DUBAI, U.A.E, /PRNewswire/ -- As per Future Market Insights (FMI) analysis, the global market for rare earth metals is projected to grow at a CAGR of 6% over the forecast period 2021-2031, surpassing a valuation of US$ 3,818.8 Mn in 2021. Despite logistical challenges amid restrictions imposed to contain the pandemic in 2020, the market is forecast to register 3% year-on-year growth between 2020 and 2021.
Paradigm shift in manufacturers' behavior towards seeking eco-friendlier alternatives to petroleum is boosting sales of hybrid vehicles. Subsequently, increasing demand for hybrid vehicles is creating lucrative opportunities for growth of the rare earth metals market.
The increasing scope for applications of rare earth metals in a variety of avenues such as electronics, ceramics, glass, and defence is spurring sales prospects.
Besides these, adoption of cerium in catalytic converters of motor vehicles is pushing sales of rare earth metals. Similarly, neodymium and praseodymium use in the production of batteries for electric vehicles will bolster growth prospects. As per FMI, neodymium segment is estimated to surpass a valuation of US$ 2,200 Mn over the forecast period 2021-2031.
Demand outlook for China remains optimistic. The China market for rare earth metals is forecast to surpass a valuation of US$ 161 Bn in 2021. Meanwhile, factors such as booming automotive and electronics industries coupled with rapid urbanization are creating a conducive environment for growth.
"Increasing leeway for applications of rare earth metals in diverse industries, including automotive, electronic, consumer goods, and renewable energy is driving sales prospects. Besides this, market players are emphasizing on expansion of production facilities to obtain a competitive edge in the market," said a FMI analyst.
Key Takeaways from Rare Earth Metals Market Survey
- China is likely to register fastest growth, surpassing a valuation of US$ 161 Bn in 2021.
- The India market for rare earth metals is anticipated to grow at an impressive pace due to the increasing demand from electronics industry.
- Europe market for rare earth metals is projected to expand at over 5.10% CAGR over the forecast period 2021-2031.
- Backed by growing consumer preference towards electric vehicles, the U.S. is anticipated to grow at a CAGR of 6.20%.
- Based on metal type, the neodymium segment is expected to surpass a valuation of US$ 2,200 Mn over the assessment period 2021-2031.
- Increasing application of rare earth metals in electric vehicle batteries will bode well for the market.
- Rising demand from diverse industries including defence, consumer goods, electronic among others is spurring sales prospects.
- Fluctuating costs of rare earth metals is forecast to limit the market growth.
Rare earth manufacturers are focusing on expanding their production capacities through strategic partnerships and acquisitions to gain a strong foothold in the market.
For instance, in 2019, Lynas Corporation and Blue Line Corporation signed a memorandum of understanding (MoU) for a joint venture to manufacture rare earths separation capacity in the U.S.
in 2020, Lynas Corporation, Ltd. announced the installation of a new industrial-scale dryer at its Mt. Weld mine, which has been placed to enhance the performance of the production by replacing manual drying of the concentrates, making the process fast-moving and cost-effective.
Some of the leading players operating in the rare earth metals market profiled by Fact.MR are:
- China Northern Rare Earth (Group) High-Tech Co., Ltd
- RISING NONFERROUS METALS CO., LTD
- China Minmetals Rare Earth Co., Ltd
- Beijing Zhongke Sanhuan High-tech Co. Ltd.
- Alkane Resources Ltd.
- Aluminum Corporation of China Limited
- Lynas Corporation, Ltd.
- Arafura Resources Ltd.
- Jiangxi Tungsten Industry Group Co. Ltd.
More Valuable Insights on Market
FMI, in its new report, offers an unbiased analysis of the global rare earth metals market, analyzing forecast statistics through 2021 and beyond. The survey reveals growth projections on in rare earth metals market with detailed segmentation:
By Application Type:
- Permanent Magnets
- Metallurgy & Alloys
- Others (Fertilizers, Pigments, Defense, etc.)
By Metal Type:
- North America
- Latin America
- Eastern Europe
- Western Europe
- Asia Pacific excluding Japan
- Middle East and Africa (MEA)
Key Questions Covered in the Rare Earth Metals Market Report
- The market survey also highlights projected sales growth for rare earth metals market between 2021 and 2031
- The report offers insight into rare earth metals demand outlook for forecast period 2021-2031.
- Rare earth metals market share analysis of the key companies within the industry and coverage of strategies such as mergers & acquisitions, collaborations or partnerships, and others
- Rare earth metals market analysis identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in Dubai, and has delivery centers in the UK, U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and make critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously tracks emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.
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