Soft Magnetic Composites Market By Material Type (Standard Insulation-Coated Iron-Based SMCs, Premium Low-Loss Iron-Based SMCs, Specialty Insulated Alloy-Based SMCs); By Application (Automotive Auxiliary Motor Cores, Industrial Motor Cores, Inductor & Reactor Cores, Household Appliance Motor Cores, Specialized Traction Motor Cores, Other Electromagnetic Cores); By End-Use Industry (Automotive & Transportation, Industrial Machinery & Automation, Consumer Appliances & HVAC, Energy & Electrical Infrastructure); By Geography, Segment Revenue Estimation, Forecast, 2026–2032

How Large Is the Global Soft Magnetic Composites Market, and What Is Driving Growth? – (Updated On: 22nd-Oct-2026)

The Global Soft Magnetic Composites (SMCs) Market was valued at an estimated USD 320.0 million in 2025 and is projected to reach USD 588.6 million by 2032, expanding at a CAGR of 9.1% during 2026–2032, according to Strategic Market Research. Based on SMR's assessment of SMC material requirements across electric motors, automotive reactors and industrial electromagnetic components, global sales volume was estimated at 40,000 metric tonnes (MT) in 2025. Automotive and transportation applications contributed an estimated 48.6% of market revenue, making them the leading source of demand for Soft Magnetic Composites.

 

China led the market with an estimated USD 99.2 million and 14,000 MT in 2025, accounting for 31.0% of global revenue, according to Strategic Market Research's country-level assessment. Its leading position reflects the scale of SMC requirements in automotive auxiliary motors, industrial motor cores and selected power-conversion equipment. Japan followed with USD 41.6 million and 4,400 MT, supported by established magnetic-core manufacturers. In February 2025, Sumitomo Electric introduced three additional powder magnetic core grades, including HB6, which achieved 15–20% lower iron losses than its earlier HB2 grade. This improvement strengthens Japan's position in premium SMC materials for compact, high-performance electric motors.

 

The United States accounted for an estimated USD 32.0 million and 3,800 MT, representing 10.0% of global revenue. Domestic manufacturers such as MPP and Horizon Technology specialize in SMC components for electric motors and electromagnetic assemblies. MPP identifies pressed SMC stators as an alternative to stacked steel laminations, particularly in motor designs requiring complex magnetic cores, supporting domestic demand for precision SMC components.

 

South Korea contributed an estimated USD 19.2 million and 2,250 MT, representing 6.0% of global revenue, based on SMR's country-level assessment. Its market opportunities are associated with specialized magnetic cores and selected automotive power-electronics applications. Changsung's iron-alloy magnetic powder portfolio demonstrates South Korea's manufacturing capabilities in compact inductor materials, providing a foundation for qualifying Soft Magnetic Composites used in advanced electromagnetic components.

 

Key Report Takeaways

By Material Type

• Largest Subsegment: Standard Insulation-Coated Iron-Based SMCs — Held 65.0% of the market, valued at USD 208.0 million in 2025, with an estimated 8.1% CAGR during 2026–2032, supported by their extensive use in automotive auxiliary motors, industrial stators and electromagnetic cores.

• Fastest-Growing Subsegment: Specialty Insulated Alloy-Based SMCs — Accounted for 16.25% of revenue, equivalent to USD 52.0 million in 2025, with a projected 11.5% CAGR, driven by demand for specialized magnetic materials in compact power electronics and high-performance motor components.

 

By Application

• Largest Subsegment: Automotive Auxiliary Motor Cores — Represented 28.6% of market revenue, valued at USD 91.67 million in 2025, with an estimated 8.5% CAGR, supported by SMC incorporation into electric pumps, automotive compressors and auxiliary motor stators.

• Fastest-Growing Subsegment: Inductor & Reactor Cores — Contributed 21.0% of revenue, equivalent to USD 67.27 million in 2025, with a projected 10.7% CAGR, driven by increasing requirements for compact magnetic cores in automotive boost reactors and specialized power-conversion equipment.

