Permanent Magnet Motor Market By Motor Type (Direct Current, Alternating Current), By Magnetic Material Type (Ferrite, Neodymium, Samarium Cobalt, Other), By End-User Vertical (Automotive, General Industrial, Energy, Water & Wastewater Treatment, Mining, Oil & Gas, Aerospace & Defence, Other) and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027.

Permanent Magnet Motor Market Definition and Estimation:

An electric motor is a machine that converts electrical energy to mechanical energy. It consists of a stator – the stationary part of the motor, and a rotor – a coil mounted on an axle that rotates at high speeds. While an induction motor consists of an electromagnet as its stator, a permanent magnet (PM) motor generates the magnetic field using typically a ferromagnet. Based on the principle of electromagnetism, the permanent magnet motor can function using alternating current (AC) or direct current (DC). These types of motors have been recently replacing the induction type due to its higher inherent efficiency as a result of the lower eddy current losses. The longer life of PM motors is an added bonus encouraging the transition from induction motors.

The permanent magnet motor market size was USD 34.28 billion in 2019 and expected to reach USD 51.45 billion by 2027; this converts into a compound annual growth rate (CAGR) of 5.21% for the forecast period.

Permanent Magnet Motor Market Overview:

The extensive use of electric motors in industrial applications such as conveyors, pumps, material handling equipment, manufacturing equipment, power tools, and more has driven the market substantially. Rapid industrialization in emerging countries will further the progress of the market. Moreover, the rising requirements from the HVAC industry have promoted market growth. However, due to the pandemic, worldwide closures of several industries coupled with the disruption in the supply chain have resulted in a decline in demand for electric motors. Post-lockdown scenarios seem to minimize any further deceleration in market growth. In recent times, the growing use of electric vehicles will boost the electric motor market.

The Permanent Magnet Motor Market is segmented to include:

By Motor Type:

• Direct Current (DC) Motor
• Alternating Current (AC) Motor

By Magnetic Material Type:

• Ferrite
• Neodymium
• Samarium Cobalt
• Other Magnetic Material Types

By End-User Vertical:

• Automotive
• General Industrial
• Energy
• Water & Wastewater Treatment
• Mining, Oil, & Gas
• Aerospace & Defence
• Other End-user Verticals

Highly efficient, easy to operate, compact size, high power and torque and more have made direct current permanent magnet motors popular since the transition from induction motors. Furthermore, the rising use of DC motors in electric vehicles will propel the segment significantly. As a result, the direct current motor segment will register an approximate 8% CAGR during the forecast timeline. Nevertheless, owing to the precise speed control and high-power density, the alternating current motor segment accumulated a little under USD 22 billion or nearly 65% of the market in 2019.

Neodymium, on account of its high energy product and high residual flux density, accounted for over on-half of the permanent magnet motor market in 2019 i.e., nearly USD 18 billion in revenue. The material consists of high- and low-grade variants as well as provides better performance and torque. Also, it is extensively used due to its ability to operate at high temperatures and available at a moderate cost. The segment is therefore, anticipated to display the fastest CAGR of close to 8.5% from 2020 to 2027.

Government initiatives to reduce carbon footprint have increased the demand for electric and autonomous vehicles. Since, these vehicles necessitate the use of electric motors and the benefits that permanent magnet motors provide, the surge in demand from the automotive sector is predicted to boost the growth of the market. Hence, the automotive segment will witness a CAGR of over 8% between 2020 and 2027. However, the widespread applications of the motor in industries have led to the dominance of the general industries segment in 2019. It garnered over USD 9 billion in revenue, therefore capturing more than 25% of the market.

Permanent Magnet Motor Market by Geography Overview:

Based on geography, the market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

Asia-Pacific held over 40% of the permanent magnet motor market in 2019. The region is also, envisaged to expand at the fastest rate of 8% CAGR during the forecast period. The region is home to a flourishing electronics sector of which PM motors are a major component. Besides this, the increasing demand for these motors in end-use applications like electric vehicles, consumer electronics, and others will positively influence the market.

The North American market is driven by the growth of the automotive, HVAC, and electronic sectors. The adoption of PM motors in compressors, pumps, and machine tools within industries for better speed control is another factor contributing to the market growth.

Europe is largely influenced by the well-established automotive industry in the region. The rising investments in electric vehicles by customers and organizations will motivate the market’s progress.

Permanent Magnet Motor Market Dynamics:

As compared to the induction motor, the permanent magnet motors provide high power densities, improved speed control, motion control, high torque, are more compact in size, and more. These advantages are fuelling the demand for this motor type.

The surge in pollution, carbon emissions, global warming have encouraged the implementation of stringent government regulations. These regulations have paved the way for electric vehicles. With the growing demand for these vehicles, the need for PM motors will also increase.

Within the industrial sector, electric motors consume the majority of the electricity. The use of permanent magnet motors allows for the reduction in electricity consumption by up to 20% to perform the same task along with improved efficiency. Consequently, the increasing adoption of PM motors in the industrial sector will boost the market further.

PM motors are generally made using rare-earth metals, the most commonly used metal is sintered neodymium. This makes its construction expensive due to the limited availability of these metals. The expansion of the permanent magnet motor market is therefore threatened by the diminishing availability of rare-earth metals.

The market is studied by analyzing all the key market participants across the ecosystem. The key players include, but not limited to:

• Siemens AG
• Rockwell Automation
• ABB Limited
• Franklin Electric Company Inc.
• Allied Motion Technologies Inc.
• Toshiba Corporation
• Ametek Inc.
• Johnson Electric Holdings Ltd
• Autotrol Corporation
• Robert Bosch GmbH
• Danaher Corporation
• Bonfiglioli Group
• Aerotech Corporation
• Crouzet Automatismes
• Buhler Motors
• Nider Corporation

Recent News and Developments in the Permanent Magnet Motor Market:

1. Nider Corporation announced its decision to open a new factory in Novi Sad, in the Republic of Serbia, in April 2021. It aims to meet the rising demands for automotive motors and related products through the establishment of this new factory.
2. In June 2020, Buehler Motor was awarded GM supplier of the year by General Motors during a virtual ceremony honouring the recipients during the company’s 28th annual supplier of the year awards.

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