The Rare Earth Elements Market is Segmented Type (Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Lutetium, Neodymium, Praseodymium), Application (Magnets, Catalysts, Metallurgy, Polishing, Glass, Phosphors, Ceramics, Other). The report published on Valuates Reports in the Metals & Mining Category covers global opportunity analysis and industry forecast from 2021 to 2026.
The global Rare Earth Elements market size is projected to reach USD 3757.7 Million by 2026, from USD 2664.5 Million in 2020, at a CAGR of 5.9% during the Forecast Period 2021-2026. Global shift towards clean energy with rising demand for electric and hybrid vehicles is propelling the growth of a rare market.
Trends Influencing the Growth of Rare Earth Elements Market Size
It is expected that the growing demand for electric vehicles to minimize carbon-dioxide emissions would propel the growth of rare earth elements market size. Neodymium and praseodymium are majorly used for producing permanent magnets used in electric and hybrid vehicles. Neodymium magnets have an excellent coercive force and flux density. The high coerciveness and excellent flow retention capacities make it highly desirable for use in electric vehicles worldwide.
As the sales of automotive increases, the demand for catalytic converters also increases. A catalytic converter is a device that uses a catalyst to convert harmful compounds into harmless ones. The catalytic formulation consists of three key components: precious metals (platinum, palladium, rhodium), alumina, and rare-earth-based materials that enhance the catalytic activity of metals. This increasing demand for catalytic converters is expected to increase the growth of rare earth elements market size.
In petroleum refining, cerium and lanthanum catalysts are used to turn crude oil into gasoline. The catalysts are used by Fluid Catalytic Cracking (FCC) to stop metal deactivation and to stabilize the zeolite structure during crude oil conversion. This, in turn, is expected to fuel the growth of rare earth elements market size.
Furthermore, the increasing alloy applications and demand in various end-use industries are anticipated to propel the rare earth metals market demand over the forecast timespan. On the contrary, the gaps in supply and demand for rare earth metals and their fluctuating prices are a major downside to the overall market’s development.
Rare Earth Elements Market Share Analysis
Based on product, the Cerium segment is expected to hold the largest rare earth elements market share during the forecast period. Cerium is used as a catalyst in catalytic converters in the automotive industry to minimize emissions. It’s also present in nickel-metal hydride (NiMH) batteries.
Based on application, the magnet segment is expected to hold the largest rare earth elements market share during the forecast period. They’re used in a number of ways, including computer hard drives, linear actuators, servo motors, microphones, and sensors.
Based on region, North America is expected to witness the highest growth during the forecast period. This rapid growth in the region is attributed to the expanding automotive industry in the region. Furthermore, the consumer electronics and nuclear energy industries are also expected to boost rare earth elements demand in the region.
