Global Soft Magnetic Materials Market Size, Share, Trends, And Forecast, 2026-2031 Evs, Renewable Energy, And Smart Grids Drive Demand For Low-Loss Materials

(MENAFN- GlobeNewsWire - Nasdaq) Target EVs, renewable energy, smart grids and industrial automation with energy-efficient, low-loss materials that reduce operating costs; Asia-Pacific leads adoption.

Dublin, Oct. 16, 2026 (GLOBE NEWSWIRE) -- "Global Soft Magnetic Materials Market Outlook, 2031" has been added to ResearchAndMarkets.com's offering.

The global soft magnetic material market is expanding as manufacturers, utilities and technology companies prioritize energy efficiency, electrification and high-performance power systems. According to the report, the market was valued at more than USD 20.89 billion in 2025 and is expected to maintain steady growth through 2031. Rising adoption across automotive, energy, industrial automation, electrical and electronics applications is supporting demand for electrical steel, soft ferrites, amorphous alloys and nanocrystalline materials.

Soft magnetic materials are widely used in transformers, electric motors, generators, inductors, chokes, power converters and magnetic shielding. Continued advances in high-permeability nanocrystalline alloys, low-loss amorphous cores and precision grain-oriented silicon steel are helping manufacturers improve device efficiency, reliability and operating life. Compliance with ISO 9001, IEC, ASTM and RoHS requirements also supports consistent material quality, environmental responsibility and dependable performance in critical electrical systems.

Electric Vehicles and Renewable Energy Drive Market Demand

Rapid electric vehicle adoption is a major growth catalyst for the soft magnetic material market. Electric motors, inverters, charging systems and power electronics require efficient magnetic components that reduce core losses, control heat generation and support compact system designs. Growth in hybrid and fully electric vehicles is also encouraging investment in lightweight motor cores and materials capable of operating at high speeds and elevated temperatures.

Renewable energy development provides another significant opportunity. Wind turbines, solar inverters and energy storage systems rely on transformers, inductors and generators equipped with advanced magnetic cores. Government targets for clean transportation, renewable power generation and lower carbon emissions are accelerating material demand across Europe, North America and Asia-Pacific.

Industrial electrification is strengthening this outlook. Manufacturers, mining companies, logistics operators and infrastructure providers are adopting energy-efficient motors, servo systems, transformers and industrial power converters to lower operating expenses and improve equipment reliability. Smart manufacturing, robotics and automated production systems are expected to create additional demand for low-loss magnetic materials.

Production Costs and Harsh Operating Conditions Present Challenges

Advanced amorphous and nanocrystalline materials require specialized production methods, including rapid cooling, vacuum melting and precise alloying. These processes involve substantial capital investment, technical expertise and quality control, making cost management a key challenge for producers. Maintaining consistent magnetic characteristics during large-scale production can also limit adoption in price-sensitive markets.

Performance under high-frequency, high-temperature and mechanically demanding conditions remains another technical concern. Some materials can experience reduced permeability or increased core losses when exposed to sustained thermal and mechanical stress. Producers are responding through specialized alloys, protective coatings and improved manufacturing processes designed to deliver long-term stability in aerospace, automotive and heavy industrial applications.

Nanocrystalline, Amorphous and Smart Grid Applications Gain Momentum

Nanocrystalline and amorphous soft magnetic materials are gaining market share because they offer low core losses and strong magnetic performance in compact components. Their use is increasing in high-frequency transformers, electric mobility systems, renewable energy equipment and industrial power electronics. Research and development programs are focused on improving durability, mechanical strength, temperature resistance and production economics.

Smart grids and IoT-enabled power systems are also opening new opportunities. Smart transformers, wireless charging infrastructure and digitally monitored electrical networks require efficient energy transfer, compact designs and reliable operation. Predictive maintenance and digital power management further support demand for magnetic cores that perform effectively in high-frequency and high-efficiency environments.

Electrical Steel Maintains Material Leadership

Electrical steel, also known as silicon steel, remains the leading material segment because of its established supply chain, competitive cost and broad use in transformers, motors and generators. Grain-oriented silicon steel is commonly selected for transformer cores, while non-oriented silicon steel is widely used in rotating electrical machinery.

Precision rolling, advanced coatings and laser cutting have improved electrical steel performance and reduced energy losses. Its compatibility with large-scale manufacturing, combined with standardized production and dependable mechanical properties, supports continued adoption across mainstream energy, automotive and industrial applications. Amorphous and nanocrystalline alloys are expected to gain ground in specialized systems where ultra-low losses justify higher production costs.

Transformers Lead Applications

Transformers represent the leading application segment in the soft magnetic material market. Grid modernization, renewable energy integration, urban development and transportation electrification are increasing investment in efficient transmission and distribution equipment. Silicon steel, amorphous alloys and nanocrystalline cores help transformer manufacturers meet tighter efficiency requirements while reducing energy waste and operating expenses.

Utilities in developed markets are replacing aging transformers, while emerging economies are expanding electricity access and distribution capacity. Smart grid programs are creating further demand for advanced transformers capable of delivering reliable performance across increasingly complex energy networks.

