Soft Magnetic Composites Market is Expected to Reach a Valuation of USD 10.1 Billion by 2035.

Soft Magnetic Composites market is expanding rapidly, driven by electrification, efficiency demands, and innovation in motors, transformers, and generators.

ROCKVILLE, MD, UNITED STATES, August 29, 2025 /EINPresswire.com/ -- The global Soft Magnetic Composites (SMCs) market is projected to grow significantly from USD 5.2 billion in 2025 to USD 10.1 billion by 2035, demonstrating a compound annual growth rate (CAGR) of 6.9%. This strong upward trajectory reflects the increasing demand for high-performance, compact, and energy-efficient magnetic materials. The market spans multiple applications including transformers, inductors, motors, and generators, while leveraging a wide range of materials such as iron powder, silicon ferrite, supermalloys, and permalloys.

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Drivers of Growth: Electrification, Efficiency, and Innovation

The momentum behind SMCs is largely being driven by the global shift toward electrification in transportation and industry. Electric vehicles (EVs) and hybrid systems require motors and inductors that can deliver higher efficiency while occupying less space. Soft magnetic composites are ideally suited to meet these needs because they reduce eddy current losses and support more complex magnetic flux patterns compared to traditional materials.

Another major growth driver is the rising focus on energy-efficient components. The push for smaller, more compact designs without sacrificing performance has highlighted the advantages of SMCs, which offer superior performance at high frequencies. Additionally, advancements in manufacturing processes, including powder metallurgy, compaction, and 3D printing, are making it easier to produce cost-effective, high-precision components with tailored properties. These innovations are widening the scope of SMC applications across industries, ensuring continued market expansion in the coming decade.

Regional Trends: Asia–Pacific Leads, U.S. Grows Fastest

Regionally, Asia–Pacific has emerged as the dominant force in the SMCs market. Countries such as China, Japan, South Korea, and India are leading the way due to their strong manufacturing bases in automotive, electronics, and electrical equipment. Growing industrialization, rapid adoption of electric vehicles, and large-scale infrastructure development are further propelling demand in the region.

In contrast, the United States is projected to be the fastest-growing market for SMCs, with an estimated CAGR of 7.2%. This growth is being fueled by the country’s expanding EV sector, industrial automation needs, and a rising focus on energy-efficient power infrastructure. Government policies that support renewable energy and electric vehicle adoption are also creating favorable conditions for SMC market growth in North America.

Material Spotlight: Iron Powder Takes the Lead

Among the different material types, iron powder stands out as the leading segment. In 2025, iron powder accounted for nearly 38% of the global market share, owing to its cost-effectiveness and excellent magnetic properties. Iron powder’s adaptability and wide range of applications, especially in automotive and industrial motors, make it a preferred choice for manufacturers. While iron powder remains dominant, materials such as silicon ferrite, supermalloys, and permalloys are also gaining traction due to their unique magnetic attributes, expanding the opportunities within the market.

Key Players and Competitive Landscape

The competitive environment in the SMCs market is defined by the presence of several global and regional players. Prominent companies include Elna Magnetics, MMG Canada Limited, Hitachi Metals Ltd., Electron Energy Corporation, and Rio Tinto. These firms are focusing heavily on research and development, manufacturing innovation, and expanding product portfolios to remain competitive in a fast-evolving market.

Other important players include GKN Powder Metallurgy, Höganäs AB, PMG Holding GmbH, VACUUMSCHMELZE GmbH & Co. KG, Sumitomo Metal Mining Co., Mitsubishi Materials Corporation, and Steward Advanced Materials Inc. These companies are not only driving technological advancements but are also investing in capacity expansion and strategic collaborations. By doing so, they aim to capture a larger share of emerging opportunities in electric mobility, renewable energy systems, and industrial automation.

Strategic Highlights and Recent Developments

Recent developments in the SMCs market highlight an increasing emphasis on advanced manufacturing techniques and performance optimization. The integration of 3D printing and new compaction technologies is enabling the production of more complex and efficient magnetic components at lower costs. Such innovations are making it possible to create customized designs that meet the specific requirements of modern applications.

Performance optimization remains a key focus as well. By reducing eddy current loss and enhancing performance in high-frequency operations, SMCs are becoming indispensable in electric vehicles, renewable energy systems such as solar inverters and wind generators, and smart-grid infrastructure. This focus on efficiency is aligned with broader global trends toward sustainable energy solutions and reduced carbon footprints.

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Implications for Stakeholders

For manufacturers, the most critical strategy lies in continuous innovation. Investing in R&D to explore new alloy compositions, improve production processes, and incorporate advanced manufacturing platforms such as additive manufacturing will be essential to remain competitive. Creating more efficient, high-frequency SMC components can also help companies align with the demands of EVs and renewable energy systems.

For investors and industry analysts, the SMCs market represents a high-potential growth opportunity. With its combination of steady CAGR, diverse material options, and widespread application across critical industries, the market is positioned to attract increasing capital inflows. Keeping a close eye on technological advancements, especially in silicon ferrite, supermalloys, and permalloys, will be crucial to identifying emerging growth pockets.

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