Neodymium-Iron-Boron Permanent Magnet Market Outlook (2021-2031)

The neodymium iron boron (NdFeB) permanent magnet market size is expected to reach US$ 29,129.11 million by 2031 from US$ 15,204.23 million in 2024. The market is estimated to record a CAGR of 10.3% from 2025 to 2031.

Executive Summary and Global Market Analysis:

The global NdFeB (neodymium iron boron) magnet market is experiencing robust growth driven by the accelerating adoption of high-performance, energy-efficient technologies across multiple industries. NdFeB magnets are recognized for their superior magnetic strength, compact size, and versatility, making them indispensable in applications ranging from electric vehicles and wind turbines to consumer electronics and medical devices. The market is shaped by a confluence of factors, including the global shift toward renewable energy, the rapid expansion of electric mobility, and the ongoing miniaturization and automation of electronic products.

Key trends include increased focus on sustainability, with initiatives aimed at recycling rare earth materials and reducing dependency on critical raw materials. Technological innovation is also prominent, with manufacturers investing in advanced production processes and collaborative research to enhance magnet performance, durability, and environmental compatibility. While the market is highly competitive and dominated by established players—especially in Asia—new opportunities are emerging for companies that can offer differentiated value, such as improved quality, supply chain resilience, and reduced carbon footprints.

Neodymium-Iron-Boron Permanent Magnet Market Strategic Insights

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Neodymium-Iron-Boron Permanent Magnet Market Segmentation Analysis

Key segments that contributed to the derivation of the neodymium iron boron (NdFeB) permanent magnet market analysis are drive type, propulsion, sales channel, and geography. 

• By type, the neodymium iron boron (NdFeB) permanent magnet market is segmented into sintered and bonded. The sintered NdFeB magnets dominated the market in 2024. 
• By end-user, the neodymium iron boron (NdFeB) permanent magnet market is segmented into Automotive, Consumer Electronics, Power Generators (Wind Turbines), Industrial Automation & Robotics, Medical Devices, and Others. The automotive segmented remained the dominant in 2024
• By geography, the neodymium iron boron (NdFeB) permanent magnet market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa and South & Central America. Asia-Pacific region dominated the market in 2024.

Neodymium Iron Boron (NdFeB) Permanent Magnet Market Drivers and Opportunities:

Electrification of Transportation

The global push toward electric vehicles (EVs) is a major driver for NdFeB magnet demand. As governments and industries strive to reduce carbon emissions, the adoption of EVs is accelerating, requiring high-performance permanent magnets for efficient motors and drivetrains. NdFeB magnets offer superior magnetic strength and energy efficiency, making them essential for electric powertrains. This trend is further supported by regulatory mandates, consumer preferences for cleaner transportation, and investments in charging infrastructure. The automotive sector’s transformation is expected to sustain robust growth in NdFeB magnet usage, with manufacturers scaling up production to meet the needs of both passenger and commercial electric vehicles.

Development of Recycling and Circular Economy Initiatives

As concerns about resource scarcity and environmental impact grow, there is a significant opportunity to develop and scale up recycling technologies for NdFeB magnets. Recovering rare earth elements from end-of-life products, industrial scrap, and electronic waste can reduce dependence on primary mining and lower production costs. Governments, research institutions, and industry players are increasingly investing in recycling infrastructure and collaborative projects to establish a circular economy for rare earth materials. These efforts not only enhance supply chain resilience but also align with global sustainability goals, creating new business opportunities for companies specializing in magnet recycling and sustainable materials management.

Neodymium Iron Boron (NdFeB) Permanent Magnet Market Size and Share Analysis

By type, sintered neodymium iron boron (NdFeB) permanent magnet dominated the market in 2024 – Sintered NdFeB magnets are favored due to their superior magnetic strength and energy density, which enable them to deliver outstanding performance in demanding applications such as electric vehicle motors, wind turbine generators, and industrial automation systems. Their dominance is further driven by the increasing global demand for high-efficiency, compact, and durable magnet solutions in sectors undergoing rapid electrification and automation. Sintered NdFeB magnets are produced through a powder metallurgy process, resulting in robust magnets with excellent temperature stability and resistance to demagnetization, making them the preferred choice for high-performance industrial and automotive applications.

By end-users, the automotive sector—and particularly the electric vehicle (EV) segment—emerged as the leading end-user and application for NdFeB magnets. This dominance was driven by the rapid global adoption of electric vehicles, where NdFeB magnets are essential components in high-efficiency motors and drivetrains. The magnets’ superior magnetic strength, compact size, and ability to operate efficiently at high temperatures made them indispensable for improving the performance, range, and reliability of EVs. While other sectors such as wind energy, consumer electronics, and industrial automation also contributed significantly to NdFeB magnet demand, the automotive industry’s growth outpaced these segments due to supportive government policies, stricter emissions regulations, and increased consumer preference for sustainable transportation.