Energy and Power Remains the Largest End-User Industry

The energy and power industry is the largest consumer of soft magnetic materials due to its dependence on transformers, generators, large motors and power distribution equipment. Growing electricity consumption, renewable energy installations and infrastructure upgrades are driving demand for components that improve efficiency and support long-term operational reliability.

The automotive and electrical and electronics sectors also offer substantial growth potential. Electric vehicles, consumer electronics, telecommunications equipment, industrial controls and charging systems require increasingly compact and efficient magnetic components.

Asia-Pacific Leads the Global Market

Asia-Pacific holds the leading position in the soft magnetic material market, supported by industrial expansion, electric vehicle manufacturing, renewable energy investment and power grid development. China, India, Japan and South Korea are major centers for automotive production, electronics manufacturing, industrial automation and energy infrastructure.

China's large electric vehicle market is increasing demand for advanced motor cores, inverters and power electronics. Regional smart grid projects and renewable energy programs are also supporting the use of high-performance transformers and generators. Cost-effective manufacturing capabilities and a strong base of local suppliers reinforce Asia-Pacific's position in both market volume and future growth potential.

Competitive Landscape and Recent Developments

Prominent participants include Hitachi Metals, VACUUMSCHMELZE GmbH & Co. KG, JFE Steel Corporation, ABB Ltd and Siemens AG. Competitive strategies focus on low-loss materials, high-frequency performance, thermal resistance and products tailored to electric mobility and renewable energy systems.

• In 2024 - Toshiba Materials / Niterra expanded its soft magnetic material portfolio for automotive electronics, motor cores and noise control applications.
• In 2024 - Elkem & EU Consortium introduced an iron-silicon powder for 3D printing lighter and more efficient electric motor components.
• In 2024 - TDK Corporation launched enhanced high-performance ferrite cores for telecommunications and power electronics.
• In 2024 - POSCO introduced Hyper NO20 electrical steel for high-speed electric motors and hybrid systems.
• In 2023 - Hitachi Metals / Proterial Ltd. increased FINEMET nanocrystalline ribbon production in Japan and Vietnam.
• In 2023 - VACUUMSCHMELZE introduced low-loss amorphous and nanocrystalline alloys for industrial machinery, power converters and high-frequency applications.

Report Coverage

• Historic year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031
• Material types: Electrical Steel (Silicon Steel), Soft Ferrites, Amorphous & Nanocrystalline Alloys, and Others (Cobalt, Nickel, Iron Powder)
• Applications: Electric Motors, Transformers, Inductors & Chokes, and Others (Alternators, Sensors)
• End-user industries: Automotive (EV/HEV), Electrical & Electronics, Energy & Power, and Others (Healthcare, Aerospace)

The report indicates that sustained investment in electric mobility, renewable power, industrial automation and efficient grid infrastructure will continue to shape the soft magnetic material market. Companies capable of balancing performance, quality, scalability and cost are expected to secure the strongest opportunities through 2031.

Key Attributes:

Report Attribute	Details
No. of Pages	190
Forecast Period	2025 - 2031
Estimated Market Value (USD) in 2025	$20.89 Billion
Forecasted Market Value (USD) by 2031	$30.62 Billion
Compound Annual Growth Rate	6.7%
Regions Covered	Global

