Permanent Magnet Motor Market Size

Permanent Magnet Motor Market Analysis

The Permanent Magnet Motor Market size is estimated at USD 48.34 billion in 2024, and is expected to reach USD 77.71 billion by 2029, growing at a CAGR of 9.96% during the forecast period (2024-2029).

The market growth is driven by growing demand for electric vehicles and increased adoption in the industrial sector. Advancement in motor efficiency further fuels the adoption of permanent magnetic motors in end-user verticals.

• Permanent magnet motors (PMM) are witnessing a significant increase in demand due to their high efficiency and throughput. These motors cover a wide range of applications, from stepping motors for wristwatches and industrial drives for machine tools to large PM synchronous motors for ship propulsion.
• Electric vehicles are expected to boost the growth of the market studied over the forecast period. The number of new electric cars registered globally hit an unprecedented market share in 2021, with the developed markets supporting this trend. With leading automakers increasingly incorporating permanent magnet motors into EVs, global demand is expected to rise, driving the market's growth over the forecast period.
• The high energy product, along with the high residual flux density of neodymium, make it a compulsive choice of material for industrial applications. Neodymium offers both high- and low-grade variants, enabling it to deliver superior performance and torque as compared to a conventional motor, thereby increasing its adoption. However, high prices and scarcity are likely to pose challenges to the growth of this material.
• The increasing demand for HVAC equipment is also expected to influence the market studied. It is majorly driven by the increase in the number of new households, rising average construction spending, rapid urbanization, and growth in disposable income across several major economies. The increasing standards on minimum energy efficiency for appliances and equipment are also driving the growth of PMMs in HVAC equipment.
• The increasing price of raw materials due to geopolitical concerns and scarcity of minerals sources results in increasing price of motors, which is expected to restrict market growth. Also, the limited availability of rare-earth metals further create challanges for the motor manufacturers and increase the production cost.
• The COVID-19 outbreak forced several industries to halt almost every industrial operation globally. Since the raw materials were and still are bought in from China, the sourcing was affected by the United States' tariffs. Further, amidst the pandemic spread of COVID-19, the market for PMMs, which has a significant application in industries (such as the manufacturing sector) and sees substantial adoption on the industrial front, was highly impacted.