by The global Rare Earth Metals market is estimated to be valued at USD 4710.8 Mn in 2021 and is expected to exhibit a CAGR of 6.24% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Rare Earth Metals are a group of seventeen chemical elements that are essential for various technological and industrial applications. They are critical components in the manufacture of electronics, renewable energy systems, hybrid vehicles, and various other high-tech devices. Rare Earth Metals possess unique properties that make them indispensable in these industries, such as high magnetic properties, heat resistance, and luminescent characteristics. The growing demand for green technologies, such as wind turbines, electric vehicles, and energy-efficient lighting, is driving the market for Rare Earth Metals.
B) Market key trends:
One key trend driving the Rare Earth Metals market is the increasing demand for electric vehicles (EVs). With the rising concerns over greenhouse gas emissions and the need to reduce dependence on fossil fuels, the adoption of EVs is rapidly increasing. Rare Earth Metals, such as neodymium and dysprosium, are essential components in the production of permanent magnets used in EV motors. The growing demand for EVs across the globe is expected to fuel the demand for Rare Earth Metals in the coming years.
C) Porter’s Analysis:
– Threat of new entrants: The barriers to entry in the Rare Earth Metals Market are high due to the complex and capital-intensive nature of mining and processing these elements. The market is dominated by a few key players who have established production facilities and supply chains.
– Bargaining power of buyers: The bargaining power of buyers is moderate as the demand for Rare Earth Metals is increasing, and there are limited alternative sources available. However, buyers can negotiate on prices and quality to some extent.
– Bargaining power of suppliers: The bargaining power of suppliers is high due to the limited number of suppliers and the complex nature of mining and processing Rare Earth Metals. Suppliers can dictate prices and terms to a certain extent.
– Threat of new substitutes: The threat of new substitutes is low as Rare Earth Metals possess unique properties that cannot be easily replicated by other elements.
– Competitive rivalry: The competitive rivalry in the Rare Earth Metals market is moderate. The market is dominated by a few key players, but there is also competition from regional players and potential new entrants.
D) Key Takeaways:
– The global Rare Earth Metals market is expected to witness high growth, exhibiting a CAGR of 6.24% over the forecast period, due to increasing demand for green technologies.
– Asia Pacific is the fastest-growing and dominating region in the Rare Earth Metals market. The region is the largest producer and consumer of Rare Earth Metals, driven by the growth of industries such as electronics, renewable energy, and automotive.
– Key players operating in the global Rare Earth Metals market include China Northern Rare Earth (Group) High-Tech Co., Ltd, RISING NONFERROUS METALS CO., LTD, China Minmetals Rare Earth Co., Ltd, Aluminum Corporation of China Limited, Lynas Corporation, Ltd., Beijing Zhongke Sanhuan High-tech Co. Ltd., Jiangxi Tungsten Industry Group Co. Ltd., Arafura Resources Ltd., and Alkane Resources Ltd.
In conclusion, the global Rare Earth Metals market is poised for significant growth due to the increasing demand for green technologies, such as electric vehicles and renewable energy systems. The market is characterized by a few dominant players, high barriers to entry, and strong supplier bargaining power. Asia Pacific is leading the market both in terms of production and consumption of Rare Earth Metals.
