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

Industry: Chemicals & Materials

RELEASE DATE Jul 2025
REPORT ID SI13885
PAGES 200
REPORT FORMAT PathSoft

Global Soft Magnetic Materials Market Insights Forecasts to 2035

  • The Soft Magnetic Materials Market Size was valued at USD 19.2 Billion in 2024.
  • The Market Size is Growing at a CAGR of 5.18% from 2025 to 2035.
  • The Worldwide Soft Magnetic Materials Market Size is Expected to reach USD 31.8 Billion by 2035.
  • Asia Pacific is Expected to Grow the Fastest during the forecast period.

Global Soft Magnetic Materials Market

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The Global Soft Magnetic Materials Market Size is Expected to reach USD 31.8 Billion by 2035, at a CAGR of 5.18% during the forecast period 2025 to 2035.

The Soft Magnetic Materials Market is experiencing robust growth, driven by increasing demand from automotive, electronics, and energy sectors. These materials, known for their high magnetic permeability and low coercivity, are essential in enhancing the efficiency of electric motors, transformers, and inductors. The rising adoption of electric vehicles (EVs), renewable energy systems, and advanced consumer electronics is fueling market expansion. Additionally, technological advancements in materials such as amorphous and nanocrystalline alloys are improving performance in high-frequency applications. Asia-Pacific leads the market due to strong manufacturing capabilities and the presence of major end-user industries, particularly in China, Japan, and India. Government initiatives promoting green energy and electrification further support the market's upward trajectory, making soft magnetic materials critical to next-generation energy and mobility solutions.

 

Soft Magnetic Materials Market Value Chain Analysis

The soft magnetic materials market value chain comprises several key stages, beginning with raw material procurement, including iron, cobalt, nickel, and rare earth elements. These materials undergo processing and refining to produce various forms like powders, sheets, and alloys. Manufacturers then fabricate soft magnetic components tailored for specific applications such as motors, transformers, and sensors. Component suppliers deliver these to OEMs in automotive, electronics, and energy sectors. Distributors and logistics providers play a vital role in ensuring timely delivery and inventory management. Research institutions and technology developers also contribute by advancing material performance and manufacturing techniques. End users integrate these components into final products. The value chain is further influenced by regulatory frameworks, sustainability goals, and innovations aimed at improving efficiency, reducing energy loss, and enhancing magnetic properties.

 

Soft Magnetic Materials Market Opportunity Analysis

The soft magnetic materials market presents significant growth opportunities across multiple sectors. The accelerating adoption of electric and hybrid vehicles is driving demand for efficient soft magnetic components used in motors, inductors, and transformers. Similarly, the global shift toward renewable energy sources like wind and solar is boosting the need for high-performance magnetic cores to enhance energy conversion and minimize losses. In the electronics industry, increasing miniaturization of consumer devices, IoT systems, and wearables is creating demand for compact, high-efficiency magnetic materials. The Asia-Pacific region offers substantial opportunities due to rapid industrialization, strong manufacturing capabilities, and supportive government initiatives in countries like China, India, and Japan. Additionally, ongoing innovations in amorphous and nanocrystalline alloys are enabling the development of lighter, low-loss materials, enhancing the efficiency and cost-effectiveness of next-generation technologies.

 

Global Soft Magnetic Materials Market Report Coverage

Report CoverageDetails
Base Year:2024
Market Size in 2024:USD 19.2 Billion
Forecast Period: 2025-2035
Forecast Period CAGR 2025-2035 :5.18%
2035 Value Projection:USD 31.8 Billion
Historical Data for:2020-2023
No. of Pages:200
Tables, Charts & Figures:110
Segments covered:By Application, By Product and By Region
Companies covered:: 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, and Inc.
Pitfalls & Challenges:COVID-19 Empact, Challenge, Future, Growth, & Analysis

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Market Dynamics

Soft Magnetic Materials Market Dynamics

 

Growing Demand for Renewable Energy to Boost the Market Growth

The growing demand for renewable energy is a major driver of the soft magnetic materials market. As countries worldwide accelerate their transition to clean energy sources like wind and solar power, the need for efficient energy conversion systems increases. Soft magnetic materials play a vital role in renewable energy technologies, particularly in wind turbine generators and solar inverters, where they help minimize energy loss and improve performance. These materials are essential for enabling compact, lightweight, and high-efficiency designs, making them ideal for modern renewable energy systems. Government policies promoting green energy, coupled with rising investments in sustainable infrastructure, further fuel the adoption of advanced magnetic materials. As renewable energy continues to expand, the demand for soft magnetic components is expected to grow steadily, positioning them as a key enabler in the global energy transition.

