Overview of Magnet Demand and Key Sector Trends
The global demand for neodymium-iron-boron (NdFeB) magnets is expected to exhibit varied growth trends across different sectors in 2024, with significant fluctuations in the industries that depend on these essential components. According to Chen Zhanheng, the Secretary-General of China’s Rare Earth Industry Association, the demand for magnets will be heavily influenced by technological shifts, production patterns, and economic factors. This insight reveals the contrasting demand changes in sectors such as new energy vehicles (NEVs), wind turbines, air conditioners, and smartphones.
Continued Growth in New Energy Vehicles (NEVs)
The New Energy Vehicle (NEV) sector remains the largest consumer of NdFeB magnets, accounting for 35% of global demand. Demand for magnets in this sector is expected to increase by 2.42% to 43,018 tonnes in 2024. The growth of the NEV sector is primarily driven by the global push towards decarbonizing transportation and reducing dependency on fossil fuels. Government incentives, technological advancements, and the rising consumer shift toward electric vehicles (EVs) all contribute to this steady increase in demand.
Wind Turbines and Electric Bicycles See Decline
In contrast, sectors such as wind turbines and electric bicycles will face a notable decline in magnet demand. Wind turbines, in particular, are expected to see a dramatic drop of 32%, bringing demand down to 4,848 tonnes. This is a result of both slower investments in renewable energy projects and a reduced focus on wind power in certain regions. Similarly, the demand for magnets in electric bicycles is forecast to decline as consumer spending slows and competition from other forms of transportation increases.
Strong Growth in Inverter Air Conditioners
Another significant growth area is the inverter air conditioner market, where demand for NdFeB magnets is expected to rise by approximately 29%, reaching 30,154 tonnes. The rise in demand is tied to an increase in global air conditioning production, particularly in warmer climates and emerging economies where energy-efficient products are increasingly in demand. As global temperatures rise and consumers opt for more energy-efficient solutions, the inverter air conditioning market is becoming a key driver for magnet demand.
Economic Influences and Slowdown in Specific Sectors
Several economic factors are contributing to the shifting magnet demand. In China, a slowdown in the real estate and infrastructure sectors is leading to decreased demand for energy-efficient technologies such as elevators, which traditionally rely on NdFeB magnets. Additionally, the Chinese government’s policies to curb certain sectors and manage industrial overcapacity are affecting production outputs, including those in the renewable energy sector, further contributing to the demand decline for magnets in industries like wind turbines.
Sector-Specific Magnet Demand Shifts
For other industries, such as smartphones, the outlook for NdFeB magnets is relatively stable, with a minor decrease of 0.87% projected. However, competition from alternative technologies and a slowdown in innovation are contributing to this slight decline. Overall, sectors like air conditioners and NEVs are expected to dominate the magnet demand landscape, while industries such as wind turbines and electric bicycles are set to face challenges.
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