"The Soft Magnetic Composites Market Size was valued at $6.1 billion in 2024 and is projected to reach $6.5 billion in 2025. Worldwide sales of Soft Magnetic Composites are expected to grow at a significant CAGR of 8.1%, reaching $ 13.5 billion by the end of the forecast period in 2034."
The Soft Magnetic Composites (SMC) market has gained significant momentum in recent years, driven by the demand for energy-efficient components in electrical systems. These composites are composed of iron powders with a non-conductive coating, offering advantages such as low eddy current losses and high magnetic permeability. SMCs are widely utilized in applications like electric motors, transformers, and inductors, where they help improve energy efficiency and reduce weight. Their unique composition allows manufacturers to design more compact, lightweight components without compromising performance, which is crucial in industries such as automotive, electronics, and renewable energy. As a result, the market for SMCs is projected to witness sustained growth over the next decade.
Global adoption of Soft Magnetic Composites is further driven by advancements in material science, enabling the production of higher-performance composites tailored to specific applications. These composites are particularly crucial in electric vehicles (EVs), where reducing energy losses and improving motor efficiency are paramount. With governments globally pushing for reduced carbon emissions, the demand for EVs and renewable energy systems is surging, directly boosting the need for SMCs. Additionally, the focus on compact and energy-efficient consumer electronics is creating new opportunities for SMC adoption. This broadening application scope positions the Soft Magnetic Composites market for robust expansion in both developed and emerging economies.
| Global Electromagnets and lifting heads, and parts (excl. medical magnets) Trade, Imports, USD million, 2020-24 | |||||
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| 2020 | 2021 | 2022 | 2023 | 2024 |
| World | 2,834 | 3,536 | 3,447 | 3,299 | 3,043 |
| United States of America | 392 | 496 | 517 | 461 | 463 |
| China | 346 | 420 | 385 | 362 | 327 |
| Germany | 281 | 373 | 400 | 399 | 325 |
| Mexico | 107 | 126 | 127 | 131 | 138 |
| Japan | 129 | 173 | 173 | 152 | 135 |
| Source: OGAnalysis, International Trade Centre (ITC) | |||||
- United States of America, China, Germany, Mexico and Japan are the top five countries importing 45.6% of global Electromagnets and lifting heads, and parts (excl. medical magnets) in 2024
- Global Electromagnets and lifting heads, and parts (excl. medical magnets) Imports increased by 7.4% between 2020 and 2024
- United States of America accounts for 15.2% of global Electromagnets and lifting heads, and parts (excl. medical magnets) trade in 2024
- China accounts for 10.7% of global Electromagnets and lifting heads, and parts (excl. medical magnets) trade in 2024
- Germany accounts for 10.7% of global Electromagnets and lifting heads, and parts (excl. medical magnets) trade in 2024
| Global Electromagnets and lifting heads, and parts (excl. medical magnets) Export Prices, USD/Ton, 2020-24 |
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| Source: OGAnalysis |
The Soft Magnetic Composites market is witnessing notable trends that are reshaping the landscape. One prominent trend is the increasing use of SMCs in the production of high-efficiency electric motors, particularly for electric and hybrid vehicles. As automotive manufacturers seek lightweight, energy-efficient solutions, the adoption of SMCs is growing, enabling more compact motor designs with reduced energy losses. This trend is also extending to industrial applications, where SMC-based motors are being developed to enhance energy savings and meet sustainability goals.
Another trend shaping the market is the growing investment in renewable energy technologies. As countries invest heavily in wind and solar power generation, there is a rising demand for efficient transformers and inductors, where SMCs play a crucial role in improving energy efficiency. Additionally, the electronics industry is driving demand for SMCs in applications like power supplies and inductive components. These trends highlight the increasing importance of SMCs in supporting the global shift toward cleaner, more sustainable energy solutions.
Moreover, advancements in additive manufacturing (3D printing) are enabling the production of customized SMC components with complex geometries, further enhancing their efficiency and performance. The integration of SMCs into advanced manufacturing processes is expected to accelerate, opening new avenues for innovation and cost-effective production. This trend underscores the expanding application scope of SMCs across multiple industries, paving the way for further market growth.
The rapid growth of electric vehicles (EVs) is one of the primary drivers of the Soft Magnetic Composites market. As global initiatives push for decarbonization and electrification of the automotive industry, manufacturers are increasingly turning to SMCs to design more efficient electric motors. These composites help reduce energy losses, increase motor performance, and allow for more compact motor designs, making them an essential component in the development of next-generation EVs. Governments„¢ strict emissions regulations are further propelling the market's growth by pushing manufacturers to innovate with energy-efficient materials like SMCs.