 

By End-Use Industry

• Largest Subsegment: Automotive & Transportation — Dominated with 48.6% revenue share, equivalent to USD 155.41 million in 2025, with an estimated 9.4% CAGR, reflecting established SMC applications in automotive reactors, auxiliary motors and specialized electric propulsion systems.

• Fastest-Growing Subsegment: Energy & Electrical Infrastructure — Accounted for 8.2% of revenue, valued at USD 26.30 million in 2025, with a projected 11.7% CAGR, supported by opportunities for qualifying SMC cores in industrial power conversion, electrical reactors and specialized energy equipment.

 

By Region

• Largest and Fastest-Growing Subsegment: Asia Pacific — Led with 58.5% market share, equivalent to USD 187.2 million in 2025, and is projected to expand at a 9.7% CAGR, supported by China's motor-component manufacturing, Japan's advanced SMC materials and automotive reactor production, and emerging SMC stator manufacturing in India.

 

Recent Developments in the Soft Magnetic Composites Market

• June 27, 2026: Höganäs announced the introduction of Somaloy 7P at WorldPM2026 in Montréal, featuring an improved iron-powder formulation and innovative water-based coating designed to reduce magnetic core losses and improve mechanical performance, expanding its Soft Magnetic Composites portfolio for motor and electromagnetic applications. (Source: Höganäs Official Announcement)

• February 16, 2026: Sintercom India Limited received a INR 3.18 million order from Pinnacle Mobility Solutions (EKA) for central-fork and half-ring components for a 230 mm electric motor used in commercial buses, marking a direct manufacturing order under its Soft Magnetic Composites stator-component program. (Source: Sintercom NSE Filing)

• October 1, 2025: Metal Powder Products (MPP) announced its collaboration with Modal Motors to integrate Soft Magnetic Composite stator caps and pole-wing tips into a high-efficiency motor architecture, targeting higher torque density, flexible magnet configurations and scalable U.S. manufacturing. (Source: MPP Official Announcement)

• July 8, 2025: Sintercom India Limited and Horizon Technology entered a five-year manufacturing licensing arrangement granting Sintercom exclusive rights under applicable work agreements to manufacture Soft Magnetic Composite stators and components for EVR-designed electric motors used in automotive and industrial applications. (Source: Sintercom NSE Disclosure)

• February 28, 2025: Sumitomo Electric expanded its Soft Magnetic Composite motor-core portfolio with HB4, HB5 and HB6 grades and added their material data to JMAG design software; the ultra-low-loss HB6 grade achieved 15–20% lower iron losses than HB2, supporting the development of higher-efficiency SMC motor cores. (Source: Sumitomo Electric Press Release)

 

Automotive power electronics are an important driver of Soft Magnetic Composites demand, particularly in reactors used to control voltage in electric and hybrid vehicles. According to Sumitomo Electric, its improved SMC-based automotive reactor achieved a 10% reduction in size and weight, while its Core Float manufacturing technology improved magnetic-core production. These advances make SMCs valuable for automotive manufacturers seeking smaller electrical components and more efficient production.

 

Electric motor manufacturing is another major source of SMC demand. According to Strategic Market Research, automotive auxiliary motor cores accounted for an estimated 28.6% of global SMC revenue in 2025, while specialized traction motor cores contributed 12.0%. MPP identifies SMC applications in axial-flux and transverse-flux motors, where pressed magnetic components allow compact stator designs and simpler assembly. This creates opportunities for SMC manufacturers serving automotive pumps, compressors and specialized electric propulsion systems.

 

Industrial direct-drive motors are expanding the use of Soft Magnetic Composites beyond automotive applications. Höganäs reports that Electric Torque Machines uses Somaloy SMC cores in transverse-flux motors designed for conveyor systems and industrial ventilation fans measuring 5 metres or more in diameter. These applications demonstrate how SMCs support high-torque motor designs that can reduce reliance on conventional gearbox arrangements.

