Market Trend of Rare Earth Elements & EPM Magnets under Industry 4.0
Statistics show that the Rare Earth Elements (REE) market is projected to register a CAGR(compound annual growth rate) of 7.5% during 2021-2026.
COVID-19 impact has negatively affected most of the manufacturing sectors in the market, among which the consumer electronics industry is one of the industries that were affected negatively due to pandemic, though there was a huge demand for consumer electronics due to the need for communication because of lockdown, and social distancing, the manufacturing plants, and intermittent closure of physical stores in most parts of the world have created disturbances in the supply of consumer electronics.
In the medium term, the major factors driving the growth of the magnet market are the high demand from emerging economies, the dependency of ‘Green Technology’ on rare earth elements, and companies focusing on R&D.
On the flip side, the inconsistent supply and impact of COVID-19 are some of the concerns affecting the growth of the rare earth elements market.
The increasing scandium usage in aerospace applications is likely to provide opportunities for the studied market, during the forecast period. Asia-Pacific dominated the global market, owing to the increasing production of rare earth metals and rising demand from industries, such as consumer electronics, etc.
Increasing Demand for EPM Magnets under Industry 4.0
Magnets stand to be one of the largest applications for rare earth elements, and find extensive applications in various industries, such as electronics, automotive, power generation, medical, etc. , like EPM Magnets (electro-permanent magnets).
EPM magets are very strong and versatile, and thus can be used as material handling/lifting magnets, workpiece holding magnetic chucks, magnetic clamping system for molds and dies, and magnetic grippers for automation. This scope of application includes many different industries, like steel construction, ship building, mechanical engineering, metal cutting workshops, plastics, automotive, medical, energy, automation, etc.
Moreover, Industry 4.0 is driving faster and more flexible production, with increasing levels of customisation, as it integrates smart digital technology and manufacturing, and places an emphasis on automation, machine learning and real-time data. This revolution is driven by the need to boost productivity and output, increasing efficiency and creating what is known as a smart factory. All such trends are expected to noticeably drive the demand for EPM magnets, which is further projected to increase the demand for rare earth elements in the coming years.