Global Soft Magnetic Materials Market Size To Exceed USD 31.8 Billion By 2035 | CAGR of 5.18%

Global Soft Magnetic Materials Market Size To Exceed USD 31.8 Billion By 2035 

According to a research report published by Spherical Insights & Consulting, The Global Soft Magnetic Materials Market Size to grow from USD 19.2 Billion in 2024 to USD 31.8 Billion by 2035, at a Compound Annual Growth Rate (CAGR) of 5.18% during the forecast period.

Browse key industry insights spread across 225 pages with 119 Market data tables and figures & charts from the report on the “Global Soft Magnetic Materials Market Size, Share, and COVID-19 Impact Analysis, By Application (Electric Motors, Transformers, Alternators), By Product (Electrical Steel, Soft Ferrite, Permalloys), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 – 2035,” Get Detailed Report Description: https://www.sphericalinsights.com/reports/soft-magnetic-materials-market

The soft magnetic materials market is witnessing significant growth, driven by rising demand across the automotive, electronics, and energy sectors. Valued for their high magnetic permeability and low coercivity, these materials are vital for improving the efficiency of electric motors, transformers, and inductors. The increasing adoption of electric vehicles, renewable energy technologies, and advanced electronic devices is accelerating market development. Innovations in materials such as amorphous and nanocrystalline alloys are further enhancing performance, especially in high-frequency applications. Asia-Pacific remains the dominant region, supported by strong manufacturing infrastructure and the presence of key end-user industries in countries like China, Japan, and India. Moreover, supportive government policies promoting green energy and electrification are bolstering market growth, positioning soft magnetic materials as essential components in future energy and mobility systems.

Soft Magnetic Materials Market Value Chain Analysis

The value chain of the soft magnetic materials market involves several critical stages, starting with the sourcing of raw materials such as iron, cobalt, nickel, and rare earth elements. These materials are then processed and refined into various forms like powders, sheets, and alloys. Manufacturers convert these into soft magnetic components designed for specific applications in motors, transformers, sensors, and more. These components are supplied to original equipment manufacturers (OEMs) across automotive, electronics, and energy industries. Distributors and logistics providers ensure efficient inventory management and timely product delivery. Research institutions and technology developers play an essential role in enhancing material properties and refining production processes. The entire value chain is shaped by regulatory standards, environmental considerations, and continuous innovation aimed at improving energy efficiency, minimizing losses, and optimizing magnetic performance.

Soft Magnetic Materials Market Opportunity Analysis

The soft magnetic materials market offers considerable growth potential across a range of industries. The rising adoption of electric and hybrid vehicles is fueling demand for high-efficiency magnetic components used in motors, transformers, and inductors. At the same time, the global transition to renewable energy sources such as wind and solar is increasing the need for advanced magnetic cores that support effective energy conversion and reduced losses. In the electronics sector, the trend toward miniaturization in devices, IoT technologies, and wearables is driving the need for compact and efficient magnetic materials. The Asia-Pacific region stands out as a key opportunity hub, supported by rapid industrial development, strong manufacturing infrastructure, and favorable government policies in countries like China, India, and Japan. Furthermore, continuous advancements in amorphous and nanocrystalline alloys are enabling lighter, low-loss materials, improving performance and cost efficiency in next-generation applications.

The rising demand for renewable energy is a key factor driving the growth of the soft magnetic materials market. As nations worldwide intensify their shift toward sustainable energy sources like wind and solar, the need for efficient energy conversion becomes increasingly critical. Soft magnetic materials are integral to renewable technologies, particularly in components such as wind turbine generators and solar inverters, where they enhance performance by reducing energy losses. Their ability to support compact, lightweight, and high-efficiency designs makes them well-suited for modern clean energy systems. Supportive government policies and growing investments in green infrastructure are further accelerating the adoption of these materials. As renewable energy deployment expands globally, the need for advanced soft magnetic components is expected to rise, establishing them as essential to the future of sustainable power generation.

The soft magnetic materials market faces several challenges that could impact its growth trajectory. Fluctuations in the prices of critical raw materials such as iron, nickel, cobalt, and rare earth elements can disrupt cost efficiency and affect supply reliability. These challenges are further intensified by global supply chain constraints and geopolitical uncertainties. The production of soft magnetic materials often requires complex, capital-intensive techniques like powder metallurgy and heat treatment, which can hinder scalability and discourage participation from smaller manufacturers. Environmental regulations governing raw material sourcing and waste disposal also increase compliance demands and operational costs. Moreover, competition from substitute materials such as ferrites and amorphous alloys drives the need for constant innovation. Additionally, intellectual property restrictions and strict performance standards pose barriers for new market entrants and can delay the adoption of advanced technologies.

