Summary
The global rare earth elements market is estimated to be at 161,354.65 tons in 2022, and is expected to register a CAGR of more than 4% during 2022-2027.
Key Highlights
The factors driving the growth of the market studied are the high demand from emerging economies and dependency of "Green Technology"on rare earth elements.
On the flip side, an inconsistent supply of rare earth elements might act as barriers to the growth of the market studied.
The increasing scandium usage in aerospace applications is likely to provide opportunities for the studied market during the forecast period.
Asia-Pacific dominated the global market, owing to the increasing production of rare earth metals?and rising demand from industries, such as consumer electronics, etc.
Key Market Trends
Increasing Demand for Magnets
Magnets stand?to be one of the largest applications for rare earth elements. Magnets find extensive applications in various industries, such as electronics, automotive, power generation, medical, etc.
Magnets are used in computer hard drives, microwave power tubes, anti-lock brakes, automotive parts, disk drive motors, frictionless bearings, power generation, magnetic refrigeration, microphones and?speakers, communication systems, and MRI.
Industries, such as automotive, electronics, and healthcare, have been witnessing innovation and?development, driving the demand for magnets in such industries.
In 2021, approximately 85% of automakers were using neodymium-incorporated permanent magnet motors, and there are projections that automotive demand for rare earth will rise by 25% in 2022.
Magnets used for EVs and wind turbines are neodymium, praseodymium, and dysprosium, with samarium and cobalt as potential substitutes that will further drive the market in the future.
Additionally, magnets are used in medical equipment, such as MRI machines, pacemakers, sleep apnea machines, and insulin pumps. The healthcare industry has been witnessing huge investments in the regions such as Asia-Pacific and Middle East & Africa.
Hence, all such trends are expected to noticeably drive the demand for magnets, which is further projected to increase the demand for rare earth elements in the coming years.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. With increasing investments in the healthcare industry and the rising ceramic demand and production, the consumption of rare earth elements is projected to increase noticeably in the region.
According to OICA, the total number of motor vehicles produced in 2019 in China and India are 25.75 million units and 4.52 million units, respectively. However, in 2020, this value in production declined by around 2%. This decline in production was majorly due to the impact of the COVID-19 pandemic. However, in the first 9 months of 2021, the production of vehicles in the country reached 18,242,588 units, registering a growth rate of 8%, compared over the same period in 2020.
At present, most of the world’s supply of these high-value rare earth elements originates from China, making the global rare earth elements market supply sensitive to changes in China’s manufacturing sector. In 2020, 58% of global rare earth elements production came from China, the report said, citing data from the U.S. Geological Survey.
Asia Pacific has been the electronics production base of the world, with a investments coming thorugh several companies establishing their presence in countires like India, Vietnam, and Japan, as Covid pandemic exposed the supply chain problems with China.
Furthermore, the demand for and production of ceramics is the highest in Asia-Pacific. The increasing ceramic demand from industries, such as aerospace and?defense, energy, healthcare, and consumer goods, is driving the production of ceramics in the region.
Hence, such market trends are likely to significantly impact on the rare earth elements market in the coming years.
Competitive Landscape
The rare earth elements market is partially fragmented in nature, with numerous players holding insignificant shares to affect the market dynamics individually. Some of the prominent players in the market include (not in any particular order) Lynas Rare Earths, Ltd., Aluminum Corp of China, Iluka Resources Limited, and Arafura Resources Limited among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
