Rare Earth Metals Market size is anticipated to reach USD 20 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of rare earth metals was over USD 10 billion. Mining and processing rare earth metals can have significant environmental impacts, leading to concerns over sustainable practices in the industry. Various efforts have been made to improve environmental regulations and responsible mining practices. The market can have geopolitical implications due to their strategic importance in various industries. Countries may use export restrictions or tariffs as a political tool, affecting global supply chains and prices.
Rare earth metals are a group of seventeen elements found in the periodic table. They possess unique properties that make them crucial components in various technological applications, including electronics, magnets, renewable energy technologies, defense systems, and more. The market has experienced price volatility in the past, partly due to China's control over supply. As demand for rare earth metals increases with the growth of technology sectors, prices can fluctuate based on supply availability and geopolitical factors.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 10 Billion |
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Forecast Year Market Size (2035) |
~ USD 20 Billion |
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Regional Scope |
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Type (Light, Heavy)
The light segment is estimated to gain the largest market share of 63% in the year 2035. Light rare earth metals are commonly used in electronics and semiconductors due to their unique magnetic and electrical properties, making them essential for manufacturing electronic devices. The increasing demand for electronic devices fuels the need for LREEs in their production. LREEs, particularly neodymium and praseodymium, are crucial components in high-performance magnets used in EV motors and wind turbines, driving the growth of the LREEs segment. According to the International Energy Agency (IEA), the global electric car stock exceeded 10 million vehicles in 2020, with the number projected to grow further in the coming years.
Additionally, the Global Wind Energy Council reported that the cumulative installed wind power capacity reached 743 GW by the end of 2020, indicating the increasing demand for wind turbines.
Application (Electronics, Lighting, Semiconductors)
The electronics segment in the rare earth metals market is expected to garner a significant share in the year 2035. Advancements in electronics technology, such as the development of smaller and more powerful microprocessors, integrated circuits, and sensors, drive the growth of the electronics sector. New technologies enable the creation of innovative and more sophisticated electronic products. The growing popularity of smartphones, tablets, smartwatches, and other smart devices has contributed significantly to the expansion of the electronics segment. These devices offer advanced functionalities and connectivity, driving consumer demand.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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APAC Market Forecast
The rare earth metals market in the Asia Pacific region is projected to hold the largest market share of 40% by the end of 2035. The Asia Pacific region is a significant consumer electronics market, with a large population and increasing disposable incomes driving demand for electronic devices. Asia Pacific accounted for more than 40% of global consumer electronics revenue in 2020, making it the largest consumer electronics market in the world. The region's push towards renewable energy projects and the adoption of electric vehicles (EVs) drives demand for rare earth metals used in wind turbines, EV motors, and battery technologies.
North American Market Statistics
The rare earth metals market in the North America region is projected to hold the second largest share during the forecast period. North America is known for its strong emphasis on technological advancements and innovation, driving the demand for rare earth metals used in various high-tech applications. The growing focus on renewable energy projects and clean technologies in North America drives the demand for rare earth metals used in wind turbines, electric vehicles, and other clean energy applications.
Author Credits: Smruti Ranjan, Rajrani Baghel
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