 

Advances in SMC materials are also improving their appeal for higher-performance motors. In February 2025, Sumitomo Electric introduced new powder magnetic core grades, including HB6, which achieved 15–20% lower iron losses than its earlier HB2 grade. Such improvements support the development of more efficient electromagnetic components and create opportunities for premium Soft Magnetic Composites in specialized motor applications.

 

What Are the Major Growth Drivers and Opportunities in the Soft Magnetic Composites Market?

Automotive reactors represent an established industrial application for Soft Magnetic Composites. These magnetic cores are incorporated into selected voltage-conversion systems where component size, operating performance and manufacturing consistency influence material selection. Sumitomo Electric's integrated production activities, covering SMC cores, copper windings and reactor assemblies, demonstrate how automotive electrical systems create recurring requirements for qualified SMC materials.

Specialized electric motor manufacturing is creating additional demand for pressed SMC stators. In 2025, automotive auxiliary motor cores represented an estimated 28.6% of SMC revenue, while specialized traction motor cores contributed another 12.0%. According to MPP, SMC components can be manufactured for axial-flux, radial-flux and transverse-flux motor architectures. The manufacturing flexibility is particularly valuable in segmented stators, where individual magnetic components can be produced in shapes suited to compact motor assemblies.

Industrial manufacturers are also using SMCs to develop specialized direct-drive equipment. Electric Torque Machines has incorporated Höganäs Somaloy components into transverse-flux motors intended for conveyor systems and large ventilation fans. These designs create material requirements for SMC stator structures while offering equipment manufacturers alternative approaches to motor and gearbox arrangements.

Improved manufacturing techniques are creating opportunities for higher-value SMC components. Advanced compaction, insulation protection and application-specific processing help manufacturers produce magnetic cores with more consistent characteristics. Research into amorphous and specialty alloy-based SMC formulations also supports development opportunities in compact power electronics, particularly where conventional magnetic-core designs face demanding size and operating requirements.

 

How Is the Soft Magnetic Composites Market Segmented by Material Type?

Standard insulation-coated iron-based SMCs dominated the market with a 65.0% revenue share, equivalent to USD 208.0 million and approximately 32,000 MT in 2025. These materials represented 80.0% of total sales volume, reflecting their broad application across automotive auxiliary motors, industrial stators and pressed electromagnetic components. Their suitability for established powder metallurgy production processes supports the segment's leading position in Soft Magnetic Composites shipments.

Premium low-loss iron-based SMCs accounted for USD 60.0 million and 5,000 MT, representing 18.75% of global revenue. These grades serve more demanding motor and reactor applications where magnetic losses, component strength and operating conditions influence material selection. Höganäs markets Somaloy grades including 1P, 3P, 5P and 7P, providing differentiated material options for electromagnetic component manufacturing. Greater integration of premium grades into specialized motor and power-electronics designs offers opportunities for higher revenue per kilogram.

Specialty insulated alloy-based SMCs contributed USD 52.0 million, representing 16.25% of revenue and approximately 3,000 MT. These formulations are used in selected high-performance magnetic components requiring specialized material characteristics. Their higher estimated revenue contribution relative to sales volume reflects the value associated with application-specific alloy formulations and processing requirements.

 

Which Applications Generate the Highest Demand for Soft Magnetic Composites?

Automotive auxiliary motor cores were the largest application, accounting for USD 91.67 million and 12,000 MT in 2025. SMC components are incorporated into selected electrically driven pumps, automotive compressors and auxiliary motor assemblies. These applications support material requirements for compact stators and magnetic structures used in vehicle electrical systems, making automotive auxiliary components the leading application category.

Industrial motor cores contributed USD 68.35 million and approximately 9,000 MT, representing 21.4% of global revenue. Transverse-flux motors, specialized direct-drive systems and complex stator configurations create opportunities for pressed SMC magnetic components. Höganäs documents the use of Somaloy by Electric Torque Machines in motors developed for industrial conveyors and ventilation fans measuring 5 metres or more in diameter. Such equipment demonstrates the relevance of Soft Magnetic Composites in specialized industrial drives.