The global push for renewable energy is another significant driver. SMCs are playing an increasingly critical role in enhancing the efficiency of transformers and other electrical components used in wind turbines and solar power systems. With growing investment in these renewable energy sources, the need for energy-efficient components that can minimize power losses is crucial, fueling the demand for Soft Magnetic Composites. Moreover, the electronics industry, driven by consumer demand for more compact, power-efficient devices, is creating additional demand for SMCs in applications such as power inductors and transformers.
Advancements in materials science and manufacturing techniques are also acting as key drivers in this market. The development of newer, more advanced SMC materials with better magnetic and mechanical properties is expanding their application potential in a variety of sectors. Additionally, the rise of 3D printing technologies has enabled the production of more complex SMC components, further driving innovation in this space. Together, these factors are contributing to the robust growth of the Soft Magnetic Composites market.
Despite the promising outlook, the Soft Magnetic Composites market faces several challenges. One of the key obstacles is the relatively high cost of production compared to traditional magnetic materials. The manufacturing processes involved in producing SMCs, such as powder metallurgy and advanced coating technologies, can be expensive, which may limit their adoption in cost-sensitive industries. Moreover, the performance of SMCs can be impacted by the need for precise control over the production process, which may increase operational costs for manufacturers looking to scale their production.
Another challenge is the limited awareness and understanding of the benefits of SMCs among end-users, particularly in emerging economies. While the advantages of SMCs are well-known in developed regions, the high initial investment required for their adoption can deter companies in price-sensitive markets. Additionally, the integration of SMCs into existing manufacturing processes may require significant retooling and adaptation, which can act as a barrier to entry for some industries. These challenges, coupled with fluctuating raw material prices, could impede the market's growth potential.
North America’s soft magnetic composites market is driven by electrification trends across electric vehicles, industrial motors, renewable energy systems, and advanced power electronics. Market dynamics emphasize high-frequency performance, reduced core losses, design flexibility, and lightweight motor architectures, as OEMs seek materials that enable compact and efficient electromagnetic components. Lucrative opportunities are strongest in EV traction motors, on-board chargers, inductors, and high-speed generators where 3D magnetic flux capability and lower eddy current losses provide performance advantages over traditional laminated steel. Latest trends include increased use in e-mobility platforms, integration with additive manufacturing techniques for complex geometries, and development of improved insulation coatings for enhanced thermal stability. The outlook remains positive as demand for compact and efficient electrical systems rises, with recent developments focused on advanced powder metallurgy processes, localized production expansion, and closer collaboration between material suppliers and motor manufacturers.
Asia Pacific represents the largest and fastest-growing market due to extensive automotive manufacturing, expanding consumer electronics production, and rapid growth in renewable energy infrastructure. Market dynamics prioritize cost-performance balance, scalable production capacity, and integration into high-volume motor and transformer manufacturing lines. Lucrative opportunities lie in EV motors, inverter-driven appliances, industrial automation systems, and wind turbine generators where high-frequency magnetic materials improve efficiency and reduce noise. Trends include broader adoption of soft magnetic composites in small electric motors, investment in high-precision compaction technologies, and growing interest in materials optimized for high-speed applications. The forecast remains robust as regional electrification accelerates, with recent developments centered on capacity additions, technology upgrades in coating and insulation layers, and vertical integration across the magnetic materials value chain.
Europe’s soft magnetic composites market is shaped by stringent energy efficiency regulations, aggressive EV adoption targets, and strong industrial automation capabilities. Market dynamics emphasize reduced carbon footprint, recyclability, and compatibility with high-frequency inverter systems used in next-generation electric drives. Lucrative opportunities are concentrated in electric mobility, renewable energy converters, and high-efficiency industrial motors requiring compact core designs. Latest trends include increased R&D in low-loss composite powders, expansion of hybrid magnetic systems combining composites with traditional laminations, and automation of compaction and heat treatment processes for consistent performance. The outlook is steady and innovation-driven as sustainability and electrification initiatives advance, with recent developments focused on improved material formulations, strategic supply agreements with automotive OEMs, and collaborative research programs.
Middle East & Africa represents an emerging market influenced by infrastructure modernization, renewable energy projects, and gradual EV adoption in selected economies. Market dynamics are shaped by import dependence, cost sensitivity, and demand for reliable magnetic materials suitable for harsh environmental conditions. Lucrative opportunities are strongest in wind and solar power generation systems, industrial motors used in water treatment and energy sectors, and emerging electric transport initiatives. Trends include growing awareness of energy-efficient motor technologies, partnerships with global suppliers, and gradual establishment of local distribution networks. The outlook improves alongside renewable energy expansion and industrial diversification, with recent developments centered on pilot projects, technical training programs, and integration of advanced magnetic materials in regional manufacturing.
