Rare Earth Elements Market Size, Share & Industry Analysis, By Type (Lanthanum, Cerium, Neodymium, Praseodymium, Samarium, Europium, Others), By Application (Magnets, Metallurgy, Batteries, Polishing Agent, Glass and Ceramics, Catalyst, Phosphors, and Others) and Regional Forecast, 2024-2032

The global rare earth elements market size was USD 3.39 billion in 2023 and is projected to grow from USD 3.74 billion in 2024 to USD 8.14 billion by 2032, exhibiting a CAGR of 10.2% during the forecast period (2024-2032). Asia Pacific dominated the rare earth elements market with a market share of 86.14% in 2023. Moreover, the rare earth elements market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 394.39 million by 2032, driven by the robust pipeline and increasing R&D investment by industry players.

The rising demand for consumer durables such as tablets, laptops, and smartphones is one of the factors driving the consumption of rare earth elements. The demand for these elements in developing economies is estimated to expand rapidly owing to an increase in industrialization, building & construction activities, and various digitization activities by governments in the respective countries. The boost in the demand for electric vehicles (EVs) in Germany, United States, and the U.K. is estimated to surge the consumption of rare earth minerals. Stringent rules on carbon discharges, and increasing concerns about the environment, have augmented the development of non-conventional energy sources, which will further increase the usage of these elements. However, the high cost of these minerals and the monopoly of China-based manufacturers is expected to hinder the market growth.

Industries including automotive, and electronics were significantly impacted by the COVID-19 pandemic. The pandemic has inflicted damage on the production of rare earth and their supply as the mining activities were put on hold to mitigate the spread of the virus. Companies operating in the metal industry were unable to obtain rare earth minerals to produce alloys. The decline in the production rates of permanent magnets affected the manufacturing of vehicles and consumer electronic products. However, the demand for magnets from ventilator manufacturers decelerated the implications of COVID-19 on the market. Furthermore, the rising sales of electric and hybrid vehicles will support the deceleration of these effects on the market. According to the International Energy Association (IEA), the global electric car sales in 2020 were estimated to be 3.1 units million compared to 2.2 units million in 2019.

Rare Earth Elements Market Trends

Rising Demand for Lithium-ion Batteries to Have Positive Influence on the Market Growth

The increasing concerns regarding the environment have led consumers to opt for electric vehicles (EVs) due to their net-zero emissions. EVs incorporate lithium-ion batteries as a fuel source due to their low self-discharge rate and high energy density. As stated by IEA, the preference for EVs is expanding rapidly in countries, such as China, the U.S., and Japan. The electric car stock was 4.79 million in 2019, globally. Additionally, lithium-ion batteries are applied in many electronic devices, such as laptops, mobile phones, hard discs, dentures, and bearings. The increasing production of consumer durables in developing economies will surge the demand for batteries, thereby boosting the rare earth elements market growth.

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Rare Earth Elements Market Growth Factors

Increasing Adoption of Different Rare Earth Elements to Fuel Market Growth

Different types of elements are witnessing a rise in their demand from several industries due to their physical and chemical properties being ideal for specific applications. Cerium is used as a polishing agent and its demand is rapidly rising due to the growth of the electronics industry. Cerium is extensively used to polish surfaces such as display panels, liquid crystal displays, glass magnetic memory disks, and glass display panels. Additionally, the rising demand for such elements such as lanthanum, samarium, europium, and others for applications in batteries, displays, lasers, and optical electronics, will further fuel the growth of the market.

Rising Demand from Various Applications to Drive the Market Expansion

Technological advancements have been on the rise owing to the modernization of society and growing applications for industrial and commercial needs. Consumer attractiveness toward advanced gadgets and products is the primary factor driving the demand for magnets in the market. Moreover, even tiny magnets have the strength making them incredibly versatile for applications such as medical science, electronic motor manufacturing, and jewelry making.

There has been a rapid increase in the automotive industry over the years supported by population growth, technological development, and disposable income growth. Magnets are heavily used in the automotive industry for various parts such as motors, actuators, sensors, and switches. Additionally, rare earth elements are used in other applications such as catalysts, additives, ceramics, and metallurgy. The rising demand for catalysts, additives, ceramic products, and metal products from various end-use industries such as chemical, oil & gas, automotive, and electronics is anticipated to fuel the product demand.

RESTRAINING FACTORS

Fluctuating Prices of Rare Earth Elements to Hinder Growth

In North America and Western Europe, the prices of rare earth oxides are volatile due to their very low volume share amongst other minerals. Products such as batteries, automotive motors, aircraft alloys, and bearings are made from rare earth oxides. The rising demand for these products will lead to an increase in the prices of raw materials and disruptions in the supply chain. Furthermore, China has created a monopoly in the market which has increased the export prices, thereby hampering the market growth. In addition, to fulfill the future demand for rare earth oxides, China has limited the supply, further disrupting the supply chain of end-use industries in foreign countries.

