The Freedonia Group has recently conducted a study on the $12.3 billion global magnet market that revealed that hybrid and electric vehicles (HEVs) is projected to be the fastest developing segment of the global automotive magnets market through 2023.
Additionally, the automotive market has the highest Magnet Value Demand (2018-2023) compared to electronics, industrial and other markets.
According to the study, the accelerating massive demand for HEVs has been a significant boost to the demand in neodymium and other rare earth magnets.
However, the Global Magnets study also shows that the key factors impacting the global magnet market are the rising emphasis on renewable energies and the supply and production of the raw materials.
It should be noted that these same rare earth metals are also used in the production of renewable energy and that the sales and production of electric vehicles are greatly dependent on government-issued subsidies and other incentives. Notably, some governments, including the United States, China, and the U.K., are reducing these subsidies which could adversely affect its sales in the near future.