Inductor and reactor cores represented USD 67.27 million and 8,000 MT, accounting for 21.0% of the market. Automotive boost reactors and selected industrial power converters use SMC cores to support compact electrical designs. Sumitomo Electric's SMC reactor portfolio demonstrates an established connection between pressed magnetic-core manufacturing and automotive power-control applications, strengthening the market position of inductors and reactors.

Household appliance motor cores accounted for USD 35.23 million and 5,000 MT, supported by selected compressor, ventilation and appliance motor designs. Specialized traction motor cores generated USD 38.52 million, while other electromagnetic cores contributed USD 18.96 million through qualifying actuator, solenoid and generator applications.

 

Which End-Use Industries Lead the Soft Magnetic Composites Market?

Automotive and Transportation dominated with USD 155.41 million in revenue and approximately 19,000 MT in 2025, representing 48.6% of the global market. Automotive auxiliary motors, specialized propulsion systems and voltage-conversion reactors formed the principal demand categories. Increasing use of compact electric drive and power-control assemblies creates opportunities for manufacturers capable of delivering qualified SMC materials and precision magnetic components.

Industrial Machinery and Automation contributed USD 103.06 million and 13,000 MT, accounting for 32.2% of revenue. Specialized motors, electromagnetic equipment and industrial power-control assemblies supported SMC requirements in this category. The integration of pressed magnetic cores into direct-drive and complex motor architectures makes industrial equipment manufacturing the second-largest end-use sector.

Consumer Appliances and HVAC represented USD 35.23 million, or 11.0% of revenue, through selected SMC-based compressor and appliance motor applications. Energy and Electrical Infrastructure contributed USD 26.30 million, representing 8.2%, primarily through qualifying reactor, inductor and specialized electromagnetic components.

 

Which Regions and Countries Lead the Soft Magnetic Composites Market?

Asia Pacific led the global Soft Magnetic Composites Market with an estimated 58.5% revenue share, equivalent to USD 187.2 million and 24,500 MT in 2025. China accounted for the largest share of regional requirements, while Japan, South Korea and India contributed through specialized motor manufacturing, magnetic powder processing and electromagnetic component production.

Japan represented USD 41.6 million and 4,400 MT, supported by its established capabilities in coated magnetic powders and precision electromagnetic manufacturing. JFE Steel's Denjiro materials and Sumitomo Electric's automotive reactor operations demonstrate Japan's participation across both SMC material development and finished-core manufacturing. The country's stronger emphasis on specialized components also supports a higher estimated material value per kilogram.

South Korea accounted for USD 19.2 million and 2,250 MT, representing 6.0% of global revenue. Its relevant manufacturing capabilities include insulated magnetic powders and compact powder-based cores for selected electrical components. Changsung's magnetic powder portfolio demonstrates domestic expertise in materials used for compact power inductors. Qualifying SMC formulations within this industrial activity provide opportunities in specialized magnetic components and automotive electronics.

North America accounted for USD 48.0 million and 5,800 MT in 2025, representing 15.0% of global revenue. The United States led with USD 32.0 million, followed by Mexico at USD 9.6 million and Canada at USD 6.4 million. U.S. companies MPP and Horizon Technology provide SMC component capabilities for electric motor and electromagnetic applications, while Electric Torque Machines demonstrates their use in specialized industrial drives.

Horizon Technology's SMC manufacturing information identifies applications involving compacted magnetic cores, specialized motor stators and hybrid electromagnetic assemblies. This manufacturing capability strengthens the United States' position in engineered SMC components and supports opportunities for industrial motor development.

Europe represented USD 75.2 million and 8,500 MT, accounting for 23.5% of global revenue. Germany was the largest European market at USD 32.0 million and 3,500 MT, with estimated requirements associated with industrial motor manufacturing and specialized electromagnetic components. Sweden contributed USD 9.6 million, supported by the presence of Höganäs and its Somaloy materials business.

