Ferrite Market - Forecast(2024 - 2030)

Ferrite Market size is valued at $5 billion in 2023 and forecast to reach around $6.38 billion by 2030, after growing at a CAGR of 5% during 2024-2030. Ferrite is a ceramic material that consist of magnetic properties and formed by mixing iron oxides with one or more metallic elements such as barium, manganese, nickel, and zinc. Growing demand for consumer electronics such as computers and smartphones is a major growth factor for Ferrite Market size during the forecast period. Flourishing aerospace and defense industries with strong demand of ferrite for antennas and radar systems is also boosting the growth of the market. Continuous advancement in artificial intelligence and voice recognition technology also aid the growth of the Ferrite Market share. The ferrite market is experiencing a significant uptick in demand attributed to the rapid expansion of 5G networks globally. As telecommunications companies upgrade their infrastructure to accommodate the faster speeds and increased data capacity of 5G technology, the need for high-performance ferrite components has grown substantially. Ferrite materials play a crucial role in various 5G applications, including antennas, base stations, and small cells. For instance, ferrite-based isolators and circulators are essential for managing signal direction and preventing interference, ensuring efficient transmission and reception of 5G signals. 

Additionally, ferrite filters help in reducing electromagnetic interference (EMI) and improving signal clarity in 5G communication systems. This trend is driven by the exponential growth in data consumption, fueled by the proliferation of smartphones, IoT devices, and emerging technologies such as augmented reality (AR) and virtual reality (VR). Furthermore, the ongoing rollout of smart city initiatives, autonomous vehicles, and Industry 4.0 solutions further amplifies the demand for robust 5G infrastructure. As a result, the ferrite market is witnessing increased investments in research and development to innovate new ferrite materials and manufacturing processes optimized for 5G applications, aiming to meet the stringent performance requirements of next-generation networks. Focus on Electric Vehicle (EV) Manufacturing: The ferrite market is experiencing a notable shift in focus towards electric vehicle (EV) manufacturing, driven by the global transition towards sustainable transportation solutions. Ferrite magnets, known for their superior magnetic properties and cost-effectiveness, are extensively utilized in electric motors, particularly in the production of permanent magnet synchronous motors (PMSMs) and brushless DC motors (BLDC). These motors power various components within electric vehicles, including traction systems, power steering, and auxiliary systems. The surge in demand for EVs is propelled by several factors, including stringent emissions regulations, government incentives, and growing environmental awareness among consumers. Automotive manufacturers are increasingly investing in electric vehicle development to meet evolving regulatory standards and capitalize on the burgeoning market for electric mobility. Additionally, advancements in battery technology and charging infrastructure are further driving the adoption of electric vehicles, enhancing their range, performance, and convenience.

The report: “Ferrite Market – Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Ferrite Market.

 

By Type: Hard Ferrite and Soft Ferrite.

By Structure: Spinel Structure (Normal Spinel Ferrite, Inverse Spinel Ferrite, and Random Spinel Ferrite), Cubic Garnet Structure, and Hexagonal Structure.

By Distribution Channel: Online, Offline

By Application:  Inductors (Low-Noise Amplifiers, EMI Filters, Voltage-Controlled Oscillators, and Impedance Matching Networks), High-Frequency Applications (Radar Systems, Circulators, Isolators, Phase Shifters, Antennas, and Others), Power Applications (Transformers, Motors, Generator, and Others), Memory Devices, and Others.

By End-Use Industry: Consumer Electronics, Aerospace & Defense, Automotive, Power, Telecommunications, Medical, and Others.

By Geography: North America, South America, Europe, APAC, and RoW.

• Growing trend of self-driving vehicles are driving the demand for radar and other communication systems, which further augments the growth of Ferrite Market.

• Ferrite also serves as a contrast medium for the medical X-Ray diagnosis and magnetic resonance imaging (MRI). This also aid to the growth of this market.

• The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme of Indian Government to make India as an Electronics Manufacturing Hub also drives the growth of the Ferrite Market.

 

Owing to low coercivity and good magnetizing properties, soft ferrite segment holds the largest share of more than 60% in the Ferrite Market in 2023. Though saturation magnetic flux density of soft ferrite material is lower than other soft magnetic materials, the high electric resistance and outstanding magnetic properties of soft ferrite materials further drive the market growth. Soft ferrite is used in the electronics industry to make ferrite cores for inductors and transformers, and in various microwave components. According to Trend Economy, Imports of commodity "Electrical transformers, static converters and inductors", total imports of India amounted to $ 732 billion in 2022.

Based on the structure, hexagonal segment holds the largest share of more than 30% in the Ferrite Market in 2023. Hexagonal ferrites are magnetic iron oxides with a hexagonal structure and are formed by iron, oxygen, and other elements such as barium, strontium, cobalt, or a combination of these. Hexagonal ferrites or hexaferrites are widely used in fridge magnets, electric motors, and loudspeakers. Demand for hexagonal ferrites are growing because of their room temperature multiferroic properties. The use of hexaferrites in various technologies such as highly sensitive magnetic field sensors, improved data storage solutions for IT and computing, and field-responsive smart filters drives the growth of the Ferrite Market. 

