Published: December 2022 | Report Code: 12346 | Available Format: PDF | Pages: 148
The global rare earth metals market generated $7,063.9 million revenue in 2021, and it is expected to reach $15,473.3 million by 2030, progressing with a CAGR of 9.1% during 2021–2030. This will primarily be due to the increasing usage of these elements in the consumer electronics, energy, aerospace, and automobile industries.
The growth is also credited to the burgeoning usage of neodymium magnets in MRI machines, to obtain internal views of the human body without radiation. This is driven by the heavy investment in the healthcare sector by government and top players globally. Moreover, the various applications of these metals in defense equipment, including communication equipment, night-vision goggles, precision-guided weapons, and stealth technology, are driving the demand for them. Neodymium and samarium are used to create resilient magnets that can bear high temperatures for mission-critical electronic and defense applications.
Further, the increasing production of consumer durables in developing countries drives the sales of rare earth elements. For instance, in India, HP Development Company L.P. has started producing laptops under the Make in India initiative of the government. The company has a planned vision for expanding its product portfolio in India, which will further boost the electronics industry, since HP has a major share in the country.
In addition to this, cerium is deployed in light bulbs, TVs, and ovens, while dysprosium is mixed into the alloys utilized in wind turbines, electric vehicles (EVs), and nuclear reactors. And, lanthanum is extensively used in digital camera lenses, including cell phone cameras. Lanthanum-based catalysts are also utilized to refine petroleum. Further, yttrium, europium, and terbium phosphors are red–green–blue phosphors deployed in several light bulbs, panels, and TVs.
The world has been seeing advancements in AI, IoT, and wirelessly connected devices, which are creating a huge demand for semiconductors. Most of these new devices are equipped with a single system on a chip (SoC), to offer prominent levels of integration. Additionally, SoCs also allow the devices to work with a high-power efficiency and enhanced security, by integrating processors, memory, RF transceivers, sensors, power management, and connectivity components in a single unit.
Moreover, during COVID-19, the world shifted toward the digital mode of communication, which has increased the need for SoC-powered devices, in which many rare earth metals are involved in the manufacturing process of semiconductors.
Neodymium is expected to generate around $7 billion revenue in 2030. This will mainly be because of the growing usage of neodymium magnets in hybrid electric vehicles (HEVs), aircraft, and consumer electronics, such as mobile phones, audio systems, and TVs. Moreover, neodymium is a high-strength metal that helps in reducing the size of electric motors for EVs. As per data, the global electric motor market recorded revenue of over $100 billion in 2020, which displays a high demand for this mineral.
Neo magnets are also used in wind turbines, for electricity generation. As a result, they find a wide application in China due to the growing shift toward renewable sources. In the same vein, the U.S. and European countries are augmenting their adoption of the neo magnet technology for power generation. Moreover, with technological advancements, other elements, including praseodymium, terbium, and dysprosium, are being increasingly used in wind turbines and for e-mobility.
Lanthanum demand will experience moderate growth during the forecast period, as it has applications in various consumer electronics and electrical appliances, such as TVs, energy-saving lamps, and fluorescent tubes. Moreover, it is used in the production of catalysts and as a polishing agent in various consumer products. Hence, the improving lifestyles of people around the world are propelling the sales of the metal.
Based on application, the magnets category held the largest share, of more than 30%, in the market for rare earth metals in 2021, and it is expected to retain its dominance in the long run. This is ascribed to the high need for rare earth minerals in consumer electronics, such as sensors, speakers, and headphones. Cerium and dysprosium are highly magnetic and increasingly being used in manufacturing computer disks, lasers, commercial lights, turbine generators, electric motors, and energy-efficient vehicles.
The catalysts category held the second-largest share in 2021. These products’ primary role in a catalyst is to absorb, store, and release oxygen, while also stabilizing the surroundings in which they function. Lanthanum and cerium are commonly utilized in catalyst systems. They are also used in the illuminated screens on electronic devices, air pollution control systems, and during the e-polishing of optical glass.
