Rare Earth Element Market: Global Industry Analysis and Forecast (2024-2030)

Rare Earth Element Market is anticipated to reach US$ 16.90 Bn. by 2030 from US$ 7.50 Bn. in 2023 at a CAGR of 12.3 % during a forecast period.

Rare earth elements are a set of seventeen elements discovered in the earth's crust that have similar chemical and physical properties. Common rare earth elements include cerium, neodymium, erbium, holmium, lanthanum, praseodymium, yttrium, and dysprosium. High electrical conductivity, improved magnetism, and weight reduction are only a few of the advantages provided by these components. As a result, rare earth elements are used in a wide range of industries, including automobiles, transportation, power generation, construction, medical, and military applications.To know about the Research Methodology :- Request Free Sample Report
Rare Earth Element Market Dynamics:
Rare-earth permanent magnets are expected to be the fastest-growing market over the forecast period. The most common rare-earth elements used in permanent magnets are neodymium, praseodymium, dysprosium, terbium, and yttrium. These metals have special properties including remanence and high coercivity, which prevent permanent magnets from losing their magnetism over time. The automobile sector uses these magnets extensively, and their demand is impacted by them. Both conventional and hybrid autos employ rare-earth permanent magnets.

In catalytic systems, rare-earth metals are widely used. Their primary function in a catalyst system is to absorb, store, and release oxygen while also regulating the environment in which they work. Rare-earth metals such as lanthanum and cerium are extensively used in catalyst systems. They are generally used as catalysts in automotive and other vehicle catalytic converters, as well as in oil refinery fluid cracking catalysts (FCCs). Apart from increased worldwide unit sales, auto-catalyst demand is being boosted by more rigorous laws controlling vehicle emissions across the world. The demand for rare-earth metals in autocatalysts is expected to grow during the forecast period.

After China lowered its export quotas by 40% in 2015, claiming environmental concerns, prices for rare-earth metals surged. Due to growing demand and concerns about future availability, the price of dysprosium oxide, which is used in magnets, lasers, and nuclear reactors, climbed from USD 700 to USD 740 per kilogram.

These price oscillations, which are amplified by rising energy prices, are destabilizing rare-earth element supply networks. This makes it difficult for manufacturers to develop high-quality products while still generating a profit. Producers must determine whether to tolerate greater expenses or boost product pricing as raw material prices vary. The applications for which rare-earth metals are utilized affect the demand for them.

Rare-earth metals were comparatively affordable until new applications were discovered. The cost of rare-earth metals has risen dramatically, causing a gap in the supply and demand chain for the metals. Metals were not as essential in past years as they have been in the last five. Many of them were discarded as a result of demand and supply inconsistencies. Rare-earth metals are widely employed in a variety of critical applications, including green technology and the military.

Recycling is a method of reducing the criticality of metals while also offering a secondary source of supply for critical metals. Rare-earth metals currently have a recycling rate of less than 5%, indicating that major recycling operations are possible. Recycling not only provides a backup supply but also helps the environment by lowering the need for mining. It will also cut down on the amount of garbage and toxins that end up in drinking water.
Rare Earth Element Market Segmentation Analysis:
By Metal, Cerium was the most popular element in 2023, accounting for xx% of total volume. The rising popularity of hybrid vehicles is expected to boost rare earth demand during the forecast period. From 2024 to 2030, praseodymium volume is expected to grow at a CAGR of 6.4 percent. It is used as an alloying agent with magnesium in aviation engines to make high-strength metals. As the number of passengers from all over the world increases, so does the need for flights. GE Aviation, a part of General Electric, promised USD 12.3 billion in February 2017 to increase its aircraft engine production capacity. This is expected to raise praseodymium demand during the forecast period.

By Application, The magnet was the most popular application segment in terms of volume and income in 2023. Computer hard drives, linear actuators, servo motors, speakers, and sensors are all examples of where they're used. Rising demand for magnets in automobiles, turbines, and consumer electronics is expected to boost rare earth element utilization throughout the forecast period. Revenue for the application of ceramic is expected to expand at a CAGR of 7.0 percent from 2024 to 2030. Yttrium, lanthanum, cerium, neodymium, and praseodymium are frequently used in the ceramics industry in applications such as tiles, electronics, and engineering. According to numbers supplied by the Ceramic World Web, the output of ceramic tiles increased by 2.2 percent from 2016 to 2017. Expanding ceramic output as a result of increasing building activity in developing countries is expected to have a positive impact during the forecast period.
Rare Earth Element Market Regional Insight
North America is expected to grow at an 8.2 percent CAGR in terms of revenue from 2024 to 2030. For example, Tesla, a major American electric vehicle manufacturer, announced in 2018 that its Model 3 Long Range vehicles will employ neodymium. This action is expected to increase neodymium demand during the forecast period. Consumer electronics and nuclear energy are likely to drive rare earth demand throughout the forecast period. Rare earth demand in Europe is expected to rise as a result of increased usage in magnets, metallurgy, catalysts, glass, and ceramics. According to the Organization for International Cooperation on Autos (OICA), Europe overtook the United States as the world's second-largest manufacturer of automobiles in 2018, accounting for 22.3 percent of worldwide output. As a result, the region's need for rare earth elements is likely to grow.

The Asia Pacific was the leading producer and consumer of rare earth in 2023, with a market volume share of xx percent. The consumer electronics and vehicle sectors are key in the Asia Pacific rare earth elements market. This is owing to the rising usage of rare earth in magnets for electric car batteries, as well as the polishing of television glass to smoothen the surface and reduce the weight of the product. Skyworth, TCL, Xiaomi, BPL, and Thomson have all begun to expand their capacity to manufacture television components in India.
Rare Earth Element Market Report Objectives:
Landscape analysis of the Rare Earth Element Market

competitive benchmarking

Past and current status of the industry with the forecasted market size and trends

Evaluation of potential key players that include market leaders, followers, and new entrants

Technology trends

Potential impact of micro-economic factors of the market

External and Internal factors affecting market have been analysed

The report also helps in understanding the Rare Earth Element Market dynamics, structure by analysing the market segments and project the Rare Earth Element Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Rare Earth Element Market make the report investor’s guide.
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Rare Earth Element Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 7.50 Bn.


Forecast Period 2024 to 2030 CAGR:
12.3%
Market Size in 2030:
US $ 16.90 Bn.


 Segments Covered:
by Metal
Lanthanum
Cerium
Neodymium
Praseodymium
Samarium
Europium


by Application
Permanent Magnets
Metals Alloys
Polishing
Additives
Catalysts
Phosphors



Rare Earth Element Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Rare Earth Element Market Key Players
1. Ucore Rare Metals Inc
2. Arafura Resources Limited
3. Alkane Resources ltd
4. Lynas Corporation
5. Avalon Advanced Materials, Inc.
6. Canada Rare Earth Corporation
7. Iluka Resources Limited
8. Baotou Jinmeng Rare Earth Co
9. Northern Minerals Limited
10. Shin-Etsu Chemical Co. Ltd.
11. China Minmetals Rare Earth Co. Ltd.
12. China Northern Rare Earth (Group) High-Tech Co., Ltd.
13. Iluka Resource Ltd (Australia)

Frequently Asked Questions:

1. Which region has the largest share in Global Rare Earth Element Market?
Ans: North America region held the highest share in 2023.

2. What is the growth rate of Global Rare Earth Element Market?
Ans: The Global Rare Earth Element Market is growing at a CAGR of 12.3% during forecasting period 2024-2030.

3. What is scope of the Global Rare Earth Element Market report?
Ans: Global Rare Earth Element Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Rare Earth Element Market?
Ans: The important key players in the Global Rare Earth Element Market are – Ucore Rare Metals Inc, Arafura Resources Limited, Alkane Resources ltd, Lynas Corporation, Avalon Advanced Materials, Inc., Canada Rare Earth Corporation, Iluka Resources Limited, Baotou Jinmeng Rare Earth Co, Northern Minerals Limited, Shin-Etsu Chemical Co. Ltd., China Minmetals Rare Earth Co. Ltd., China Northern Rare Earth (Group) High-Tech Co., Ltd., Iluka Resource Ltd (Australia), Canada Rare Earth Corporation (Canada), and Others.

5. What is the study period of this Market?
Ans: The Global Rare Earth Element Market is studied from 2023 to 2030.