Rare Earth Metal Market

The global rare earth metals market was valued at USD 5,431.90 million in 2021 and is expected to reach a value of USD 9,175.55 million by 2030 with a CAGR of 6.12%. The growth of the global rare earth metals market is primarily driven by the growing use of rare earth metals in magnets.

It is anticipated that a rise in the demand for electronics will be a key factor driving the market during the forecast period for rare earth metals. Electronic goods like mobile phones, computer hard drives, flat-screen monitors, and televisions are frequently made with rare earth metals. Neodymium, praseodymium, dysprosium, terbium, and yttrium are the main rare earth elements utilized in permanent magnet applications. These metals have unique qualities like high coercivity and remanence that can keep permanent magnets from losing their magnetism even after prolonged use. These magnets are primarily used in the automotive industry, and as a result, this industry determines their demand. Traditional cars and hybrid cars can both use rare earth permanent magnets. In the long run, it is anticipated that the use of rare earth magnets in wind turbines will become another significant market for growth. As a result, the growing demand for rare earth metals might propel, which in turn might bolster the demand for rare earth metals in the forecast period.

Growing demand for smartphones, high bandwidth capacities, and high-speed connectivity is likely to fuel the demand for optical fiber cables in India. Moreover, government initiatives such as Smart Cities Vision and Digital India are anticipated to boost the demand for the internet which in turn is expected to propel the utilization of fiber optics over the coming years. Neodymium, erbium, and holmium are being increasingly used to manufacture high-efficiency fibers, which are called active fibers. The beneficial properties of rare earth elements including high electrical conductivity, heat resistance, and magnetism are likely to fuel their utilization in electronic devices such as loudspeakers, cell phones, LEDs, etc. over the coming years.

As per Wantstats analysis, the global rare earth metals market has been segmented based on type, application, and region. Based on type, the global market has been divided into Cerium, Dysprosium, Erbium, Europium, Neodymium, Holmium, Lanthanum, Lutetium, and Others. The Cerium segment dominated the global market, accounting for 36.47% of the share in 2021.

Based on application, the global market has been divided into metallurgy, batteries, magnets, glass & ceramics, polishing agents, and others. The magnets segment dominated the global market, accounting for 37.12% of the share in 2021. It was followed by the others segment estimated to reach USD 1,635.51 million by 2030 growing at a CAGR of 6.46%.

The Asia-Pacific market held a share of 45.73% of the global market owing to the easy availability of raw materials as well as increasing demand from the applications such as metallurgy, batteries, magnets, glass & ceramics, polishing agents, and others. North America accounted for the second largest with a market share of 21.17% and valued at USD 1,150.05 million the growth is attributed to the growing demand in the region. Also, increasing demand for magnets in automobiles, turbines, and consumer electronics is boosting the growth in the region.