Rare Earth Elements Market Segmentation Analysis

By Type Analysis

Neodymium Segment Dominated in 2023 Stoked by High Demand from Hybrid Vehicle Manufacturers

Based on the type, the market is segmented into lanthanum, cerium, neodymium, praseodymium, samarium, europium, and others. The neodymium segment held the dominant share in the market in 2023. The rising demand from electric and hybrid vehicle manufacturers is driving the segment’s growth. Neodymium-based permanent magnets are used in the production of batteries for electric vehicles. The growth of the cerium segment is associated with the increasing demand from the automotive industry. It is used in exhaust systems and catalytic converters to minimize emissions.

Praseodymium is used as an alloying agent with magnesium to produce high-strength alloys for aircraft engine applications. The growth of the praseodymium segment is linked to the surging demand from the aerospace industry. The lanthanum segment will exhibit a significant growth rate during the forecast period owing to the rising demand from battery manufacturers. Lanthanum is an intermetallic component of nickel-metal hydride batteries, which are used in consumer electronic devices. The growth of the samarium segment is due to the increasing demand from hybrid vehicle manufacturers for permanent magnet applications.

By Application Analysis

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Magnets Segment Held the Largest Share in 2023 Fueled by High Demand from Manufacturers

Based on the application, the market is segmented as magnets, metallurgy, batteries, polishing, glass and ceramics, catalyst, phosphors, and others. The magnets segment held the highest rare earth elements market share in 2023. The growth of this segment is associated with the high demand from manufactures of servo motors, handheld consumer electronics, hard drives, sensors, speakers, and headphones. The battery segment is projected to grow at the fastest CAGR during the review period. Factors such as increasing demand from electric vehicle producers, combined with technological developments in energy storage applications, will boost the segment’s growth. Consumers prefer hybrid or electric vehicles due to the minimum amount of carbon emissions. The U.S., China, and European countries are the leading countries fueling the demand for electric vehicles, resulting in the growth of this segment.

The catalyst segment will exhibit substantial growth during the forecast period. The rising demand for catalytic convertors from the automotive industry will drive the growth of the segment. The growth of the metallurgy segment is associated with the fueling demand for alloyed metals from industries including automotive and aerospace and defense. The increasing production of ceramic tiles due to the rising number of building & construction activities globally will boost the growth of the glass and ceramics segment. The surging production of consumer electronics will propel the growth of the polishing agent segment. Rare earth elements are used for the polishing of liquid crystal displays, camera lenses, and other optical products.

REGIONAL INSIGHTS

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The market size in Asia Pacific stood at USD 2.92 billion in 2023. The region occupied the dominant position in the market in 2023 and is projected to preserve its foremost position throughout the forecast period. The dominance is accredited to the presence of major consumer electronics manufacturers in the region. China is significantly contributing to the growth of the regional market as it is considered to be the manufacturing hub for several products required in the automotive and consumer electronics industries. Additionally, the increasing number of building & construction and industrialization activities in China and India will support the market growth.

A surge in the production of electric vehicles in the U.S. will drive the demand for rare earth minerals in North America. Additionally, the presence of major electric and hybrid vehicle manufacturers in the region, such as Tesla Inc., WM Motors, and Lucid Motors will fuel the market growth.

Countries such as the U.K, Germany, and France are the leading contributors to the growth of the market in Europe. The automotive industry is the major end-user of rare earth minerals in the region for applications such as magnets, metallurgy, catalysts, and glass. Additionally, the increasing focus on green technology in Europe will boost the demand for rare earth minerals.

The growth of the market in South America is characterized by the increasing industrialization and building and construction activities in the region. In the Middle East & Africa, the high demand for rare earth metals is from oil and gas refineries. Additionally, steps taken by governments to set up wind turbines owing to the high wind speeds in the region and to increase reliability on non-conventional energy sources will fuel the market growth.

List of Key Companies in Rare Earth Elements Market

Agreements with Automotive Manufacturers Will Augment the Presence of Key Players

The competition landscape of the rare earth elements market is fragmented. Key players are incorporating approaches such as acquisitions and joint ventures to aid their presence in the market. Partnerships of small-scale rare earth mineral producers with automotive OEMs will provide them with lucrative growth opportunities. Furthermore, leading players are targeting to boost their production capabilities to increase their market presence. Technological advancements and the acquisition of mining sites are the factors associated with the dominance of these market players.

LIST OF KEY COMPANIES PROFILED:

• Baotou Rare Earth (China)


• China Minmetal Rare Earth (China)


• Avalon Advanced Materials (Canada)


• IREL (India)


• Metall Rare Earth Limited (China)


• Arafura Resources (Australia)


• Canada Rare Earth Corporation (Canada)


• Lynas Corporation (Australia)


• Northern Minerals (Australia)


• Greenland Minerals Limited (Australia)

An Infographic Representation of Rare Earth Elements Market

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REPORT COVERAGE

The global rare earth elements market research report provides a detailed analysis of the market and focuses on key aspects, such as profiles of leading companies, rare earth elements types, and leading applications of the product. Besides this, it offers insights into the current market trends, dynamics, and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

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Report Scope & Segmentation