Magnesium metal is one of the lightest structural metals known to man and have excellent mechanical properties such as high strength to weight ratio, corrosion resistance and recycling ability. Magnesium metal finds wide applications in automotive, aerospace and construction sectors where weight reduction is of critical importance. In construction sector, magnesium alloys are increasingly being used in formwork, scaffolding and other structural applications as it allows construction of lighter and thinner load bearing structures.
The global Magnesium Metal Market is estimated to be valued at US$ 5.68 Mn in 2024 and is expected to exhibit a CAGR of 9.77% over the forecast period 2024 to 2031.
Key Takeaways
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.
Growing Magnesium Metal Market Demand from automotive and construction industries for lightweight materials is a major factor driving growth. Ongoing research and development activities for magnesium alloy development to enhance mechanical properties is pushing the technological boundaries of magnesium metal.
Market Trends
Lightweight structural materials: Growing demand for lightweight materials from automotive and aerospace industries is a major trend driving the Magnesium Metal Market. Magnesium alloys offer weight savings of up to 40% compared to aluminium.
Alloy development: Ongoing research activities are focused on developing new magnesium alloys with enhanced mechanical properties such as higher strength, corrosion resistance at competitive costs to further expand its applicability. New magnesium alloys being developed specifically for automotive die casting applications.
Market Opportunities
Construction sector: High strength to weight ratio of magnesium alloys provides opportunity to build lighter and modular construction at lower costs. Increasing adoption in formworks, scaffolding and building panels expected to drive future demand.
Electric vehicles: Growing electric vehicle market is expected to provide major boost to magnesium metal consumption for car body and drive components to achieve lower weight and higher driving range.
Impact of COVID-19 on Magnesium Metal Market
The COVID-19 pandemic has adversely impacted the growth of the Magnesium Metal Market. The imposition of lockdowns across various countries led to the suspension of manufacturing activities. This resulted in disrupted supply chains and decline in demand from end-use industries such as automotive, aerospace and construction. According to estimates, the Magnesium Metal Market witnessed over 15% drop in revenues during 2020.
However, with mass vaccination drives and relaxation of restrictions post second and third wave, manufacturing and construction activities are resuming operations. This is improving the demand scenario for magnesium metal from 2022 onwards. The automotive sector is witnessing a V-shaped recovery with rising vehicle sales. Aerospace is also rebounding on the back of increasing passenger air travel. Infrastructure development projects are being restarted which will augment the consumption of magnesium metal in the construction industry.
Still, uncertainties around new virus mutations and supply bottlenecks continue to pose challenges. Market players need to focus on expanding supply sources, building inventory levels and diversifying into non-automotive applications to minimize risks. Technological advancements for reducing production costs can aid long term growth post the pandemic. With gradual normalization of economic activities, the Magnesium Metal Market is projected to regain momentum and surpass pre-COVID volumes by 2024.
Geographical concentration of Magnesium Metal Market
In terms of value, Asia Pacific accounts for the dominant share of over 50% in the global Magnesium Metal Market. China is the world's leading Magnesium Metal Companies and consumer of magnesium metal owing to large reserves, competitive manufacturing base and strong domestic demand from automotive, machinery and construction industries. Moreover, countries like Japan, South Korea and India have seen rapid industrialization which requires magnesium extensively for die-casting applications.
Europe is the second largest regional market driven by automakers in Germany. North America is steadily gaining importance supported by the reviving automotive sector in the US. Middle East & Africa and Latin America are emerging as high potential regions due to increasing infrastructure projects, urbanization and mining activities. Although production is concentrated in China presently, regionalization of manufacturing will be an important trend to address supply security issues.
Fastest growing region for Magnesium Metal Market
The Middle East & Africa region is forecast to exhibit the highest growth rate in the Magnesium Metal Market during the forecast period. Abundant magnesite deposits provide a strategic advantage for magnesium production with countries like Israel, Iran and South Africa strengthening their position. Governments are investing heavily in industrial development as part of economic diversification plans. The Middle East possesses a young population which is driving automobile demand. Construction activity is rising across Africa to meet needs of rapid urbanization. These favorable demographic and economic factors will augment the magnesium requirement significantly over the next decade. Therefore, the MEA region presents lucrative opportunities for market participants to expand footprint and gain first mover advantage.
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Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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