US Soft Magnetic Materials Market Outlook and Forecast (2020-2035)
Soft magnetic materials are essential components in various electromagnetic and electronic devices, excelling in applications requiring rapid magnetization and demagnetization. They possess high permeability and low coercivity, enabling efficient flux conduction and minimal energy losses. Common types include electrical steel, soft ferrites, permalloy, amorphous and nanocrystalline alloys. These materials are primarily utilized in transformers, motors, generators, inductors, automotive electronics, and consumer devices. The increasing focus on energy efficiency, renewable integration, and electric vehicle adoption is stimulating market expansion across the US. Advanced manufacturing techniques and emerging applications in smart grids and automotive electronics also underpin robust market demand.
Latest Market Dynamics
Key Drivers
Rapid growth of electric vehicle (EV) and hybrid vehicle production, driving demand for high-performance soft magnetic materials for advanced motors and powertrain systems. Example: Tesla's expansion in the US with advanced alternating current motor technology leveraging amorphous and nanocrystalline alloys.
Modernization of power industry infrastructure, particularly through grid upgrades and renewable energy integration, stimulating transformer and inductor demand. Example: GE Renewable Energy's large-scale transformer projects leveraging premium electrical steel.
Key Trends
Increased adoption of nanocrystalline and amorphous alloys due to superior energy efficiency and reduced core losses, with companies such as Hitachi Metals advancing production volume and quality.
Growing usage of soft ferrite materials in compact consumer electronics and telecommunication devices, exemplified by TDK Corporation’s focus on miniaturized components for 5G and IoT-enabled gadgets.
Key Opportunities
Significant potential in automotive electrification, particularly traction motors and wireless charging components, as automakers accelerate EV roll-outs. Example: Ford’s investment in domestic EV manufacturing and soft magnetic core innovation.
Rising investment in sustainable energy generation and storage systems, necessitating efficient transformers and inductors. Example: Siemens Energy partnering with US utilities for grid modernization leveraging advanced magnetic core materials.
Key Challenges
Volatility in raw material prices (nickel, iron, cobalt) affecting procurement strategies and cost competitiveness for key suppliers. Companies like Daido Steel note price fluctuations limiting forecasting accuracy.
Technical limitations in scaling thin-film and nanocrystalline processes for mass production, as highlighted by ongoing R&D challenges faced by VACUUMSCHMELZE.
Key Restraints
Complexity and higher costs in manufacturing advanced soft magnetic alloys, which can restrict widespread adoption among cost-sensitive OEMs. GKN Powder Metallurgy identified this gap in mid-tier market penetration.
Stringent regulatory standards on energy efficiency and material sourcing add compliance and reporting burdens, as JFE Steel Corporation navigates evolving US regulatory requirements.
US Soft Magnetic Materials Market Share by Type, 2025
Electrical steel forms the backbone of the US soft magnetic materials market in 2025, driven by its crucial role in power transformers, motors, and inductors. Claiming the largest market share, its dominance stems from ongoing grid upgrades and expansion in renewable energy. Nanocrystalline alloys are gaining traction due to their exceptional efficiency, while soft ferrite remains vital for miniaturized electronic applications. As demand for energy-efficient solutions intensifies, innovation in amorphous and nanocrystalline segments is set to further reshape the competitive landscape.
US Soft Magnetic Materials Market Share by Application, 2025
Transformers represent the leading application segment for soft magnetic materials in the US market in 2025, underpinned by sustained investments in transmission and distribution networks. Motors also command a significant share, supported by electrification trends in automotive and industrial sectors. Consumer electronics, driven by high demand for miniaturized and efficient inductive components, round out the top three. These application dynamics signal robust prospects in the energy, mobility, and digital sectors through the forecast period.
US Soft Magnetic Materials Market Revenue (USD Million, 2020-2035)
Between 2020 and 2035, the US soft magnetic materials market is forecast to showcase steady revenue expansion, propelled by technological innovation, rising electrification, and grid modernization. In 2025, revenues are pegged at approximately USD 3,200 Million. Growth is projected to accelerate post-2025, buoyed by federal infrastructure spending and automotive sector transformation. By 2035, the market is likely to nearly double, highlighting the pivotal role of advanced materials in the next generation of energy and mobility systems.
US Soft Magnetic Materials Market Year-on-Year Growth (%) (2020-2035)
The US soft magnetic materials market exhibits a gradual year-on-year (YoY) growth rate averaging 6-7% through 2025, reflecting consistent demand from the transformer, automotive, and electronics sectors. Higher YoY increments are anticipated from 2027 onwards, aligning with the scaling deployment of EVs, fast-charging infrastructure, and renewable energy installations. Growth moderates slightly post-2032 as the market matures, but innovation-driven applications keep expansion healthy through 2035.
US Soft Magnetic Materials Market Share by Region, 2025
The Midwest commands a leading share of the US soft magnetic materials market in 2025, attributed to its dense manufacturing infrastructure and concentration of automotive and energy equipment producers. The South follows, driven by ongoing industrialization and renewable investments, while the West benefits from its technology sector and clean energy programs. Regional diversification is expected to increase as supply chains expand and more states invest in the energy transition and EV manufacturing.
US Soft Magnetic Materials Market Player Share, 2025
The US market is moderately consolidated, with top players like Voestalpine AG, Hitachi Metals, and Arnold Magnetic Technologies collectively accounting for a significant share. Late entrants and niche innovators are gaining traction in specialized segments such as nanocrystalline and amorphous alloys. Competitive differentiation is increasingly based on technological advancement, supply reliability, and customized application capability, with sustained R&D investment being a core strategy for market leaders.
US Soft Magnetic Materials Market Buyer Share, 2025
OEMs (Original Equipment Manufacturers) are the primary buyers in the US soft magnetic materials market, reflecting the importance of direct supply for automotive, energy, and electronics equipment. Distributors manage a sizeable portion, catering to a range of small and medium enterprises, while the growth of e-commerce platforms is facilitating procurement for emerging tech start-ups and smaller manufacturers. This diversified buyer ecosystem is enhancing market accessibility and fostering competitive pricing.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
Midwest, South, West, Others
Segments
By Type (Electrical Steel, Soft Ferrite, Permalloy, Amorphous Alloy, Nanocrystalline Alloy, Others), By Application (Transformers, Motors, Inductors, Generators, Automotive, Consumer Electronics)
June 2024: Voestalpine AG announced the expansion of its US electrical steel processing facility to cater to rising regional transformer demand.
July 2024: Hitachi Metals launched a new series of high-frequency amorphous core materials for automotive powertrains at SEMICON West in California.
August 2024: Arnold Magnetic Technologies entered into a strategic partnership with a leading US EV startup to co-develop soft magnetic components for next-gen electric motors.
September 2024: VACUUMSCHMELZE revealed breakthroughs in nanocrystalline tape production for power electronics, targeting US renewable energy projects.
October 2024: TDK Corporation introduced miniaturized ferrite components for IoT applications at the Consumer Electronics Show (CES) in Las Vegas.
Frequently Asked Questions
About the Author
Ankit
Senior Research Consultant
Ankit is a Senior Research Consultant specializing in market research, industry analysis, and business consulting across Chemical & Material. Ankit brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Ankit has helped organizations translate data into actionable growth strategies.
Chemical & MaterialMarket ResearchIndustry AnalysisStrategic Consulting
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