Standards for energy efficient-motors are changing as the manufacturing industry develops higher efficiency motors. As manufacturers try to outperform their competitors and the renewable energy industry creates new applications for permanent magnet motors, consumption of magnets for energy generation is expected lead in projected growth in the permanent magnet market. Demand for permanent magnets is predicted to grow at an average annual rate of 8.6 percent between 2013 and 2020 to earn $31.18 billion in revenue by 2020, according to a study by market intelligence firm Grand View Research. Magnets designed to help generate energy will outpace demand for magnets for other applications with a compound annual growth rate of 9 percent in the same seven-year period.
Demand for cheap ferrite magnets to grow
One type of magnet that is continuing to see growing demand from motor manufacturers is the ferrite magnet, which accounted for more than 80 percent of the total volume of permanents sold in the global market in 2012, according to Grand View Research. Considering the advantages of using a cost-effective material like ferrite magnet, it's no surprise why this magnet is the most popular among companies in the automotive and manufacturing sectors.
Compared to other permanent magnets, including NdFeB magnets, ferrite magnets are less expensive, which allow manufacturers to save money on motor production and pass the savings on to the customer. As these types of magnets are priced lower than other permanent magnets, the revenue for ferrite magnets is also less. The total revenue gained from sales of ferrite magnets was a little over 20 percent of the permanent magnet market in 2012, Grand View Research said.
Applications for ferrite magnets
Although ferrite magnets may be cheaper, their quality is not diminished as they allow manufacturers to make high-performing magnet motors for the renewable energy industry and other sectors. China is a major market for permanent magnets, not only because the country is where most of the world's magnets originate but also because it will be refocusing its energy generation efforts on renewable energy sources. For example, wind turbines motors are made with permanent magnets.
"China is expected to continue its dominance in the global market with its government announcing plans to increase permanent magnets capacity in the nation by 20 kilo tons by 2015," according to the report by Grand View Research. "The global market for permanent magnets is highly fragmented with a large number of small Chinese manufacturers operating in the market."
Domestic manufacturers are also likely looking into using cheaper permanent magnets like ferrite magnets to reduce their production costs. Using ferrite magnets allows Californian motor manufacturer NovaTorque to make efficient magnet-powered motors at a lower price, automation, motion engineering and power transmission publication Drives & Control Magazine reported. NovaTorque unveiled the 5.6 kilowatt and 7.45 kilowatt models of its permanent magnet motors, which have a 3 percent higher efficiency rate compared to induction motors, according to the company.
NovaTorque Vice President of Sales Scott Johnson said its motors perform well under partial load, which helps conserve energy when used with fan applications as these fans are operated at variable speeds. When incorporated into fans, these motors could increase energy efficiency between 5 to 15 percent. Compared to induction motors, this figure is even higher with 20 percent or more in efficiency gains.
"The ability to use ferrite magnets allows NovaTorque to price its motors comparable to induction motors," Johnson said. "This means OEMs and HVAC systems builders can now economically deliver superior permanent-magnet motor efficiency with modest first-cost impact and a rapid payback."
