Global Soft Magnetic Composite Market Size, Share, and COVID-19 Impact Analysis, by Material Type (Soft ferrite, Electrical steel, Iron, Cobalt, Others), by Application (Motors, Transformers, Generators, Sensors, Others), by End-Use (Automotive, Consumer Electronics, Power Generation, Telecommunications & Others), and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2030

Key Market Insights

Soft Magnetic Composite Market was valued at USD 19.5 billion in 2021 and is projected to grow USD 42.1 billion by 2030, at a CAGR of 8.1%. Soft magnetic materials are becoming increasingly important in a variety of end-user industries and applications due to their high permeability and ability to reduce eddy current loss. Due to their superior magnetic characteristics and productivity, iron-based soft magnetic composites are a possible substitute for laminate steel in electromagnetic applications.

Because electrical steel is used in only a few applications in soft magnetic composites, the electrical steel segment is expected to grow steadily throughout the projected period. Higher-performance motors are required as a result of advancements in electric mobility as well as improvements in the efficiency of home appliances and industrial equipment.

COVID-19 ANALYSIS

The outbreak of COVID-19 impacted severely the growth of the soft magnetic composite market. As motors are utilized in car production, a further decline in vehicle production has harmed the business of soft magnetic composites. However, when the economy improves and the performance of industries and the construction sector improves, soft magnetic composites demand is likely to return to its previous level or exceed it starting in 2021.

The lockdowns and stringent government laws disrupted the supply and demand for raw materials, limiting manufacturing and significantly hurting production facilities around the world. Due to a scarcity of workers, nationwide lockdowns, and a slowing economy, ongoing building projects have suffered. The most widely reported impact of COVID-19, according to Lexology, is a severe labor shortage.

Prevalence of Industry 4.0 is Favoring the Market Growth

The prevalence of Industry 4.0 is likely to propel the market share. The growing need for vital equipment such as traction motors, air conditioning compressors, and pumps is propelling the soft magnetic composites market forward. Soft magnetic composites (SMCs) have a variety of uses, which means income prospects for SMC makers.

Increasing Shifts from Traditional Laminated Steel Cores to Soft Magnetic Composite

The increasing usage of traditional laminated steel to soft magnetic composites is favoring the market growth. Soft magnetic composites are projected to have increased demand in the next years for electrical coils, motors, generators, transformers, inductors, sensors, and other applications.

Soft magnetic composites have demonstrated efficient production in end products. Soft magnetic composite has superior performance qualities, such as low eddy current loss, thermal properties, and reduced total care loss at high and medium frequencies, which are expected to boost the soft magnetic composites market forward in the upcoming years.

Furthermore, the market is expected to grow over the next decade due to the cost-effective features and compact designs associated with soft magnetic composites, along with the growing need for electromagnetic devices.

Increasing Demand for Customization from Different End Users

The increasing demand for customization from different end users is favoring the market growth. The consumer electronics and power generation such as refrigerators, motors, and generators, amongst others are increasing from the usage perspective among the population to create larger footfalls.

Limited Knowledge of Qualified Electric Motor Professionals

There is a lack of skilled professionals for operating electric applications is likely to hinder the growth of the soft magnetic composite market. Despite the fact that electric motors are used in almost all industrial applications, there is a need for guidance on how to select qualified electric motor providers. This is evident since the automotive manufacturing industry's unusual needs are driving a desire for creative design solutions from skilled vendors.  

SEGMENTATION

The global soft magnetic composite market is segmented by Material Type (Soft ferrite, Electrical steel, Iron, Cobalt, Others), by Application (Motors, Transformers, Generators, Sensors, Others), by End-Use (Automotive, Consumer Electronics, Power Generation, Telecommunication & Others) and region. Based on the application type, the market is categorized into soft ferrite, electrical steel, iron, Cobalt, Others. Based on application, the market is categorized into motors, transformers, generators, sensors, others. Based on end-use, the market is categorized into automotive, consumer electronics, power generation, telecommunications & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.

Application Insights

Based on the application segment, the global soft magnetic composite market is categorized into motors, transformers, generators, sensors, others. The motors held the largest market share in 2020 of the global soft magnetic composite market attributing to high demand due to the rapid rise of electric vehicles and sophisticated axial flow motors around the world.

End-Use Insights

Based on the end-use segment, the global soft magnetic composite market is categorized into automotive, consumer electronics, power generation, telecommunications & others. The automotive segment is dominated the market share in 2020 owing to high demand for green hydrogen cells and battery-powered electric cars, as well as significant revenue generation in this area. Rising per capita income, particularly in emerging countries rapid residential growth in both urban and semi-urban areas in this region would considerably contribute to the growth of the concerned market.

REGIONAL INSIGHTS

Asia Pacific region is dominating the market share of the soft magnetic composite market owing to the rising population and urbanization activities. The need for soft magnetic composite has increased as the region's consumer electronics and automotive development activities have increased. In recent years, market expansion has been spurred by population growth and an increase in disposable income in emerging countries. Furthermore, the consumption of soft magnetic composite has increased in India and China, and the building industry in the region has been fast growing thanks to increased government investment.

However, North America is expected to witness the highest growth rate during the forecast period of the global soft magnetic composite market owing to the rising demand from automotive manufacturers, owing to increased production of light-weight vehicles and electric automobiles, as well as attractive financial incentives from the government in the region, are expected to fuel market expansion in the region over the forecast period.

INDUSTRY PLAYERS

· Hitachi Metals, Ltd.

· Toshiba Materials Co., Ltd.

· Steward Advanced Materials LLC

· Sintex a/s

· MMG Canada Ltd.

· GKN Powder Metallurgy

· Höganäs AB

· Rio Tinto Metal Powders

· PMG Holding GmbH

· VACUUMSCHMELZE GmbH & Co. KG

· Sumitomo Metal Mining Co., Ltd.

· DMEGC

· JFE Steel Corporation

· TOKUSHU KINZOKU EXCEL CO.,LTD

· Mitsubishi Materials Trading Corporation

KEY INDUSTRY DEVELOPMENTS:

January 2022- JFE Steel Corporation launched Denjiro which is a pure iron powder insulation-coated for soft magnetic composites ideally suited to axial gap motors.

SEGMENTATION

By Material Type

• Soft ferrite
• Electrical steel
• Iron
• Cobalt
• Others

By Application

• Motors
• Transformers
• Generators
• Sensors
• Others

By End-Use

• Automotive
• Consumer Electronics
• Power Generation
• Telecommunications
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia