India Rare Earth Magnet Market

India Rare Earth Magnet Market Overview:

The India rare earth magnet market size reached USD 637.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 993.0 Million by 2033, exhibiting a growth rate (CAGR) of 5.1% during 2025-2033. The growing focus on clean energy and sustainability, along with government policies supporting domestic production, is bolstering the growth of the market. Efforts to expand renewable energy and electric vehicle (EV) infrastructure, combined with policy initiatives, are also catalyzing the demand for efficient, high-performance magnets.

India Rare Earth Magnet Market Trends:

Growing Demand for Clean Energy Technologies

The increasing focus on clean energy and sustainability significantly influences the India rare earth magnet market. According to the Central Electricity Authority, India's overall renewable energy installed capacity had jumped significantly by 24.2 GW (13.5%) within a single year, reaching 203.18 GW in October 2024, compared to 178.98 GW in October 2023. As India speeds up its shift towards renewable energy, the need for high-quality, energy-efficient magnets is growing, especially with an increase in electric vehicles (EVs), wind turbines, and solar energy systems. Rare earth magnets, recognized for their exceptional magnetic power and energy efficiency, are essential to these technologies. The initiative of the governing body to advance renewable energy infrastructure, which includes producing EVs and enlarging wind and solar energy capacity, is strengthening the growth of the market. Moreover, India’s dedication to lowering carbon emissions is driving the need for effective power systems and motors, which depend significantly on these magnets. As the nation strives to achieve its green energy objectives, the demand for rare earth magnets in electricity generation, energy storage solutions, and eco-friendly technologies is rising, contributing to substantial market growth.

Government Initiatives and Policy Support

Acknowledging the strategic significance of rare earth elements for economic and technological progress, the governing body is implementing several policies designed to bolster domestic production and decrease reliance on imports. These policies encompass tax breaks, grants for research and development (R&D), and funding for infrastructure to enhance mining, refining, and magnet production. Moreover, India's involvement in international trade agreements concerning essential minerals is improving its access to markets and technology for the production of rare earth magnets. This proactive engagement by the government is anticipated to boost investor confidence and draw in both local and international investments in the rare earth magnet supply chain. The government's emphasis on achieving self-sufficiency in essential sectors is directly boosting the demand for rare earth magnets. For instance, in 2024, the Technology Development Board (TDB) approved funding for Midwest Advanced Materials Pvt Ltd in Hyderabad to enhance the domestic production of Neodymium materials and Rare Earth Permanent Magnets. This initiative, utilizing sustainable Molten Salt Electrolysis technology, aimed to support e-mobility and renewable energy applications. The project was expected to reach an annual production capacity of 5,000 tons by 2030, marking a significant step toward India's self-reliance in critical technologies.

India Rare Earth Magnet Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on magnet type and application.

Magnet Type Insights:

• Neodymium-Iron-Boron (NdFeB) Magnets
• Samarium-Cobalt (SmCo) Magnets

The report has provided a detailed breakup and analysis of the market based on the magnet type. This includes neodymium-iron-boron (NdFeB) magnets and samarium-cobalt (SmCo) magnets.

Application Insights:

• NdFeB Magnets
  • Automobile
  • Electronics
  • Power Generators
  • Medical Industry
  • Wind Power
  • Others
• SmCo Magnets
  • Defense
  • Aerospace
  • Electronics
  • Medical Devices
  • Other

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes NdFeB magnets (automobile, electronics, power generators, medical industry, wind power, and others) and SmCo magnets (defense, aerospace, electronics, medical devices, and others).

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Rare Earth Magnet Market News:

• In October 2024, Trafalgar revealed plans to construct India's first rare earth metals, alloy, and magnet plant in Gujarat. The project aimed to supply 20% of domestic demand for sintered NdFeB magnets by 2027, which are crucial for electric vehicles and defense sectors. The plant, with support from India's state-owned Irel, was designed to be vertically integrated and was set for completion by 2026.
• In May 2023, Prime Minister of India inaugurated the Rare Earth Permanent Magnet Plant in Visakhapatnam, developed by the Bhabha Atomic Research Centre (BARC). The plant, built at a cost of ₹165 crore by Engineering Projects (India) Ltd., produced samarium-cobalt and neodymium-iron-boron rare earth magnets. This facility placed India among the few nations capable of producing rare earth permanent magnets.

India Rare Earth Magnet Market Report Coverage:

Key Questions Answered in This Report:

• How has the India rare earth magnet market performed so far and how will it perform in the coming years?
• What is the breakup of the India rare earth magnet market on the basis of magnet type?
• What is the breakup of the India rare earth magnet market on the basis of application?
• What is the breakup of the India rare earth magnet market on the basis of region?
• What are the various stages in the value chain of the India rare earth magnet market? 
• What are the key driving factors and challenges in the India rare earth magnet market?
• What is the structure of the India rare earth magnet market and who are the key players?
• What is the degree of competition in the India rare earth magnet market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India rare earth magnet market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India rare earth magnet market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India rare earth magnet industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.