Global Neodymium Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Application (Magnets, Ceramics & Glass, Catalysts, Others), By End-User Industry (Automotive, Healthcare, Electronics, Others), And By Geography - Forecasts From 2022 To 2027

The global neodymium market is evaluated at US$2.358 billion for the year 2020 and is projected to grow at a CAGR of 6.15% to reach a market size of US$3.581 billion by the year 2027.

Neodymium is a metal and is one of the rare-earth elements found in abundance. The metal is utilized in various industries, including electronics, healthcare, and automotive, among others. The rising production of electronics is one of the driving factors for the growth of the global neodymium market. According to data from the Japan Electronics and Information Technology Industries Association (JEITA), the global production by the electronics and IT industries have jumped from US$2,560 billion in 2015 to nearly US$2,970 billion in 2020, witnessing a growth of around 16%. The rising adoption of computing devices is one of the significant contributors to the electronics industry. Furthermore, the growing popularity of electric vehicles and the consequent rapid increase in the sales of electric vehicles are projected to bolster the demand for the neodymium market in the coming years. Moreover, the increasing demand for renewable energy is also anticipated to boost the market growth, as neodymium is extensively used in generating clean energies like wind energy.

The COVID-19 pandemic had a negative impact on the global neodymium market. Various end-user industries of neodymium were harmed during the pandemic, and the decreased demand from the end-use industries led to a decline in the global neodymium market as well. According to the Japan Electronics and Information Technology Industries Association (JEITA), the production by the global electronics and IT industries witnessed a slowed down growth of a mere 2% in 2020 and reached $2,972.7 billion, while the pre-pandemic expectation was higher. Furthermore, the automotive industry also faced negative impacts of the pandemic and contributed to the decline of the neodymium market amid the pandemic.

Rising adoption of computing devices

The world is being digitalized rapidly, and the adoption of computing devices has been increasing worldwide. As neodymium is widely used in computing devices, the increasing sales of computing devices are anticipated to lead to a surge in demand for neodymium during the forecast period. According to data from the International Telecommunication Union (ITU), the number of mobile cellular subscriptions has increased from 5.296 billion in 2010 to 7.325 billion in 2020. Furthermore, the data from ITU also shows that the population share of individuals using the internet globally has increased from 28.88% in 2010 to 56.73% in 2019. The massive jump in the number of individuals using the internet indicates a rise in the number of people using computing devices. The data from the National Telecommunications and Information Administration (NTIA), U.S. Department of Commerce, shows that the adoption of computing devices in the United States has been increasing dramatically. As per the data, the percentage of Americans (aged 3+) using smartphones has increased from 27% in 2011 to 68% in 2020. Also, the percentage of Americans (aged 3+) using laptops reached 47% in 2020, against around 43% in 2011. Furthermore, tablet users have witnessed a jump from 6% in 2011 to 30% in 2020. This is anticipated to positively impact the market growth of neodymium during the assessment period.

Growing sales of electric vehicles

The popularity of electric vehicles has been increasing considerably over the years. According to data from IEA, there were around 1.3 million electric cars on the world’s roads in 2015 which increased to more than 10 million in 2020. As per the data, the electric car registrations in China have increased from 208 thousand in 2015 to 1.159 million in 2020. In Europe, the electric car registrations have surged from 188 thousand in 2015 to 1.372 million in 2020. Furthermore, the data shows that consumer spending on electric vehicles has increased from US$18 billion in 2015 to US$119 billion in 2020, witnessing a growth of more than 500%. Also, the governments of various countries worldwide have been launching initiatives to promote the use of electric cars. The government spending on electric vehicles globally has jumped from US$5 billion in 2015 to US$14 billion in 2020. As per the trends, the sales of electric vehicles are projected to surge in the coming years. As neodymium is used in electric vehicles, the growing sales of electric vehicles are anticipated to surge the growth of the global neodymium market during the forecast period.

The Asia Pacific to dominate the market

Geographically, the Asia Pacific region is anticipated to hold a significant market share and is projected to witness substantial growth during the forecast period as the region is a hub for electronics production, especially in China, and hence the demand for neodymium is high in the region. Furthermore, the electric car industry has been surging in China, which is further expected to lead to an increased demand for neodymium in the region.

Global Neodymium Market Scope:

Segmentation

• By Application
  • Magnets
  • Ceramics & Glass
  • Catalysts
  • Others
• By End-User Industry
  • Automotive
  • Healthcare
  • Electronics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the neodymium market?
A1. The global neodymium market is projected to grow at a CAGR of 6.15% over the forecast period. 

Q2. What will be the neodymium market size by 2027?
A2. The neodymium market is projected to reach a market size of US$3.581 billion by 2027. 

Q3. What is the size of the global neodymium market?
A3. Neodymium Market was valued at US$2.358 billion in 2020.  

Q4. What factors are anticipated to drive the neodymium market growth?
A4. The rising production of electronics is one of the driving factors for the growth of the global neodymium market.

Q5. Which region holds the largest market share in the neodymium market?
A5. Geographically, the Asia Pacific region is anticipated to hold a significant share in the global neodymium market.