Global Soft Magnetic Materials Market to Reach US$28.7 Billion by 2030

The global market for Soft Magnetic Materials estimated at US$21.6 Billion in the year 2023, is expected to reach US$28.7 Billion by 2030, growing at a CAGR of 4.1% over the analysis period 2023-2030. Electrical Steel, one of the segments analyzed in the report, is expected to record a 4.4% CAGR and reach US$17.1 Billion by the end of the analysis period. Growth in the Soft Ferrite segment is estimated at 3.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.8 Billion While China is Forecast to Grow at 6.6% CAGR

The Soft Magnetic Materials market in the U.S. is estimated at US$5.8 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$6.0 Billion by the year 2030 trailing a CAGR of 6.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.3% and 3.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR.

Global Soft Magnetic Materials Market - Key Trends and Drivers Summarized

What Makes Soft Magnetic Materials Essential in Electrical and Electronic Applications?
Soft magnetic materials, known for their high magnetic permeability and low coercivity, are essential in various electrical and electronic applications, particularly in power generation, distribution, and electronic devices. These materials, including silicon steel, ferrites, and amorphous alloys, are primarily used in transformers, inductors, motors, and generators to enhance energy efficiency by reducing energy losses during magnetization and demagnetization cycles. The growing demand for energy-efficient electrical components, driven by the rising emphasis on sustainability and energy conservation, is propelling the market for soft magnetic materials. The increasing adoption of electric vehicles (EVs), which require high-performance motors and charging infrastructure, is further driving the demand for advanced soft magnetic materials. Additionally, the expansion of renewable energy projects, such as wind and solar power, is creating new growth opportunities for soft magnetic materials in power transformers and grid applications.

How Are Technological Innovations Enhancing the Performance of Soft Magnetic Materials?
Technological advancements in material science and processing techniques are significantly enhancing the performance, efficiency, and application scope of soft magnetic materials. The development of advanced alloys, such as amorphous and nanocrystalline materials, which offer superior magnetic properties, high electrical resistivity, and reduced energy losses, is driving innovation in the market. These materials are increasingly being used in high-frequency transformers, inductors, and sensors for electronic devices and power systems. The introduction of additive manufacturing (3D printing) technologies for the production of soft magnetic components is enabling more complex geometries, lightweight designs, and customization, catering to the growing demand for miniaturized and high-efficiency components in consumer electronics and automotive sectors. These innovations are expanding the potential applications of soft magnetic materials, supporting their growth across various industries.

Which Market Segments Are Driving Growth in the Soft Magnetic Materials Industry?
Material types include electrical steel, nickel-iron alloys, cobalt-iron alloys, soft ferrites, and amorphous alloys, with electrical steel holding the largest market share due to its widespread use in transformers and motors. Applications of soft magnetic materials span across transformers, motors, inductors, sensors, and reactors, with transformers and motors being the dominant segments due to their critical role in power generation and distribution systems. End-use industries comprise automotive, electronics, power generation, telecommunications, and aerospace, with automotive and electronics leading the market due to the rising demand for energy-efficient and compact components. Geographically, Asia-Pacific is the largest market for soft magnetic materials, driven by its strong manufacturing base, while North America and Europe are also significant markets due to technological advancements and the growing adoption of renewable energy systems.

What Are the Key Drivers of Growth in the Soft Magnetic Materials Market?
The growth in the soft magnetic materials market is driven by several factors, including the increasing demand for energy-efficient electrical and electronic components, advancements in material science, and the expansion of renewable energy and electric vehicle sectors. The growing focus on reducing energy losses in power systems and enhancing the efficiency of transformers and motors is driving the adoption of advanced soft magnetic materials. Technological innovations in amorphous and nanocrystalline alloys, coupled with the development of additive manufacturing techniques, are enhancing the performance and versatility of soft magnetic materials, supporting market growth. The rising adoption of electric vehicles and the expansion of renewable energy projects are creating new opportunities for soft magnetic materials in power conversion and distribution applications. Additionally, the increasing emphasis on miniaturization, lightweight materials, and high-frequency applications in consumer electronics and automotive sectors is further propelling market growth.