Soft Magnetic Material Market 2026 Report Available - Market To Reach 15.97 Million Tons By 2031 As Electrification And Electronics Demand Accelerate
Dublin, Sept. 30, 2026 (GLOBE NEWSWIRE) -- "Soft Magnetic Material - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The global soft magnetic material market is estimated at 11.43 million tons in 2026 and is projected to reach 15.97 million tons by 2031, expanding at a compound annual growth rate of 6.92% during the forecast period. Market growth is being supported by rising demand for energy-efficient transformers, electric vehicle powertrains, industrial motors, compact electronic components and renewable energy infrastructure.
Electronics Miniaturization Drives Advanced Material Adoption
Continued miniaturization across smartphones, wearable devices, edge artificial intelligence servers and data-center equipment is reshaping demand within the soft magnetic materials market. Electronics designers are increasingly using switching frequencies above 1 MHz, where conventional laminated silicon steel can experience elevated eddy-current losses.
Ferrite beads, powder cores and soft magnetic composites are gaining traction in DC-DC converters rated below 100 W. At the same time, point-of-load converters used in rack-level power delivery networks require increasingly compact magnetic components. Distributed-gap powder cores are benefiting from this trend because of their ability to maintain inductance under DC bias.
Suppliers are also advancing the integration of nickel-zinc ferrite with low-temperature co-fired ceramic substrates. This approach supports the embedding of capacitors and magnetic components in modules as thin as 1 mm. Higher power density, improved electromagnetic interference suppression and smaller component footprints are expected to strengthen demand for advanced ferrites and composites through 2031.
Transformer and Motor Electrification Supports Market Growth
Stricter efficiency requirements for transformers and industrial motors are creating sustained demand for high-performance soft magnetic materials. IEC 60034-30-1 efficiency standards, including IE4 and IE5 classifications, are accelerating the adoption of grain-oriented electric steel for transformers and optimized non-oriented grades for high-frequency traction motors.
The expansion of European Ecodesign requirements to smaller motors is also increasing material consumption in fractional-horsepower drives. These applications have historically relied on lower-grade cold-rolled steel, but tighter efficiency targets are encouraging manufacturers to adopt improved electrical steel grades.
Amorphous metal stators are attracting interest because of their potential to significantly reduce core losses. However, material brittleness and manufacturing complexity continue to restrict broader commercialization. Electric steel is therefore expected to retain its central market position, while amorphous and nanocrystalline materials develop in specialized, higher-value applications.
Raw Material Price Volatility Remains a Key Restraint
Fluctuating nickel and cobalt prices affected producer margins during 2024 and 2025, particularly among nickel permalloy manufacturers. Electrical steel costs also faced pressure after silicon-metal surcharges increased in early 2025 following power-curtailment measures in China's Yunnan and Sichuan provinces.
Capacity reductions at several Western mills and reformulation toward iron-cobalt alloys added to supply uncertainty. In response, original equipment manufacturers are increasingly pursuing dual-sourcing strategies, regional suppliers and backward integration. Although iron ore prices remained comparatively stable, continued nickel and cobalt volatility may limit the pace of soft magnetic material market expansion.
Additional factors shaping the market include rapid electric vehicle and hybrid electric vehicle adoption, additive manufacturing of customized magnetic cores, competition from substitute materials and rising electromagnetic compatibility compliance costs.
Electric Steel Maintains the Largest Market Share
Electric steel accounted for 52.46% of global soft magnetic material volume in 2025, supported by the strong performance of grain-oriented grades in transformer applications. Manufacturers expanded cold-rolling capacity during 2024 and 2025 to address growing demand from electric vehicle traction motors and high-efficiency industrial equipment.
Cobalt alloys remain important in aerospace and other high-temperature applications, while iron-based powder cores serve mid-frequency inductors. Soft magnetic composites and advanced ferrites are forecast to grow at a 7.34% CAGR through 2031. Nickel-zinc and manganese-zinc ferrites are seeing particularly broad adoption in electromagnetic compatibility applications. Electric steel will remain the market's volume foundation, while composites and nanocrystalline alloys offer attractive opportunities in premium applications.
Asia-Pacific Leads Global Soft Magnetic Material Demand
Asia-Pacific represented 49.37% of global market volume in 2025. China's large electrical steel production base and Japan's capabilities in nanocrystalline ribbon technology support the region's leadership. India is expanding domestic mill capacity to reduce its reliance on imported grain-oriented steel for transformers, while ASEAN countries continue to attract investment in magnetic material manufacturing near automotive production centers.
North American demand is being driven by electric vehicle powertrains, data-center expansion and aerospace electrification. New electrical steel capacity is also emerging as manufacturers respond to incentives supporting domestic clean energy and advanced manufacturing supply chains.
Europe continues to benefit from strict Ecodesign regulations and the planned transition of industrial motors to IE4 efficiency levels. Meanwhile, the Middle East and Africa are projected to expand at a 7.22% CAGR, supported by renewable grid projects in Saudi Arabia, the United Arab Emirates and South Africa. South American demand remains concentrated in Brazil, where automotive and appliance production supports consumption of non-oriented electrical steel. These regional trends underscore the growing importance of localized, resilient supply chains across the global soft magnetic material market.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Electronics-miniaturization demand surge
4.2.2 Electrification of transformers and motors
4.2.3 Rapid EV/HEV power-train adoption
4.2.4 Additive-manufacturing of custom cores
4.2.5 Nanocrystalline and amorphous cores for SiC/GaN power electronics
4.3 Market Restraints
4.3.1 Raw-material price volatility (Fe, Ni, Co)
4.3.2 Substitute competition (laminated alloys, powder cores)
4.3.3 EMC and safety compliance cost escalation
4.4 Value Chain Analysis
4.5 Porter's Five Forces
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Degree of Competition
5 Market Size and Growth Forecasts (Volume)
5.1 By Material Type
5.1.1 Electric Steel
5.1.2 Cobalt
5.1.3 Iron
5.1.4 Nickel
5.1.5 Other Material Types (Soft Magnetic Composites (SMC), Soft Ferrite, Silicon Ferrite, Permalloy, Supermalloy, etc.)
5.2 By End-user Industry
5.2.1 Electronics
5.2.2 Automotive
5.2.3 Energy
5.2.4 Industrial
5.2.5 Other End-user Industries (Telecommunication, Medical, Industrial Transformers, etc.)
5.3 By Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 ASEAN Countries
5.3.1.6 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Spain
5.3.3.6 Russia
5.3.3.7 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share(%)/Ranking Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products and Services, and Recent Developments)
6.4.1 Acme Electronics Corporation
6.4.2 Advanced Technology & Materials Co., Ltd.
6.4.3 Arnold Magnetic Technologies
6.4.4 Daido Steel Co., Ltd.
6.4.5 DMEGC Magnetics Co., Ltd.
6.4.6 Ferroxcube.
6.4.7 JFE Steel Corporation
6.4.8 Mate Co. Ltd.
6.4.9 Mk Magnetics Inc
6.4.10 PROTERIAL, Ltd.
6.4.11 Sg Technologies
6.4.12 Steward Advanced Materials LLC
6.4.13 Sumitomo Metal Mining Co., Ltd
6.4.14 TDK Corporation
6.4.15 Toshiba Materials Co., Ltd
6.4.16 VACUUMSCHMELZE GmbH & Co. KG
7 Market Opportunities and Future Outlook
7.1 White-space and Unmet-Need Assessment
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