Insights by Application

The electric motors segment accounted for the largest market share over the forecast period 2025 to 2035. With the global push toward electrification particularly in automotive, industrial machinery, and household appliances the demand for efficient, lightweight electric motors is steadily increasing. Soft magnetic materials are essential in boosting motor efficiency by minimizing energy losses and enhancing magnetic flux. Advanced materials like nanocrystalline and amorphous alloys are being adopted more widely in motor core applications for their superior permeability and reduced eddy current losses. These properties allow for the development of compact, high-speed motors suited to electric vehicles and energy-efficient appliances. As sustainability and energy efficiency become key priorities across industries, the use of soft magnetic materials in electric motors is expected to grow, driving long-term market expansion and supporting innovation across diverse applications.

Insights by Product

The electrical steel segment accounted for the largest market share over the forecast period 2025 to 2035. Electrical steel, valued for its high magnetic permeability and low core losses, plays a crucial role in applications such as electric motors, transformers, generators, and inductors. Its contribution to improving energy efficiency makes it indispensable for modern power systems and mobility technologies. Non-grain-oriented electrical steel is commonly used in rotating equipment like industrial drives and electric vehicle motors due to its consistent magnetic properties. In contrast, grain-oriented electrical steel is essential for transformer cores, facilitating efficient energy transmission and supporting renewable energy integration. Growing demand from industries such as electric vehicles, industrial automation, and smart grid infrastructure continues to drive this segment forward. Moreover, innovations in thin-gauge, high-silicon grades and advanced coatings are further enhancing material performance, solidifying electrical steel’s vital role in the evolving energy landscape.

Insights by Region

North America is anticipated to dominate the  Soft Magnetic Materials Market from 2025 to 2035. Growth in the region is fueled by strong demand from major sectors including automotive, industrial automation, electronics, and clean energy. North America benefits from advanced manufacturing infrastructure, strong research and development capabilities, and increasing investments in electric vehicles and smart grid technologies. The United States dominates the market with extensive use of soft magnetic components in motors, transformers, and renewable energy systems. Canada and Mexico are also contributing through expanding industrial activities and clean energy initiatives. Additionally, there is growing interest in soft magnetic composites due to their lightweight nature and superior energy efficiency, further supporting the region’s momentum in adopting advanced magnetic materials.

Asia Pacific is witnessing the fastest market growth between 2025 to 2035. China maintains a leading position in the market, driven by its expansive manufacturing base and increasing adoption of electric vehicles and consumer electronics. Japan, South Korea, and India also play key roles, supported by technological progress in the automotive sector and the development of energy infrastructure. The region is seeing a growing shift toward soft magnetic composites and advanced materials that improve efficiency and support the miniaturization of modern devices. While the market faces challenges such as fluctuating raw material prices and stringent environmental regulations, Asia-Pacific continues to be a center of innovation and large-scale production. Ongoing investments in sustainable technologies and emerging applications are expected to drive steady market growth across the region in the coming years.

Recent Market Developments

• In May 2020, Researchers at the International Advanced Research Centre for Powder Metallurgy & New Materials have introduced a novel method for producing iron-phosphorus (Fe-P) based soft magnetic alloys, specifically designed to meet the needs of the automotive industry.

Major players in the market

• Nippon Steel Corp.
• Carpenter Technology Corp.
• Hitachi Metals, Ltd.
• Baosteel Group Corp.
• Midrex Technologies, Inc.
• JFE Steel Corp.
• Aperam SA
• Kawasaki Steel Corp.
• Tata Steel Ltd.
• Voestalpine High-Performance Metals GmbH
• Vacuumschmelze GMBH
• ArcelorMittal
• Thyssenkrupp AG
• Allegheny Technologies, Inc.

Market Segmentation

This study forecasts revenue at global, regional, and country levels from 2025 to 2035.

Soft Magnetic Materials Market, Application Analysis

• Electric Motors
• Transformers
• Alternators

Soft Magnetic Materials Market, Product Analysis

• Electrical Steel
• Soft Ferrite
• Permalloys

Soft Magnetic Materials Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa

About the Spherical Insights & Consulting

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Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

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