Metal Magnesium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Metal Magnesium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The metal magnesium market is estimated at around 984.96 kilotons in 2022, and the market is projected to register a CAGR of over 5% during the forecast period (2022-2027).

The market was negatively impacted by the COVID-19 pandemic in 2020. However, the demand increased in 2021 due to the rise in consumption from various growing end-user sectors, such as automotive and electronics. Specifically, in automotive, metal magnesium is used in the manufacturing of car bodies, seat frames, steering wheels, transmission cases, and others. Moreover, in electronics, metal magnesium is used in heat dissipation systems, television and computer casings, and others.

Key Highlights
  • Over the short term, the growing demand for alloying with other metals and the increasing demand for lightweight materials in the aerospace and automotive industry, are some of the driving factors which are stimulating the market demand.
  • On the flip side, fluctuation in the prices of metals is expected to hinder the market growth.
  • The increasing adoption of electric vehicles is likely to create opportunities for the market in the coming years.
  • The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Key Market TrendsIncreasing Usage in the Production of Aluminum Alloys
  • The magnesium offers moderate as well as high strength characteristics to the metals, especially aluminum alloy, without impacting the ductility. Aluminum alloys with magnesium added are placed into the 5xxx series and are commercially available in plates and sheet forms.
  • The added proportion of magnesium in aluminum increases strength through solid solution strengthening and improves their strain hardening ability. These alloys are the highest strength non-heat-treatable aluminum alloys and thus are, used extensively for structural applications.
  • High-strength aluminum alloys with added magnesium content are widely used in the production of aerospace components owing to their superior strength, durability, and lightweight characteristics.
  • The global automotive industry is currently witnessing switching trends as consumer inclination toward electric vehicles is changing the dynamics of the manufacturing process. As per OICA, global automotive production declined in 2020, accounting for over 77.62 million units, a decline from over 92 million units in the previous year. The global automotive production in 2021 increased to 80.16 million units.
  • However, the rise in demand for the electric vehicle segment is likely to ascend the demand for aluminum alloys. The growing demand for lightweight components across several application industries is anticipated to ascend the market.
  • Aluminum alloys are installed in aircraft owing to their high strength and lightweight characteristics. An effective way to increase energy efficiency and reduce fuel consumption is reducing the mass of aircraft, as a lower mass requires less lift force and thrust during flight.
  • The growing demand for commercial aircraft on account of increasing air passengers and increased air transport for trade operations has triggered manufacturing. This covers high-strength and lightweight aircraft that can carry heavy loads at efficient performance.
  • For instance, Airbus estimates about 39,000 deliveries of new aircraft by 2040. This includes 4,000 deliveries of large aircraft and over 29,000 deliveries of small aircraft in A220 and A320 Families.
  • Owing to all these factors, the market for metal magnesium is likely to grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
  • Asia-Pacific is the largest consumer of metal magnesium in the global market, with significant consumption from countries such as China, India, and Japan, among others.
  • Metal magnesium is mainly used in aluminum alloys, die-casting, iron and steel, metal reduction, and others. Moreover, aluminum alloys and die-casting have been increasingly used in manufacturing automotive parts, aerospace parts and equipment, and other such end-user industries. The Asia-Pacific region has a significant share in the global automotive, aerospace, and electronics market.
  • According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles. The country produced 1,82,42,588 vehicles from Q1 to Q3 of 2021, which accounted for about 31.86% of the global volume. The production of vehicles for 2021 was 2,60,82,220 units. The growing production of automobiles in the country is expected to drive the consumption of metal magnesium in aluminum alloy and die-casting, thereby benefiting the market's growth.
  • The demand for electric vehicles in China is anticipated to witness strong growth during the forecast period because of the rapid development due to rising government initiatives, increasing number of manufacturing companies, and increasing charging infrastructure.
  • A growth of 106% in battery-plugged-in electric vehicles was witnessed in November 2021 compared to the same period in 2020. The country's sales of electric vehicles reached 413,094 units in November 2021. The market share also increased to 19%, including 15% of all-electric and 4% of plug-in hybrid cars.
  • The Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion, which is further expected to raise the market demand for metal magnesium.
  • In India, according to the OICA, 43,99,112 vehicles were produced in 2021, which increased by 30% compared to 33,94,446 units manufactured in 2020. Moreover, the government's reforms, such as Aatma Nirbhar Bharat and Make in India programs, are expected to boost the automotive industry in the near future. ‚Äč
  • Japan is transitioning to 100% electric car sales by 2035, and the Japanese electric vehicle market is growing. U.S. companies may find business opportunities in various areas related to electric vehicles. Expansion of the electric vehicle market in the country is therefore projected to benefit the market growth.
  • Therefore, all the aforementioned factors are likely to significantly impact the demand for the metal magnesium market in the Asia-Pacific region in the years to come.
Competitive Landscape

The metal magnesium market is partially consolidated in nature. Some of the key players in the studied market include Nanjing Yunhai Special Metal Co. Ltd, American Magnesium, Dead Sea Magnesium (ICL Group), Wenxi YinGuang Magnesium Industry (Group) Co. Ltd, and US Magnesium LLC, among others (not in any particular order).

Additional Benefits:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Growing Demand for Alloying with Other Metals
4.1.2 Increasing Demand for Lightweight Materials in the Aerospace and Automotive Industry
4.2 Restraints
4.2.1 Fluctuation in Prices of Metal
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5.1 End-user Industry
5.1.1 Aluminum Alloys
5.1.2 Die-casting
5.1.3 Iron and Steel
5.1.4 Metal Reduction
5.1.5 Other End-user Industries
5.2 Geography
5.2.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.2.2 North America United States Canada Mexico
5.2.3 Europe Germany United Kingdom Italy France Rest of Europe
5.2.4 South America Brazil Argentina Rest of South America
5.2.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 American Magnesium
6.4.2 Dead Sea Magnesium (ICL Group)
6.4.3 Fu Gu Yi De Magnesium Alloy Co.,ltd
6.4.4 Nanjing Yunhai Special Metals Co. Ltd
6.4.5 Regal Metal
6.4.6 Rima Industrial
6.4.7 Shanxi Bada Magnesium Co., Ltd.
6.4.8 Solikamsk Magnesium Works
6.4.9 Southern Magnesium and Chemicals Limited (SMCL)
6.4.10 Taiyuan Tongxiang Metal Magnesium Co. Ltd
6.4.11 Us Magnesium LLC
6.4.12 Wenxi Yinguang Magnesium Industry (group) Co. Ltd
6.4.13 Western Magnesium Corporation
7.1 Increasing Adoption of Electric Vehicles

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