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The magnesium market size is projected to increase by USD 1.58 billion at a CAGR of 5.36% between 2023 and 2028. The market is driven by China's significant production of magnesium, although challenges persist due to the availability of metal substitutes. Despite this, the market shows promise, with a notable uptick in the utilization of magnesium-based materials, particularly in orthopedic implants. As demand grows for lightweight and durable materials in various industries, magnesium's unique properties position it as a valuable commodity with potential for widespread application, fueling market expansion and innovation.
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The market is experiencing significant growth driven by various sectors such as aerospace and automotive, particularly in electric vehicle manufacturing. Magnesium's lightweight properties make it an ideal choice for electric cars, leading to increased demand in automotive component manufacturing. Additionally, its ductility and electromagnetic properties make it suitable for die-casting and the production of plates and sheets used in industrial applications. As research and development ventures continue to explore magnesium's potential, its thermal heat capacity further enhances its appeal across multiple industries, positioning it as a pivotal material for future innovations in lightweight metals.
The application segment of the market sees extensive use of magnesium in various industries due to its favorable properties. It is widely employed in the production of aluminium alloy, enhancing their strength and ductility. The aerospace and automotive sectors benefit from magnesium's lightweight components, improving fuel efficiency in aircraft deliveries and electric cars. Additionally, magnesium's electromagnetic screening property makes it valuable in electronics manufacturing, while its heat conductivity is utilized in aerospace parts manufacturing. Despite fluctuations in metal prices, magnesium remains integral to the automotive and electronics industries, contributing to the development of durable and efficient components.
The die castings segment is estimated to witness significant growth during the forecast period. Magnesium is commonly utilized in the die-casting process due to its excellent properties that make it well-suited for manufacturing lightweight and durable components. By injecting molten Mg under high pressure into a moulid, the die-casting method makes it possible to create complex and accurate shapes with little need for post-processing.
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The die castings segment was the largest and was valued at USD 2.22 billion in 2018. The use of magnesium for die casting is increasing at a rapid rate, especially in the automotive sector. Lightweight materials are required for manufacturing powertrain parts, which withstand high temperatures and bear heavy loads. Features such as high strength-to-weight ratio, die castability, and damping capacity drive the use of Mg in the automotive industry. The thriving automotive sector will increase the use of Mg in die casting applications in wheels, chassis, suspension systems, and body panels. These factors will propel the growth of the die casting segment in the market during the forecast period.
APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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Further, China is the major producer and consumer of Mg. In China, a new magnesium production plant in the Qinghai Province was completed in 2017, and it has a production capacity of 100,000 ton per year. The Government of China is expected to shut down some of the plants that produce magnesium using the Pidgeon (silicothermic reduction) process. Increased energy costs and challenges in compliance with the environmental regulations imposed by the government have led to the shutdown of these plants. China is likely to become the largest market for steel and aluminum, thereby accounting for a major share of the global demand for aluminum-magnesium alloys and Mg-based steel desulfurization.
In addition, the major contribution of magnesium to the country's infrastructure development was through the One Belt, One Road initiative, which aimed at promoting transport and trade between the Asian, European, and African countries. China is focusing on solar energy production to reduce its dependence on fossil fuels and the resulting environmental pollution. Hence, the growth of the construction industry is expected to drive the demand for aluminum and steel, which, in turn, will drive the growth of the regional market during the forecast period.
The market witnesses robust demand due to its diverse applications across industries like automotive and electronics, and aerospace. With properties like lightweight metal and excellent thermal heat capacity, magnesium alloys are favored for automotive component manufacturing, especially in electric vehicle manufacturing and electric vehicle production. This market's growth is also influenced by factors such as the prices of metals and advancements in tools and machinery. As aluminum alloys face competition, magnesium's unique electromagnetic property makes it increasingly relevant in various sectors. Supported by data from the Bureau of Transportation Statistics, the market for magnesium plates and sheets continues to expand, catering to evolving industry needs.
China accounts for a high production of magnesium is notably driving the market growth. Globally, China is the largest producer and consumer of magnesium. During 2000-2005, the high production led to excess supply from China, and the country started exporting Mg at low costs. The exports affected the domestic production in many countries. In the present scenario, however, China is tightening its supply. The producers in China are manufacturing at half their capacity to avoid oversupply. China accounted for around 80% of the global magnesium production in 2016. Moreover, the Mg prices in China are expected to increase due to an increase in the prices of ferrosilicon and coal. The primary production of magnesium in China was 871 thousand metric tons in 2016, and it increased in 2017. The Mg Industry Association of Shaanxi forecast that magnesium production in China will increase by 10% per year to reach 1.3 million metric tons per year by 2020. These factors will propel the growth of the market during the forecast period.
The use of magnesium-based materials in orthopedic implants is an emerging trend shaping market growth. Magnesium is increasingly used in knee arthroplasty. Mg alloys have advantages over stainless steel, Co-Cr-Ni alloy, and titanium implants. Magnesium alloys are lightweight, low in density, and have a high damping capacity. They also enable high machinability and dimensional accuracy and are biocompatible. The density of magnesium is 1.738 g/cm3, which is close to the density range of the cortical bone (1.75-2.1 g/cm3). Mg can absorb the energy of any metal and can be used for load-bearing applications. Mg is also considered biocompatible and can help increase the rate of bone formation. Mg can completely degrade in the body, which is beneficial for patients who require temporary implants in the body. These factors will propel the growth of the market during the forecast period.
