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The magnesium market share is expected to increase by USD 844.74 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.5%.
This magnesium market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers magnesium market segmentations by application (die castings, aluminum alloys, iron and steel desulfurization, and others) and geography (APAC, Europe, North America, South America, and MEA). The magnesium market report also offers information on several market vendors, including China Magnesium Corp., ICL Group Ltd, Latrobe Magnesium Ltd., Magontec Ltd., POSCO, Rima Group, Shaanxi Tianyu Magnesium Industry Group Co. Ltd., US Magnesium LLC, VSMPO-AVISMA Corp., and Western Magnesium Corp. among others.
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The high demand for steel from various end-use industries is notably driving the magnesium market growth, although factors such as availability of substitutes may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the magnesium industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Magnesium Market Driver
The high demand for steel from various end-use industries is notably driving the magnesium market growth. Magnesium is widely used in the steel desulfurization process, as sulfur increases the brittleness of steel and reduces its weldability and corrosion resistance. Therefore, sulfur content should be less than 0.015% in steel. Magnesium is used in hot metal desulfurization, where it vaporizes under high temperatures between 1,250 C (2,282 F) and 1,450 C (2,642 F). The magnesium gas then diffuses into liquid iron, where it reacts with the dissolved sulfur, forming magnesium sulfide (MgS). It MgS floats on the top solution, which is later skimmed off. Among the different end-use industries of the steel market, the demand from the construction segment, which includes building and structural work, accounted for more than half of the share in 2016. Steel products such as flat, long, and tube products are extensively used in structural constructions. Thus, vendors are investing in the commercialization of magnesium plants. For instance, in December 2019, Alliance Magnesium Inc. announced the arrival of its share capital of the Japanese company Marubeni Corp. The global construction industry is expected to grow at a steady pace at a CAGR of 2.86% during the forecast period. APAC is a key construction industry and accounts for a major share of the global construction industry due to the presence of China, India, and Japan. The demand for steel from emerging markets, such as India and Mexico, is expected to fuel the growth of the global steel market. The increased steel consumption will drive the demand for magnesium for steel desulfurization.
Key Magnesium Market Trend
High production of magnesium in China is the key market trend driving the magnesium 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 magnesium 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. Producers in China dominate global magnesium metal production, and several projects were under development to increase primary magnesium metal capacity in China. Also, growing automotive players' investment for luxury vehicles in China will drive the magnesium demand and, in turn, the market in focus. The magnesium 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.
Key Magnesium Market Challenge
The major challenge impeding the magnesium market growth is the availability of substitutes. Magnesium is a very light metal. Aluminum and zinc can be used as substitutes for magnesium in castings and wrought metal products. The high cost of magnesium compels the manufacturers to use its substitutes, such as aluminum and zinc. Calcium carbide can be substituted in place of magnesium for iron and steel desulfurization. In July 2021, Israel Chemicals Ltd (ICL) expanded its specialty product offering to meet growing demand from the electric vehicle market. Thus, it is able to offer a complete range of mono ammonium phosphate (MAP) solutions from its YPH joint venture plant in China. It is able to provide both flexibility and cost-effectiveness while also meeting unique customer specifications. ICL will create additional capacity to meet rapidly increasing customer demand for specialty products, including for 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 on the market in focus during the forecast period
This magnesium market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global magnesium market as a part of the global diversified metals and mining market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the magnesium market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the magnesium market encompasses successful business strategies deployed by the key vendors. The magnesium market is fragmented and the vendors are deploying organic and inorgnic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The magnesium market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the magnesium market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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57% of the market's growth will originate from APAC during the forecast period. China is the key market for magnesium market in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The growth of the construction industry is expected to drive the demand for aluminum and steel, which, in turn, will facilitate the magnesium market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID-19 in the region hampered the growth of the magnesium market in APAC. Several countries, such as China, India, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines, implemented partial or complete lockdown to contain the spread of the disease. Thus, various industries such as automotive and construction were adversely impacted in 2020 due to the COVID-19 pandemic. The imposition of stringent lockdowns and social distancing regulations compelled many business owners to shut down their facilities temporarily. Thus, in 2020, following the COVID-19 pandemic, automobile manufacturing was one of the most affected industries because of challenges from both supply and demand-related uncertainties. Also, in Q2 2021, the second wave of COVID-19 in the region led to a decline in the growth of the automobile industry, which, in turn, affected the sales of crossover vehicles in the region. However, automobile manufacturing is expected to recover once the COVID-19 pandemic is contained in the region.
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The magnesium market share growth by the die castings segment will be significant during the forecast period. Features such as high strength-to-weight ratio, die castability, and damping capacity drive the use of magnesium in the automotive industry. The thriving automotive sector will increase the use of magnesium in die casting applications.
This report provides an accurate prediction of the contribution of all the segments to the growth of the magnesium market size and actionable market insights on post COVID-19 impact on each segment.
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Magnesium Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.5% |
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Market growth 2021-2025 |
$ 844.74 million |
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Market structure |
Fragmented |
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YoY growth (%) |
3.71 |
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Regional analysis |
APAC, Europe, North America, South America, and MEA |
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Performing market contribution |
APAC at 57% |
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Key consumer countries |
China, US, Germany, Russian Federation, and Brazil |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
China Magnesium Corp., ICL Group Ltd, Latrobe Magnesium Ltd., Magontec Ltd., POSCO, Rima Group, Shaanxi Tianyu Magnesium Industry Group Co. Ltd., US Magnesium LLC, VSMPO-AVISMA Corp., and Western Magnesium Corp. |
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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 forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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