Press Release

Japan Neodymium Iron Boron Magnet Market Revenue and Trends 2025 to 2033

The Japan neodymium iron boron magnet market revenue surpassed US$ 992.89 million in 2024 and is predicted to attain around US$ 1,211.92 million by 2033, growing at a CAGR of 2.28% during the forecast period from 2025 to 2033.

Japan's neodymium iron boron (NdFeB) magnet market is a dynamic and competitive landscape, characterized by robust demand from the electronics and automotive sectors. Leading companies such as Proterial, Shin-Etsu Chemical, and TDK Corporation are at the forefront of this market, utilizing their technological expertise to maintain a competitive edge. The increasing integration of NdFeB magnets across a diverse range of applications—including wind turbines, electric vehicles, and consumer electronics—fuels market growth and innovation.

Japanese manufacturers are continually pushing the limits of NdFeB magnet technology. Notably, there has been significant advancement in the development of high-performance hot-deformed magnets, which offer enhanced magnetic properties and versatility. Additionally, these companies are exploring the incorporation of rare earth elements such as dysprosium and terbium to improve the heat resistance of NdFeB magnets, ensuring their reliability and performance in high-temperature environments. This commitment to innovation and excellence positions Japan as a leader in the global NdFeB magnet market, driving advancements that meet the evolving needs of various industries.

Japan Neodymium Iron Boron Magnet Market Key Takeaways 

• The Japan neodymium iron boron (NdFeB) magnet market is projected to reach a valuation of US$ 1,211.92 million by 2033, growing at a compound annual growth rate (CAGR) of 2.28% during the forecast period from 2025 to 2033.
• In terms of type, sintered magnets dominate the Japanese NdFeB magnet market in 2024, holding an impressive 67.89% market share, translating to approximately 5,250 tons of the total 7,500-ton demand. This strong preference for sintered magnets is largely due to their exceptional magnetic strength, which boasts a maximum energy product (BHmax) of 35-50 MGOe.
• When examining the market by grade, the N35-N45 grades stand out in Japan’s 2024 NdFeB magnet market, accounting for 30.89% of sintered magnet demand. These grades, with a BHmax of 35-45 MGOe, are favored for their balance of performance, cost-effectiveness, and versatility.
• In terms of application, neodymium iron boron magnets play a crucial role in the production of hard disk drives (HDDs) in 2024. They are responsible for driving 200 tons of demand within the NdFeB magnet market, thanks to their precision and strength in powering voice coil motors (VCMs) and spindle motors.
• The automotive sector emerges as the largest consumer of neodymium iron boron magnets in Japan for 2024, consuming 42.58% of the total market, which equates to 3,000 tons out of the 7,500-ton total. The exponential growth in electric and hybrid vehicles is a major driving force behind this demand.

Market Overview

Japan stands as the second largest market for Neodymium Iron Boron (NdFeB) magnets, showcasing a robust demand driven by some of the world's leading electronics and automobile manufacturers. Major companies such as Hitachi, Panasonic, Sony, Toyota, Nissan, and Honda are headquartered in Japan, playing a pivotal role in the country's magnet market. The unique characteristics of NdFeB magnets—such as their compact size, lightweight nature, strong magnetic force, and energy-saving capabilities—make them particularly valuable in various applications across the energy sector and energy-saving technologies.

In Japan, NdFeB magnets are extensively utilized in a range of applications, including wind turbines, energy-efficient elevators, electric bicycles, hybrid vehicles, computer hard disk drives, medical equipment, and consumer electronics. The versatility of these magnets allows them to enhance the performance and efficiency of devices in these fields. For example, in 2024, Japan installed 4.8 GW of wind capacity, a 12% increase from the previous year. This growth is largely attributed to the deployment of direct-drive turbines that utilize NdFeB magnets, which convert wind energy into electricity more efficiently than traditional gearbox systems.

The electric vehicle (EV) sector in Japan has also seen remarkable growth, with production surging to over 1.2 million units in 2024—a 15% increase compared to 2023. This impressive rise in EV production is spearheaded by major manufacturers like Toyota, Nissan, and Honda, all of whom rely heavily on NdFeB magnets. 

These magnets are crucial components in the vehicles, powering more than 90% of their brushless DC motors, with each motor typically requiring 1-2 kg of NdFeB magnets. This dependency on high-performance magnets underscores the significant role that NdFeB technology plays in advancing Japan's automotive industry, as the country continues to innovate and expand its capabilities in both electric vehicle manufacturing and renewable energy solutions.

Market Growth Factors

Driver

Growing Electric Vehicle Sector: The electric vehicle (EV) sector is experiencing rapid growth globally, and Japan is no exception. This surge in the EV market is significantly driving the demand for Neodymium Iron Boron (NdFeB) magnets, which are crucial components in various electric vehicle technologies.

Renewable Energy Expansion Requiring Magnets for Wind Turbines and Storage: The expansion of renewable energy sources, particularly wind energy, is another significant factor driving demand for NdFeB magnets. These magnets are integral to the efficient operation of wind turbines and energy storage systems.

Restraint

High Costs Associated with Environmental Compliance and New Technology Implementation: The Neodymium Iron Boron (NdFeB) magnet market in Japan is currently facing challenges primarily due to the high costs linked to environmental compliance and the adoption of new technologies. These costs can significantly impact the operational viability and competitiveness of manufacturers in this sector.

Continuous Pressure for Technological Innovation: The constant demand for technological innovation in the NdFeB magnet market presents another challenge. Companies are under pressure to invest heavily in research and development (R&D) to keep pace with evolving market needs. The pursuit of innovation is inherently risky, and not all R&D efforts lead to successful products. Companies may invest heavily in projects that ultimately do not yield viable results.

Top Trends

Integration of Digital Technologies and AI: The neodymium iron boron (NdFeB) magnet market in Japan is experiencing a significant transformation due to the integration of digital technologies and artificial intelligence (AI) in manufacturing processes. This integration is crucial for enhancing production efficiency, improving product quality, and driving innovation within the sector.

Development of Eco-Friendly Manufacturing Processes: There is a growing emphasis on eco-friendly manufacturing processes within the Japan neodymium iron boron magnet market. This initiative is driven by the need to reduce environmental impact and align with global sustainability goals.

Top Players in Japan Neodymium Iron Boron Magnet Market

• Hitachi Metals (Now a part of Proterial Ltd.)
• Innuovo Magnetics
• Sumitomo Metal Mining Co., Ltd.
• Shin-Etsu
• TDK
• Daido Kogyo Co. Ltd.
• Magna Tokyo
• Kumar Magnet Industries
• Arnold Magnetic Technologies
• Other Prominent players

Market Segmentation Overview

By Product Type

• Sintered Neodymium Iron Boron Magnet
• Bonded Neodymium Iron Boron Magnet
• Injection Moulded Neodymium Iron Boron Magnet

By Grade

• Up to N35
• N35-N45
• N45-N55
• Above N55

By Form/Shape

• Disc
• Block
• Arc
• Ring
• Others

By Application

• Switches
• Relays
• Loudspeakers
• Headphones
• Microphones
• Sensors and Actuators
• Hard Disk Drives
• Bearings
• Particle Accelerators
• Others

By End User

• Automotive
• Electronics
• Aerospace and Défense
• Healthcare
• Energy and Utilities
• Others

By Distribution Channel

• Online
• Offline
  • Direct
  • Distributor