As of 2023, the market for rare earth metals is estimated to be worth US$5.6 billion. By 2033, the market is anticipated to reach a valuation of US$ 14.6 billion, growing at a CAGR of 10.1% over the forecast period according to Future Market Insights.
The market for rare earth metals is fueled by a number of growth factors, including:
- Rising sales of electric automobiles.
- Increased application in a variety of industries.
- The utilization of renewable energy sources is rising.
During the projection period, an increase in electric vehicle sales is anticipated to increase global demand. Rare earth metals help reduce the size of the circuit, allowing electric vehicles to operate with fewer parts. 27% of rare earth elements are used in the production of neomagnets, which are essential components in electric vehicles (EVs).
The demand for consumer durables like computers, smartphones, and other devices has increased exponentially over the past 20 years. Rare earth metals are known to be used in consumer durables to improve speaker and microphone performance.
Due to their magnetic and high-temperature resistance qualities, the metals are also utilized in the electronics industry. It is anticipated that the rising urbanization of developing nations and an expansion in infrastructure projects will result in increased demand for rare earth metals.
Additionally, the use of rare earth metals has increased in the healthcare sector as well. The metals are specifically used in the production of MRI machines, insulin pumps, pacemakers, and other medical devices.
Increase in Renewable Energy
Strict regulations are being put in place by nations all around the world to reduce carbon emissions. As a result, companies have begun utilizing technology powered by sustainable energy sources, such as solar energy. For instance, neodymium-based permanent magnet generators are used in the wind turbines of Siemens Gamesa Renewable Energy and Vestas Wind Systems.
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