Product Code: 47428
The Permanent Magnet Motor Market was valued at USD 30.11 billion in 2020 and expected to reach USD 52.31 billion by 2026 and grow at a CAGR of 10.08% over the forecast period (2021 - 2026). The COVID-19 outbreak has forced several industries to halt almost every industrial operation globally. Since the raw materials are bought in from China, the sourcing is affected by the United States' tariffs.
Further, amidst the pandemic spread of COVID-19, the market for PMMs, which has a significant application in industries (such as the manufacturing sector) and sees substantial adoption at the industrial front, is likely to be impacted. For instance, EV sales in China in 2020 were expected to decline by 23% year on year to 821,000 units, with a continued sales recovery expected in the second half of the year due to the pandemic.
- Permanent magnet motor (PMM) is witnessing a significant increase in demand due to its high efficiency and throughput. These motors cover a wide range of applications, from stepping motors for wristwatches and industrial drives for machine tools, to large PM synchronous motors for ship propulsion.
- Electric vehicles are expected to boost the growth of the market studied over the forecast period. The number of new EV cars registered globally hit an unprecedented market share in 2019, with the developed markets supporting this trend. With the leading automotive companies increasingly adopting permanent magnet motors into EVs, the global demand is expected to increase, further driving the market growth over the forecast period.
- Neodymium magnet accounted for the largest share in the market in 2019, and it is expected to be the fastest-growing magnetic material segment over the forecast period. The high energy product and high residual flux density of neodymium make it a compulsive choice of material for industrial applications. Neodymium offers both high- and low-grade variants, enabling it to deliver superior performance and torque, as compared to a conventional motor, thereby increasing its adoption. However, high prices and scarcity are likely to pose challenges to the growth of this material.
- The increasing demand for HVAC equipment is also expected to influence the market studied. It is majorly driven by the increase in the number of new households, rising average construction spending, rapid urbanization, and growth in disposable income across several major economies. The increasing standards on minimum energy efficiency on appliances and equipment are also driving the growth of PMMs in HVAC equipment.
Key Market Trends
Direct Current Motor Holds Significant Share
- Permanent DC motors have been popular in the industry since the industry started shifting from an induction motor. The DC motors offer a few advantages, such as ease of operation, compact size, and ability to perform without further control.
- PMDC motors are highly efficient, and they can provide considerable power and torque in a tiny form factor. Additionally, they can be easily interfaced with batteries because they have been widely used in various applications. Their compact size and compatibility with batteries provide opportunities for many newer applications and industries, like drones, regenerative braking, power tools, etc.
- PMDC motors have various applications in automobile components, which include windows and blowers used in AC and heaters, in personal computer disks and drives, as well as small power rating equipment, like toys and small robots.
- In recent years, the world witnessed the advent of electric vehicles. Electric cars are often considered as the future in the automotive market. Increasing adoption of PMDC motors in electric cars and increasing investments by leading players, like Tesla Motors, are expected to boost the market. The number of battery electric vehicles sold in the United States was approximately 245,000 in 2019, with sales of Tesla models accounting for almost 80% of that figure. (Inside EVs Estimates)
North America Holds Significant Market Share
- The North American region is expected to hold a significant share globally due to the increasing investments by market players and other organizations, coupled with government initiatives toward building an energy-efficient and sustainable environment. The strong wind energy sector is set to grow in the region and boost the growth of the permanent magnet market during the forecast period.
- With the focus on energy-efficient solutions rising, industries across the region are deploying PMM across various factory operation segments, in turn, augmenting the market for PMM. Canada is focusing heavily on energy consumption with programs like CIPEC (Canada Industry Program for Energy Conservation).
- Furthermore, Geomega Resources Inc, a rare earth cleantech developer for mining and recycling, collaborated with USA Rare Earth, a funding and development partner of the Round Top-Heavy Rare Earth and Critical Minerals Project West Texas, to recycle rare earth-containing production waste. This waste comes from USA Rare Earth's production of sintered neodymium iron boron permanent magnets (sintered neo magnets) in the United States. Such initiatives are expected to boost the adoption of PMMs in the region, especially in this sector, which is a major industry in the region.
The Permanent Magnet Motor Market is moderately competitive. Market incumbents can gain an advantage to garner a larger market share with innovations and investments in R&D. The intensity of competitive rivalry is expected to increase further, owing to increasing market penetration and deployment of powerful competitive strategies by market players.
- March 2021 - Siemens and Mercedes-Benz formed a strategic partnership for sustainable automotive production. Both the companies are planning to cooperate on advancing digitalization and automation in the automotive industry, supported by the State of Berlin. Mercedes-Benz AG is aiming to digitize its production processes. Siemens will be bringing its expertise and technologies to the partnership in order to develop highly flexible, efficient, and sustainable automotive production together with Mercedes-Benz.
- December 2020 - Toshiba Corporation developed a new magnetic material that delivers improved motor energy conversion efficiency. Through testing in an induction motor in the railway rolling stock drive systems, the company confirmed an efficiency increase of 0.9 pt, with an improvement approaching the efficiency of permanent magnet synchronous motors. The material can also be installed in permanent magnet synchronous motors to realize much higher efficiency.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Industry Attractiveness - Porter's Five Forces Analysis
- 4.1.1 Bargaining Power of Suppliers
- 4.1.2 Bargaining Power of Buyers/Consumers
- 4.1.3 Threat of New Entrants
- 4.1.4 Threat of Substitute Products
- 4.1.5 Intensity of Competitive Rivalry
- 4.2 Market Drivers
- 4.2.1 Increased Motor Efficiency due to Permanent Magnets
- 4.2.2 Rising Demand for Electric Vehicles
- 4.2.3 Rising Demand for Permanent Magnet Motor (PMM) in the Industrial Sector
- 4.3 Market Challenges
- 4.3.1 Diminishing Availability of Rare-earth Metals
- 4.4 Market Opportunities
- 4.5 Assessment of Impact of COVID-19 on the Permanent Magnet Motor Market
- 4.6 Technology Snapshot
5 MARKET SEGMENTATION
- 5.1 Motor Type
- 5.1.1 Direct Current (DC) Motor
- 5.1.2 Alternating Current (AC) Motor
- 5.2 Magnetic Material Type
- 5.2.1 Ferrite
- 5.2.2 Neodymium
- 5.2.3 Samarium Cobalt
- 5.2.4 Other Magnetic Material Types
- 5.3 End-user Vertical
- 5.3.1 Automotive
- 5.3.2 General Industrial
- 5.3.3 Energy
- 5.3.4 Water and Wastewater Management
- 5.3.5 Mining, Oil, and Gas
- 5.3.6 Aerospace and Defense
- 5.3.7 Other End-user Verticals
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Siemens AG
- 6.1.2 Rockwell Automation
- 6.1.3 ABB Limited
- 6.1.4 Franklin Electric Company Inc.
- 6.1.5 Allied Motion Technologies Inc.
- 6.1.6 Toshiba Corporation
- 6.1.7 Ametek Inc.
- 6.1.8 Johnson Electric Holdings Ltd
- 6.1.9 Autotrol Corporation
- 6.1.10 Robert Bosch GmbH
- 6.1.11 Danaher Corporation
- 6.1.12 Bonfiglioli Group
- 6.1.13 Aerotech Corporation
- 6.1.14 Crouzet Automatismes
- 6.1.15 Buhler Motors GmbH
- 6.1.16 Nidec Corporation
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET