Global Rare Earth Magnets Market Assessment, By Type [Neodymium Magnets (NdFeB), Samarium-Cobalt Magnets (SmCo)], By End-user [Automotive Industry, Power Generation, Medical, Consumer Electronics, Others], By Region, Opportunities and Forecast, 2018-2032F

Global rare earth magnets market is projected to grow at the USD 32.51 billion in 2032 with a CAGR of 7.43%.

Global Rare Earth Magnets Market, Size, Future, Growth Insights

Global rare earth magnets market is projected to witness a&nbsp;CAGR of 7.43%&nbsp;during the forecast period 2025-2032, growing from&nbsp;USD 18.32 billion&nbsp;in 2024 to&nbsp;USD 32.51 billion&nbsp;in 2032. The rare earth magnets market has experienced significant growth in recent years due to the rapid adoption of electric vehicles (EVs) and proliferation of advanced consumer electronics is expected to maintain a strong pace of expansion in the coming years. The rare earth magnets, mainly made of alloys like neodymium, samarium, and dysprosium, which are best known for their immense magnetic strength. Rare earth magnets can be employed in an extensive range of contemporary uses. In EV industry, the rare earth magnets are employed for producing high-performance motors and regenerative braking system that fuels its demand across the market. Furthermore, the installation of renewable energy infrastructure, especially wind turbines which require strong, hard-wearing magnets for efficient energy transfer, also supports the growth of the rare earth magnets market. As rare earth magnets have several applications so to fulfil the rising demand manufacture are investing in new production plants.
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Report Attribute
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Details
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Base Year of the Analysis
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2024
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Forecast Period
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2025-2032
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Historical Period
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2018-2023
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Projected Growth Rate
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CAGR of 7.43% between 2025 and 2032
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Revenue Forecast in 2032
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USD 32.51 billion
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For instance, in April 2025, Solvay S.A. has decided to open its rare earths production line for permanent magnets at the La Rochelle facility, France which mark a significant milestone in the Group&rsquo;s commitment to meeting Europe&rsquo;s strategic goals. The commercial production of rare earths for permanent magnets is essential components in electric vehicle motors, renewable energy, advanced electronics and defense systems. The facility will source rare earths and recycled materials from a diverse range of suppliers and mining partners, as mandated by the Critical Raw Materials Act. This development will help the company to position as a global leader in the rare earth magnets market in the coming years.
The consumer electronics industry is increasing the demand for advanced materials to miniaturize its products with high performance, which leads to the rare earth magnets industry's growth in the coming years. Further, the upcoming developments pertaining to industrial automation and medical devices contribute to market growth as materials are applied in manufacturing numerous components like motors, sensors, and actuators. In addition, rare earth magnets are used in defense systems and weapons which drive demand in the market. In short, the continuous innovation and development, advancing world energy demands, defense system upgrades and the ongoing move toward sustainability are driving the rare earth magnets market growth.
For instance, in March 2024, United States Department of Defense is looking to develop domestic supply chains to ensure continued access to the rare earth materials and magnets needed to manufacture the permanent magnets which are used in important United States military weapons systems. This development highlights that the demand for rare earth magnets to increase in the coming years.
<h2>Rapid Growth in EV Production Amplifying the Market size.</h2>
Both in developing and developed nations, the demand for EVs rises on a significant rate which amplifies the production of the component in the market. Several manufacturers of electric vehicles (EV) are looking for advanced materials which could be used to produce high-performance electric motors. Manufacturers are adopting the rare earth magnets, particularly neodymium-iron-boron (NdFeB) magnets as material has the ability to improve the efficiency of the electric motor which boosts rare earth magnets market size in the coming years.
For instance, in 2025, 7.2 million units sold in the first five months alone, highlighting the accelerating pace of electrification across major markets such as China and Europe. The adoption of EVs in both countries is driven by supportive government policies, expanding charging infrastructure, and growing consumer acceptance which is boosting the production of EV thereby driving the demand for rare earth magnets in the market.
In another instance, in June 2025, In India, electric passenger vehicles captured more than 4 per cent of India's total passenger car sales in May 2025, representing a substantial increase from the 2.6 per cent market share recorded in the corresponding period last year. Moreover, retail sales reached 12,304 electric cars in May 2025, compared to 8,029 units sold during the same month in 2024. April sales are approx. 12,233 units, showing month-on-month stability in demand of EV in the country. This development highlights the rising demand for EVs in the country which will drive the demand for rare earth magnets in the market.
Furthermore, with the surge in EV demand directly boost the demand or rare earth magnets, as each EV typically requires several kilograms of material for manufacturing motors, regenerative braking systems, and auxiliary components. Moreover, EV companies are expanding the EV portfolio which further broadens the addressable rare earth magnets market size. Similarly, the electrification of other vehicle segments such as buses, two- and three-wheelers, and commercial fleets will take rare earth magnets market trends upwards in the forecast period. As stricter emissions regulations and consumer demand for cleaner transport, drive the demand for advanced permanent magnet motors in the market. Ultimately, the synergy between EV market expansion and rare earth magnet consumption is expected to remain a defining feature due to the push towards green mobility transition thereby contributing to the growth of rare earth magnets market share.
Rising Demand for Advanced Consumer Electronics Gadgets Creates Market OpportunityConsumers around the global are seek devices which are more compact, lightweight, and feature-rich electronic gadgets such as smartphones, laptops, hard disk drives, speakers, and headphones. Manufacturers of consumer electronics are adopting advanced materials primarily neodymium-based alloys for miniaturization and enhanced performance of the products which creates an opportunity for rare earth magnets market to grow in the coming years.
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For instance, as per the National Bureau of Statistics (NBS) report in 2024, China's mobile phone production was 1.68 billion units, up 7.3% YoY, and the demand for NdFeB was around 3,362 mt. In 2024, the government came up with the "national subsidy" policy which provided generous purchase subsidies for consumers, significantly stimulating market demand. This development highlights that the government is also supporting the in-house manufacturing which drives the demand for rare earth magnets in the coming years.
These magnets enable high-quality audio, haptic feedback, and efficient power management in ever-smaller form factors thus driving its demand in the market. Moreover, the trend toward miniaturization, portability and multifunctionality in consumer gadgets has made rare earth magnets a critical material for the sector. The rare earth magnets support technological innovation with the integration of advanced features without compromising device size due to which the demand for rare earth magnets is increasing in the market. As per the rare earth magnets market forecast, the adoption of smart home devices, wireless accessories, and next-generation wearables creates opportunities for market growth in the forecast period. In summary, the accelerating evolution of consumer electronics with several smarter, sleeker features is boosting the rare earth magnets market size.
Dominance of&nbsp;Neodymium Magnets (NdFeB) Segment in the Global Market
The demand for neodymium magnets (NdFeB) is increasing in the market as it is used in the electric vehicle (EV) sector. As automakers are moving towards the transition to clean mobility the demand for neodymium magnets (NdFeB) is growing rapidly in the global market. For the production of each EV typically requires between 2&ndash;5 kg of neodymium magnets for high-efficiency traction motors, with premium models using even more thereby the demand for neodymium magnets (NdFeB) segment will in increase in the coming years. Simultaneously, neodymium magnets (NdFeB) are high used in the production of wind turbines so with the global push for decarbonization and the expansion of wind power capacity will boost the demand for the segment in the forecast period.
The magnets enable high performance in increasingly smaller and lighter devices, meeting consumer expectations for advanced features and portability. Additionally, industrial automation, robotics, and medical devices use NdFeB magnets for their power, efficiency, and reliability. Ongoing technological innovation in magnet manufacturing, coupled with rising investments in energy storage, smart infrastructure, and sustainable technologies, further expands neodymium magnets (NdFeB) application opportunities.
<h2>Asia-Pacific Dominates Global Market</h2>
The demand for rare earth magnets is rapidly increasing in the Asia-Pacific region, driven by several factors such as growth in the electric vehicle (EV) sector and government support for in house production. The region is the hub of developing countries in which the investment in production activities is infused on regular intervals thus drive the demand for rare earth magnets in the market. As with the rising adoption of the EV in India and China as boosted the EV component production in the country which contributing to the large demand for the high-quality rare-earth magnets material in the market.