South & Central America’s soft magnetic composites market is supported by industrial automation, renewable energy deployment, and growing interest in electric mobility solutions. Market dynamics emphasize affordability, dependable supply, and compatibility with regional motor manufacturing capabilities. Lucrative opportunities exist in wind turbine components, industrial drive systems, consumer appliances, and electric bus and fleet electrification programs. Latest trends include increased adoption of high-frequency motor designs, modernization of compaction equipment, and stronger collaboration between material suppliers and electrical equipment manufacturers. The outlook remains steady to positive as electrification initiatives expand, with recent developments focused on distribution network strengthening, improved material standardization, and gradual scaling of advanced magnetic component production.
| Parameter | Soft Magnetic Composites Market Detail |
| Base Year | 2024 |
| Estimated Year | 2025 |
| Forecast Period | 2026-2034 |
| Market Size-Units | USD billion |
| Market Splits Covered | By Product Type, By Diagnostic Method, By End User |
| Countries Covered | North America (USA, Canada, Mexico) |
| Analysis Covered | Latest Trends, Driving Factors, Challenges, Trade Analysis, Price Analysis, Supply-Chain Analysis, Competitive Landscape, Company Strategies |
| Customization | 10% free customization (up to 10 analyst hours) to modify segments, geographies, and companies analyzed |
| Post-Sale Support | 4 analyst hours, available up to 4 weeks |
| Delivery Format | The Latest Updated PDF and Excel Data file |
By Type
By Material
By Application
By End Use
By Geography
17 Jul 2025 — Höganäs Japan (Somaloy / SMC): Höganäs Japan announced its TECHNO-FRONTIER 2025 showcase, highlighting “Somaloy 2025” and previewing a new SMC grade planned for Q4 2025. The company also said it would display next-generation materials and publish Somaloy CO2 emissions data (ISO 14067) alongside axial-gap/YASA-type motor core examples.
15 May 2025 — Höganäs Japan (Somaloy 7P grade): Höganäs Japan announced it would introduce a newly developed Somaloy 7P grade at Automotive Technology Exhibition 2025 Yokohama. The company said the grade maintains high magnetic flux density while further reducing iron loss, and referenced practical axial-gap motor adoptions for AGVs and small mobility applications.
04 Dec 2024 — Sumitomo Electric (powder magnetic cores for axial flux motors): Sumitomo Electric announced the start of mass production for ultra-thin, insulation-coated powder magnetic cores for axial flux motors. It stated the new 40–50 μm coating and 5 kV insulation enable about 14% more coil turns and better heat dissipation, supporting higher motor output.
14–16 Oct 2024 — Höganäs Japan (WORLD PM 2024): Höganäs Japan announced its participation in WORLD PM 2024, where it presented Somaloy soft magnetic composites along with Starmix Nova and other metal powders. The company also noted it held a seminar at the event, signaling continued commercialization and customer outreach around SMC solutions.
12 Jul 2024 — Höganäs Japan (TECHNO-FRONTIER 2024): Höganäs Japan announced its TECHNO-FRONTIER 2024 exhibit focused on Somaloy SMC applications, including axial gap motor use cases and sustainability updates. The company highlighted examples such as prototype axial-gap motors, a rim-drive axial-gap induction motor, and YASA-type motor applications, plus CO2 emissions data for Somaloy.
10 Apr 2024 — Höganäs Japan (Automotive Technology Exhibition 2024 Yokohama): Höganäs Japan announced a soft-magnetic applications showcase for vehicle electrification, including Somaloy-based SMC motor core case studies. It specifically cited axial-gap induction motor and actuator examples, alongside transverse-flux motor use cases and product carbon-footprint disclosures.
16 Jan 2024 — JFE Steel (Denjiro insulated pure-iron powder / SMC): JFE Steel announced that, with JFE Techno-Research and Armis, it designed and tested an axial-gap motor using a Denjiro-based soft magnetic composite core. The company reported the prototype achieved the same power as larger radial motors while being 48% thinner and 40% lighter than comparable axial-gap motors, and said it had started shipping SMC-related samples/prototypes.
The Global Soft Magnetic Composites Market is estimated to generate USD 6.1 billion in revenue in 2024.
The Global Soft Magnetic Composites Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.1% during the forecast period from 2025 to 2032.
The Soft Magnetic Composites Market is estimated to reach USD 11.4 billion by 2032.
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