Soft Magnetic Materials Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 36.77 Bn

Forecast Year, 2035

USD 73.77 Bn

CAGR, 2026 - 2035

7.21%

Report Coverage

Global

What is the Soft Magnetic Materials Market Size?

The global soft magnetic materials market size was calculated at USD 36.77 billion in 2025 and is predicted to increase from USD 39.42 billion in 2026 to approximately USD 73.77 billion by 2035, expanding at a CAGR of 7.21% from 2026 to 2035. The soft magnetic materials market is propelled by an increase in demand for energy-saving green solutions in electric vehicles, advanced electronics, renewable energy infrastructure, and the miniaturization of high-frequency consumer electronics.

Market Highlights

• Asia-Pacific dominated the market, holding a share of approximately 48.2% in 2025.
• North America is expected to be the fastest-growing region with a CAGR of approximately 9.5% during the forecast period.
• By material type, the electrical steel (silicon steel) segment held the largest soft magnetic materials market share of approximately 64.2% in 2025.
• By material type, the amorphous & nanocrystalline alloys segment is expected to grow at a remarkable CAGR between 2026 and 2035.
• By application, the electric motors segment dominated the market with a share of approximately 48.7% in 2025.
• By application, the inductors & chokes segment is expected to be the fastest-growing segment between 2026 and 2035.
• By end-use industry, the electrical & electronics segment led the market with a share of approximately 35.6% in 2025.
• By end-use industry, the automotive (EV/HEV) segment is expected to show the fastest growth in the forecast period.

What are Soft Magnetic Materials?

The soft magnetic materials market involves materials that can be easily magnetized and demagnetized, characterized by high permeability and low coercive force. The market is expanding rapidly due to a surge in demand for energy-efficient solutions, rapid adoption of electric vehicles (EVs), and increased investments in renewable energy systems.

The market is centered around manufacturing & advancing materials that offer high permeability and low coercivity, which are important for rapid, efficient magnetic switching. The rapid expansion of solar and wind power systems, the modernization of industries, and the rising demand for efficient consumer electronics.

What is the Impact of AI on the Soft Magnetic Materials Market?

AI is reshaping the market by designing material composition, reducing development time, and improving production precision, especially for EVs and energy applications. It facilitates new alloy discovery, predicts magnetic properties, & supports additive manufacturing techniques. AI advancement enables the development of ultra-low-loss material needed for advanced high-frequency equipment. The integration of AI has surged the innovation cycle and reduced R&D costs, which are core for evolving the EV, AI & IoT sectors.

• For instance, In November 2025, researchers from the University of New Hampshire used AI tools to expedite the discovery of new functional magnetic materials, creating a searchable database of 67,573 magnetic materials. AI tools can reduce the reliance on rare earth elements, lower the costs of EVs and renewable-energy systems, and strengthen the U.S. manufacturing base.

Soft Magnetic Materials Market Trends

• Electric Vehicle Prevalence: The rise in EV adoption drives the demand for soft magnetic material due to its higher efficiency, power density, and compact design. The acceleration in EV sales due to various government initiatives boosts the demand for soft magnetic materials.
• Nanocrystalline and Amorphous Materials: There is a surge in demand for advanced materials like nanocrystalline & amorphous alloys due to their lower core loss, high frequency & excellent thermal stability, which are essential in various automotive & advanced power electronics.
• Miniaturization in Electronics: The demand for compact & more efficient components in smartphones, wearables & electronic appliances promotes the use of soft magnetic materials to reduce energy consumption.
• Renewable Energy Growth: Rising investments in power distribution, smart grid technologies & renewable energy infrastructure boost the need for soft magnetic materials in transformers & inverters.

Market Scope

Segmental Insights

Material Type Insights

Which Material Type Segment Dominated the Soft Magnetic Materials Market?

