Global Rare Earth Metals Market to Register a Staggering 7.4% CAGR from 2022 to 2031, Reaching US$ 21.7 Billion: TMR Report

A surge in demand for rare earth metals in clean energy technologies, especially in the manufacture of wind turbine generators and motors used in electric vehicles and hybrid vehicles, presents lucrative opportunities for companies in the market

Wilmington, Delaware, United States, June 07, 2023 (GLOBE NEWSWIRE) -- Transparency Market Research Inc. - The Global Rare Earth Metals Market was valued at US$ 10.6 Bn in 2021. It is projected to expand at a CAGR of 7.4% from 2022 to 2031.

Surge in demand for minerals in clean energy technologies in several countries in order to attain energy security is anticipated to accelerate market development. Numerous countries, especially the U.S. and China, are stepping up efforts to strengthen domestic supply chain of rare earth magnets.

Additionally, considerable initiatives by governments of these countries to use advanced mining, processing, and refining methods to tap into reserves of rare earth elements (REE) is likely to broaden rare earth metals market outlook.

Rise in utilization of neodymium (NdFeB) permanent magnets in high-performance motors and generators is anticipated to boost the market. These rare earth magnets are gaining traction in motors for electric vehicles and wind turbine generators.

The focus of end-use industries to utilize/exploit chemical, optical, mechanical, electronic, and magnetic properties of numerous REEs is likely to bolster their usage in range of advanced engineering applications such as nanotechnology, medicine, luminescent materials, ceramics, catalysts, pigments, and phosphors.

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Market Snapshot:

Report CoverageDetails
Market RevenueUS$ 10.6 Bn
Estimated ValueUS$ 21.7 Bn
Growth Rate - CAGR7.4% 
Forecast Period2022-2031
No. of Pages270 Pages
Market SegmentationBy Type, Application
Regions CoveredNorth America, Europe, Asia Pacific, Middle East & Africa, Latin America

Key Findings of Study

  • Surge in Usage of Rare Earth Metals as Permanent Magnets: Recent market trends indicate a rise in preference for rare earth magnets (over regular magnets) in a wide range of industrial and engineering applications due to their high demagnetization forces. Rare earth metals are widely being utilized in magnets that work under high temperature conditions.

    Continuous advancements in permanent magnet technology are fueling utilization of alloys containing Neodymium (Nd), Samarium (Sm), Gadolinium (Gd), and Praseodymium (Pr). Rapid increase adoption of rare earth magnets, especially SmCo and GdCo magnets, in generators, actuators, and medical devices is bolstering market growth.
  • Significant Demand for Neodymium Rare Earth Magnets in Clean Energy Technologies, Especially Wind Turbines and EV Motors: Considerable demand for clean energy technologies, such as wind turbine generators and electric vehicles, is anticipated to augment market growth. Surge in neodymium rare earth magnets (NdFeB) in wind turbines and electric vehicle motors is expected to propel the market.

    Rapid increase in adoption of rare earth magnets, including samarium cobalt (SmCo) and neodymium magnets (NdFeB), can be ascribed to decline in their production costs and the fact that they help reduce the size and weight of components particularly for wind turbines generators. NdFeB magnets also ensure high power for generators. Ongoing research in ocean-based renewable energy technologies is likely to create lucrative opportunities for companies operating in the rare earth metals industry.

Key Drivers

  • Steady expansion of demand for smart and compact/miniaturized electronic devices and components from industrial and consumer sectors is a key factor driving the demand for rare earth elements (REE). Rapid development of the consumer electronics sectors in developing regions around the globe is a significant driver of the rare earth metals market.
  • Considerable focus of governments to promote clean energy technologies and support clean energy transition by industries are expected to drive the rare earth metals industry. For instance, the U.S. plans to achieve net-zero carbon emissions by 2050-end, which is likely to bolster requirements for rare earth metals in offshore wind turbines and battery-operated electric vehicles and all-electric vehicles.

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Regional Growth Dynamics

  • Asia Pacific constituted a major share of 71.8% of the global market in 2021. The region is projected to contribute significant revenue to the global market from 2022 to 2031, with China being a key market. China is focusing on boosting production of rare earth elements, which in turn is estimated to drive the market size in Asia Pacific in the next few years.

    The rapid expansion of the semiconductor industry and a booming consumer electronics industry in Asia offer significant revenue opportunities to companies in Asia Pacific. Rapid increase in sales of consumer electronics, such as smartphones, computers, TVs, and LEDs, is expected to spur the demand for rare earth magnets.
  • North America accounted for a significant market share in 2021. Market opportunities in the region are being driven by implementation of policies for clean energy transitions in the U.S. A large reserve of rare earth elements in the U.S. is also expected to augment market size in North America.

Competition Landscape

The business landscape is consolidated with few large-scale vendors controlling the majority stakes of the rare earth metals industry.

Prominent companies in the rare earth metals market are

  • Lynas Rare Earths Ltd.
  • Arafura Resources Ltd.
  • Rare Element Resources Ltd.
  • Iluka Resources Limited
  • Quest Rare Minerals Ltd.
  • Otto Chemie Pvt. Ltd.
  • IREL Limited
  • Greenland Minerals Ltd.
  • Frontier Rare Earths Ltd.

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Rare Earth Metals Market Segmentation


  • Lanthanum
  • Praseodymium
  • Cerium
  • Neodymium
  • Samarium
  • Promethium
  • Europium
  • Dysprosium
  • Holmium
  • Gadolinium
  • Ytterbium
  • Lutetium
  • Erbium
  • Terbium
  • Samarium
  • Scandium        


  • Magnets
  • Catalysts
  • Metallurgy
  • Glass
  • Ceramics
  • Phosphors
  • Polishing


  • North America
  • Europe
  • Middle East & Africa
  • Asia Pacific
  • Latin America

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