decade to meet the increasing demand for chips. Further, the innovation and application changes in the automotive, industrial, and consumer electronics industries could reach $1 trillion in sales by 2030.

Global Yttrium Market Geographical Outlook

The Asia Pacific region will dominate the global yttrium market during the forecast period.

By geography, the market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.

In 2023, China's yttrium compounds and metals exports were about 2,900 tons of yttrium oxide. Regarding export volume, the main exporting countries are Japan, Italy, the United States, and South Korea. In 2022, China exported yttrium compounds and metals up to 3,400 tons of yttrium oxide. The global production of yttrium in rare earth mineral concentrates is approximately 10,000 to 15,000 tons, mostly produced in China and Myanmar. These figures justify the region’s importance in the market.

Global Yttrium Restraint:

• Over-dependence and concentration on the production and manufacturing of yttrium in one country is causing challenges related to supply chain and price volatility.

Global Yttrium Market Key Developments:

• In February 2024, Namibia Critical Metals Inc. announced that it received all laboratory assays of the RC drilling campaign for its PFS (A pre-feasibility study) study on the largescale “Lofdal 2B-4” heavy rare earth project. It is a Tier-1 Heavy Rare Earth Project, a globally significant deposit of the heavy rare earth metals dysprosium, yttrium oxide, and terbium. Demand for these critical metals used in permanent magnets for electric vehicles, wind turbines, and other electronics is driven by innovations linked to energy and technology transformations.
• The Lofdal Project is fully permitted with a 25-year Mining License and is under a joint venture agreement with the Japan Organization for Metals and Energy Security (JOGMEC). JOGMEC is a Japanese government's independent administrative agency seeking to secure stable resources for Japan.  

The global yttrium market is segmented and analyzed as follows:

By-Products

• Compounds
• Alloys
• Metal

By End-user Industry

• Ceramics
• Consumer Electronics
• Manufacturing
• Metallurgy
• Automotive
• Healthcare
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• UAE
• Rest of the Middle East and Africa
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific