Growth Opportunities for Magnesium Alloys in Global Automotive Industry 2015-2020: Trend, Forecast, and Market Analysis
According to a new market report published by Lucintel, the future of magnesium alloys in the globalautomotive industry looks strong with increasing penetration of lightweight materials and rising vehicleproduction. Magnesium alloys in the global automotive industry is forecast to grow at a CAGR of 10.1%from 2015 to 2020. The major drivers of growth for this market are government regulations, growingdemand for lightweight and fuel efficient vehicles, and the lightweight properties of magnesium alloysmaterial. Magnesium is 75% lighter than steel, 50% lighter than titanium, and 33% lighter thanaluminum.
In this market, interior, powertrain, chassis, and exterior are the major application area of magnesiumalloys material in a vehicle. Interior is the largest segment by application and is expected to remain thesame during the forecast period. Lucintel predicts that the demand of magnesium alloys in the exteriorparts is likely to experience the highest growth in the forecast period supported by growing applicationof magnesium alloys in the exterior parts of the vehicle. On the basis of its comprehensive research,Lucintel forecasts that exterior, chassis, and interior segments are expected to show above averagegrowth during the forecast period.
Within the global automotive magnesium alloys market, the passenger car segment is expected toremain as the largest market by volume consumption. The development of new magnesium-basedsheet metal for car body is expected to spur growth for this segment over the forecast period. NorthAmerica is expected to remain the largest market due to high penetration of magnesium alloys materialin the automotive industry.
North America and Europe are expected to witness significant growth over the forecast period becauseof increasing penetration of magnesium alloys material and rise in automotive production. For marketexpansion, the report suggests innovation and new product development, where the uniquecharacteristics of magnesium material can be capitalized. The report further suggests the developmentof partnerships with customers to create win-win situations and the development of low-cost solutionsfor the end users.
Emerging trends, which have a direct impact on the dynamics of the industry, include non-flammablemagnesium alloys, vertical squeeze casting machine, and magnesium-air battery. Nanjing YunhaiSpecial Metals Co., Ltd., Magontec Ltd., Yinguang Weijie Magnesium Industry Co., Ltd., FuguJinwantong Magnesium Industry Co., Ltd., and Ningxia Hui-ye Magnesium Marketing Group Co.,Ltd.are among the major suppliers of magnesium alloys material to the automotive industry.
The report answers the following questions
Question: What are the segments addressed in the report?Answer: The segments in the report are as follows:
By application [Volume (M lbs /Kilotons) and $M shipment analysis for 2009 – 2020]: