increasing usage in aerospace & defense are driving the growth of the Rare Earth Elements Market at a CAGR of 12.1% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Rare Earth Elements Market” that contains the information from 2019 to 2035.

The Global Rare Earth Elements Market is estimated to register a CAGR of 12.1% during the forecast period of 2025 to 2035.

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

The Global Rare Earth Elements Market is accounted for registering a CAGR of 12.1% during the forecast period and is estimated to reach USD 33,898.0 million by 2035.

The demand for rare earth elements has been accelerating over the past few years, primarily driven by the rising advancements in the electronics and renewable energy sectors. Rare earth elements play a vital role in the manufacturing of various electronic devices, such as smartphones, laptops, and televisions, which require materials that can sustain high frequencies and temperatures. Various electronics rely on miniaturized components to obtain compact and lightweight designs. Rare earth elements such as neodymium, dysprosium and praseodymium find significant applications in the production of permanent magnets, especially neodymium-iron-boron magnets, which are one of the strongest magnets, allowing for powerful magnetic fields in small sizes. These magnets are used in a wide range of electronic components including smartphone speakers, microphones and laptop cooling fans, where their compact size and efficiency plays a vital role in obtaining the desired performance. 

As demand for smaller and more efficient electronics rises, the demand for rare earth elements that enable such miniaturization will also increase substantially. Further, rare earth elements such as europium, terbium and yttrium are used in phosphors that create a wide array of colors in screens and displays. For instance, europium is used in red phosphors for LED displays and terbium produces green phosphors. These elements are effective in creating high-definition, bright and energy-efficient screens for electronic devices such as smartphones, televisions and tablets and the quality of displays depends significantly on the rare earth elements. The rising demand for higher-quality displays in electronics is boosting the demand for rare earth elements. Moreover, the expanding market of wearable devices is further accelerating the need for rare earth elements which are used in these technologies for enhancing sensor performance, connectivity and power efficiency. Thus, the significant usage of numerous types of rare earth elements in several electronics applications is positively influencing its marker demand.

The electronics sector is experiencing significant developments in various economies. According to India Brand Equity Foundation, the consumer electronics and appliances industry in India is expected to become the fifth largest in the world by 2025. Besides, the Government of India is supporting the electronics industry by setting up electronic hardware technology parks and special economic zones and creating a favorable environment for foreign direct investments. Furthermore, the players operating in electronics industry are focusing on tapping the consumer electronics market of India by developing the electronic component manufacturing base in India. For instance, in March 2023, Samsung invested in setting up smart manufacturing capabilities at its mobile phone plant in Noida. Thus, the rapid growth in the electronics industry and increasing efforts towards reinforcing this sector is anticipated to play a crucial role in accelerating the market growth of rare earth elements in the coming years.

In the renewable energy sector, rare earth elements are used for the advancement and deployment of clean energy technologies as these elements enable the efficiency and effectiveness required for sustainable energy systems to become viable on a large scale. Wind turbines rely heavily on neodymium, dysprosium and praseodymium to produce NdFeB magnets, which are used in direct-drive wind turbines. These turbines don’t require a gearbox, thereby making them simpler, reliable, and easier to maintain. The magnets used in these turbines enable them to generate power even at low wind speeds, further increasing their efficiency and suitability for diverse locations. As the shift towards renewables increases, the demand for rare earth elements is anticipated to surge with the rising global need for energy. Rare earth elements such as lanthanum, neodymium, and praseodymium are used in some battery chemistries, such as nickel-metal hydride and certain lithium-ion technologies. As the inclination towards renewable energy sources such as wind and solar increases, the need for reliable energy storage systems becomes crucial to ensure stable energy supply when generation is low. Batteries that use rare earth elements are highly efficient for energy storage and discharge, making them suitable for grid applications and large-scale renewable installations.

The rising awareness regarding environmental problems is encouraging various nations around the world to increase dependency on renewable energy sources. For instance, in September 2023, the European Parliament backed a new target of 42.5% of renewable energy sources by 2030. The renewable energy sector in Europe is strongly driven by its climate goals and regulatory frameworks. Under the European Green Deal, the European Union aims at achieving climate neutrality by 2050, further implying a significant acceleration of emission reductions. Such initiatives play an important role in driving the need for renewable energy. Further, the Renewable Energy Target (RET) is an Australian Government scheme that aims to reduce greenhouse gas emissions in the electricity sector and increase renewable electricity generation. The RET sets a target to deliver an extra 33,000 gigawatt-hours (GWh) of electricity from renewable sources every year from 2020 to 2030. Thus, the increasing share of the electricity generated from renewable energy sources is expected to fuel the growth of rare earth elements market.

Access full report @ https://www.marketresearchfuture.com/reports/rare-earth-element-market-24834

Segmental Analysis

The Global Rare Earth Elements Market has been segmented based on by Product, by Application and by End-Use.

Based on Product, this segment includes Cerium, Dysprosium, Erbium, Europium, Gadolinium, Lanthanum, Neodymium, Praseodymium, Samarium, Scandium, Terbium, Ytterbium, Yttrium, Others (Holmium, Lutetium, Promethium, Thulium). The Neodymium segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Neodymium is one of the more reactive lanthanides—a group of similar metallic elements numbered 57-71 on the periodic table. Neodymium is primarily mined as part of a conglomerate with other rare earth elements in the monazite and bastnaesite mineral deposits. Historically, a single mine in California produced most of the world’s rare earth minerals, but since the early 90s, China has become the world’s primary source. Today the largest demand for high-performance neodymium-iron-boron magnets is 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 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.

Based on Application, this segment includes Magnets, Catalysts, Metallurgy, Polishing, Glass, Phosphors, Ceramics, Others. The Magnets segment dominated the global market in 2024, while the Phosphors segment is projected to be the fastest–growing segment during the forecast period. One of the primary applications of rare earth elements is in magnets, particularly high-performance permanent magnets. These magnets, which are made using rare earth elements such as neodymium, dysprosium, and praseodymium, are crucial for technologies like electric motors, wind turbines, magnetic resonance imaging (MRI) machines, and hard drives. 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.

Based on End-Use, this segment includes Automotive, Oil & Gas, Electronics, Renewable Energy, Aerospace & Defense, Others. The Automotive segment dominated the global market in 2024, while the Renewable Energy is projected to be the fastest–growing segment during the forecast period. In the automotive industry, rare earth elements are crucial to producing high-performance electric vehicles (EVs) and hybrid vehicles. rare earth elements such as neodymium and dysprosium are key components in the production of powerful permanent magnets used in electric motors, which are essential for the operation of EVs. Additionally, rare earths are used in catalytic converters to reduce harmful emissions from internal combustion engines. As the automotive sector shifts toward greener and more sustainable technologies, the demand for rare earth elements, particularly in EV production, is expected to rise sharply. rare earth elements are also used in advanced driver-assistance systems (ADAS), sensors, and battery technologies, making them indispensable for the future of the automotive industry.

Regional Analysis

Geographically, the Global Rare Earth Elements Market has been segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa.

Major demand factors driving the Asia-Pacific market are the growing demand in electronics and renewable energy industries and government policies and incentives and increasing usage in aerospace & defense. The Asia Pacific (APAC) region dominates the global rare earth element market, both in terms of supply and consumption. China is the world’s largest producer and consumer of rare earth elements, accounting for over 60% of global production. As such, China is a key player in shaping the market dynamics, both as the primary exporter of rare earth elements and as the main supplier of refined rare earth products. Chinese companies control a significant portion of the global supply chain, from extraction to processing and manufacturing of rare earth-based products. In addition to China, countries like Japan and South Korea are major consumers of rare earths due to their advanced electronics, automotive, and industrial manufacturing sectors. Japan has been working on securing alternative sources of rare earths outside of China, particularly after supply disruptions in recent years, and has invested in recycling technologies and rare earth extraction from mining waste to diversify its supply chain. India is also becoming an increasingly important player in the APAC region, with growing demand for rare earth elements in sectors like electronics, defense, and automotive.

In North America, the rare earth element market is primarily driven by the United States, which has seen increasing efforts to reduce its reliance on China for the supply of rare earth materials. The U.S. government has recognized the strategic importance of rare earths for national security, technological advancements, and clean energy development. As a result, there has been a growing push to develop domestic mining operations and establish a secure supply chain for these critical materials. The demand for rare earth elements in North America is driven by industries such as automotive, particularly electric vehicles (EVs), renewable energy, aerospace and defense, and electronics.

Europe is another significant region for the rare earth element market, largely driven by its focus on renewable energy, green technologies, and advanced manufacturing. Countries like Germany, France, and the UK are leaders in adopting electric vehicles and wind power, both of which require rare earth elements for high-performance magnets in motors and generators. As the European Union (EU) accelerates its energy transition with goals to reduce carbon emissions and increase renewable energy capacity, demand for rare earths has risen accordingly.

South America is emerging as a potential player in the rare earth element market, with significant mineral deposits in countries like Brazil and Argentina. While rare earth production is not yet on the same scale as in Asia, the region's mineral resources are beginning to attract attention from international investors, particularly considering growing concerns over supply chain security and diversification away from China. Brazil has been focusing on developing its mining industry and exploring opportunities to extract rare earth elements from its vast mineral deposits. This could position South America as a potential alternative source for rare earths, although the region still faces challenges related to mining infrastructure, environmental concerns, and political instability.

The Middle East & Africa region currently has a smaller share of the global rare earth element market, primarily due to the limited presence of rare earth deposits and mining operations. However, there are emerging opportunities for rare earth extraction in certain African countries, particularly in South Africa and Kenya, where there are significant deposits of rare earth minerals. These countries are exploring the potential for large-scale mining of rare earths to meet the growing global demand. In the Middle East, countries like Saudi Arabia and the United Arab Emirates are beginning to invest in sustainable technologies, including solar power and energy storage, which could drive future demand for rare earth elements.

Key Findings of the Study

• The Global Rare Earth Elements Market is expected to reach USD 33,898.0 million by 2035, at a CAGR of 12.1% during the forecast period.


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


• Based on the Product, the Neodymium segment was attributed to holding the largest market in 2024.


• Lynas Rare Earths Limited, Iluka Resources Ltd, Arafura Rare Earths Ltd, Shenghe Resources Holding Co., Ltd, Texas Mineral Resources Corp, IREL (India) Limited, Canada Rare Earth Corp., MP Materials, Rare Element Resources Ltd., Avalon Advanced Materials Inc., ACS Materials and others are some of the players in the market.