Denmark also has established SMC manufacturing capabilities through Sintex, which offers application-specific magnetic materials and finished components for electric motors and electromagnetic equipment. Its capabilities strengthen the European SMC value chain, particularly in specialized motor stator production.

Latin America accounted for an estimated USD 8.0 million, or 2.5% of global SMC revenue in 2025, with Brazil contributing USD 6.4 million. The regional market is associated with qualifying automotive components, industrial magnetic cores and specialized electrical equipment, providing a smaller but identifiable demand base for Soft Magnetic Composites.

The Middle East & Africa represented USD 1.6 million and approximately 200 MT, accounting for 0.5% of global revenue. Regional SMC requirements are primarily associated with selected industrial electromagnetic components and power-control equipment, with future opportunities linked to greater integration of qualifying magnetic-core manufacturing into local electrical equipment production.

 

How Is Competition Evolving in the Soft Magnetic Composites Market?

Höganäs, JFE Steel and Sumitomo Electric are among the most relevant companies in the Soft Magnetic Composites industry, with established activities spanning coated magnetic materials, component manufacturing and automotive electromagnetic applications. MPP, Horizon Technology, Sintex, AMES and Sintercom India contribute additional capabilities in pressed SMC components and specialized motor development.

Competition increasingly centres on material consistency, manufacturing efficiency and the ability to support specific motor or reactor designs. Sumitomo Electric's Core Float manufacturing improvements, Höganäs's differentiated Somaloy materials and emerging SMC stator manufacturing partnerships demonstrate how companies are developing specialized capabilities across the industry.

 

Research Methodology

Strategic Market Research evaluates the Soft Magnetic Composites Market using a triangulated bottom-up and top-down methodology linking SMC material shipments, electromagnetic component manufacturing, application requirements and industrial selling prices. The assessment covers insulated iron-based and qualifying specialty alloy-based materials used in motor stators, inductors, reactors, actuators and other electromagnetic components.

Global material volume is estimated from qualifying component production, SMC content per component and manufacturing yields. Revenue estimates incorporate material-grade differences, regional sales patterns and application-specific pricing across standard, premium and specialty SMC materials.

Market estimates are reconciled across material types, applications, end-use industries and geographies, supported by manufacturer disclosures, documented SMC applications and powder metallurgy industry information. Forecasts through 2032 consider expansion of qualified SMC applications in specialized motors and automotive reactors, developments in magnetic-core manufacturing and changes in material pricing.

 

Soft Magnetic Composites Market Report Coverage Table

Report Attribute	Details
Forecast Period	2026–2032
Market Size Value in 2025	USD 320.0 Million
Revenue Forecast in 2032	USD 588.6 Million
Overall Growth Rate	9.1% CAGR
Base Year for Estimation	2025
Historical Data	2019–2024
Unit	USD Million, CAGR (2026–2032)
Segmentation	By Material Type; By Application; By End-Use Industry; By Geography
By Material Type	Standard Insulation-Coated Iron-Based SMCs, Premium Low-Loss Iron-Based SMCs, Specialty Insulated Alloy-Based SMCs
By Application	Automotive Auxiliary Motor Cores, Industrial Motor Cores, Inductor & Reactor Cores, Household Appliance Motor Cores, Specialized Traction Motor Cores, Other Electromagnetic Cores
By End-Use Industry	Automotive & Transportation, Industrial Machinery & Automation, Consumer Appliances & HVAC, Energy & Electrical Infrastructure
By Region	North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Country Scope	China, Japan, United States, South Korea, India, Mexico, Canada, Germany, Sweden, Denmark, Brazil
Market Drivers	Automotive power electronics are an important driver of Soft Magnetic Composites demand, particularly in reactors used to control voltage in electric and hybrid vehicles.
Customization Option	Available upon request