Dysprosium Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Dysprosium Metal, Dysprosium Oxide, Dysprosium Alloy, Others), By Application (Permanent Magnets, Phosphors, Commercial Lighting, Halide Lamps, Others), And By Geography - Forecasts From 2022 To 2027

The global dysprosium market is projected to witness a compounded annual growth rate of 10.54% to grow to US$2,384.252 million by 2027, from US$1,182.256 million in 2020. Dysprosium is a soft silver metal with one of the strongest magnetic properties of any rare earth metal, comparable only to holmium. Dysprosium is frequently added to permanent rare earth magnets to improve their performance at higher temperatures. Dysprosium is used in lasers, commercial lighting, hard disks, and other devices requiring specific magnetic qualities. It can also be utilized in nuclear reactors. Further, and also has a high demand from energy-efficient cars. Rising demand for electric vehicles is playing an important role in the dysprosium demand growth. For instance, according to the data by the International Energy Agency, in 2021, battery electric car registration and sales in China stood at 2,734 thousand units which showed a significant increase of 193.6% in comparison to 2020’s registration and sales level

Based on geography the global dysprosium market is segmented into Americas, Europe Middle East and Africa, and Asia Pacific regions. The Asia Pacific segment is expected to hold a significant market share of XX% in 2027, growing from XX% in 2020 respectively on account of the presence of major rarer earth element producers such as China. The country is the leading producer of rare earth elements including dysprosium and the high demand for rare earth elements globally has expanded China’s production capacity for rare earth elements. For instance, according to the US Geological Survey, in 2021, the global rare earth element (REE) production stood at 280,000 tonnes with China holding 60% of the production share. In order to further boost the efficiency of its rare earth elements industry, it established state-owned-enterprise (SOE) China Rare Earth Co. Ltd in December 2021 to enhance the pricing power of key earth elements such as dysprosium. Such an increase in production scale and SOE establishment will positively impact the dysprosium demand in China during the forecast period.

Growing demand of electric vehicles will boost the dysprosium market growth. As fossil-fueled vehicles are quickly being replaced with energy-efficient electric vehicles, the demand for dysprosium is fast increasing. Due to escalating environmental and climate change concerns, the demand for electric vehicles and eco-friendly vehicles has surged dramatically. As more eco-friendly cars and electric vehicles (EVs) are used, the need for dysprosium in the automotive industry is likely to rise. Many countries, particularly in Europe and North America, are progressively banning the usage of fossil-fueled vehicles. For example, the United Kingdom has set a goal of reaching net-zero emissions by 2050. The country has banned the sale of new petrol and diesel automobiles and trucks beginning in 2030. Furthermore, the European Union has mandated a prohibition on new petrol and diesel vehicles beginning in 2035. The state of California in the United States of America has proposed a ban on new gasoline-powered passenger automobiles and trucks beginning in 2035. Eco-friendly vehicles are likely to drive the global dysprosium market as nations tighten their stance on global warming and climate change.

COVID-19 Impact on Dysprosium Market

Due to the COVID-19 pandemic, the dysprosium market witnessed a slower growth rate in 2020. To curb the spread of COVID-19, several nations restricted domestic as well as international travel. As international borders were closed and nations went into lockdown, trade was disrupted. Both production and supply were impacted as China was the major manufacturer and exporter of this heavy rare earth metal.

However, in 2020, the prices for dysprosium skyrocketed dramatically which offset the decline in volume. The average price of dysprosium oxide, 99.5% minimum, climbed from US$239 per kg in 2019 to US$261 per kg in 2020 in the U.S., according to the United States Geological Survey (USGS) on rare earth metals. Chinese Dysprosium Oxide 99.5% min is expected to be at RMB1.770-1.790 per kg (US$250-US$253 per kg) EXW D / P as of May 2020. The primary vendors even provide quotes of 1.800 RMB per kg (254 USD per kg). Major suppliers are not in a rush to sell Dysprosium Oxide 99,5% min right away due to escalating PrNd (Praseodymium Neodymium Dysprosium) Oxide prices and national reserve speculations.

Dysprosium, a material used in EVs, is becoming more expensive as more EVs are being used globally. Sales of electric vehicles worldwide defied COVID-19 in 2020. According to the IEA estimates, global sales of electric cars increased to over 3 million making 2020 a record-breaking year for electric mobility. This estimate is supported by current policy support and additional stimulus measures. This represents a return to the double-digit rates seen in 2010–18 and is equal to a global sales increase of more than 40% from the 2.1 million electric cars shipped in 2019. Increasing market prospects for electric vehicle and the overall automotive industry is expected to drive significant demand for the dysprosium market.

Dysprosium Market Scope:

Segmentation

• By Product
  • Dysprosium Metal
  • Dysprosium Oxide
  • Dysprosium Alloy
  • Others
• By Application
  • Permanent Magnets
  • Phosphors
  • Commercial Lightings
  • Halide Lamps
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • Europe Middle East and Africa
    • UK
    • Germany
    • France
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others