Permanent Magnetic Motor Market

Market Overview

Global permanent magnetic motor market size was worth USD 33 billion in 2021. It is estimated to reach an expected value of USD 60 billion by 2030. The market is projected to grow at a CAGR of 10% during the forecast period (2022–2030). 

A brushless electric engine with permanent magnets instead of windings is known as a permanent magnet motor (PMM). From stepping motors for smartwatches to drive systems for device toolkits to huge PM synchronous motors for ship propulsion, these motors have a variety of features.

Due to their maximum reliability and efficiency, permanent magnet motors have seen a significant increase in implementation over the years. Due to product distinction and advancements endorsed by business incumbents, this growth is likely to continue in the years ahead.

Over the projected period, electric cars are anticipated to enhance the market's growth. As per the International Energy Agency, revenues from plug-in electric light cars will reach three million units by 2020. In the year 2020, electric vehicle revenue in Europe's five biggest markets increased dramatically. Due to a confluence of regulatory and compensation changes, Germany may become the biggest consumer of plug-in electric vehicles. The worldwide expectation for permanent magnet motors in electric vehicles is expected to increase as major automakers increasingly integrate them into their vehicles, igniting market growth over the prediction period.

Neodymium is accessible in both high-grade and low-grade forms, enabling it to outclass conventional motors in aspects of efficiency and torque, thereby broadening its appeal. Furthermore, neodymium's highly energetic product and significantly high flux density make it an indisputable choice for commercial processes. On the other side, high prices and scarcity are likely to restrict the material's growth.

The global permanent magnetic motor market is divided by motor type, magnetic material type, end-user, and regions. 

Market Dynamics

Permanent Magnetic Motor Market Drivers

• Increased Motor Efficiency due to Permanent Magnets

PMM has been found to be more efficient and faster than traditional ACIM due to the shortage of close interaction between the stator and rotor. As a result, it is now being used by multiple manufacturers in a variety of end-user industries worldwide.

The reduced operating temperatures of PMM reduce wear and tear while also reducing maintenance costs, making it an effective option for classical motors. PMM motors have been utilized in a multitude of sectors for years of trouble-free procedure in difficult situations due to their long load-carrying and insulation life and also their robust design.

In addition, unlike a regular synchronous motor, these motors produce a consistent, steady magnetic field. They provide the highest torque density despite having lighter permanent magnets. Despite the low initial cost of induction motors, higher operational costs have led many businesses to prefer PMM in order to maximize energy efficiency and achieve a faster return on investment.

A PMAC motor/drive arrangement's system efficiency has been determined to range from 40percent to over 120 percent load. A PMAC motor also has a higher energy density than an equivalent induction motor because rare-earth metals generate more flux. Losses on PMAC motors are 15-20% lower than on NEMA premium induction motors. PMAC motors have excellent transient performance and speed-control precision due to their synchronous operation, which is a substantial advantage in high-inertia positioning systems.

More VFD makers are starting to add features for higher performance control of PMM, which may facilitate owners and investors to configure motor systems to work more effectively, in smaller packages, and at lower costs, which is expected to continue over the forecast period.

• Rising Demand for Electric Vehicles

Over the decades, electric vehicles have gained popularity around the world in an effort to reduce levels of pollution, with automakers releasing more electric designs with greater mileage and cheaper costs. Furthermore, electric vehicles are becoming an essential component of the automotive industry, portraying a path to improved energy efficiency and also lower pollution and many other greenhouse gas emissions. The growth of electric vehicles is aided by rising energy costs and competition among developing energy-efficient technologies.

With government assistance, business uptake, and consumer expectations, the electric vehicle (EV) industry in top countries like China, Norway, Sweden, the United States, and Japan reached record sales in 2019 and is expected to continue growing in the years ahead. The International Energy Agency (IEA) estimates that global electric car sales increased to over 3 million, with a share of the market of over 4%, largely owing to current policy aid and additional stimulus indicators. As a result, 2020 will be a milestone year for electric mobility.

This represents a 40% increase in global sales from the 2.1 million electric cars sold in 2019 and marks a profit to the double-digit growth rates seen from 2010 to 2018. As a result, there are now over 10 million electric cars on the road around the world. Nevertheless, electric vehicles account for only one-tenth of total vehicle sales compared to conventional SUVs.

