Market Projections (2023-2032):

The Soft Magnetic Material Market size was valued at around USD 56.33 Billion in 2023 and is expected to reach a value of USD 127.3 Billion by 2031, at a CAGR of 7.8% over the forecast period (2024–2031).

The market is expected to increase as a result of expanding power distribution and rising demand for motors in a variety of applications, particularly medical equipment. Innovations in the field of renewable energy harvesting, greater expenditures in the power distribution industry, and the growing demand for electric vehicles are all contributing factors to the market's growth. For example, in 2021 the European Investment Bank committed to investing in energy efficiency & renewable energy projects worldwide. The United States is producing more motors, transformers, and generators as a result of growing investments in the power transmission industry, the manufacture of electric vehicles, and the production of medical equipment. This is increasing the need for soft magnetic materials in the nation.

Dana TM4 is a joint venture firm that creates and produces electric motors. The market is still in need of soft magnetic materials because of its low coercivity, considerable resistivity to electricity, corrosion resistance, formability, ease of magnetization, and useable temperature range. Magnetic materials can be classified as soft, semi-hard, or hard. The primary usage of soft ferromagnetic magnets is in electric circuits, and they are employed to increase the magnetic flux density produced by electric currents in a magnetic field. Consequently, these are mostly used in applications pertaining to electric power, radio signal reception, relays, inductors, electromagnets, and microwaves.

One of the main markets for motors is the power sector, which is expected to rise as a result of factors like population expansion, quickening infrastructure construction, rising manufacturing activity, and energy reaching rural areas of emerging countries. Furthermore, it is expected that government initiatives like DDUGJY, IPDS, and progressive measures aimed at enhancing distribution and increasing power generation capacity will contribute to the sector's growth. This, in turn, will increase demand for motors and eventually soft magnetic materials during the forecast period.

The COVID-19 pandemic has had a significant impact on a number of areas, including the supply and price of soft magnetic materials. On the other hand, the pandemic has also increased the need for medical devices such as ventilators, which use motors to provide controlled airflow, high torque density, appropriate control, and reduced noise. The world's coronavirus patient population is growing at an accelerated rate, which is driving up demand for ventilators and eventually driving market growth.

Market Dynamics:

Market Drivers

Increasing Demand for Electric Vehicles (EVs) and Renewable Energy Systems

• The Soft Magnetic Material market is the increasing demand for electric vehicles (EVs) and renewable energy systems such as wind turbines and solar power generators. Soft magnetic materials are essential components in the production of electric motors, generators, transformers, and other power conversion devices used in EVs and renewable energy applications. With the global transition towards sustainable energy solutions and the adoption of electric transportation, there is a growing need for efficient and lightweight soft magnetic materials that can improve the performance and efficiency of electrical machines. Soft magnetic materials enable the design of compact, high-efficiency electric motors and transformers capable of meeting stringent energy efficiency standards and reducing carbon emissions. The expanding market for EVs and renewable energy systems drives demand for soft magnetic materials, creating opportunities for manufacturers and suppliers in the industry.

Technological Advancements and Material Innovations

• The ongoing development of new materials and technologies in soft magnetic materials. In order to create novel soft magnetic materials with improved magnetic properties—such as high saturation flux density, low coercivity, and minimal hysteresis losses—manufacturers and research organizations are investing in research and development efforts. Amorphous alloys, nanocrystalline alloys, and powder metallurgy compositions designed to have exceptional magnetic performance and thermal stability are examples of advanced soft magnetic materials. Furthermore, the development of processing methods like annealing, sintering, and thin-film deposition makes it possible to produce soft magnetic materials with precise microstructures and customized magnetic characteristics for particular uses. The availability of advanced soft magnetic materials enables the design and manufacturing of next-generation power electronics, magnetic sensors, and electromagnetic devices with improved efficiency, reliability, and performance characteristics. Technological advancements drive market growth and competitiveness in the Soft Magnetic Material segment, offering solutions to address evolving customer needs and industry requirements.

Market Trends

Increasing Demand for Miniaturization and High-Efficiency Devices

• The increasing demand for miniaturization and high-efficiency devices across various industries. As electronic devices become more compact and energy-efficient, there is a growing need for soft magnetic materials that can support smaller form factors and higher power densities. Soft magnetic materials play a crucial role in the design and manufacturing of miniaturized components such as inductors, transformers, magnetic sensors, and wireless charging systems used in smartphones, wearables, IoT devices, and automotive electronics. Manufacturers are developing soft magnetic materials with improved magnetic properties, reduced core losses, and enhanced thermal stability to meet the performance requirements of miniaturized electronic devices. The trend towards miniaturization drives innovation and market adoption of advanced soft magnetic materials capable of delivering high efficiency and reliability in compact electronic systems.

Emergence of High-Frequency and Power Electronics Applications

• The emergence of high-frequency and power electronics applications requiring specialized magnetic materials with tailored properties. With the increasing adoption of high-frequency power converters, wireless communication systems, and advanced power distribution networks, there is a growing demand for soft magnetic materials capable of operating efficiently at elevated frequencies and power levels. Soft magnetic materials such as ferrites, iron alloys, and powdered cores are used in the design of high-frequency transformers, inductive components, and magnetic shielding solutions for power electronics applications. Manufacturers are developing soft magnetic materials optimized for high-frequency operation, low core losses, and electromagnetic interference (EMI) suppression to address the requirements of next-generation electronics and communication systems. The emergence of high-frequency and power electronics applications drives market growth and innovation in the Soft Magnetic Material segment, offering solutions to support the development of advanced electronic devices and infrastructure.

