Rubber Magnet Market - Forecast(2023 - 2028)

Rubber Magnet Market Overview

Rubber Magnet Market is expected to grow at a CAGR of 5.5% during the forecast period 2021-2026. Rubber magnets have gained wide acceptance in the recent days due to their superior performance, high permeability, flexibility and adjustability features. Rubber magnets are flexible magnets which is produced with chlorinated polyethylene, and can be twisted and bent and made to any shape as required. Rubber magnets are also made with ferrite magnet powder, and therefore makes the magnetic power of rubber magnets stronger, and it does not lose the power so easily. This is driving the demand for rubber magnets from various end-use industries. The rubber magnets are flexible and therefore can be used as a semi-finished product and can be punched, slit, cut or laminated according to specific needs. These features make rubber magnet material of choice.

Impact of COVID-19

The COVID-19 pandemic has affected the rubber magnet market in terms of logistics and supply chain. With the slowdown in the economy, rubber magnet market has also suffered a certain impact. The already produced products are stagnated as unsold inventories and there are restrictions on logistics due to the pandemic making the distribution difficult. However, the situation is also estimated to improve by the end of the year 2021.

Rubber Magnet Market Report Coverage

The report: “Rubber Magnet Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Rubber Magnet Industry.

Key Takeaways

• North American market is expected to hold the largest share in the rubber magnet market for the next few years due to the presence of export-oriented manufacturing capacities and substantial domestic demand from various end-use industries.
• The development in electrical and electronics industry has contributed to the growth of rubber magnets market.
• Further, rising investments in R&D and product innovation is creating huge opportunity for rubber magnets.
• Amid the Covid-19 pandemic, the growth of the rubber magnet industry decreased due to various economic restrictions.

FIGURE: Rubber Magnet Market Revenue, 2020-2026 (US$ Billion)

Rubber Magnet Market Segment Analysis - By Process

Injection molding process segment held the significant share in the rubber magnet market in the year 2020 and is expected to grow at a CAGR of 5.5% during the forecast timeframe. Injection molding is suitable for mass production and helps in saving time and thus improves the efficiency of the overall process. Injection molding is most preferred for rubber and plastics owing to its flexibility and its accommodativeness to raw materials from high precision engineering products to disposable consumer goods. Therefore, the injection molding process is gaining its momentum in the rubber magnet market.    

Rubber Magnet Market Segment Analysis - By Types

Isotropic segment held the largest share of more than 65% in the rubber magnet market in the year 2020. Isotropic type of rubber magnets is highly elastic, flexible, and machine friendly which makes it highly preferred permanent magnet applications for both industrial use and home appliances use. The dimensions of isotropic rubber magnets can be made as however the customer prefers it, and therefore providing excellent flexibility. This makes isotropic rubber magnets ideal for using in promoting, advertising and educational purposes.  

Rubber Magnet Market Segment Analysis - By Application

Motors segment held the largest share in the rubber magnet market in the year 2020 and is anticipated to grow at a CAGR of 5.1% during the forecast period. The use of rubber magnets in motor is very crucial to the basic function of the motor itself. With the use of rubber magnets in motors, there is no direct contact between the motors and impeller, which helps in reducing the friction. The development in the automotive and electrical industry has increased the manufacturing of motors, which in turn has given rise to the demand of rubber magnets.  Rubber magnets are also extensively used in electronics, as these magnets can be cut into thin strips and can be used in circuits.

Rubber Magnet Market Segment Analysis - By End-Use Industry

Electrical and electronics segment held the significant share in the rubber magnet market in the year 2020 and is estimated to grow at a CAGR of 5.8% during the forecast period. The total sales of consumer electronics product amounted to $683 billion in the year 2019 and is expected to grow at healthy CAGR in coming years. The development in economies and standard of living has increased the need for electrical and electronics industry. Therefore, the manufacturing of electrical and electronics products has significantly increased in the present day. This has contributed to the growth and development of rubber magnet market. 

Rubber Magnet Market Segment Analysis - By Geography

North American region held the largest share of more than 30% in the rubber magnet market in the year 2020. The rapid increase in the growth of economy and increase in the export manufacturing activities are one of the biggest drivers of rubber magnets in the region. North American region recorded the highest number of manufactures of electronic devices and applications. The total computer and consumer electronics sales through ecommerce is estimated to be $156.50 in US in the year 2020. This has eventually led to the increase in the use and demand for rubber magnets in the electronic devices.

Europe followed North America closely in terms of demand of rubber magnets. The rapid industrialization and economic development are the major factors driving the rubber magnet market in the European region.

Rubber Magnet Market Drivers

Growth in logistics industry

The increase in the demand for transportation and supply chain activities has led to the growth of logistics industry. Rubber magnets are extensively used in transports as they are a key component in the motors of vehicles and other machines used in logistics industry. Rubber magnets can be used in automated processes, which is making it sought after in the logistics industry. Rubber magnets are very strong and the effect of magnet lasts for a long time, which makes the process smooth. The logistics industry is expected to grow at 10.5% CAGR from 2020-2025 which is further driving the rubber magnets market.

Development in the key use industries

The development in key use industries such as automobile, industrial infrastructure, consumer goods, equipment market and automotive industries have in turn surged the demand for rubber magnet market. For instance, the production of consumer electronics reached Rs.840 billion in the year 2020, which furthered the growth of rubber magnets since they are extensively used in electronics. Rubber magnet’s excellent flexibility and resistance property is the key factor driving the demand for rubber magnets in the market.

Rubber Magnet Market Challenges

High manufacturing costs coupled with competition

The manufacturing costs associated with producing rubber magnets and related product is very high. It is also a very long process and also costs a lot in terms of resources and costs. There is also high competition in the rubber magnets market, which is further making the production process and sustaining in the market an even bigger challenge. This is one of the main challenges which hampers the growth of the rubber magnet market.

Volatile raw material price

The raw materials used in manufacturing rubber magnets such as iron ore is an expensive material. The prices of iron ore are also very volatile and uncertain. The prices keep decreasing and increasing, therefore making it difficult for manufacturers to make any decision related to the raw materials, which could slow down the growth of rubber magnet market. For instance, the price of iron ore increased to US$229 per tonne in the May 2021 from US$190 per tonne in April 2021. This is impacting the growth of the rubber magnet market and is one of the major challenge to the rubber magnet market.

Rubber Magnet Market Landscape

Product development, innovation, acquisitions and mergers and expansion are some of the key strategies adopted by players in the Rubber Magnet Market. Major players in the Rubber Magnet Market are Stanford Magnets, IMA Magnets, Adams Magnets, Arnold Magnets, Beijing Zhong Ke, Dexter Magnetic, Electron Energy Corp, Feller Magtech, Fuzhou Ao Magnet, and Hitachi among others.

Acquisitions/Technology Launches

• In July 2020, Adams Magnetic Products Co. released two new products under their permanent magnet materials catalo. The new products are designed with enhanced properties such as additional neodymium demagnetization curves and additional samarium cobalt demagnetization curves.
• On February 2, 2020 Dexter Magnetic Technologies created new magnetic applications for implantable devices.

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