Soft Magnetic Composites (SMCs) Market

Soft Magnetic Composites (SMCs) Market Outlook (2023 to 2033)

The global soft magnetic composites (SMCs) market is valued at US$ 4.5 billion in 2023 and is forecasted to reach US$ 8.9 billion by 2033-end. The market is predicted to expand at a CAGR of 7% from 2023 to 2033.

• Rising demand for motors in the automotive and electric sectors is fueling the consumption of soft magnetic composites.
• Application of soft magnetic composites in motors currently accounts for 60% share of the global market.

A uniform electrically insulating coating is applied to ferromagnetic powder particles to create soft magnetic composites. Soft magnetic composites are used in a variety of industries, from electronics to automotive and energy.

Iron is typically used in soft magnetic composites. The material is pre-mixed with compaction lubricant to smooth the route for compaction and ejection from the die. The lubricant is eliminated during heat treatment.

SMCs are commonly used to create lightweight, high-performance electromagnetic composites that are also affordable. The fabrication of vehicle parts such as traction motors, air conditioning compressors, pumps, onboard chargers, and other parts mostly uses these composite materials.

The benefits of soft magnetic composite materials are found in the powder's capacity to take on various shapes, which is easily accomplished with soft magnetic powders. The global market is being significantly impacted by ongoing product improvements, rising investments in the electrical industry, and rising sales of electric vehicles.

The market for soft magnetic composites will continue to be driven by the advantages of efficient output and good chemical characteristics. The market is predicted to grow due to the cost-effective features and compact designs associated with these materials, which are driving up demand for electromagnetic devices.

The market has grown significantly as a result of rising demand from the automotive and energy sectors. Furthermore, it is anticipated that the market for soft magnetic composites will rise over the coming years due to an increase in nuclear power plants and electrical appliances. The demand for solar panels has increased, creating a domino effect that has positively impacted the market space posture of SMCs, which may be attributed to the expansion of SMCs.

Nickel, zinc, and copper are found in an iron ore that is specifically used to make electrical steel. Due to the presence of these metals, it has a high electrical resistance. Because it increases the magnetism and energy absorption of soft magnetic composites, the product finds use in their production.

Report Attributes	Details
Soft Magnetic Composites Market Size (2023)	US$ 4.5 Billion
Projected Market Value (2033)	US$ 8.9 Billion
Global Market Growth Rate (2023 to 2033)	7% CAGR
Market Share of Silicon Ferrite (2023)	60%
Key Companies Profiled	Elna Magnetics MMG Canada Limited Hitachi Metals Ltd. Electron Energy Corporation Rio Tinto Steward Advanced Materials Arnold Magnetic Technologies Corporation Magnetics Dexter Magnetic Technologies, Inc.

Which Key Factors are Pushing Consumption of Soft Magnetic Composites?

“Miniaturization of Electronic Devices”

The demand for smaller, more effective gadgets is what is driving the trend toward miniaturization. As a result, new manufacturing methods have been created, enabling the fabrication of thinner and more compact electronics. Additionally, the creation of smaller, more effective devices has been made possible by the use of novel materials with enhanced magnetic characteristics.

Over the past several years, the electronics industry has seen a significant trend toward the miniaturization of electronic devices. The rising need for portable electronic gadgets such as smartphones, laptops, and tablets has fueled this trend. Additionally, as electronic gadgets get smaller, there is a greater need for electronic components that are similarly smaller and more effective.

Transformers, inductors, and motors are just a few electronic parts that employ soft magnetic composites. These composites are perfect for miniature electronic devices because they have high magnetic permeability and low coercivity.

“Growing Sales of Electric Vehicles”

An increase in demand for electric vehicles and motors is boosting the demand for soft magnetic composites. One of the major drivers of demand growth is the increasing use of axial flux motors in electric vehicles, which is also boosting demand for soft magnetic composites. Growing usage of soft magnetic composites in electric vehicle component manufacturing and rising demand for energy-efficient electric motors and generators are the factors driving market demand.

What are the Roadblocks for Producers of SMCs?

“High Cost of Raw Materials”

The high cost of raw materials and stringent government regulations are limiting market expansion. The absence of consistent usage guidelines for soft magnetic composites is anticipated to restrain the market during the forecast period.

The use of soft magnetic composites is governed by a unique set of laws in each country. These county-specific limitations are challenging for businesses to follow, which deters investment in the soft magnetic composite market and restricts market growth throughout the forecast period.

How are New Entrants Strengthening Their Market Position?

“New Companies Investing Heavily in R&D Efforts to Introduce Innovative Products”

Emerging market players are investing heavily in R&D efforts to introduce innovative products to enhance their share in the global soft magnetic composites market. They are focusing on the introduction of nanoparticle-based materials in the manufacturing of soft magnetic composites.

