The Global Soft Magnetic Composites Market was valued at USD 2.35 Billion in 2025 and is projected to reach USD 4.12 Billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 6.5% during the forecast period. This growth is being driven by surging demand for energy-efficient electric motors, rapid adoption of electric vehicles, expansion of renewable energy systems, and the need for high-performance components in power electronics and 5G infrastructure.

As industries worldwide prioritize energy efficiency, compact designs, and reduced core losses in electromagnetic applications, the spotlight is on the key material innovators who are driving advancements in powder metallurgy and magnetic performance. In this blog, we profile the Top 10 Companies in the Soft Magnetic Composites Industry—a mix of powder metallurgy specialists, advanced materials leaders, and technology pioneers shaping the future of efficient electrification across automotive, industrial, and electronics sectors.

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🔟 1. Höganäs AB

Headquarters: Höganäs, Sweden
Key Offering: Somaloy® Soft Magnetic Composites, Iron Powder-Based Materials

Höganäs AB is a global leader in powder metallurgy solutions and a frontrunner in soft magnetic composites technology. The company’s Somaloy® range enables the production of complex 3D net-shape components with isotropic magnetic properties, making it ideal for high-efficiency electric motors, inductors, and actuators used in electric vehicles and industrial applications.

Innovation Initiatives:

• Development of high-heat tolerant Somaloy 5P series for superior performance

• Partnerships with automotive OEMs for next-generation EV motor designs

• Focus on sustainable powder production processes and recycling programs

Download FREE Sample Report: Soft Magnetic Composites Market – View in Detailed Research Report

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9️⃣ 2. GKN Sinter Metals

Headquarters: Redditch, United Kingdom
Key Offering: Powder Metallurgy SMCs, Stator and Rotor Cores

GKN Sinter Metals leverages extensive expertise in sintering technologies to deliver high-density soft magnetic composite components. The company serves major automotive and industrial clients, providing solutions that reduce energy losses and enable lightweight designs critical for modern electrified powertrains.

Innovation Initiatives:

• Advanced compaction techniques for complex geometries

• Collaborations on integrated motor solutions for EVs

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8️⃣ 3. Hitachi Metals Ltd. (Proterial)

Headquarters: Tokyo, Japan
Key Offering: Advanced Soft Magnetic Alloys, Composite Materials

Hitachi Metals excels in developing high-performance soft magnetic materials, including amorphous and nanocrystalline alloys combined with composite technologies. Their solutions support high-frequency applications in power electronics, renewable energy inverters, and precision automotive sensors.

Innovation Initiatives:

• Expansion of FINEMET® and related high-permeability materials

• Investments in materials for 5G and data center power management

• Commitment to reducing material waste through advanced processing

Download FREE Sample Report: Soft Magnetic Composites Market – View in Detailed Research Report

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7️⃣ 4. Arnold Magnetic Technologies Corp.

Headquarters: Rochester, New York, USA
Key Offering: Precision Magnetic Solutions, Soft Magnetic Composites

Arnold Magnetic Technologies provides engineered magnetic materials and assemblies tailored for demanding applications in aerospace, defense, and medical sectors alongside automotive. Their expertise in thin-gauge materials and composites supports high-efficiency designs where performance and reliability are paramount.

Innovation Initiatives:

• Custom alloy development for extreme environments

• Focus on lightweighting solutions for electric aviation

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6️⃣ 5. VACUUMSCHMELZE GmbH & Co. KG

Headquarters: Hanau, Germany
Key Offering: Nanocrystalline and Amorphous Soft Magnetic Materials, Cores

As a specialist in high-end magnetic materials, VACUUMSCHMELZE delivers innovative solutions with ultra-low core losses, widely used in current transformers, chokes, and high-frequency power supplies. Their materials complement soft magnetic composites in hybrid designs for superior efficiency.

Innovation Initiatives:

• Advancement of VITROPERM® nanocrystalline alloys

• Partnerships for smart grid and renewable integration projects

• Ongoing R&D into higher temperature tolerant materials

Download FREE Sample Report: Soft Magnetic Composites Market – View in Detailed Research Report

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5️⃣ 6. Steward Advanced Materials Inc.

Headquarters: Chattanooga, Tennessee, USA
Key Offering: Specialty Soft Magnetic Powders and Composites

Steward Advanced Materials focuses on custom formulations of soft magnetic composites for niche applications in electronics and specialized industrial equipment. Their agile approach allows rapid development of materials meeting exacting customer specifications for permeability and loss characteristics.

Innovation Initiatives:

• Custom powder coating technologies

• Expansion into high-frequency sensor applications

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4️⃣ 7. Rio Tinto Metal Powders

Headquarters: Sorel-Tracy, Quebec, Canada
Key Offering: High-Purity Iron Powders for SMCs

Rio Tinto supplies premium atomized iron powders essential for manufacturing high-quality soft magnetic composites. Their consistent material quality supports large-scale production of reliable components for global automotive and energy markets.

Innovation Initiatives:

• Sustainable mining and powder production practices

• Development of optimized particle size distributions

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3️⃣ 8. Sumitomo Electric Industries

Headquarters: Osaka, Japan
Key Offering: Soft Magnetic Composite Components, Wiring and Materials

Sumitomo Electric brings integrated capabilities in materials and component manufacturing, delivering soft magnetic solutions that enhance overall system performance in EVs and industrial drives.

Innovation Initiatives:

• Holistic motor system development

• Investments in advanced powder processing

Download FREE Sample Report: Soft Magnetic Composites Market – View in Detailed Research Report

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2️⃣ 9. Magnetics (Spang)

Headquarters: Pittsburgh, Pennsylvania, USA
Key Offering: Powder Cores, Inductive Components

Magnetics offers a broad portfolio of powder cores based on soft magnetic composites, serving power electronics manufacturers with reliable, high-performance solutions for filters and transformers.

Innovation Initiatives:

• Expanded range of core geometries

• Focus on reduced loss materials for higher efficiency

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1️⃣ 10. Dexter Magnetic Technologies

Headquarters: Elk Grove Village, Illinois, USA
Key Offering: Engineered Magnetic Assemblies and SMC Solutions

Dexter Magnetic Technologies specializes in design and manufacturing of complex magnetic systems incorporating soft magnetic composites for medical, semiconductor, and aerospace applications where precision is essential.

Innovation Initiatives:

• Application-specific assembly development

• Strategic partnerships for emerging technology integration

Read Full Report: Soft Magnetic Composites Market – View in Detailed Research Report

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🌍 Outlook: The Future of Soft Magnetic Composites Is More Efficient and Versatile

The soft magnetic composites market is undergoing a dynamic shift. While traditional laminated steels continue to play a role, the industry is investing heavily in powder-based solutions, advanced coatings, and manufacturing technologies that unlock new design freedoms and performance levels.

📈 Key Trends Shaping the Market:

• Rapid expansion of SMC adoption in EV traction motors and power electronics

• Growing integration with additive manufacturing for optimized topologies

• Increasing focus on high-frequency performance for 5G and renewable inverters

• Material science advancements reducing core losses and improving thermal properties

Read Full Report: Soft Magnetic Composites Market – View in Detailed Research Report

The companies listed above are not only supplying critical materials—they’re enabling the efficient electrification of industries and the transition to sustainable energy systems.