The electrical steel (silicon steel) segment led the market, accounting for approximately 64.2% market share in 2025, due to its superior combination of high magnetic, energy-efficient, and cost-efficient properties, making it essential for various applications. The growing demand for EVs & renewable energy generators, which are heavily dependent on highly efficient soft magnetic materials, has solidified their market dominance. Production of thin laminated sheets further reduces the cost and cements its position as a leader in this sector.

The amorphous & nanocrystalline alloys segment is expected to show the fastest growth over the forecast period, due to the rise in demand for high energy efficiency, high saturation, superior permeability, and less core loss compared to traditional silicon steel. These qualities enable the production of compact, lighter & more efficient components in higher frequency applications.

Application Insights

How the Electric Motors Segment Dominated the Soft Magnetic Materials Market?

The electric motors segment dominated the market with a share of approximately 48.7% in 2025, due to the exponential growth of the EV industry, the increase in demand for eco-friendly vehicles, and the superior performance of advanced materials. The electric motor segment is the core determinant of the market because it is central to the global transformation from fuel-consuming to electrified transportation & sustainable, energy-efficient production.

The inductors & chokes segment is expected to witness the fastest growth between 2026 and 2035. The market is experiencing a paradigm shift from standard low-cost components to high-performance, premium, and often custom-designed inductors and chokes, which are important for modern, energy-saving, small, and automated systems.

End-Use Industry Insights

Which End-Use Industry Segment Dominated the Soft Magnetic Materials Market?

The electrical & electronics segment held the largest revenue share of approximately 32.4% the market in 2025, due to the rise in demand for renewable energy infrastructure and compact consumer electronics. The increasing investments in smart grids and industrial robots to improve performance and reduce power consumption have further propelled market growth.

The automotive (EV/HEV) segment is expected to expand rapidly in the market in the coming years, due to rapid and large-scale electrification of vehicles. This material is essential for improving efficiency, reducing weight & enabling compact high-torque motors in modern vehicles. An increase in focus on reducing carbon footprint and the usage of green solutions drives the rapid adoption of advanced materials. This material is also essential for anti-locking systems and fuel injectors in the automotive industry, which further expands its market in this industry.

Regional Insights

What is the Asia Pacific Soft Magnetic Materials Market Size?

The Asia Pacific soft magnetic materials market size is expected to be worth USD 35.93 billion by 2035, increasing from USD 17.72 billion by 2025, growing at a CAGR of 7.32% from 2026 to 2035.

Which Factors Drive the Soft Magnetic Materials Market in Asia-Pacific?

Asia-Pacific held a major revenue share of approximately 48.2% in the market in 2025. Its dominance is propelled by massive industrialisation; the explosive growth of the EV sector and consumer electronics manufacturing is heavily concentrated in the Asia-Pacific region. A notable portion of rare earth mining & refining, which is essential for advanced magnetic material, is further driving this market. Government support for green energy, electric vehicle and local manufacturing depicted by Make in India & Chinese policies further accelerate market growth.

China Market Trends

China is leading in the Asia-Pacific region, holding a top position in both production & consumption. Its dominance is further driven by rare earth material mining backed by four decades of targeted government policy. Affordable labor & massive manufacturing capabilities enable Chinese firms to maintain competitive pricing. China has become a center for growing the green energy & technology sector.

According to the International Energy Agency, in 2024, China accounted for about 60% of global mining output. In addition, China is the world's single largest supplier of magnet manufacturing components critical for motors, accounting for 94% of the market share.

How Will North America Grow in the Soft Magnetic Materials Market?

North America is expected to grow at the fastest CAGR in the market during the forecast period. The rapid expansion is driven by an increase in electrification of the automotive sector, significant investment in clean energy, & modernization of electric grids. Strict environmental policies coupled with government incentives in the U.S. & Canada are boosting local production & reducing dependence on imports. North America focuses on high-value advanced technology applications, making it the fastest-growing region in this market. North America remains a premier hub for advanced soft magnetic materials and technological innovation.

