REPORT HIGHLIGHTS
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Globally, permanent magnet markets are expected to increase 7.8% per year, from $8.1 billion currently to $11.8 billion in 2011. The most rapid growth is expected in China, Indonesia, Russia, Mexico, Taiwan, India, and Malaysia.
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Significant consolidation has occurred and industry concentration is higher. In North America, the largest factor is TDK, which is largely a captive producer for its own electronics operations. The company has about 19% of the overall market. It is followed by VAC with 12%, Hitachi Metals with 11%, Arnold Magnetics with 9%, and Ugimag with 7%. No other company has more than 4% of the overall market.
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Many suppliers compete in the same market segments, and corporate recognition (or reputation), gained through advertising and promotion, has become an important factor. Most companies in North America have adopted either a strategy of product differentiation via unique technology or a strategy of focus (market segmentation) that is usually based on an end-use
SUMMARY FIGURE
NORTH AMERICAN MAGNET MARKET FORECAST BY SECTOR, 2002-2011
($ MILLIONS)
Source: BCC Research
REPORT SCOPE
INTRODUCTION
The goal of this report is to provide a detailed and comprehensive multi-client study of the worldwide market for magnets and their materials along with emerging technologies and potential business opportunities in the future. The objectives include a thorough coverage of the underlying economic issues driving the magnet business, as well as assessments of new and potential technologies, products and services that companies are developing. Social, political, and regulatory issues are also covered. Another important objective is to provide realistic market data and forecasts for worldwide magnet products and materials demand.
This technology/marketing report starts with an overview of the chemistry and physics of magnets, and the processes to produce magnet products, and then moves on to specific applications for magnet materials. It describes the market growth, the developing technology trends, industry leaders, and applications for these magnet products in North America. World markets are covered next, followed by a comprehensive analysis of the industry structure and profiles of the leading rare earth companies.
SCOPE OF STUDY
This report contains:
- An analysis of the current global magnet market in detail and the most promising market opportunities
- A five-year forecast of the North American magnet and related materials markets, with projections through 2011
- An overview of both soft and hard magnets, with a specific emphasis on hard magnets
- Discussion of new technologies, their implementation, and how they will affect the market in the long run
- The social, political, regulatory and economic issues that so many regard as critical to the industry's current state of change
- Profiles of the top companies in the business and a detailed patent analysis.
METHODOLOGY
The research methodology was qualitative in nature and employed a triangulation approach, which aids validity. Initially, a comprehensive and exhaustive search of the literature on rare earths was conducted. These secondary sources included electrical, electronic, chemical, and materials journals and related books, trade literature, marketing literature, other product/promotional literature, annual reports, security analyst reports, and other publications. A patent search and analysis was also conducted.
In a second phase, a series of semi-structured interviews were conducted with marketing executives, engineers, business unit managers, design engineers, and other personnel at the magnet material and product companies. Other sources included academics, technology suppliers, technical experts, trade association officials, government officials, and consulting companies. These were a rich source of data. BCC Research wishes to thank those companies, government agencies, and university researchers who contributed information for this report. When appropriate, information from previously published sources is identified to allow a more detailed examination by clients. Subsequent analysis of the documents and interview notes was iterative. Most current and potential market assessments are based on a 'common understanding' as derived from the above research methodology. That is, it reflects a consensus scenario that assumes no unanticipated technological advances or unexpected legislation.