High frequency application segment holds the largest share of more than 25% in the Ferrite Market in 2023. Surging demand of magnetic materials for high-frequency applications such as telecommunications, phase shifters, and radar systems is escalating the growth of the market. Ferrites are non-conducting oxides which allow total penetration of electromagnetic fields, in contrast with metals, where the skin effect limits the penetration of high-frequency fields. Furthermore, phase shifters are also an important application of ferrite which are widely used in phase array antennas and aids the growth of the Ferrite Market.

Consumer electronics segment holds the largest share of more than 30% in the Ferrite Market in 2023. Rising popularity of streaming services along with 5G connectivity and artificial intelligence (AI)-enabled devices is boosting the demand for consumer electronics.  In 2022, Consumer Technology Association CTA predicted the U.S. consumer technology retail revenue would be $505 billion, a 2.8% year-over-year (YOY) growth compared to 2021. Thus, the flourishing electronic segment further raises the demand for ferrite.

Due to rapid industrialization and urbanization, Asia Pacific dominated the Ferrite Market with a share of 40% in 2023 followed by North America and Europe. High standard of living and rise in disposable income has boosted the demand for electronic equipment. According to National Investment Promotion and Facilitation Agency, India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.0% in 2018 and anticipated to reach $400 Bn by 2025. Furthermore, the increasing demand for economic and security issues across the emerging countries have increased the need for RADAR systems especially in aerospace and defense industries drive the market growth. As, now-a-days, the Aircrafts are equipped with radar devices to detect the obstacles in or approaching their path. For instance, Boeing forecasted a 6.2% growth in the China’s aircraft demand to 7,690 planes for the period to 2037, subsequently augmenting the demand of ferrite for antenna and radar systems.

The growing demand of ferrite nanoparticles from medical sector drive the market growth. As, enhanced ferrite nanoparticles serves as a contrast medium for the medical X-Ray diagnosis and magnetic resonance imaging (MRI). The growing uses of MRI technology especially for diagnosing cancers further drive the market growth. Furthermore, the wide use of cobalt ferrite for a large variety of different medical applications including magnetic drug delivery, radio-frequency hyperthermia and magnetic resonance imaging also contribute to the market growth. As, cobalt ferrite (CoFe2O4) is a hard, magnetic material and has a high coercivity, incredibly chemically stable, and is resistant to wear, an electrical insulator. Furthermore, technological advancement in the healthcare and huge spending of government of healthcare sector is driving the growth of the market. For instance, according to the U.S. health care spending grew 4.1 percent in 2022 and reached $4.5 trillion.

Various government programs to boost the electronic industry is driving the growth of the Ferrite Market. For instance, The government of India has received four proposals for setting up semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring and packaging (ATMP) units. Two projects include a $8 billion proposal submitted by Israel-based Tower Semiconductors and the other from Tata Group. Chinese government ambitious “Made in China 2025” plan to lower the dependence from foreign suppliers and boosts the production of high value products and services such as aerospace, IT, robotics manufacturing, and semiconductors is also likely to accelerate the demand for ferrite.

Volatility in the prices of raw material is the major challenge for Ferrite Market. Iron oxide is a major constituent of ferrite. Thus, increase in iron oxide prices has hampered the growth of the market. For instance, In July 2023, Lanxess Corporation has raised price for its iron oxide. In Europe, prices increased to €90 per ton or $95 per ton in dollar-based markets. In Asia-Pacific, Africa, Latin America and Middle East, prices increased to $95 per ton, while prices will increase by $0.04 per pound in North America. 

The outbreak of COVID-19 has hampered the Ferrite Market. The closing down of manufacturing facilities and production units due to the stay-at-home orders by the government has impacted the growth rate of the Ferrite Market negatively. Electronic, aerospace, and automotive industries are facing huge losses, thus lowering the demand for ferrite. 

Nevertheless, in an attempt to bring the economy back on track, numerous countries around the world have permitted to open factories and production units which will help the Ferrite Market to revive the lost growth.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Ferrite Market report. Major players in the Ferrite Market are Hitachi Metals, Ltd., Ferroxcube International Holding B.V., TDK Corporation Amidon Inc., Laird Technologies, Inc., Acme Ferrite, Amidon Inc., TAK Technologies Co. Ltd., Samwha Electronics, Haining Ferriwo Electronics Co. Ltd., VAC Magnetics among others.

• In January 2022, JFE Steel Corporation announced that it has launched of Denjiro™ an insulation-coated pure iron powder for soft magnetic composites ideally suited to axial gap motors. The launch, which expands JFE Steel’s broad lineup of soft magnetic materials, ranging from Electrical steel sheets to soft ferrite cores.

• In August 2022, Murata announces chip ferrite beads with highest ever current capabilities. Murata has introduced the BLE32SN series of chip ferrite beads. These are the world’s first chip-type noise suppression components to have 20A current rating.