U.S. Market Trends

The U.S. market is driven by advanced production, massive investments in energy-efficient technologies, a surge in EV adoption, high-value applications in aerospace and defense, and a strong, established industrial base. It is further fuelled by investments in electrification, industrial automation, and the need for compact, lightweight electrical appliances. High-quality application development and technological advancements also foster market growth.

The U.S. government's Inflation Reduction Act (IRA) has surged investments in clean manufacturing due to EV supply chain, resulting in approximately $14.0 billion investments in Q1 2025. As of March 2025, companies announced 380 clean technology manufacturing facilities in the U.S.

Which Region Is Experiencing a Significant Growth in the Soft Magnetic Materials Market?

Europe is expected to grow at a considerable CAGR in the upcoming period, driven by policy-led initiatives in green energy, electric mobility, and well-established automation industries. This region is heavily investing in high-performance materials to improve efficiency and reduce energy loss in essential infrastructure. Strategic partnerships between material suppliers, research institutes, and auto manufacturers to develop advanced materials for 3D printing of motor components have led to the further growth of this market. The European market is focused on top-notch quality and specialized applications, although it is dependent on imported raw material for some high-tech applications.

Germany Market Trends

Germany leads the European market, propelled by the burgeoning automotive, electronic, and industrial sectors. Rapid adoption of EVs and clean energy infrastructure augments market growth. This country has the highest manufacturing and consumption share, with massive investments in R&D and robust market demand. Germany is a hub for innovation, high performance, and specialized material markets. A surge in the use of robotics and AI-driven control systems in smart factories is boosting their market demand.

• In the first half of 2025, German car manufacturers produced approximately 635,000 battery electric cars, representing a quarter of the total 2.5 million cars produced in Germany in H1 2025. The Federal Motor Transport Authority reported an upward trend in new EV registrations, accounting for 18.4% of all new registrations.

Soft Magnetic Materials MarketValue Chain Analysis

Who are the Major Players in the Global Soft Magnetic Materials Market?

The major players in the soft magnetic materials market include Hitachi Metals, Ltd. (Proterial, Ltd.), TDK Corporation, Vacuumschmelze GmbH & Co. KG, Nippon Steel Corporation, JFE Steel Corporation, Sumitomo Metal Mining Co., Ltd., Daido Steel Co., Ltd., Arnold Magnetic Technologies, Voestalpine AG, Aperam S.A, and ThyssenKrupp AG.

Recent Developments in the Soft Magnetic Materials Market

• In January 2026, Noveon Magnetics announced a collaboration with Kangwon Energy and LG Electronics to advance closed-loop recycling of rare-earth permanent magnets. Noveon provides access to its proprietary Magnet-to-Magnet technology on end-of-life magnets recovered from LG products to produce new, high-performance magnets.(Source: https://www.recyclingtoday.com)
• In December 2025, a research team from NIMS, Tohoku University, and AIST developed a technique to control nanostructures required for next-gen high-frequency transformers and EV drive power supply circuits. The technique can also control magnetic domain structures of iron-based soft amorphous ribbons, achieving more than a 50% reduction in core loss compared with the initial amorphous material.(Source: https://www.eurekalert.org)
• In November 2025, VNT launched India's first 1-megawatt electric vehicle charger, revolutionizing the country's EV charging landscape. This electric charger caters to buses and long-haul transport systems. The indigenously developed charger underscores VNT's commitment to advancing indigenous technology and supporting India's electric mobility ambitions.(Source:https://www.manufacturingtodayindia.com)

Segments Covered in the Report

By Material Type

• Electrical Steel (Silicon Steel)
• Soft Ferrites
• Amorphous & Nanocrystalline Alloys
• Others (Cobalt, Nickel, Iron Powder)

By Application

• Electric Motors
• Transformers
• Inductors & Chokes
• Others (Alternators, Sensors)

By End-User Industry

• Automotive (EV/HEV)
• Electrical & Electronics
• Energy & Power
• Others (Healthcare, Aerospace)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa