by The magnesium metal market is estimated to be valued at US$ 5.17 Mn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Magnesium metal has excellent properties such as light weight, good heat dissipation, and electromagnetic shielding. These properties make magnesium metal suitable for various applications in automotive, aerospace, electronics and other industries. In automotive industry, magnesium is used in engine parts, seat frames and other components to reduce vehicle weight and improve fuel efficiency.
Market Dynamics:
Growing automotive industry is the major driver augmenting the growth of magnesium metal market. The production of automobiles is increasing rapidly across the globe. According to International Organization of Motor Vehicle Manufacturers, around 95 million vehicles were produced in 2018 worldwide. Magnesium is increasingly being used in automotive components due to its lightweight qualities which help in improving vehicle performance as well as reducing emission. In addition, stringent emission norms regarding vehicular fuel efficiency is further propelling the adoption of magnesium metal for automotive applications. Moreover, magnesium exhibits good castability and machinability which makes it suitable for injection molded lightweight components in automotive. The other driver which is fueling the market growth is increasing demand from aerospace industry. Magnesium is an important metal used in aircraft manufacturing due to properties like high strength to weight ratio and corrosion resistance. Rising air passenger traffic and aircraft deliveries are augmenting the consumption of magnesium in this industry.
SWOT Analysis
Strength: Magnesium metal is lightweight and offers good strength which makes it suitable for automobile and aerospace applications. It can easily be cast and machined which further increases its appeal in these industries. It has good electrical and thermal conductivity properties.
Weakness: Magnesium metal is highly reactive and flammable in its pure form which makes its processing and production challenging. Its corrosion resistance is also relatively poor compared to aluminum. Magnesium alloys have low strength at elevated temperatures reducing their potential uses.
Opportunity: Growing automobile and aerospace industries globally are increasing the demand for lightweight metals like magnesium. Its superior properties over aluminum and steel are encouraging more automobile manufacturers to use magnesium components. Increasing spending on infrastructure is also expected to boost the consumption of magnesium in construction applications.
Threats: Fluctuating raw material prices can impact the production cost of magnesium metal. Strong competition from other lightweight metals like aluminum is a challenge. Trade disputes and barriers can affect the global supply chain and trade of magnesium.
Key Takeaways
Global Magnesium Metal Market Size is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand from the automotive industry. Magnesium is increasingly being used in automobiles to reduce the overall weight and increase fuel efficiency. Growing environmental concerns are compelling automobile manufacturers to use more lightweight metals.
Regional analysis: Asia Pacific dominated the global magnesium metal market in 2023 and is expected to continue its dominance over the forecast period. China accounted for the major share in the regional as well as global market. Abundant reserves of magnesium and relatively cheaper labor and raw material costs give China a competitive edge in magnesium metal production. Europe and North America are other major consumers of magnesium metal driven by strong automobile and aerospace manufacturing base in these regions.
Key players operating in the global magnesium metal market are US Magnesium LLC., Dead Sea Magnesium Ltd., POSCO, RIMA Group, Solikamsk Magnesium Works OAO, Wenxi YinGuang Magnesium Industry (Group) Co., Ltd., Shanxi Wenxi Hongfu Magnesium Co., Ltd., Shanxi Wenxi Zhenxin Magnesium Co., Ltd., and Taiyuan Tongxiang Magnesium Co., Ltd. Major players are investing in expanding their production capacities and forward integration to strengthen their position in the lucrative market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
