Increasing usage in aerospace & defense is projected to fuel the growth of the Rare Earth Elements Market at a CAGR of 12.1% during the forecast period 2024 to 2032

Market Research Future (MRFR) has published a cooked research report on the “Global Rare Earth Elements Market” that contains the information from 2018 to 2032.

The Rare Earth Elements Market is estimated to register a CAGR of XX% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Rare Earth Elements Market—Lynas Rare Earths Ltd, Iluka Resources Ltd., Arafura Rare Earths, Shenghe Resources Holding Co., Ltd., Texas Mineral Resources Corp., IREL (India) Limited, Canada Rare Earth Corporation, MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Material, LLC

Market Highlights

The global Rare Earth Elements Market is accounted for to register a CAGR of 12.1% during the forecast period and is estimated to reach USD 26,049.7 Million by 2032.

The demand for rare earth elements in the aerospace and defense sectors is increasing rapidly, driven by their unique and excellent properties that enhances the performance, durability and efficiency of various critical components. These elements play a crucial role in the manufacturing of high-strength magnets, lightweight alloys, high-temperature ceramics and advanced electronics. The reliance of aerospace and defense sector on rare earth elements is increasing due to the growing need for more advanced materials that offer better performance, reduced weight and improved energy efficiency. Rare earth magnets are extensively used in aerospace and defense applications owing to their ability to generate powerful magnetic fields. In defense applications, these magnets are vital in advanced weapons systems, missile guidance, navigation systems and radar systems, where they provide the precision and reliability needed in demanding environments. The use of rare earth element-based magnets allows the creation of smaller, lighter motors and actuators without impacting the power. This is important in aerospace applications, where weight reduction directly impacts fuel efficiency and operational range. In defense, lighter components contribute to the agility and speed of aircraft, missiles, and drones. The usage of rare earth elements in making lightweight and compact designs are a significant factor driving the demand for rare earth elements.

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Segment Analysis

The global Rare Earth Elements Market has been segmented based on Product, Application, End Use and Region.

The global Rare Earth Elements Market segmentation, based on Product has been segmented as Cerium, Dysprosium, Erbium, Europium, Gadolinium, Lanthanum, Neodymium, Praseodymium, Samarium, Terbium, Ytterbium, Yttrium, Others. Among these, the Neodymium segment is anticipated to dominate the global Rare Earth Elements Market revenue through the projected period as estimated by MRFR analysts. There is the largest demand for high-performance neodymium-iron-boron magnets in the motors of electric and hybrid vehicles. For example, each Toyota Prius is reported to contain as much as 1 kg of neodymium in its motor. Neodymium magnets are also used in wind turbines, aeronautics and space. Other uses of neodymium include making a specialized glass used in protective goggles for welding and glass blowing, and in applications such as surgical lasers and laser pointers. Finally, it is used as a catalyst in polymerization reactions.

In the Application segment, the market is categorized as Magnets, Catalysts, Metallurgy, Polishing, Glass, Phosphors, Ceramics, Others. Out of which the Magnets segment held the maximum share in the base year market and is also expected to be holding a significant share in the forecasted period as well.  The demand for rare earth magnets is expected to surge with the rise of renewable energy systems (such as wind power) and the electrification of transportation, especially electric vehicles (EVs), as these magnets are used in their motors and battery systems. As industries push for greater efficiency, miniaturization, and performance in electronics and green technologies, the role of rare earth magnets will only grow.

The global Rare Earth Elements Market segmentation, based on End Use has been segmented as Automotive, Oil & Gas, Electronics, Renewable Energy, Defense and Aerospace, Others. Among these, the Electronics segment is anticipated to dominate the global Rare Earth Elements Market. As demand for more advanced, compact, and energy-efficient electronic devices continues to grow, so too does the need for rare earth elements. This trend is especially evident in the rise of smart technologies, where the miniaturization of components relies heavily on rare earth materials.

Regional Analysis

By Region, the Rare Earth Elements Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia Pacific Rare Earth Elements Market holds a considerable market share and is also forecasted to hold the largest share during the forecast period. The Asia Pacific region's demand for rare earths is largely driven by industries like electronics, electric vehicles, renewable energy, automotive manufacturing, and defense technology. The rapid industrialization, urbanization, and technological advancements in countries like China, India, and South Korea ensure that this region remains a critical hub for both supply and demand in the rare earth elements market.

Key Findings of the Study

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  The global Rare Earth Elements Market is expected to reach USD 26,049.7 Million by 2032, at a CAGR of 12.1% during the forecast period.

  
  


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  The Asia Pacific region accounted for the fastest-growing global market.

  
  


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  Based on Product, the Neodymium segment was attributed to holding the largest market in 2023.

  
  


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  Based on Application, the Magnets segment was attributed to holding the largest market in 2023.

  
  


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  Based on End Use, the Electronics segment was attributed to holding the largest market in 2023.

  
  


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  Lynas Rare Earths Ltd, Iluka Resources Ltd., Arafura Rare Earths, Shenghe Resources Holding Co., Ltd., Texas Mineral Resources Corp., IREL (India) Limited, Canada Rare Earth Corporation, MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Material, LLC are the key market players.