In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
October 2, 2018: Hitachi Metals announced its involvement in the development of ML27D, which is a soft ferrite core material with distinguished high frequency characteristics. The use of this material is projected to enable low core loss and high energy savings.
The global soft ferrite market is estimated to garner a large revenue and grow at a CAGR of ~4% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing usage of soft ferrite in electronics for automobiles, growing investments in power distribution sector, and large-scale application of the compound for the manufacturing of high-frequency transformers. In addition, soft ferrite is gaining huge popularity since the last few years as a result of its superior magnetic characteristics, ability to alter magnetization and high electrical resistance. This is considered to be a crucial factor projected to offer abundant growth opportunities to the market in the near future. Furthermore, rising production of electric vehicles, and increasing manufacturing activities in developed and emerging economies are also expected to drive market growth in the upcoming years. According to the International Energy Agency, total number of electric cars on the road were 17,000 in 2010 which increased up to 7.2 million by 2019. The total sales of electric cars increased by 6 percent from 2018 to 2019.
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The market is segmented by application into transformers, motors, alternators, and others, out of which, the motors segment is anticipated to hold the largest share in the global soft ferrite market on account of the large-scale usage of electric motors in various end user industries such as medical equipment, consumer electronics and electric vehicles. Along with this, soft ferrite is widely being adopted to produce motors of high efficiency with lower consumption costs, which is also assessed to boost the growth of the segment by the end of 2030. The segment for transformers is also predicted to gather a significant market share during the forecast period owing to the increasing venture funding for finding premium quality materials for transformer core. Additionally, on the basis of product, the segment for Mn-Zn ferrite, or manganese coupled with zinc ferrite, is assessed to acquire the largest share over the forecast period in view of its extensive utilization in the electrical industry as a result of its higher permeability and saturation levels than nickel zinc ferrite.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global soft ferrite market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in the North America is estimated to witness noteworthy growth over the forecast period on the back of the rising production of electrical components in the region. Apart from this, growing use of electric motors for a variety of industrial applications such as refrigeration, pumping, compressed air and material processing, is also expected to expand the market in the region in the coming years. Moreover, the market in Asia Pacific is projected to occupy the largest share during the forecast period, which can be credited to the increasing demand for electricity, rapid population growth and growing industrialization in the region. For instance, the electricity consumption in China was more than 7500 terawatt hours in 2020, up from about 7225 terawatt hours in 2019. The total electricity consumption in this nation has only observed a hike since 2010.
The global soft ferrite market is further classified on the basis of region as follows:
Our in-depth analysis of the global soft ferrite market includes the following segments:
Ans: The major factors driving market growth are growing use of soft ferrite for making automobile electronics and increasing investments in power distribution sector.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2022 – 2030.
Ans: Fluctuating prices of raw materials is estimated to hamper the market growth.
Ans: North America will provide more business opportunities for market growth owing to the rising production of electrical components in the region.
Ans: The major players in the market are Toshiba Materials Co., Ltd., Hitachi Metals, Ltd., TDK Corporation, Amidon Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, application, end user, and by region.
Ans: The motor segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.