Superior Properties of Soft Magnetic Powder to Contribute to the Overall Market Growth
Nano crystalline nature of soft magnet powder allows for improved saturation flux density and exhibits higher permeability. Other properties of soft magnet powder such as high resistance to temperature, low core loss and low aging effect has fuelled their demand across a diverse range of industrial applications such as motors, transformers, inductors, and generators. The increasing demand of soft magnet powder in electronics industry is another crucial factor providing an impetus to the growth of the market. This is mainly due to ongoing efforts by researchers in the electronics sector towards development of less impacting and high intensity equipment.
Significant Demand from the Automotive Industry to Influence Soft Magnet Powder Market Growth
Power electronics has been prevalent across several industrial applications, making it a crucial aspect in controlling and conversion of electric power. That said the demand for power electronics in the automotive sector has been increasing significantly to obtain higher reliability and improved efficiency of automotive electronics. In addition, various electronic components that require large space inside the vehicle system, such as inductors, are undergoing a significant dimensional reduction, which has fuelled the use of soft magnet powder. A soft magnet powder facilitates reduction in dimension of bigger electronic components and at the same time promotes operational efficiency. Moreover, they facilitate reduction in carbon emissions and promote optimum fuel consumption.
Additionally, use of soft magnet powder in hybrid and electric vehicles on the back of increasing adoption of axial flux motors in these vehicle types has been increasing. This factor continues to present potential growth opportunities for the soft magnet powder market owing to the steady rise in the automotive sector. Complementing to the use of axial motors, the focus on reduction in carbon emissions and strict emission norms have led to a push in the manufacturing of electric vehicles, which is likely to further influence the growth of the soft magnet powder market. In this backdrop, perceived benefits such as enhanced energy saving, low noise generation and compact design continue to fuel demand for soft magnetic material in electric and hybrid vehicles, in turn bolstering growth of the soft magnet powder market.
Electrical Steel to Largely Contribute to the Soft Magnet Powder Market Valuation
Powder metallurgy has witnessed a huge transformation as it penetrates further into various electrical applications. Electrical steel, being one of the ingenious products of powder metallurgy has been one of the crucial materials used in transformers, generator materials and motors. Electrical steel demand has been reflecting a steady increase since past few years and is expected to maintain this trend in the future. This can be attributed towards its functional advantages such as enhanced performance through low core loss, higher permeability and reduced power loses per cycle. Moreover, it also facilitates huge cost savings and increased safety. This has impelled the demand of electrical steel and is expected to significantly contribute to the overall valuation of the soft magnet powder market.
Asia Pacific to Remain a Lucrative Regional Market
Demand for soft magnet powder across emerging economies in Asia Pacific is likely to spearhead in the years to follow. Increasing demand for electricity on the back of growing population coupled with flourishing industrialization continue to influence the use of advanced powder metallurgy consequently impacting soft magnet powder market. This has translated into an increased demand for transformers and motors. For instance, in 2019, WEG devised a plan to manufacture low voltage motors in India. WEG’s new unit started its operations in Hosur in 2021. The investment was about US$ 20 million with the plant having a high production capacity, manufacturing approximately 250,000 motors per year. Such investments are likely to favour the growth of the soft magnet powder market.
In addition, growing automotive industry across countries such as India and China in the region complements to the demand for soft magnet powder. Increasing electric vehicle manufacturing in particular has translated into significant opportunities for soft magnet powder vendors. According to IEA (International Energy Agency), around 1.2 million electric vehicle registrations were recorded in China in 2020. Moreover, electric buses in China are increasing followed by India and other ASEAN countries. Off these, China holds around 98% share in the electric bus stock, making it an attractive opportunistic market for soft magnet powder. In this background, manufacturers and vendors of soft magnet powder can expect a volley of potential opportunities from emerging economies in Asia Pacific.
Soft Magnet Powder Market: Competitive Landscape
Few of the major players in the soft magnet powder market include SG Technologies Ltd., Daido Steel Co. Ltd., Mate Co. Ltd., Hitachi Metals Ltd., and Steward Advanced Materials.
Global Soft Magnet Powder Market is Segmented as Below:
By End Use Industry
Key Elements Included In The Study: Global Soft Magnet Powder Market
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