Dysprosium – A Rare yet an Important Element in Today’s Era
Dysprosium is a rare earth element that has a bright silver finish that looks like a metal. This kind of element is never found like some other free elements. These rare elements are found in numerous minerals such as xenotime, fergusonite, and gadolinite among others. There is a high application of dysprosium across numerous end-users. The various applications of dysprosium include permanent, magnets, phosphors, commercial, lighting, halide lamps, and others. The demand for this type of material is primarily being driven by the permanent magnet applications owing to its unique properties to resist demagnetization in the objects. There is a high demand for these magnets for their application across various products which include generators, wind turbines. The rising penetration of electric vehicles is one of the key opportunities for the market to grow in the near future. Additionally, the rising sales of electronic products, especially in the developing economies of the globe due to rising disposable income and the growing middle-class population also play a significant role in driving the dysprosium market growth during the next five years.
Growing focus towards clean energy is anticipated to drive the demand
Heavy dependence on fossil fuels in the past has led to overall environmental degradation. As a result, governments and corporations across the world are investing to exploit the potential offered by renewable sources of energy, i.e. wind, solar, and hydroelectric energy among others. The market is projected to grow significantly in the near future owing to the growing focus of various nations towards clean energy. The wide application of dysprosium in wind turbines and electric motors coupled with increasing investments towards clean energy projects is expected to provide numerous growth opportunities for the dysprosium market to grow throughout the forecast period and beyond. For instance, during the year 2019, around EUR 19 billion was invested in wind farms throughout the European region. Similarly, in the United States, more than 1800 megawatts (MW) of new wind capacity has been installed by the first quarter of 2020 (Source: American Wind Energy Association (AWEA)). Furthermore, the establishment of offshore wind farms for electricity generation in the developing countries will augment the demand for these types of materials throughout the forecast period. For instance, in 2018, China General Nuclear Power Corporation began the construction of an offshore wind farm with a planned installed capacity of 400,000 kilowatts and it is anticipated that this project will generate close to 1.46 billion kWh of electricity annually. Also, the favorable government policies in some countries aimed to curb carbon emissions are also projected to positively impact market growth throughout the forecast period. In June 2019, the U.K Government announced a statutory instrument to amend the Climate Change Act 2008, which includes reduction of carbon emissions by 80% till 2050, in which the solar energy and wind energy are expected to have a vital role, which is further expected to drive the demand for dysprosium in the coming years.
Growing deployment of EVs and HVs
The growing deployment of electric vehicles and hybrid vehicles is driving the market for dysprosium owing to its extreme usage in the electric motors and other applications. The rising adoption rate of electric vehicles with advanced technologies has provided a new and pollution less platform for the transport system thereby making a significant contribution to the healthy growth of dysprosium market size across the globe. In addition, favorable government policies regarding the promotion of electric vehicles will further augment the demand for these materials in electric vehicles, charging stations, and setting up the necessary infrastructure. The Government of India is planning to formulate a policy on setting up an electric charging station every 25 km on a highway so as to supplement the sales of electric vehicles. Furthermore, the government is targeting 100% sales of electric vehicles by 2030 and is planning to announce a subsidy of ₹1,000 crores to achieve this target.
APAC region to hold a noteworthy share
Geographically, the Asia Pacific region is projected to hold a notable market share due to the presence of a well-established chemicals and materials industry in countries like India and China among others. Also, the numerous plans of the Chinese government in various projects further bolster the demand for this element and thereby supporting its growth in the region.
Key Questions Answered in dysprosium Market Report:
· What are the key regions having a significant market share of the market?
· What are the drivers and restraints of the market?
· Who are the key market players in the market?
· What is the market segmentation of the dysprosium Market?
· Who are the end-users of the dysprosium Market?