Key Topics Covered:
1. Executive Summary
2. Market Dynamics
2.1. Market Drivers & Opportunities
2.2. Market Restraints & Challenges
2.3. Market Trends
2.4. Supply Chain Analysis
2.5. Policy & Regulatory Framework
2.6. Industry Experts Views
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. Market Structure
4.1. Market Considerate
4.2. Assumptions
4.3. Limitations
4.4. Abbreviations
4.5. Sources
4.6. Definitions
5. Economic /Demographic Snapshot
6. Global Soft Magnetic Materials Market Outlook
6.1. Market Size by Value
6.2. Market Share by Region
6.3. Market Size and Forecast, by Geography
6.4. Market Size and Forecast, by Material Type
6.5. Market Size and Forecast, by Application
6.6. Market Size and Forecast, by End-User Industry
7. North America Soft Magnetic Materials Market Outlook
7.1. Market Size by Value
7.2. Market Share by Country
7.3. Market Size and Forecast, by Material Type
7.4. Market Size and Forecast, by Application
7.5. Market Size and Forecast, by End-User Industry
7.6. Country Market Outlooks
7.6.1. United States
7.6.2. Canada
7.6.3. Mexico
7.7. Country Outlook Coverage
7.7.1. Market Size by Value
7.7.2. Market Size and Forecast by Material Type
7.7.3. Market Size and Forecast by Application
7.7.4. Market Size and Forecast by End-User Industry
8. Europe Soft Magnetic Materials Market Outlook
8.1. Market Size by Value
8.2. Market Share by Country
8.3. Market Size and Forecast, by Material Type
8.4. Market Size and Forecast, by Application
8.5. Market Size and Forecast, by End-User Industry
8.6. Country Market Outlooks
8.6.1. Germany
8.6.2. United Kingdom (UK)
8.6.3. France
8.6.4. Italy
8.6.5. Spain
8.6.6. Russia
8.7. Country Outlook Coverage
8.7.1. Market Size by Value
8.7.2. Market Size and Forecast by Material Type
8.7.3. Market Size and Forecast by Application
8.7.4. Market Size and Forecast by End-User Industry
9. Asia-Pacific Soft Magnetic Materials Market Outlook
9.1. Market Size by Value
9.2. Market Share by Country
9.3. Market Size and Forecast, by Material Type
9.4. Market Size and Forecast, by Application
9.5. Market Size and Forecast, by End-User Industry
9.6. Country Market Outlooks
9.6.1. China
9.6.2. Japan
9.6.3. India
9.6.4. Australia
9.6.5. South Korea
9.7. Country Outlook Coverage
9.7.1. Market Size by Value
9.7.2. Market Size and Forecast by Material Type
9.7.3. Market Size and Forecast by Application
9.7.4. Market Size and Forecast by End-User Industry
10. South America Soft Magnetic Materials Market Outlook
10.1. Market Size by Value
10.2. Market Share by Country
10.3. Market Size and Forecast, by Material Type
10.4. Market Size and Forecast, by Application
10.5. Market Size and Forecast, by End-User Industry
10.6. Country Market Outlooks
10.6.1. Brazil
10.6.2. Argentina
10.6.3. Colombia
10.7. Country Outlook Coverage
10.7.1. Market Size by Value
10.7.2. Market Size and Forecast by Material Type
10.7.3. Market Size and Forecast by Application
10.7.4. Market Size and Forecast by End-User Industry
11. Middle East & Africa Soft Magnetic Materials Market Outlook
11.1. Market Size by Value
11.2. Market Share by Country
11.3. Market Size and Forecast, by Material Type
11.4. Market Size and Forecast, by Application
11.5. Market Size and Forecast, by End-User Industry
11.6. Country Market Outlooks
11.6.1. United Arab Emirates (UAE)
11.6.2. Saudi Arabia
11.6.3. South Africa
11.7. Country Outlook Coverage
11.7.1. Market Size by Value
11.7.2. Market Size and Forecast by Material Type
11.7.3. Market Size and Forecast by Application
11.7.4. Market Size and Forecast by End-User Industry
12. Competitive Landscape
12.1. Competitive Dashboard
12.2. Business Strategies Adopted by Key Players
12.3. Key Players Market Share Insights and Analysis, 2025
12.4. Key Players Market Positioning Matrix
12.5. Porter's Five Forces
12.6. Company Profiles
12.6.1. Company Profile Coverage
12.6.1.1. Company Snapshot
12.6.1.2. Company Overview
12.6.1.3. Financial Highlights
12.6.1.4. Geographic Insights
12.6.1.5. Business Segment & Performance
12.6.1.6. Product Portfolio
12.6.1.7. Key Executives
12.6.1.8. Strategic Moves & Developments
12.6.2. Proterial, Ltd.
12.6.3. Arnold Magnetic Technologies
12.6.4. VACUUMSCHMELZE GmbH & Co. KG
12.6.5. TDK Corporation
12.6.6. Daido Steel Co. Ltd
12.6.7. GKN Powder Metallurgy
12.6.8. ATI Inc.
12.6.9. Nippon Steel Corporation
12.6.10. Hengdian Group DMEGC Magnetics Co.,Ltd
12.6.11. Advanced Technology & Materials Co., Ltd.
12.6.12. Qingdao Yunlu Advanced Materials Technology Co., Ltd.
12.6.13. China Amorphous Technology Co., Ltd.
12.6.14. JFE Holdings, Inc.
12.6.15. Mate Co. Ltd.
12.6.16. POCO Holding Co., Ltd.
12.6.17. Spang & Company
12.6.18. YAGEO Corporation
12.6.19. NBTM New Materials Group Co Ltd
12.6.20. Foshan Huaxin Microcrystalline Metal Co.Ltd
12.6.21. Stangenes Industries, Inc.
13. Strategic Recommendations
14. Annexure
14.1. FAQs
14.2. Notes
15. Disclaimer
List of Figures [36]
List of Tables [86]
A selection of companies mentioned in this report includes, but is not limited to:

• Proterial, Ltd.
• Arnold Magnetic Technologies
• VACUUMSCHMELZE GmbH & Co. KG
• TDK Corporation
• Daido Steel Co. Ltd
• GKN Powder Metallurgy
• ATI Inc.
• Nippon Steel Corporation
• Hengdian Group DMEGC Magnetics Co.,Ltd
• Advanced Technology & Materials Co., Ltd.
• Qingdao Yunlu Advanced Materials Technology Co., Ltd.
• China Amorphous Technology Co., Ltd.
• JFE Holdings, Inc.
• Mate Co. Ltd.
• POCO Holding Co., Ltd.
• Spang & Company
• YAGEO Corporation
• NBTM New Materials Group Co Ltd
• Foshan Huaxin Microcrystalline Metal Co.Ltd
• Stangenes Industries, Inc.

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