Moreover, government initiatives regarding the promotion of EV adoption and renewable energy have created a positive environment for rare earth magnet consumption. The rare earth magnets are highly used in the production of high-performance motors, wind turbines, and energy-efficient industrial machinery. Moreover, the production of consumer electronics which mainly relies on miniaturized, powerful magnets, has boosted the demand for rare earth magnets in the Asia-Pacific region. Advanced technological capabilities, cost-effective production, and heavy investment in infrastructure have solidified the region&rsquo;s dominance, making Asia-Pacific the largest producer and largest consumer of rare earth magnets in the world. Moreover, the production of rare earth materials is increasing in the region to support the rare earth magnet market growth.
For instance, in 2024, China's domestic output of rare earths was 270,000 metric tons in 2024 which is up from 255,000 metric tons from 2023. This development highlights that the country is increasing the production of rare earth metals which is further used to manufacture rare earth magnets, to fulfil the rising demand in the global market.
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Impact of United States Tariff on Global Rare Earth Magnets Market
<ul>
<li>The tariffs and export restrictions led to a sharp drop (up to 75%) in rare earth magnet exports from China in the months following the policy changes, resulting in production halts and slowdowns at major automakers and electronics companies worldwide.</li>
<li>The United States imposed steep tariffs on rare earth magnets up to 125% in April 2025, raising import costs substantially and forcing United States suppliers and manufacturers to increase prices for end users.</li>
<li>The price volatility and uncertainty prompted efforts to diversify supply, including new investments in domestic rare earth mining and magnet manufacturing in the United States, however, building such capacity is expected to take years.</li>
<li>United States and European companies experienced acute shortages, with some factories facing imminent production cuts due to a lack of magnet supplies, highlighting the vulnerability of global supply chains.</li>
<li>For instance, On April 4, 2025, the China announced the implementation of export control policies for medium-heavy rare earth metals, which partially affected the rare earth magnets market.</li>
</ul>
Report Scope
&ldquo;Global Rare Earth Magnets Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global rare earth magnets market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Details
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Segments Covered
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Type, End-user
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profile
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Ningbo Zhaobao Magnet Co., Ltd., Zhejiang Sheensen Magnetics Technology Co. Ltd., Ningbo Tongchuang Magnetic Materials Co., Ltd., MP Materials Corp., Rare Earth Magnetics Private Limited, Star Trace Solutions Private Limited, Ningbo Yunsheng Co., Ltd., Neo Performance Materials Inc., Ningbo Ninggang Permanent Magnetic Materials Co., Ltd., Hangzhou Permanent Magnet Group. Ltd.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfil your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;global rare earth magnets market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Type
<ul>
<li>Neodymium Magnets (NdFeB)</li>
<li>Samarium-Cobalt Magnets (SmCo)</li>
</ul>
</li>
<li>By End-user
<ul>
<li>Automotive Industry</li>
<li>Power Generation</li>
<li>Medical</li>
<li>Consumer Electronics</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
To increase revenue and market share in the global rare earth magnet market, leading players are investing heavily in research and development. Companies are also diversifying supply chains to reduce dependence on single-source countries and mitigate geopolitical risks. Strategic moves include adopting advanced manufacturing techniques, developing alternative magnetic materials and recycling initiatives to address environmental concerns and cost pressures. Additionally, companies are forming alliances and partnerships for technology sharing and expanding production capacity in emerging markets to capture new demand. Product launches, agreements, business expansions, collaborations, and developing technologies are projected to increase competition in the fast-paced market.
For instance, in July 2023, NEO Performance Materials decided to build rare earth magnet manufacturing facility in Europe designed to produce specialized rare earth permanent magnets for use in electric vehicles, wind turbines, and other clean energy technologies. Based in Narva, Estonia, the plant expects to begin production of permanent rare earth magnets in 2025 sufficient to support the manufacturing of approximately 1.5 million electric cars. This development highlights that companies are increasing production capacity to fulfil rising needs.
Key Players Operating in Global Rare Earth Magnets Market are:
<ul>
<li>Ningbo Zhaobao Magnet Co., Ltd.</li>
<li>Zhejiang Sheensen Magnetics Technology Co. Ltd.</li>
<li>Ningbo Tongchuang Magnetic Materials Co., Ltd.</li>
<li>MP Materials Corp.</li>
<li>Rare Earth Magnetics Private Limited</li>
<li>Star Trace Solutions Private Limited</li>
<li>Ningbo Yunsheng Co., Ltd.</li>
<li>Neo Performance Materials Inc.</li>
<li>Ningbo Ninggang Permanent Magnetic Materials Co., Ltd.</li>
<li>Hangzhou Permanent Magnet Group. Ltd.</li>
</ul>
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Global Rare Earth Magnets Market Assessment, Opportunities and Forecast, 2018-2032F

Global rare earth magnets market is expected to experience growth due to increasing demand for advanced materials in the EV manufacturing sector and a rising trend towards miniaturization and enhanced performance of consumer electronic devices.

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