Rare Earth Elements Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Elements (Cerium, Neodymium, Lanthanum, Dysprosium, Terbium, Yttrium, Scandium, and Other Elements), Application (Catalysts, Ceramics, Phosphors, Glass and Polishing, Metallurgy, Magnets, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East & Africa). The report offers market size and forecasts for Rare Earth Elements in Revenue (USD million) for all the above segments.

Market Snapshot

Rare Earth Elements Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >7.5 %

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Market Overview

The Rare Earth Elements (REE) market is projected to register a CAGR of  7.5% during the forecast period (2021-2026).

COVID-19 impact has negatively affected most of the manufacturing sectors in the market. The consumer electronics industry is one of the industries affected negatively due to the COVID-19 impact. However, there was a huge demand for consumer electronics due to the need for communication because of the lockdown and social distancing. Shut down of manufacturing plants and intermittent closure of physical stores in most parts of the world have created disturbances in the supply of consumer electronics. The aforementioned reasons negatively affected the rare earth magnets market.

  • In the medium term, the major factors driving the growth of the market studied are the high demand from emerging economies, the dependency of 'Green Technology' on rare earth elements, and companies focusing on R&D.
  • On the flip side, the inconsistent supply and impact of COVID-19 are some concerns affecting the growth of the studied market.
  • 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.

Scope of the Report

Rare earth elements are used in loudspeakers, telescope lenses, studio lighting, and computer hard drives to enable them to be smaller and more efficient. They are used in screens and displays as they can produce different colors. Rare earth elements usually have high electrical conductivity, and they naturally occur together in minerals. Rare earth elements are the strongest magnets available today. The rare earth elements market is segmented by elements, applications, and geography. By element, the market is segmented into cerium, neodymium, lanthanum, dysprosium, terbium, yttrium, scandium, and other elements. By application, the market is segmented into catalysts, ceramics, phosphors, glass and polishing, metallurgy, magnets, and other applications. The report also covers the market size and forecasts for the rare earth elements market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD million).

Element
Cerium
Oxide
Sulfide
Other Elements
Neodymium
Alloy
Lanthanum
Alloy
Oxide
Others
Dysprosium
Terbium
Yttrium
Alloy
Oxide
Others
Scandium
Alloy
Oxide
Fluoride
Chloride
Nitrate
Iodide
Carbonate and Others
Other Elements
Application
Catalysts
Ceramics
Phosphors
Glass and Polishing
Metallurgy
Magnets
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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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.
  • According to Statista Market Forecast, the consumer electronics industry stood at USD 384 billion in 2020. The market is expected to reach around USD 415 billion in 2021 and is forecasted to reach USD 487 billion in 2025.
  • 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.
  • The United States is the largest medical device market in the world. By 2023, the industry is expected to reach USD 208 Billion. By 2030, the US medical devices market is projected to cross over USD 300 billion, while China is likely to grow at the fastest pace and likely to account for more than 25% (over USD 200 billion) of the global medical device market.
  • 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.
Rare Earth Elements Market Key Trends

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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% and 25%, respectively. This decline in production was majorly due to the impact of the COVID-19 pandemic.
  • In addition, India is witnessing investments in the automotive industry. For instance, Hyundai Motor India invested USD 500 million during FY2020.
  • At present, around 85% 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.
  • China has the world’s largest electronics production base. The country serves not only domestic demand for electronics but also exports electronic output to other countries. With an increase in the disposable income of the middle-class population in the country and increasing demand for electronic products in the countries importing electronic products from China, the production of electronics is projected to grow.
  • China has the largest consumer electronics market in the world, with a valuation of around `USD 152.7 billion in 2020. The country is projected to cross a valuation of USD 162 billion in 2021, and the segment is forecasted to reach 175 billion by 2025.
  • 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.
Rare Earth Elements Market Growth Rate By Region

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Competitive Landscape

The rare earth elements market is fragmented in nature, with numerous players holding insignificant shares to affect the market dynamics individually. Some noticeable players in the market include Avalon Advanced Materials Inc., Rare Element Resources Ltd, Eutectix, Shin-Etsu Chemical Co. Ltd, and Iluka Resources Limited.

Recent Developments

  • In February 2021, Avalon Advanced Materials has announced that the company entered an agreement to acquire 2333382 Ontario INC., a private Ontario corporation with four industrial mineral mines and a processing plant in Matheson, Ontario. The companies have analyzed that the presence of rare earth, scandium, and zirconium will be recoverable through tailing processes in the Ontario INC plants.
  • In January 2021, Rio Tinto started producing scandium oxide with the construction of a commercial-scale demonstration plant in Sorel-Tracy, Quebec. The initial capacity of the scandium oxide is 3 ton per year, about 20% of the current global production.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 High Demand from Emerging Economies

      2. 4.1.2 Dependency of 'Green Technology' on Rare Earth Elements

      3. 4.1.3 Companies Focusing on R&D

    2. 4.2 Restraints

      1. 4.2.1 Unfavorable Conditions Arising due to the Impact of COVID-19

      2. 4.2.2 Inconsistent Supply of Rareearth Elements

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Element

      1. 5.1.1 Cerium

        1. 5.1.1.1 Oxide

        2. 5.1.1.2 Sulfide

        3. 5.1.1.3 Other Elements

      2. 5.1.2 Neodymium

        1. 5.1.2.1 Alloy

      3. 5.1.3 Lanthanum

        1. 5.1.3.1 Alloy

        2. 5.1.3.2 Oxide

        3. 5.1.3.3 Others

      4. 5.1.4 Dysprosium

      5. 5.1.5 Terbium

      6. 5.1.6 Yttrium

        1. 5.1.6.1 Alloy

        2. 5.1.6.2 Oxide

        3. 5.1.6.3 Others

      7. 5.1.7 Scandium

        1. 5.1.7.1 Alloy

        2. 5.1.7.2 Oxide

        3. 5.1.7.3 Fluoride

        4. 5.1.7.4 Chloride

        5. 5.1.7.5 Nitrate

        6. 5.1.7.6 Iodide

        7. 5.1.7.7 Carbonate and Others

      8. 5.1.8 Other Elements

    2. 5.2 Application

      1. 5.2.1 Catalysts

      2. 5.2.2 Ceramics

      3. 5.2.3 Phosphors

      4. 5.2.4 Glass and Polishing

      5. 5.2.5 Metallurgy

      6. 5.2.6 Magnets

      7. 5.2.7 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 France

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Aluminum Corporation of China Ltd

      2. 6.4.2 ARAFURA RESOURCES

      3. 6.4.3 Avalon Advanced Materials Inc.

      4. 6.4.4 Minmetals Land Limited

      5. 6.4.5 China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd

      6. 6.4.6 Caeneus Minerals Ltd

      7. 6.4.7 Eutectix

      8. 6.4.8 Galaxy Resources Limited

      9. 6.4.9 Iluka Resources Limited

      10. 6.4.10 International Ferro Metals Limited

      11. 6.4.11 MEDALLION RESOURCES LTD

      12. 6.4.12 NORTHERN MINERALS

      13. 6.4.13 Peak Resources

      14. 6.4.14 Rare Element Resources Ltd

      15. 6.4.15 Rio Tinto

      16. 6.4.16 Rising Nonferrous Metals Co. Ltd

      17. 6.4.17 Shin-Etsu Chemical Co. Ltd

      18. 6.4.18 Ucore Rare Metals Inc.

      19. 6.4.19 Xiamen Tungsten Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Scandium Usage in Aerospace Applications

**Subject to Availability

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Frequently Asked Questions

The Rare Earth Elements Market market is studied from 2016 - 2026.

The Rare Earth Elements Market is growing at a CAGR of >7.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Avalon Advanced Materials Inc, Rare Element Resources Ltd. , Eutectix , Iluka Resources Limited , Shin-Etsu Chemical Co., Ltd. are the major companies operating in Rare Earth Elements Market.

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