Further, the glass and polishing category recorded the third-largest share in 2021. The most-widely used elements in glass are erbium, ytterbium, and neodymium. Additionally, cerium oxide abrasive is extensively used in fine polishing processes, such as during the fabrication of lenses, liquid crystal panels, prisms, and glass substrates for hard disks. Moreover, lanthanum is deployed in many high-index glasses, and, when combined with other glass materials, it ameliorates dispersion. Thus, they are used in various achromats and imaging lenses to intensify efficiency and improve image quality.
Rare earth metals are extensively used in catalyst systems as they increase the rate of a chemical reaction without themselves undergoing any permanent chemical change, by absorbing, storing, and releasing oxygen, and stabilizing the environments in which they work. Some major applications of catalysts are petroleum refining, chemical processing, catalytic converters, diesel additives, and industrial pollution scrubbers.
The key minerals used in catalyst systems are lanthanum and cerium. They are used as catalysts in automotive catalytic converters for cars and other vehicles and as fluid cracking catalysts (FCCs) in oil refineries. Hence, the increase in worldwide automobile sales and the rise in the stringency of the regulations around the world for vehicular emissions are driving the need for such converters.
There are several automotive catalytic converters (autocat) that transform the primary pollutants in engine exhaust gases into non-toxic compounds. This process is called ‘three-way catalysis’ because it achieves three different chemical reactions: first, oxidizing CO into non-harmful CO2; then, oxidizing the complex unburned hydrocarbons into CO2 and water; and lastly, converting oxides of nitrogen (NOx) with CO into harmless nitrogen and CO2.
Market Size in 2021
Revenue Forecast in 2030
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Company Profiling
By Type; By Application; By Region
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The APAC region is projected to observe the highest growth rate, around 10%, during the forecast period. China, being home to the largest reserves of the major rare earth elements, is their largest producer, also accounting for a significant proportion of the world’s output. Moreover, the country is a major exporter of these elements. With the rise in the production of automobiles, the market continues to grow, because these minerals are used as alloys for the manufacturing of automobiles and their components.
Furthermore, the country has the largest base for electronics production. These elements are used in smartphones, TVs, and various energy-efficient devices. More than half the world's mobile phones, nearly all printed circuit boards, and two-fifths of the semiconductors are currently made in China. In all, it has more than half the world's electronics manufacturing capacity. With the growing disposable income of the middle-class population, the need of consumer electronics is rising across APAC.
Further, North America is likely to have the second-highest growth rate over the forecast period. The growing end-use industries, surging population of tech-savvy inhabitants, snowballing production of consumer electronics, and rising usage of semiconductors due to technological advancements are the key factors responsible for the continuous rise in the demand for these metals in the region.
These elements are used to produce AI-driven systems, smart LED lamps, smartphones, and a host of other products. In addition, the production of green-energy products, such as EVs, has been increasing across the region, and these elements are important for many of their components.
Europe is expected to witness the third-fastest growth, after APAC and North America, during the forecast period. This is majorly because European countries account for significant shares of the global rare earth element imports. Further, companies across industries are focusing more on green-energy alternatives, which have a minimal effect on the environment and high efficiency, to gain market share. Thus, there is an increase in the demand for green-energy products and energy-efficient consumer electronics, which is driving the growth of the market.
The study uncovers the biggest trends and opportunities in the market, along with offering segmentation analysis at the granular level for the period 2017 to 2030.
Based on Type
Based on Application
The market for rare earth metals generated $7,063.9 million in 2021.
China is the largest country in the rare earth metals industry.
The market for rare earth metals in APAC will witness around 10% CAGR till 2030.
Magnets and catalysts are the most-significant applications in the rare earth metals industry.
The market for rare earth metals is driven by their extensive usage in the manufacturing of the magnets of EV motors.
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