The global soft magnetic composite (SMC) market is on a strong growth trajectory, expected to expand from USD 44.4 billion in 2025 to USD 81.9 billion by 2035, at a CAGR of 6.3%. SMCs, which are made by compacting ferromagnetic powders with insulating coatings, are essential materials in electrical applications due to their unique properties like high magnetic permeability, low core losses, and design flexibility. While the market narrative often emphasizes their role in general electric machinery and industrial motors, an emerging and less discussed opportunity lies in their transformational impact on electric vehicle (EV) motor architecture. As the automotive industry accelerates its shift toward electrification, SMCs are redefining the way EV motors are designed, making this an area of strategic importance that remains largely underrepresented in traditional market reports.
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Market Context
Soft magnetic composites have gained prominence due to their ability to reduce energy losses and improve efficiency in alternating current (AC) magnetic fields. This property is crucial in a world prioritizing energy efficiency and sustainability. Conventional laminated steel cores have dominated motor designs for decades, but they come with significant limitations, particularly in terms of geometric flexibility and performance optimization under high-frequency operations.
The surge in demand for electric vehicle places unprecedented pressure on automakers to deliver motors that are lighter, more efficient, and capable of higher power densities. Here, SMCs emerge as a game-changing material that can meet these performance demands while supporting global carbon reduction goals.
The Uncommon Insight: SMCs as Enablers of Advanced EV Motor Design
While laminated electrical steels remain the industry standard for stator and rotor cores, their 2D nature restricts designers to conventional shapes. SMCs, on the other hand, enable three-dimensional magnetic flux designs, offering greater freedom in motor topology. This means engineers can create compact, high-torque motors that occupy less space, improve cooling efficiency, and reduce overall vehicle weight—all critical factors for EV performance.
Moreover, SMCs exhibit lower eddy current losses at high frequencies compared to laminated steels, which translates into higher efficiency during rapid acceleration and regenerative braking—key performance attributes in EVs. This property also makes them particularly attractive for axial flux motor designs, which are gaining attention as a next-generation alternative to traditional radial flux motors.
Despite these advantages, the use of SMCs in EV powertrains is still in its early stages, primarily due to cost concerns and the need for specialized manufacturing processes. However, with advances in powder metallurgy and coating technologies, production costs are expected to decline, unlocking a new growth frontier for SMC manufacturers.
Case Studies and Real-World Applications
One of the most compelling examples of SMC application in EVs comes from Swedish company Höganäs AB, which has developed specialized SMC materials for high-performance electric motors. These have been successfully deployed in axial flux motors, reducing size and weight by up to 20% compared to traditional designs while improving efficiency.
Similarly, YASA Motors, a pioneer in axial flux motor technology, utilizes SMC-based designs to achieve higher torque density, making their motors ideal for premium electric cars and high-performance applications. These breakthroughs demonstrate how SMCs can help overcome the thermal and spatial constraints associated with conventional motor technologies.
In Asia, several Chinese EV manufacturers are exploring SMC-based stator cores to optimize performance and minimize energy losses under high-load conditions. The adoption of SMC technology in this region aligns with China’s push toward localized production of advanced EV components and energy-efficient systems.
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Future Outlook
The future of the soft magnetic composite market is inextricably linked to the electrification megatrend. As EV adoption accelerates globally, demand for innovative motor designs will surge, creating a robust market for SMC-based components. Additionally, hybrid vehicles, electric aircraft, and renewable energy systems present emerging opportunities for SMC adoption. For instance, axial flux motors based on SMCs are being considered for electric vertical takeoff and landing (eVTOL) aircraft, where lightweight and efficient propulsion is critical. Furthermore, government incentives for energy-efficient manufacturing and sustainable materials will accelerate research and development in SMC technologies.
Technological advancements such as high-temperature-resistant coatings and improved powder metallurgy processes will further enhance performance characteristics, opening doors to applications beyond EVs, including robotics, medical devices, and industrial automation. Companies that invest early in SMC production capabilities and strategic partnerships with automotive OEMs are likely to secure a competitive advantage in this evolving market.
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