 

Restraints & Challenges

Fluctuating prices of key raw materials like iron, nickel, cobalt, and rare earth elements can disrupt cost structures and supply stability. These issues are further complicated by global supply chain disruptions and geopolitical tensions. Manufacturing soft magnetic materials often involves complex and capital-intensive processes such as powder metallurgy and heat treatment, which can limit scalability and deter smaller players. Environmental regulations related to raw material extraction and waste management add compliance burdens and raise operational costs. Additionally, the market faces growing competition from alternative materials like ferrites and amorphous alloys, prompting the need for continuous innovation. Intellectual property barriers and stringent performance certifications also create hurdles for new entrants and slow down the adoption of advanced material technologies.

 

Regional Forecasts

North America Market Statistics

Global Soft Magnetic Materials Market

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North America is anticipated to dominate the  Soft Magnetic Materials Market from 2025 to 2035. The growth is driven by strong demand across key sectors such as automotive, industrial automation, electronics, and clean energy. The region benefits from advanced manufacturing capabilities, robust research and development infrastructure, and growing investments in electric vehicles and smart grid technologies. The United States leads the market with widespread adoption of soft magnetic components in motors, transformers, and renewable energy systems. Canada and Mexico also contribute through expanding industrial and clean energy projects. There is a rising interest in soft magnetic composites for their lightweight and energy-efficient properties.

 

Asia Pacific Market Statistics

Asia Pacific is witnessing the fastest market growth between 2025 to 2035. China holds a dominant position due to its extensive manufacturing ecosystem and rising adoption of electric vehicles and consumer electronics. Japan, South Korea, and India also contribute significantly, supported by advancements in automotive technologies and energy infrastructure. The region is witnessing growing interest in soft magnetic composites and advanced materials that enhance efficiency and enable miniaturization in modern applications. Despite facing challenges such as raw material cost fluctuations and strict environmental regulations, Asia-Pacific remains a hub for innovation and high-volume production. Continuous investments in sustainable technologies and next-generation applications are expected to fuel the region’s long-term market expansion.

 

Segmentation Analysis

Insights by Application

The electric motors segment accounted for the largest market share over the forecast period 2025 to 2035. As industries worldwide move toward electrification, especially in automotive, industrial machinery, and consumer appliances, the demand for efficient and lightweight electric motors continues to rise. Soft magnetic materials play a vital role in enhancing motor performance by reducing energy losses and improving magnetic flux. Advanced materials such as nanocrystalline and amorphous alloys are increasingly being used in motor cores due to their high permeability and low eddy current losses. These materials enable compact, high-speed motor designs suitable for modern electric vehicles and energy-efficient appliances. With growing emphasis on sustainability and energy conservation, the adoption of soft magnetic materials in electric motors is expected to remain strong, supporting long-term market expansion across multiple sectors.

 

Insights by Product

The electrical steel segment accounted for the largest market share over the forecast period 2025 to 2035. Known for its high magnetic permeability and low core losses, electrical steel is widely used in applications such as electric motors, transformers, generators, and inductors. Its ability to enhance energy efficiency makes it essential for modern power systems and mobility solutions. Non-grain-oriented electrical steel is preferred in rotating machinery like industrial drives and electric vehicle motors due to its uniform magnetic properties. Meanwhile, grain-oriented electrical steel is key in transformer cores, supporting efficient power transmission and integration of renewable energy. Rising demand from sectors like electric vehicles, automation, and smart grids continues to boost this segment. Additionally, advancements in thin-gauge, high-silicon materials and improved coatings are enhancing performance, reinforcing electrical steel’s strong position in the market.

 

Recent Market Developments

  • In May 2020, Scientists at the International Advanced Research Centre for Powder Metallurgy & New Materials have developed an innovative process to produce iron-phosphorus (Fe-P) based soft magnetic alloys tailored for the automotive industry.

 

Competitive Landscape

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

Frequently Asked Questions (FAQ)

  • 1. What is the market size of the Soft Magnetic Materials Market?
    The global Soft Magnetic Materials Market is expected to grow from USD 19.2 billion in 2024 to USD 31.8 billion by 2035, at a CAGR of 5.18% during the forecast period 2025-2035.
  • 2. Who are the key market players of the Soft Magnetic Materials Market?
    Some of the key market players of the market are 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.
  • 3. Which segment holds the largest market share?
    The electric motors segment holds the largest market share and is going to continue its dominance.

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