Neodymium-Iron-Boron Permanent Magnet Market Report Highlights

Neodymium iron boron (NdFeB) permanent magnet market Report Coverage and Deliverables

The "Neodymium iron boron (NdFeB) permanent magnet market Outlook (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Neodymium iron boron (NdFeB) permanent magnet market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Neodymium iron boron (NdFeB) permanent magnet market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces and SWOT analysis
• Neodymium iron boron (NdFeB) permanent magnet market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Neodymium iron boron (NdFeB) permanent magnet market
• Detailed company profiles

Neodymium-Iron-Boron Permanent Magnet Market Country and Regional Insights

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The geographical scope of the Neodymium iron boron (NdFeB) permanent magnet market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. Asia-Pacific and specifically China dominated the global NdFeB magnet market. China’s leadership is rooted in its comprehensive control over the rare earth supply chain, advanced manufacturing capabilities, and significant domestic demand for NdFeB magnets. The country produces the vast majority of the world’s rare earth elements and is the largest producer and consumer of NdFeB magnets, with major production bases such as Zhejiang playing key roles.

China’s dominance is further reinforced by its aggressive push toward electric vehicles and renewable energy, both of which rely heavily on high-performance permanent magnets. Government policies supporting EV adoption and wind power installations have driven strong local consumption and innovation, making China the central hub for NdFeB magnet production and application.

Other Asia-Pacific countries, including Japan and South Korea, also contribute significantly due to their sophisticated manufacturing sectors and technological expertise, but China remains the clear leader in both output and market influence.

Neodymium iron boron (NdFeB) permanent magnet market Research Report Guidance

• The report includes qualitative and quantitative data in the Neodymium iron boron (NdFeB) permanent magnet market across drive type, propulsion, sales channel, and geography.
• The report starts with the key takeaways (chapter 2), highlighting the key trends and outlook of the Neodymium iron boron (NdFeB) permanent magnet market.
• Chapter 3 includes the research methodology of the study.
• Chapter 4 further includes ecosystem analysis along with Porter’s analysis.
• Chapter 5 highlights the major industry dynamics in the Neodymium iron boron (NdFeB) permanent magnet market, including factors that are driving the market, prevailing deterrents, potential opportunities as well as future trends. Impact analysis of these drivers and restraints is also covered in this section.
• Chapter 6 discusses the Neodymium iron boron (NdFeB) permanent magnet market scenario, in terms of historical market revenues, and forecast till the year 2031.
• Chapters 7 to 9 cover Neodymium iron boron (NdFeB) permanent magnet market segments by type, end use, andr geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. They cover market revenue forecast and factors driving the market.
• Chapter 10 describes the competitive analysis along with the heat map analysis for the key players operating in the market.
• Chapter 11 describes the industry landscape analysis. It provides detailed description of business activities such as market initiatives, new developments, mergers, and joint ventures globally, along with a competitive landscape.
• Chapter 12 provides detailed profiles of the major companies operating in the Neodymium iron boron (NdFeB) permanent magnet market. The companies have been profiled on the basis of their key facts, business descriptions, products and services, financial overview, SWOT analysis, and key developments.
• Chapter 13, i.e., the appendix is inclusive of a brief overview of the company, list of abbreviations, and disclaimer.

Neodymium iron boron (NdFeB) permanent magnet market News and Key Development:

The Neodymium iron boron (NdFeB) permanent magnet market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Neodymium iron boron (NdFeB) permanent magnet market are:

• On January 22, 2025, MP Materials launched commercial neodymium-praseodymium (NdPr) metal production at its fully integrated rare earth magnet manufacturing facility in Fort Worth, Texas, marking the first time in decades that the U.S. has had such domestic capability. Trial production of automotive-grade, sintered NdFeB magnets is underway, with first deliveries scheduled for year-end 2025. The facility is expected to ramp up to approximately 1,000 metric tons of finished NdFeB magnets per year.
  

• In April, 2025, HyProMag USA announced the expansion of its rare earth magnet recycling initiative, aiming to capture 10% of U.S. domestic demand for NdFeB magnets within five years. The project includes adding a third HPMS (Hydrogen Processing of Magnetic Scrap) vessel to increase production capacity, targeting 750 metric tons of recycled sintered NdFeB magnets and 807 metric tons of co-products annually.

Key Sources Referred:

• Permanent Magnet Division (PMD)
• The European Magnetism Association
• US Magnetic Materials Association
• The Magnetic Materials Group
• European Union
• Rare Earth Industry Association (REIA)
• European Institute of Innovation & Technology (EIT)