Rare Earth Elements Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Rare Earth Elements Market is segmented by Element (Cerium, Neodymium, Lanthanum, Dysprosium, Terbium, Yttrium and 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 and Africa). The report offers the market sizes and forecasts in volume (ton) for all the above segments.

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Market Snapshot

Rare Earth Elements Market Summary
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4 %
Rare Earth Elements Market Major Players

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Market Overview

The rare earth elements market is estimated to be valued at 161,354.65 ton in 2022, and it is expected to register a CAGR of more than 4% during 2022-2027.

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 may act as a barrier to the growth of the market studied.

The increasing scandium usage in aerospace applications is likely to provide opportunities for the 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.

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 element, application, and geography. By element, the market is segmented into cerium, neodymium, lanthanum, dysprosium, terbium, yttrium and 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 sizes and forecasts for the rare earth elements market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done based on volume (ton).

Element
Cerium
Oxide
Sulfide
Other Elements
Neodymium
Alloy
Lanthanum
Alloy
Oxide
Other Elements
Dysprosium
Terbium
Yttrium and Scandium
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 and Africa
Saudi Arabia
South Africa
Rest of Middle-East and 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, and medical.

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 the 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, which may 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 regions such as Asia-Pacific and Middle-East and 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.

Rare Earth Elements Market, Volume Share (%), by Application, Global, 2021

The Asia-Pacific Region is Expected 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 was 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 nine months of 2021, the production of vehicles in the country reached 18,242,588 units, registering a growth rate of 8% compared to 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 the global production of rare earth elements came from China, as per data from the US Geological Survey.

Asia Pacific has been the electronics production base of the world, with investments coming in from several companies establishing their presence in countries like India, Vietnam, and Japan, as the COVI-19 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 the rare earth elements market in the coming years.

Rare Earth Elements Market - Growth Rate by Region, 2022-2027

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.

Major Players

  1. Iluka Resources Limited

  2. Lynas Rare Earths, Ltd.

  3. Aluminum Corp of China

  4. Minmetals Land Limited

  5. Arafura Resources Limited

Rare Earth Elements Market Concentration

Recent Developments

  • In October 2021, Rio Tinto teamed up with the United States Geological Survey (USGS) to hunt for critical minerals beneath the Continental Divide near Montana’s Boulder Batholith. USGS partnered with a resource company to fly airborne geophysical surveys in areas of interest in 2022 as part of its Earth Mapping Resources Initiative (Earth MRI), allowing it to double the area under survey.
  • 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

    2. 4.2 Restraints

      1. 4.2.1 Inconsistent Supply of Rare Earth 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 Consumers

      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 Other Elements

      4. 5.1.4 Dysprosium

      5. 5.1.5 Terbium

      6. 5.1.6 Yttrium and Scandium

      7. 5.1.7 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 and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and 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 Eutectix

      7. 6.4.7 Iluka Resources Limited

      8. 6.4.8 MEDALLION RESOURCES LTD

      9. 6.4.9 NORTHERN MINERALS

      10. 6.4.10 Peak Resources

      11. 6.4.11 Rare Element Resources Ltd

      12. 6.4.12 Rio Tinto

      13. 6.4.13 Shin-Etsu Chemical Co. Ltd

      14. 6.4.14 Ucore Rare Metals Inc.

      15. 6.4.15 Xiamen Tungsten Co. Ltd

      16. 6.4.16 Lynas Rare Earths 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 2017 - 2027.

The Rare Earth Elements Market is growing at a CAGR of >4% over the next 5 years.

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

Asia Pacific holds highest share in 2021.

Iluka Resources Limited , Lynas Rare Earths, Ltd., Aluminum Corp of China, Minmetals Land Limited, Arafura Resources Limited are the major companies operating in Rare Earth Elements Market.

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