Market Restraining Factors:

Volatility in Raw Material Prices

• The price volatility of raw materials, especially for essential elements used in the production of soft magnetic materials, is a major barrier to the growth of the soft magnetic material industry. When creating soft magnetic alloys and powders, elements like nickel, cobalt, and rare earth metals are necessary. Global commodities market volatility, geopolitical unrest, and supply chain interruptions can cause raw material prices to fluctuate significantly, which can have an effect on production costs and profit margins for companies that make soft magnetic materials. Sudden spikes in raw material prices may force manufacturers to adjust pricing strategies, seek alternative material sources, or implement cost-saving measures to remain competitive in the market. Additionally, price instability in raw material markets can create uncertainty for customers and end-users, affecting purchasing decisions and investment in soft magnetic components and systems.

Report Coverage:

The report will cover the qualitative and quantitative data on the global Soft Magnetic Material Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

By Product (Electrical Steel, Ferrite, Permalloys, Others), By Application (Motors, Transformers, Alternators, Others), By End User (Electrical, Electronics & Telecommunications, Automotive, Others)

Report Scope and Segmentations:

Soft Magnetic Materials Market Players Analysis:

• SG Technologies
• VACUUMSCHMELZE GmbH & Co. KG
• Steward Advanced Materials LLC.
• MATE CO., LTD
• KN Powder Metallurgy 
• Hitachi Metals, Ltd
• Sintex
• Toshiba Materials Co Ltd,
• AMES (Spain), Daido Steel
• Fluxtrol Inc,
• FJ Industries A/S
• Arnold Magnetic Technologies
• voestalpine High Performance Metals GmbH
• BMW AG
• FCA US LLC

Key Industry Developments:

• In January 2024, A scalable and reliable technology that uses soft magnetic materials and room temperature operation to transfer signals between individual qubits across a chip rather than through air has been developed by researchers from the University of Chicago, Argonne National Laboratory, University of lowa, and Tohoku University.
• In August 2023, Scientists at City College of New York have found a way to trap light in soft magnetic materials. The technique involves extremely low temperature cooling of a crystal followed by its placement in a strong magnetic field.

Soft Magnetic Materials Market Segmentation Analysis:

The report also helps in understanding Global Soft Magnetic Materials Market dynamics, structure by analyzing the market segments, and project the Global Soft Magnetic Materials Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Soft Magnetic Materials Market make the report investor’s guide.

Segmentation Analysis:

The market scope is segmented because of by Application, by Product.

By Application

Based on the Product of the market is segmented into Motors, Transformers, Alternators, Others.

The motor application is the most significant and fastest-growing application field due to the increased demand for soft magnetic materials from the electric and automotive industries. Metallurgical powder technology, which produces motor components with better rigidity and leniency than the conventional method of stacking punched laminations, is superior. Actuators for valve control, magnetic sensors, and impact printer heads are other devices that use soft magnetic material. The rapid processes of urbanization and industrialization are expected to increase demand for electric motors, which in turn would drive the market for soft magnetic materials.

Soft magnetic materials are used in transformer cores, which is the second-largest application category in the soft magnetic material market. Growth in the transformer sector, which has been aided by a number of investments, is anticipated to accelerate market expansion. facility in the United States and will commit USD 86.9 million in funding. At the site, HICO will manufacture core-form power transformers.

By Product

Based on Indication the market is segmented into Electrical Steel, Ferrite, Permalloys, Others.

The most profitable type of steel was electrical steel, which made up more than 60% of all sales. Transformer cores use iron-silicon alloys because silicon increases electric resistance and shortens the magnetization's length. Electrical steel is growing ever more in demand, which is forcing producers to increase output. To address the growing demand from industries like new energy vehicles, Baosteel, for instance, stated in September 2020 that it will be constructing a manufacturing line for high-grade non-oriented silicon steel. By June 2023, the trial production is anticipated to have concluded by the end of 2021.

In 2021, ferrites accounted for the second-largest product segment in the market. Soft ferrites include nickel-zinc and manganese-zinc. Because manganese-zinc ferrites require high saturation flux density and permeability, they are used in magnetic cores in noise filters, choke coils, and transformers. Although nickel-zinc ferrites are employed in high-frequency applications, their inefficiency in maintaining low power loss makes them unsuitable for use in transformers that switch power supply. Additionally, soft ferrites have a lower volume share in their market since they have a lower saturation flux density than electrical steel.

Regional Snapshots:

By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. The Asia-Pacific region is expected to hold a sizable market share in the global soft magnetic materials market as a result of expanding industrialization, technological advancements, and the increased demand for electronic devices and electric cars. The region is a major center for the manufacture and use of soft magnetic materials, with South Korea, China, and Japan leading the way in invention and manufacturing. Due to factors including the successful transition of the automotive sector towards electric mobility and the growing emphasis on renewable energy sources, the Asia-Pacific region is becoming more and more significant in the global soft magnetic materials market.

The North American market is anticipated to increase significantly during the estimated period, driven by advancements in soft magnetic material technology. The global market for soft magnetic materials is anticipated to grow steadily, with the European region serving as a hub for the companies that manufacture automobiles worldwide. Due to favorable investment circumstances, the South American market has seen an increase in foreign investment in the automotive and electronics sectors. This has expanded the growth prospects for global producers of soft magnetic materials.

Soft Magnetic Materials Market Report is also available for below Regions and Country Please Ask for that:

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

• How much the global Soft Magnetic Materials Market valued?
• Which region has the largest share in 2023 for the global Soft Magnetic Materials Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Soft Magnetic Materials Market:

• Historic year: 2018- 2022
• Base year: 2023
• Forecast: 2024 to 2031
• Representation of Market revenue in USD Million

Soft Magnetic Materials Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: