Global Permanent Magnet Motor Market Trends, Forecast Report 2025-2037
Permanent Magnet Motor Market size was valued at USD 51.5 billion in 2024 and is projected to reach USD 180 billion by the end of 2037, rising at a CAGR of 10.6% during the forecast period from, 2025-2037. In 2025, the industry size of permanent magnet motors is estimated at USD 56.80 billion.
The global permanent magnet motor market is experiencing rapid expansion, led by increased demand for energy-efficient products across various industries, including automotive, renewable energy, and industrial automation. PMMs depend on a supply chain that utilizes rare-earth elements such as neodymium and dysprosium, among others, which are typically sourced from China. For instance, China produces between 84%-91% of the global rare-earth. A recent U.S. Department of Commerce report indicates a pressing national security issue with the level of import dependency due to the manufacture of neodymium-iron-boron (NdFeB) magnets in the U.S. This has prompted the U.S. government to provide funding for domestic magnet production and sourcing of recycling technology.
The Producer Prices Index (PPI) for the manufacturing sectors, including electrical equipment, rose by over 2.0% from November 2023 to November 2024. The CPI increased by only 2.1% for the 12 months ending April 2025, indicating that consumers' prices remained stable despite upstream cost pressures. Furthermore, investments in technology development are considerable, with the U.S. supporting programs to develop NdFeB magnet production and human capital development for materials scientists and production line workers.
The import and export nature of PMM also has a significant effect. For instance, the U.S. heavily imports NdFeB magnets from China, which dominates the global market partly due to the availability of raw materials. Furthermore, global trade shapes the growth of industries in areas that seek to expand businesses to address the necessity of supply chain disruptions or shortages following the COVID pandemic. Investment in technology is focused on wind turbine magnet recycling. Assembly line improvement, supported by federal financial incentives, demonstrates an emphasis on resourcing and automation, where some facilities doubled production capacity domestically compared to past demands.
Permanent Magnet Motor Sector: Growth Drivers and Challenges
Growth Drivers
- Shift towards electric vehicles (EVs): The increase in global EV adoption is accelerating demand for permanent magnet synchronous motors (PMSM). As per the International Energy Agency (IEA), over 9 million EVs were sold in 2022. The high efficiency and high torque density of PMSMs are essential in EV powertrains. Currently, Asia-Pacific, aided by China, is the largest producer of EVs, contributing to the Permanent magnet motor market demand for the region through 2030. Europe anticipates around 14% CAGR for PMSM orders through the same period due to various emission regulatory standards like the EU's 2050 carbon neutrality initiative.
- Energy efficiency legislation and sustainability goals: Global regulations for energy efficiency, such as the EU's Ecodesign Directive and the U.S. Department of Energy efficiency standards, create a mandate for PMM adoption. The NIST framework for cybersecurity in manufacturing promotes secure, energy-efficient systems, leading to the adoption of PMMs in smart factories. The overall PMM adoption in the industrial sector will reduce energy consumption by over 25%. The European regions' carbon neutrality targets by 2050 are fostering greater PMM adoption. Likewise, the Asia-Pacific region is benefiting from China's recently implemented energy efficiency policies.
- Industrial automation and Industry 4.0: The growth of industrial automation is generating demand for small form-factor, very high-performance PMMs for new applications in robotics and smart manufacturing. With over 3 million robots in operation, based on both NIST research on advanced manufacturing and other research on robotics, there is a strong interest for PMMs in precision applications that incorporate AI and IoT.
Emerging Technological Trends Reshaping the Global Permanent Magnet Motor Market
The global permanent magnet motor market is transforming due to the changes in the materials of magnets, energy efficiency regulation implementation, and digitalization. The automotive, renewable energy, aerospace, and industrial automation industries are all beginning to link PMM technologies to enable operational efficiency, lower emissions, and comply with various regulations.
One trend emerging within the Permanent magnet motor market is the continued move to rare-earth-free magnets to lessen dependence on China. The second trend is the use of IoT and AI-driven motor control technologies in convergence to increase efficiency and effective predictive maintenance in smart manufacturing and supply chain management. Furthermore, the renewable energy sector has seen a dedication to the shared vision of high torque density and robust reliability.
Statistical Overview of Technological Trends in Permanent magnet motor market
|
Trend |
Industry Application |
Example Company |
Technology Focus |
|
PMMs in Wind Turbines |
Renewable Energy |
Siemens Gamesa |
Direct drive PMMs |
|
PMM Miniaturization |
Aerospace & Drones |
Honeywell |
Compact propulsion motors |
|
Rare-earth-free Magnets |
Automotive |
BMW |
Magnet-free e-drives |
|
AI-integrated Motor Control |
Industrial Automation |
Siemens |
Predictive maintenance |
|
High-efficiency Motor Adoption |
HVAC & Robotics |
ABB |
IE4 PM motors |
Building Resilient Supply Chains in the Permanent Magnet Motor Industry
The global permanent magnet motor market is transforming to overcome supply chain vulnerabilities. The vulnerabilities have been exacerbated by geopolitical tensions, the dependency on rare earth elements, and disruptions in global logistics. Digital technologies are being integrated into the supply chain strategy of predictive analytics powered by AI and blockchain technology to be able to assess and monitor risks as they emerge in real time. For instance, Nidec Corporation rolled out AI-based supply chain forecasting in 2023 that cut lead time by over 12%. Companies have also begun using sustainability as a strategy. For instance, Johnson Electric has sourced from regionally based suppliers to limit logistics costs and emissions altogether. The strategic combination of all of these tactics aligns with broader environmental regulation and investor expectations.
Statistical Overview of Resilience Strategies in PMM Supply Chains
|
Strategy |
Company |
Technology/Approach |
Measurable Impact |
|
Local Sourcing for Sustainability |
Johnson Electric |
Regional supplier shift |
Around 9% logistics savings. More than 10% reduction in CO2 emissions. |
|
Smart Inventory Optimization |
ABB |
Real-time stock analytics |
Over 15% reduction in inventory overhead. |
|
AI Predictive Analytics |
Nidec |
Supply chain forecasting |
14% lead time reduction. |
|
Supplier Base Diversification |
Toshiba |
Multi-region sourcing |
More than 15% supply shortage reduction. |
|
Blockchain Tracking |
Hitachi Motors |
Distributed ledger for sourcing |
Over 25% traceability improvement. |
Challenges
- Trade barriers and tariffs: The World Trade Organization (WTO) states tariffs on ICT components including magnets are responsible for an increase in costs of 4-11% in countries such as Brazil, Indonesia. The U.S.-China economic situation, in which the U.S. has imposed significant restrictions on Chinese hardware suppliers has limited access to affordable PMM components as per the U.S. Department of Commerce. Tariffs and trade restrictions raise costs and delay delivery through trade value chains, particularly for supplier’s dependent on global supply chains. Mitsubishi Electric announced in 2023 that it successfully diversified its supply chain for magnets to supply the USA market from Australia to reduce 8% of its costs and improve market access in North America.
- Infrastructure readiness gaps: There are PMM-based ICT solutions, such as smart grids and connected vehicles, that require the ability to access advanced digital infrastructure. The WTO pointed out that the requisite ICT infrastructure in developing countries is still lacking. This hinders PMM implementation in IoT and automation applications.
Permanent Magnet Motor Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.6% |
|
Base Year Market Size (2024) |
USD 51.5 billion |
|
Forecast Year Market Size (2037) |
USD 180 billion |
|
Regional Scope |
|
Permanent Magnet Motor Segmentation
Motor Type (Permanent Magnet AC Motor (PMAC), Brushless DC Motor, Hermetic Motors, Permanent Magnet DC Motor (PMDC))
The PMAC segment of the permanent magnet motor market is projected to hold a dominant 45.2% revenue share by the end of 2037. The growth is fueled by their energy efficiency and torque density, which make them ideal for EVs and industrial applications. The U.S. Department of Energy research identifies PMAC motors as a way to decrease energy consumption in industry up to 29%. Organizations should seek ways to leverage the opportunities to design competitively priced PMAC products that bridge the performance gaps.
Magnetic Material Type (NdFeB, Ferrite, Samarium Cobalt, Alnico)
The NdFeB segment is poised to account for a major revenue share in the permanent magnet motor market due to their higher magnetic power and applications in high-power-density uses such as EVs and wind turbines. The U. S. Geological Survey's report shows that NdFeB magnets make up over 90% of the total global industry production. Many businesses are stepping into the innovation of recycling used rare-earth products with existing rare-earth-free magnets. The most prominent Asia Pacific businesses dominate the permanent magnet motor market on account of their access to raw materials in China.
Our in-depth analysis of the global permanent magnet motor market includes the following segments:
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Motor Type |
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Power Rating |
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End-User Industry |
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Customize this ReportPermanent Magnet Motor Industry - Regional Synopsis
North America Market Forecast:
The North America permanent magnet motor market experiences robust growth, led by the government initiatives that support digital infrastructure and clean energy. The National Telecommunications and Information Administration (NTIA) indicated that around USD 42 billion was set aside in the Portioning Explain and Ladder your Path (BEAD) program for extending digital infrastructure until 2030. These initiatives indirectly drive the demand for PMM systems due to increased workloads that develop in data centers, 5G towers, and smart grid systems. Furthermore, the rising number of electric vehicles (EVs) also contributes to market expansion.
Additionally, demand for permanent magnet motors has been increasing in the U.S. due to investments in smart infrastructure and a targeted federal funding approach. The deployment of fiber optic broadband conduit infrastructure has increased the application of PMMs in that area. The Federal Communication Commission (FCC) has also indicated that deployment of spectrum under the planning 5G initiatives will increase the application of PMMs in connectivity technology with respect to cooling systems, antenna actuators, and telecom modules. Furthermore, the U.S. Department of Energy has made investments to ensure PMM growth in the U.S. while promoting domestic production of components pertaining to EV motors through the use of the Advanced Technology Vehicles Manufacturing Loan Program.
Asia Pacific Market Forecast
The Asia Pacific permanent magnet motor market is poised to hold a revenue share of 31% throughout the forecast period. The growth is driven by the increased adoption of electric vehicles (EVs) and large-scale investment in information and communication technologies (ICT). In China, communications data from the CAICT shows over a 40% increase in PMM-based solutions developed for formal market introduction between 2018-2023, driven by high-speed communication infrastructures requiring 5G and smart city planning. As of 2023, over 5 million businesses had made PMM-integrated technologies available within their business plans. Japan's METI reported around an 11% annual increase in the national technology budget going toward PMM-inspired applications of robotics and electronically-integrated healthcare ICT.
India is predicted to emerge as the region with the highest CAGR of 8% in the Asia Pacific permanent magnet motor market. Growth in this sector can be attributed to the expansion of digital infrastructure and strong government support. In 2023, more than 2.4 million businesses in India implemented PMM solutions in automation and energy-efficient applications. The Smart Cities Mission has implemented PMM-based heating, ventilation, and air conditioning (HVAC) and transport automation in more than 90 cities. Several government initiatives, including Digital India and the Production Linked Incentive (PLI) scheme, support local PMM manufacturing and R&D. India is expected to see market growth, additionally, based on the significant expansion of the local electric vehicle market and a noted contribution from NASSCOM in AI-optimized PMM-driven data centers.
Companies Dominating the Permanent Magnet Motor Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The permanent magnet motor market is driven by a high demand for automation and IoT. ABB and Siemens dominate the global PMM landscape with AI-driven motor controls. Rockwell Automation has embraced NIST's cybersecurity framework to improve Trust. Havells and Firstway are targeting cost-sensitive applications with ferrite motors. Australian companies are exploring rare-earth-free and other sustainable electric motor innovations. Companies are primarily focusing on R&D and recycling opportunities while exploring potential private-sector partnerships to combat supply chain risks.
Top 15 Global Manufacturers in the Permanent Magnet Motor Market
|
Company Name |
Country of Origin |
Estimated Market Share (2025, ICT Sector) |
Company Name |
|
ABB Ltd. |
Switzerland |
8.2% |
ABB Ltd. |
|
Siemens AG |
Germany |
7.1% |
Siemens AG |
|
Nidec Corporation |
Japan |
6.5% |
Nidec Corporation |
|
Rockwell Automation, Inc. |
USA |
6% |
Rockwell Automation, Inc. |
|
Wolong Electric Group Co., Ltd. |
China |
5.2% |
Wolong Electric Group Co., Ltd. |
|
WEG S.A. |
Brazil |
xx% |
WEG S.A. |
|
Toshiba Corporation |
Japan |
xx% |
Toshiba Corporation |
|
Emerson Electric Co. |
USA |
xx% |
Emerson Electric Co. |
|
Hyundai Electric & Energy Systems |
South Korea |
xx% |
Hyundai Electric & Energy Systems |
|
Franklin Electric Co., Inc. |
USA |
xx% |
Franklin Electric Co., Inc. |
|
Allied Motion Technologies Inc. |
USA |
xx% |
Allied Motion Technologies Inc. |
|
Yaskawa Electric Corporation |
Japan |
xx% |
Yaskawa Electric Corporation |
|
Havells India Ltd. |
India |
xx% |
Havells India Ltd. |
|
Firstway (M) Sdn. Bhd. |
Malaysia |
xx% |
Firstway (M) Sdn. Bhd. |
|
Austorque Australia Pty Ltd. |
Australia |
xx% |
Austorque Australia Pty Ltd. |
Here are a few areas of focus covered in the competitive landscape of the permanent magnet motor market:
In the News
- In August 2024, Rockwell Automation announced the adoption of NIST’s cybersecurity framework to integrate secure IoT connectivity into its PMM-based automation systems to protect motor-driven systems in smart manufacturing from cyber threats and address vulnerabilities in IIoT networks.
- In May 2024, EVR Motors Ltd. developed a new plant in Haryana, India, to produce its Trapezoidal Stator Radial Flux Permanent Magnet (RFPM) motor for ICT applications such as robotics and IoT-enabled manufacturing.
Author Credits: Dhruv Bhatia
- Report ID: 5170
- Published Date: May 29, 2025
- Report Format: PDF, PPT