The availability of substitutes for magnesium metal is a significant challenge hindering market growth and trends. Magnesium is a very light metal. Aluminum and zinc can be used as substitutes for Mg in castings and wrought metal products. The high cost of Mg compels the manufacturers to use its substitutes such as aluminum and zinc. Calcium carbide can be substituted in place of Mg for iron and steel desulfurization. In July 2021, ICL Group Ltd. expanded its specialty product offering to meet the growing demand from the electric vehicle industry. With its YPH joint venture plant in China, it can thus provide a full range of mono ammonium phosphate (MAP) solutions. It can fulfill specific customer requirements and offer cost-effectiveness and flexibility at the same time. ICL Group Ltd. will create additional capacity to meet rapidly increasing customer demand for specialty products, including the production of lithium iron phosphate (LFP) batteries destined for electric vehicles and other energy storage. Thus, the availability of substitutes can impose a threat to the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting growth strategies.
Global market Customer Landscape
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.
Eczacibasi Holding AS - The company offers magnesium which is used in alloy batteries and in chemical synthesis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Eczacibasi Holding AS, ICL Group Ltd., Latrobe Magnesium Ltd., Mag Specialties Inc., Magontec Ltd., Meridian Lightweight Technologies Inc., NIPPON KINZOKU CO. LTD., POSCO holdings Inc., RIMA INDUSTRIAL, Shaanxi Tianyu Industry Group Co. Ltd., Shanghai Regal Metal Materials Co. Ltd., Shanxi Bada Co. Ltd., Shanxi Yinguang Huasheng Magnesium Industry Co. Ltd, Smiths Metal Centres Ltd., Southern and Chemicals Ltd., STOLFIG LEICHTBAUKEPTENZZENTRUM GMBH, Thermo Fisher Scientific Inc., Tongxiang Magnesium Shanghai Co.Ltd, VSMPO AVISMA Corp., West High Yield Resources, Western Magnesium Corp., and US Magnesium LLC
The market analysis and report of qualitative and quantitative analysis of companies have been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players along with market research and growth. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing steady growth driven by its versatile applications across various industries such as aerospace sector, automotive sector, automobile sector and electronics. Magnesium's lightweight components and excellent heat conductivity make it an ideal choice for manufacturing aircraft deliveries, automotive parts, and electronic devices. With increasing demand for electric cars and the growing emphasis on lightweight materials, the automotive sector is witnessing a surge in magnesium usage. Additionally, research and development ventures are focusing on enhancing magnesium's properties, including its electromagnetic screening property and ductility, further expanding its industrial applications. Despite fluctuations in metal prices, magnesium's prominence in aerospace parts manufacturing and other sectors remains robust, fueling the market's growth trajectory.
The market holds immense significance across diverse industries, from Automotive and Aerospace to Engineering and Healthcare. Magnesium's lightweight properties make it crucial for applications in Automobiles, Aircraft, and General Aviation, ensuring energy efficiency and high-strength-to-weight ratio in engine cooling systems, seat frames, and steering columns. Its alloying capabilities with aluminum contribute to lightweight alloys used in laptops, electronic portables, and household appliances. Furthermore, magnesium plays a pivotal role in environmental concerns, with its exploitation regulated by environmental policies to mitigate pollution and preserve biodiversity. From construction processes to medical applications, magnesium's versatility and good chemical stability continue to drive its demand, supported by the largest magnesium producing companies worldwide like Lockheed Martin, and its role in soil stability and pollution control norms underscores its importance in sustaining ecosystems and ensuring environmental balance.
The market is pivotal across several sectors, notably the Aerospace and automotive industries, and Construction. Magnesium is integral to the automotive sector, aerospace parts production, and the construction of spacecraft and commercial aircraft, ensuring lightweight components and corrosion resistance. Its significance extends to the automotive sector, where it is used in automotive machinery and the electric vehicle segment, particularly in battery-powered EVs, promoting sustainability in the automotive industry. Additionally, magnesium contributes to the production of beverage cans, supports carbon fiber composites, and is crucial in alloying with aluminium alloy for various applications. Furthermore, it influences air transport for trade operations, adheres to aircraft seat design standards, and plays a role in the construction of ballistic missiles, showcasing its widespread usage and importance across industries.
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Magnesium Market Scope |
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Market Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.36% |
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Market growth 2024-2028 |
USD 1.58 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.6 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 57% |
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Key countries |
US, China, Australia, Russia, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Eczacibasi Holding AS, ICL Group Ltd., Latrobe Magnesium Ltd., Mag Specialties Inc., Magontec Ltd., Meridian Lightweight Technologies Inc., NIPPON KINZOKU CO. LTD., POSCO holdings Inc., RIMA INDUSTRIAL, Shaanxi Tianyu Magnesium Industry Group Co. Ltd., Shanghai Regal Metal Materials Co. Ltd., Shanxi Bada Magnesium Co. Ltd., Shanxi Yinguang Huasheng Magnesium Industry Co. Ltd, Smiths Metal Centres Ltd., Southern Magnesium and Chemicals Ltd., STOLFIG LEICHTBAUKEPTENZZENTRUM GMBH, Thermo Fisher Scientific Inc., Tongxiang Magnesium Shanghai Co.Ltd, VSMPO AVISMA Corp., West High Yield Resources, Western Magnesium Corp., and US Magnesium LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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