A new report by XploreMR studies the growth drivers, trends, restraints, and highlights of the global soft magnetic composites market. Presenting exclusive insights into the market from 2019 to 2029, the report projects that the market will witness notable growth during the forecast. Soft magnetic composites are the powdered form of ferromagnetic particles covered with a layer of an electrically insulating film. The growth of the market is predominantly driven by the growing demand from energy & automobiles, and the increasing number of nuclear power plants and electrical appliances, where the adoption of soft magnetic composites market is gradually increasing. Furthermore, soft magnetic composites are gradually gaining traction in the automotive and energy sector, which is gradually metamorphosing into a significant growth driver.
Usage in Electric Motors and Vehicles Escalates Market Growth
In the recent past, optimization of electric motors has gained prominence, owing to manufacturers' efforts to reduce operational costs, and as a measure to adhere to the set energy efficiency regulations and standards on utility equipment. With the increasing adoption of electric motors, the demand for soft magnetic composites is subsequently increasing, owing to the need to reduce the power consumption as a measure to lower their lifetime cost. Moreover, using soft magnetic composites helps in reducing additional upfront costs as well. The small size of soft magnetic composites is also acting as a beneficial feature in pushing the usage. Manufacturing industries are exhibiting preference towards soft magnetic composites over the conventional laminated core in electric machines owing to compactness. Besides, the growing demand for eco-friendly vehicles, including electric and plug-in hybrid cars, is creating an uptick in the sales of soft magnetic composites, due to their light weight. Backed by rising concerns regarding climate change and the role of greenhouse gases in it, industries are shifting towards renewable energy sources, which is expected to continue driving the market on a positive growth trajectory.
Production-related Difficulties Impede Profit Margins
Owing to their flexibility and efficiency that needs to be achieved in the production of soft magnetic composites, the scale of production is limited, and the end products are expensive. Moreover, the high cost of raw materials involved, such as iron powder and other bonding materials, is also a factor resulting in the high selling price. Also, the production of soft magnetic composites requires a skilled workforce. The lack of a skilled workforce, coupled with the aforementioned factors is likely to pose a challenge to the growth of the market through the forecast period.