South and Central America Permanent Magnet Market Outlook (2021-2031)

The South and Central America Permanent Magnet Market size is expected to reach US$ 1,273.51 million by 2031 from US$ 775.11 million in 2024. The market is estimated to record a CAGR of 7.9% from 2025 to 2031.

Executive Summary and South and Central America Permanent Magnet Market Analysis:

Brazil, Argentina, and Chile are increasingly adopting clean energy solutions, particularly wind and solar power, which rely on permanent magnets for efficient generation and energy storage systems. Brazil, with its significant wind energy projects, and Chile, with its push for solar energy, are key players in driving demand for magnets in the renewable energy sector. Additionally, the adoption of EVs in these regions, particularly in Brazil, is rising. Government initiatives promoting green technologies, along with growing consumer interest in EVs, are further accelerating this trend. The region's industrial sector is also evolving, with increasing automation in manufacturing processes, which rely on permanent magnets for motors, actuators, and sensors. However, challenges such as supply chain dependency on rare earth elements from Asia and limited local production capabilities are expected to constrain the market's growth. Despite this, the region's strategic investments in infrastructure and green technologies position the South and Central American permanent magnet market for steady growth in the coming years.

South and Central America Permanent Magnet Market Strategic Insights

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South and Central America Permanent Magnet Market Segmentation Analysis

Key segments that contributed to the derivation of the permanent magnet market analysis are type and application.

• By type, the permanent magnet market is segmented into neodymium-iron-boron, ferrite, samarium cobalt, alnico, and others. The neodymium-iron-boron segment dominated the market in 2024.
• In terms of application, the market is segmented into consumer electronics, automotive, aerospace and defense, medical, industrial machinery, energy, and others. The consumer electronics segment held the largest share of the market in 2024.

South and Central America Permanent Magnet Market Outlook

The region is experiencing notable growth in terms of the permanent magnet market owing to its increasing demand in key sectors such as automotive, renewable energy, and industrial applications. The market is also driven by the region’s strong focus on renewable energy, mining, and industrial sectors. The region abundant natural resources and commitment to transitioning to clean energy, is experiencing an increasing demand for permanent magnets in wind and solar power generation. The region also has a vast mining industry. Permanent magnets are critical in various mining operations, including magnetic separation, pumps, and motors used in extraction. The region’s mining industry is evolving with advanced machinery that increasingly relies on permanent magnets.

South and Central America Permanent Magnet Market Country Insights

Based on region, the South and Central America permanent magnet market is further segmented into Brazil, Argentina, Chile, Peru, Colombia, and Rest of South and Central America. Brazil held the largest share in 2024.

According to the Aerospace Industries Association of Brazil (AIAB), Brazil has the largest aerospace industry in South America, with Embraer being the largest representative company. The firm produces commercial, military, and executive aircraft and is currently the third major aerospace manufacturer in the world. According to the International Organization of Motor Vehicle Manufacturers (OICA) report, Brazil was the largest manufacturer and exporter of light and commercial vehicles in 2023 in South & Central America. The country reported a production of 2.3 million vehicles in 2023, with an increase of 15% compared to 2020. According to the Brazilian Electrical and Electronics Industry Association, the electrical & electronics industry in the country generated a revenue of US$ 39.2 billion in 2021, which is further estimated to reach US$ 41.7 billion by 2024. Thus, the growth of the aerospace, automotive, and electronics industries in Brazil drives the permanent magnet market growth in the country.

South and Central America Permanent Magnet Market Report Highlights

South and Central America Permanent Magnet Market Company Profiles

Hitachi Ltd; Shin-Etsu Chemical Co Ltd; TDK Corp; Arnold Magnetic Technologies.; Galaxymagnets; Goudsmit Magnetics; Electron Energy Corporation; Dexter Magnetic Technologies; Adams Magnetic Products, LLC; and NINGBO YUNSHENG co., Ltd are among the key players operating in the market. These players adopt strategies such as expansion, product innovation, and mergers and acquisitions to stay competitive in the market and offer innovative products to their consumers.

South and Central America Permanent Magnet Market Research Methodology:

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations
• Industry trade journals and other relevant publications
• Government documents, statistical databases, and market reports
• News articles, press releases, and webcasts specific to companies operating in the market

Note:

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate and analyze the data and gain valuable insights. These research interviews are designed to:

• Refine findings from secondary research
• Enhance the expertise and market understanding of the analysis team
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects

Primary research is conducted via email interactions and telephone interviews with industry experts across various markets, categories, segments, and sub-segments in different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

South and Central America Permanent Magnet Market Country and Regional Insights

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South and Central America Permanent Magnet Key Sources Referred:

• US Magnetic Materials Association
• Permanent Magnet Division (PMD)
• The Magnetics Society (TMS)
• The American Magnetics Society (AMS)
• Rare Earth Industry Association (REIA)