Permanent Magnet Motor Market Trends

Growth Drivers

• Rising Need for Energy-Efficient Machines– Rising fuel prices have increased the demand for energy-efficient machines. In recent weeks, global oil prices have skyrocketed. On the basis of Brent oil, the worldwide benchmark, has risen 16% since a trough in late June 2023. Permanent magnet motors offer better power-to-weight ratios and higher power densities, making them best for applications where energy savings are crucial.
• Growing Demand for Consumer Electronics– Permanent magnetic motors are used in various consumer electronics, including electric fans, cordless tools, blenders, food processors, shavers, home devices, compact cameras, and others. All these devices use this motor owing to high reliability and compact sizes.
• Rising Use of HVAC Systems – A typical HVAC system contributes to roughly 40% of overall energy consumption in a commercial building, with comparable values in residential and industrial use cases. Currently, in the world, there are around 1 billion single-room air conditioning units and this number is expected to reach nearly 4.5 billion by 2050. A permanent magnet motor allows for accurate and efficient control of variable speeds, enabling HVAC controls to adjust temperature and airflow.

Challenges

• Limited Availability of Raw Material- Neodymium and dysprosium are two rare metals that are used in the manufacturing of permanent magnet motors, therefore the limited availability and changing prices of these metals impact the production of these motors and also affect the supply chain
• Complex Manufacturing of the Motors
• Need for High Initial Investment