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The global rare earth metals market was valued at USD 6 billion in 2023 and grew at a CAGR of 12% from 2024 to 2033. The market is expected to reach USD 18.63 billion by 2033. The increasing demand for electric vehicles will drive the growth of the global rare earth metals market.
Rare earth metals as the name suggests are metals that are a rarity in nature. These are 17 such known elements and they are categorised as 15 lanthanides, scandium, and yttrium in the period table. They find applications in modern day electronic appliances, IT, telecommunications and many more contemporary necessities. The high electric conductivity and strong magnetic properties make it indispensable in the modern-day applications. its high luminescent nature and catalytic properties are also sought after across industries. the dominance in rare earth metals is primarily due to geography and China, United States, Australia and several other South Asian countries. green technologies that have become vital in a climate-change world dominantly use rare earth metals. These metals are used in electric vehicles, wind turbines and sustainable electrical appliances. They also find significant use in defence and aerospace.
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The increasing demand for electric vehicles – the growing concerns over climate change driven by rising global temperatures has gained traction worldwide. one of the significant contributors of temperature rise are fossil fuels. vehicles consume a dominant share of these fuels and therefore there has been a shift towards electric vehicles. The increasing production and demand for electric vehicles will positively influence the demand for rare earth metals as they play an essential role in these technologies. The government support and incentives along with technological advancements and consumer demand for electric vehicles will also augment the market’s growth. therefore, the increasing demand for electric vehicles attributed to growing concerns about climate change, government support for electric vehicles adoption and technological advancements facilitating improved technologies will drive the global rare earth metals market’s growth.
The capital and technical complexities – rare earth metals are mined from the earth. The extraction process requires significant capital expenditure to build the necessary infrastructure and equipment. These are sophisticated pieces of technology and require large capital outlay along with complex technical processes which necessitates experts with similar knowledge which adds to the costs. furthermore, the energy required to operate these also entails significant capital outlay. The need to improve methods, technologies and processes also adds to the need to invest in research and development, which add to the costs. the need to comply with government regulations governing the extraction, processing and applications of rare earth metals also adds to costs on the part of manufacturers to comply with these regulations. The rarity and scarce nature of these metals require large investments and high-end technologies which are expensive. The processing is also another parameter that adds to the costs. overall, the market of rare earth metals is capital intensive and this will hamper the market’s growth.
The growing applications of rare earth metals in green technologies – the growing concern over climate change has increased funding for green technologies to steer the world towards a more sustainable, eco-friendly and climate conscious world. The increasing adoption of green technologies and eco-friendly and sustainable products is encouraging increased research and development in them to improve their performance, efficiency and cost effectiveness. The use of rare earth metals has become indispensable in green technologies. They are used in electric vehicles, wind turbines, solar cells and other green technologies. Therefore, the shift towards greener technologies will contribute to the market’s growth during the forecast period.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global rare earth metals market, with a 40% market revenue share in 2023.
China is home to the biggest source of rare earth metals making it the dominant player in the market. along with having abundant reserves, it also has the necessary processing technologies, government support and capital to extract, process and market these products. the reserves of China are supplemented by rare earth metal deposits found in Australia, Myanmar and other South Asian countries. the significant market for electronics, electric vehicles, wind and solar energy also drives the demand for rare earth metals. China is the biggest market for electric vehicles and along with Japan and South Korea it is driving innovation in electronics. Favourable government policies positively influence the rare earth metals market. the significant push for a greener economy and government support for the same will also augment the market’s growth.
Asia Pacific Region Rare Earth Metals Market Share in 2023 - 40%
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The application segment is divided into catalysts, magnets, metallurgy and alloys, polishing, glass, phosphors, ceramics, and others. The magnets segment dominated the market, with a market share of around 37% in 2023. Rare earth metals have a strong magnetic field and therefore are crucial in producing powerful magnets which are then used in a variety of applications. the strong magnetic properties make these highly valuable in modern industries like electronics, IT and telecommunications. They are used in electric motors which are essential in electric vehicles, and wind energy applications. another prominent use of magnets is their invaluable addition in consumer electronics. With the proliferation of smartphones, laptops, and other everyday electronics, the demand for magnets and therefore rare earth metals is bound to increase. Furthermore, they find application in medical technology, aerospace and defence. Therefore, the strong magnetic and other important properties accorded to magnets due to rare earth metals will contribute to the dominance of magnets in the application segment.
The metal type segment is divided into neodymium, yttrium, dysprosium, terbium, europium, cerium, lanthanum and others. The neodymium segment dominated the market, with a market share of around 44% in 2023. Neodymium is a rare earth metal with chemical symbol Nd and has an atomic number 60. It is extracted for monazite and bastnäsite minerals. They are crucial in producing strong magnets, especially neodymium-iron-boron (NdFeB) magnets which are known to be the strongest types of magnets and are invaluable in various industries. they are used in electric vehicles, wind turbines, consumer electronics, defence and aerospace. The continuous technological advancements also contribute to improved extraction, processing and end product of neodymium. Therefore, the extensive applications of neodymium given its desirable properties will contribute to its dominance in the market.
Report Description:
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2023 | USD 6 Billion |
| Market size value in 2033 | USD 18.63 Billion |
| CAGR (2024 to 2033) | 12% |
| Historical data | 2020-2022 |
| Base Year | 2023 |
| Forecast | 2024-2033 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Application and Metal Type |
As per The Brainy Insights, the size of the global rare earth metals market was valued at USD 6 billion in 2023 to USD 18.63 billion by 2033.
Global rare earth metals market is growing at a CAGR of 12% during the forecast period 2024-2033.
The market's growth will be influenced by the increasing demand for electric vehicles.
The capital and technical complexities could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global rare earth metals market based on below mentioned segments:
Global Rare Earth Metals Market by Application:
Global Rare Earth Metals Market by Metal Type:
Global Rare Earth Metals Market by Region:
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