Market Restraints

• Diminishing Availability Of Rare-Earth Metals

The majority of rare earth-enabled constituents for moving appliances, including automobiles, trucks, rail lines, planes, manufacturing power generators, household appliances, and consumer products, are made in China or Japan. The export of such material was hampered by the Covid- 19 pandemic. Due to China's monopoly on rare earth manufacturing and rare earth empowered component manufacturing, this will have a cascade effect on the American and European economies.

Cerium and lanthanum, which are utilized in flat-screen television polishing and oil refining, have fallen by as much as two-thirds as of August and are still dropping. Furthermore, due to continually changing economic conditions, which have induced shifts in the places of rare earth productivity and increased manufacturing, new applications for rare earth elements are being developed.

Market Opportunities

• Growing Potential for Permanent Magnet Motor (PMM) in the Industrial Sector

Permanent magnet motors are utilized in a variety of industrial implementations to improve machine efficiency. Permanent magnet motors are used in forklifts, marine pipes, robots, and railroads, to name a few applications. Electric motors are expected to cost about 45 percent of total electricity usage. The percentage attributed to motors in the industrial sector, in particular, rises to around two-thirds of the power consumption by the plant.

Many companies have adopted magnetic motors, like permanent magnet synchronous motors and synchronous reluctance motors, as a result of these factors, as well as an increased understanding of the importance of reducing power consumption.

Over the projected period, the market is projected to expand due to increased measures by the government and regulated officials in North America to facilitate the adoption of a unified environment throughout multiple industries. Automation was discussed as a tool for entities to utilize and explore in the 2018 Management Agenda and the Fiscal Year 2020 United States Budget Plan in order to manage employees and financial concerns and provide improved services to the public. Such initiatives are expected to boost growing demands for energy-efficient motors.

High-efficiency electrical machines are currently a new and prominent trend in the market in North America. Motors for higher efficiency classes, such as IE4 and IE percent, are now being developed. IE4 electrical motors are already on the market, and IE5 machines are being considered by a number of major manufacturers.

Regional Analysis

Fastest Growth in Asia-Pacific

The global permanent magnetic motor market share is segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2021, North America accounted for the largest share of the permanent magnetic motor market. The North American permanent magnetic motor market is expected to generate a value of USD 38,424 million by 2030, at a CAGR of 9%. 

Owing to increased investments by market participants and other entities and also federal programs intended to create an energy-efficient and environmentally friendly ecosystem, the North American region is expected to account for a significant portion of the global market. The region's strong wind energy industry is expected to grow during the forecast period, boosting the permanent magnet market's expansion. 

The Asia-Pacific permanent magnetic motor market is expecting lucrative growth in the coming future. The Asia-Pacific permanent magnetic motor market is expected to generate a value of USD 16,280 million by 2030 at the highest CAGR of 11% during the forecast period. The Asia-Pacific region remains a robust and strong market for permanent magnet motors in the world. The recent gain in momentum for the largest economies in the region, reflecting policy stimulus in Japan and China, benefits other economies in the region.

Europe

The permanent magnet motor market is projected to expand profitably in European nations. The shifting trend toward electric automobiles may anticipate the market for permanent magnet motors to lessen the significant issue of global warming and the increase of wind power installations. The e-mobility investments planned by Germany, the UK, Norway, and France could propel the demand for permanent magnet motors. 

Segmental Analysis

The global permanent magnetic motor market share is classified into motor type, magnetic material type, and end-user. Based on motor type, the permanent magnetic motor market is segmented into the direct current motor and alternating current motor. 

The alternating current (AC) motor segment is dominant over other product types of Permanent Magnetic Motor and is expected to generate USD 45,052.98 million by 2030, and it is expected to grow at a CAGR of 9.35% during the forecast period. 

Permanent magnet AC motors (PMAC) are similar to classic induction AC motors, but apart from that, their rotors are permanently magnetized with rare-earth magnets (the center part of the motor that spins). The motor loses less energy when fixed magnets are used instead of electromagnets. Synchronous AC motors are more effective than electronically commutated motors (ECMs).

Permanent magnets are either applied to the top or fitted in the rotor lamination layers of an induction motor in a permanent magnet AC motor (PMAC). Torque is generated by the field generated by permanent magnets. Permanent uses where the device is connected to an outlet or a three-phase line input are more likely to use AC motors.

Due to their better efficiency and lighter weight, permanent magnet AC motors are expected to grow rapidly in the coming years. PMAC motors have been demonstrated to be 5-10% more efficient than DC motors.

By Magnetic Material Type

The market is classified into ferrite, neodymium, samarium cobalt, and others. The neodymium segment is anticipated to generate USD 49,390 million by 2030 at a CAGR of 11%. 