• A start-up based in Switzerland, Magnes provides a range of micro-sized magnetic materials, from ultra-soft magnetic alloys to cutting-edge permanent magnets, with a variety of characteristics. Additionally, it offers services for designing and developing magnetic microsystems as well as advice in electrodeposition.

Which Region Accounts for a Leading Position in the Soft Magnetic Composites Market?

“Rapid Expansion of Electrical Industry in Asia Pacific”

• Asia Pacific accounts for 50% share of the global market in 2023.

Rise in the consumption of soft magnetic composites in the region is attributed to the growing electrical industry. The growing population and an increase in demand for electricity are boosting market growth. Transformer and motor demand are rising in the region due to rising electricity consumption.

Demand is particularly strong in developing countries that are placing a greater focus on domestic production. Over the projection period, it is predicted that increasing motor manufacturing would increase demand for soft magnetic composites in the region.

Country-wise Insights

Why are Sales of SMCs Bolstering in the United States?

“Presence of Top Producers of Soft Magnetic Composites”

Market growth in the United States is attributed to the booming automotive sector and the presence of top producers of SMCs. Over the projection period, it is predicted that rising industrial activities would fuel demand for electric motors and ultimately soft magnetic composites.

The United States has a highly established infrastructure that makes it easier for new technology to be adopted. As magnetic materials are used in radar systems, missile guidance systems, and other electronic warfare applications, the aerospace and defense industry is another significant end-user of SMCs.

What is the Market Scenario for Soft Magnetic Composites in Japan?

“Market Players benefiting from Availability of Low-cost Labor”

The market in Japan is predicted to increase over the projection period due to the expansion of the construction industry. Rapid urbanization and the availability of low-cost labor are driving the demand for SMCs. Technological advancements in manufacturing techniques of soft magnetic composites and an increase in the sales of passenger and commercial vehicles are the factors supporting market expansion.

Will Germany Be an Investment-worthy Market for SMC Producers?

“Growing Government Investments in Electricity Distribution”

The market in Germany is expanding due to the rise in automobile component production and high demand for nanocrystalline soft magnetic materials. Increasing power generation industry and growing government investments in electricity distribution are driving market growth.

The market for SMCs in the country is driven by the strong demand for these materials for several applications, including high-performance industrial motors that are essential to industrial units. The rising demand for magnetic materials in the consumer electronics industry is boosting market value in the country.

Category-wise Insights

Why is Demand for Silicon Ferrite Gaining Traction?

“Silicon Ferrite Preferred Due to Its High Permeability”

The market is segmented by product into iron powder, silicon ferrite, supermalloy, and permalloy. Silicon ferrite holds 60% of the global market.

Soft magnetic composites containing silicon ferrite are gaining prominence across regions owing to extensive utilization and rising demand. Positive network externalities are a key factor contributing to the rapid growth of silicon ferrite.

Key consumers of SMCs, such as Toshiba Corporation, Schneider Electric SA, and others, have utilized silicon ferrite in significant amounts. Due to the high saturation flux density and permeability requirements of noise filters, choke coils, and transformer magnetic cores, silicon ferrite is used in these components.

Which Application of Soft Magnetic Composites is Leading in Terms of Revenue Generation?

“Soft Magnetic Composites Widely Used in Motors Owing to High Electrical Resistivity”

Based on application, the market is segmented into transformers, inductors, motors, and generators.

Soft magnetic composites are widely used in axial-flux motors owing to their high electrical resistivity. The global need for advanced axial flow motors and electric vehicles is boosting the demand for soft magnetic composites.

The metallurgical powder technique, which delivers higher leniency and stiffness than the traditional way of stacking punched laminations, is used to create motor components. Magnetic sensors, impact printer heads, and actuators for valve control also employ SMCs. The market for SMCs is also anticipated to be driven by the rising demand for electric motors due to rapid industrialization and urbanization.

Competitive Landscape

Top producers of soft magnetic composites are also concentrating on market growth tactics by setting up new production facilities, acquiring other businesses, and working together with other market players. They are focusing on quality control, product standards, supply chain management, pricing trends, and new developments to introduce novel products following safety regulations.

For instance,

• In 2019, the prominent metal powder and components supplier in the world, GKN Powder Metallurgy, acquired FORECAST 3D.

Key Segments of Soft Magnetic Composites Industry Research

• By Product :

  • Iron Powder
  • Silicon Ferrite
  • Supermalloy
  • Permalloy

• By Application :

  • Transformers
  • Inductors
  • Motors
  • Generators

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa