Magnetic Materials Market Report 2026

The magnetic materials market size has grown strongly in recent years. It will grow from $36.52 billion in 2025 to $39.01 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to increasing industrial automation, growth of electrical and electronics manufacturing, rising demand for transformers and motors, adoption of ferrite and alnico magnets, expansion of power generation infrastructure.

The magnetic materials market size is expected to see strong growth in the next few years. It will grow to $51.66 billion in 2030 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to rising demand for electric vehicles, growth in renewable energy projects, increased adoption in smart grids, development of high-performance magnetic alloys, expansion of consumer electronics and industrial robotics. Major trends in the forecast period include advancements in high-performance ndfeb and smco magnets, increasing adoption of soft magnetic materials in transformers and motors, rising demand for energy-efficient electrical machines, growth in semi-hard magnetic materials for specialized applications, expansion of magnetic material applications in renewable energy systems.

The rapid industrialization is anticipated to drive the growth of the magnetic material market in the coming years. Industrialization refers to the process of shifting an economy or society from primarily agrarian and craft-based activities to a structure centered on industry and manufacturing. Magnetic materials are utilized in various applications during industrialization, including the production of electric motors, transformers, sensors, and data storage devices, owing to their intrinsic magnetic properties. For example, in August 2023, Eurostat, a Luxembourg-based statistical office of the European Union (EU), reported that industrial production in the euro area and the EU rose by 0.5% and 0.4%, respectively, in June 2023 compared to May 2023. Consequently, rapid industrialization is expected to propel the growth of the magnetic material market.

Major companies in the magnetic materials market are adopting a strategic partnership approach for the extraction of rare earth magnets. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits. For instance, in September 2023, the University of Birmingham, a UK-based public research university, partnered with HyProMag Ltd., Offshore Renewable Energy (ORE) Catapult, and Magnomatics, all UK-based companies. This partnership aims to extract rare earth magnets from end-of-life wind turbines and use them in new wind turbines, both onshore and offshore.

In April 2024, Master Magnetics Inc., a US-based manufacturer and distributor of magnetic products, acquired Factor89 for an undisclosed amount. This acquisition is expected to bolster Master Magnetics' market position and broaden its product offerings. Factor89, also a US-based company, specializes in the manufacturing of a diverse array of magnetic products and devices, complementing Master Magnetics' existing portfolio and enhancing its capabilities in the magnetic materials sector.

Major companies operating in the magnetic materials market report are TDK Corporation, Daido Steel Co. Ltd., Hitachi Metals Ltd., Magnequench Inc., Arnold Magnetic Technologies Corporation, Eriez Magnetics, Electron Energy Corporation, SG Technologies Ltd., Shin-Etsu Chemical Co. Ltd., Toshiba Materials Co. Ltd., Ningbo Zhaobao Magnet Co. Ltd., Chengdu Galaxy Magnets Co. Ltd., Dura Magnetics Inc., Adams Magnetic Products Co. Inc., Tengam Engineering Inc., Alpha Magnetics Inc., Greenwood Magnetics Limited, Sonal Magnetics, Steward Advanced Materials LLC, Magnetic Component Engineering LLC, Quantum Magnetics Inc., Eclipse Magnetics Ltd.

Asia-Pacific was the largest region in the magnetic materials market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the magnetic materials market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the magnetic materials market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The magnetic materials market consists of sales of permanent magnets, magnetic storage media, magnetic sensors and devices, electromagnets and magnetic assemblies, magnetic separation, and sorting systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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