Samarium Cobalt Magnet Market - Forecasts from 2023 to 2028

The global samarium cobalt magnet market is expected to grow at a CAGR of 5.73% from US$497.75 million in 2021 to US$735.189 million in 2028.

Samarium cobalt (SmCo) magnets are a type of rare earth magnet that is known for their high magnetic strength and temperature resistance and are composed of an alloy of samarium and cobalt, with smaller amounts of other rare earth elements such as praseodymium and neodymium. Samarium cobalt magnets are more expensive than different types of magnets and are more brittle, which makes them more susceptible to cracking and chipping. Samarium cobalt magnets are used in automotive, aerospace & defense, marine, and manufacturing applications. The increasing demand for high-performance magnets in various industries is expected to drive the growth of the global samarium cobalt magnet market in the coming years.

The growing automotive and aerospace production is boosting the samarium cobalt magnet demand. 

Samarium cobalt magnets are used in the automotive industry due to their superior magnetic properties, such as high magnetic strength and resistance to demagnetization at high temperatures, and these properties make samarium cobalt magnets ideal for use in electric motors, which are becoming increasingly popular in the automotive sector due to their efficiency and environmental benefits. The global automotive industry continues to evolve and innovate, and the demand for samarium cobalt magnets will likely remain strong, driving growth in the worldwide market. According to International Energy Agency (IEA), 13% of new cars sold in 2022 were electric, and in 2020, over 3 million electric cars were produced worldwide, up from 2.1 million in 2019, and China remained the largest producer of electric cars, accounting for 55% of global electric car production in 2020. The aerospace industry is a major consumer of samarium cobalt magnets, particularly for use in aircraft engines, and these magnets are used in the turbines and other components of jet engines, where they help to ensure reliable and efficient operation as they can withstand extreme conditions, including high temperatures and intense vibrations. The demand for samarium cobalt magnets increases with the growing aerospace industry, driven by increasing demand for air travel. According to the Aerospace Industries Association (AIA), in the first half of 2021, U.S. manufacturers delivered 255 commercial aircraft, representing an increase of 37.5% compared to the same period in 2020.

The Asia Pacific region is expected to hold a significant market share.

The Asia Pacific region has a rapidly growing economy, and a large population base, which is driving the demand for samarium cobalt magnets in various end-use industries such as automotive, electronics, and aerospace, and countries like China, Japan, and South Korea are major producers and consumers of samarium cobalt magnets. In March 2021, the Chinese government announced the "Five-Year Plan for Rare Earth Industry Development (2021-2025)" to support the development of the rare earth industry. The plan includes measures to increase the production of rare earth elements, including samarium. In August 2021, the South Korean government announced a plan to spend 8.3 trillion won ($7.1 billion) over the next five years to support the growth of the country's electric vehicle industry, including tax incentives, subsidies for purchasing electric vehicles, and investments in charging infrastructure. In December 2020, the Japanese government announced a new economic package that includes an investment of 30 billion yen ($290 million) to develop next-generation aircraft technology. These factors are contributing to the samarium cobalt magnets demand in the APAC region. 

Market Developments:

• August 2021: Vaccummschmelze GmbH & Co. KG announced the launch of a samarium cobalt magnets with high coercivity and high magnetic energy product designed for use in aerospace, medical, and industrial applications.
• August 2021: Neo Performance Materials Inc. introduced a new samarium cobalt magnet with high magnetic strength and temperature resistance called the "NeoSamarium SM-FT."
• July 2021: Shin-Etsu Chemical Co., Ltd. announced plans to increase its production capacity of rare earth magnets, including samarium cobalt magnets, in response to the growing demand for electric vehicles and other high-tech applications.

Market Segmentation:

By Grade

• Samarium Cobalt (1-5)
• Samarium Cobalt (2-17)

By End-User

• Automotive
• Aerospace & Defense
• Marine
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Other