The automotive sector has a broad spectrum of applications. Neodymium magnets are commonly used in hybrid and electric vehicle engines. Neodymium magnets have a higher resistivity, retentivity, and power generation than other forms but a lower Curie temperature. The advancement of neodymium magnets has proven to be beneficial for corporates that monopolize the automotive industry, such as one of Japan's major manufacturers, which used 30 kilogrammes of rare earth materials in its latest models, with neodymium magnets accounting for a significant portion of that. Toyota has developed a new magnet for high-energy applications such as electric motors that contains a fraction of the neodymium found in traditional iron, boron, and neodymium (NdFeB) magnets. 

By End-User

The permanent magnetic motor market is classified into automotive, aerospace and defense, water and wastewater treatment, general industrial energy, mining, oil, and gas, and others. The general industrial segment was the highest contributor to the market and is estimated to reach USD 18,074 million by 2030, at a CAGR of 9% during the forecast period. 

In the field of industrial automation and robotics, permanent magnetic motors are widely used. PMMs are ideal for the handling of materials, conveyor belts, blenders, grinders, and a variety of other applications because they provide high operational efficiency even at part speed and part load. Industrial robots, which offer high torque density, high durability, and increased motor performance, have become available as a result of technological advancements. The demand for PMMs is expected to rise in tandem with the industry's greater popularity of robots.

DC Motor

Since the industry began moving away from an induction motors, permanent DC motors have become commonplace. The benefits of DC motors include their simplicity, portability, and ability to function without additional control. An engine with a long-lasting magnet shaft is a magnet dc engine that is exceptionally durable. Instead of using the field winding in this engine, the magnet might make the motion work inside the air hole. A straight DC engine's rotor construction is similar to this one. The armature center, commutator, and armature winding make up the rotor of a PMDC engine. Armature and recorded windings are the two types of winding found in a typical DC engine. While armature winding can be twisted on the rotor, the primary function of field twisting is to create an appealing transition inside the air hole while being twisted on the engine's stator. Inert carbon brushes are compressed against the commutator like a standard DC engine. The working voltage for the PMDC engine is a DC supply of 6 volts, 12 volts, or 24 volts obtained from the voltage sources.

Impact of covid-19

The COVID-19 outbreak has forced several industries to shut down almost all of their operations around the world, affecting the permanent magnet motor market's growth. The sourcing is affected by US tariffs because the raw materials are purchased from China.

Furthermore, as a result of COVID-19's pandemic spread, the market for PMMs, which has significant applicability in industries (such as manufacturing) and sees significant uptake on the industrial front, is likely to be disrupted. For example, EV sales in China are expected to drop 23% year over year to 821,000 units in 2020, with a continued sales recovery expected in the second half of the year due to the outbreak.

Furthermore, due to weak fleet orders, the major automotive manufacturers in the United States reported lower monthly or quarterly new vehicle sales. Despite the ongoing COVID-19 pandemic, several automakers stated that consumer demand remained strong. In the second quarter of 2020, Fiat Chrysler Automobiles NV revealed a 39 percent drop in sales. Due to the reopening of the US economy, the company stated that its retail sales had been finally recovering since April. As the automotive industry slowly recovers from the COVID-19 pandemic, more opportunities for the region's permanent magnet motor market will emerge.

Despite the COVID-19 crisis, demand for electric cars in the UK is increasing, according to the SMMT. Despite the negative effects of the COVID-19 pandemic, electric and hybrid vehicle sales in Brazil increased in 2020, as per the Brazilian Association of Electric Vehicles. In 2020, the South American country sold nearly 20,000 vehicles, an increment of more than 66 percent over the previous year. As a result, since 2006, 42.5 thousand units have been sold in Brazil.

As per the Federal Reserve, US industrial production fell 15.30 percent in May 2020 compared to the same month the previous year. It came after a revised 16.2% drop in April, as many manufacturers restarted provisional operations after being shut down due to the COVID-19 pandemic, which further impacted the market.

Recent Developments

• In December 2022, ICE 3neo will be provided by Siemens Mobility to Deutsche Bahn.
• In August 2022, Bravo Motor Company and Rockwell Automation announced a partnership.
• In July 2022, Rockwell Automation Expands Applications for Smarter Drive Capabilities.
• In December 2022, ABB is preparing for the ninth season of Formula E.
• In December 2022, Toshiba will increase its capacity for producing power semiconductors with a new production facility.