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Magnesium Metal Market

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  • 130 Pages
  • June 2022
  • Region: Global
  • IndustryARC
  • ID: 5631532

The Magnesium Metal market size is forecasted to reach US$7.5 billion by 2027, after growing at a CAGR of 6.7% during the forecast period 2022-2027. Magnesium (Mg) or magnesium metal with atomic number 12 is a chemical element that is classified as an alkaline earth metal, which is silvery-white and relatively durable. Magnesium metal is usually found in pure magnesium, ingots, bars, and other forms. Due to the superior electrical & mechanical properties such as longevity coupled with enhanced heat transfer and excellent corrosion resistance, magnesium metal and alloys are commonly used in various electronic, automotive, and aerospace applications. The rising demand for aluminium alloys and magnesium alloys in these industries has sparked a massive increase in the magnesium metal market size growth. In the year 2022, COVID-19 has impacted all industries. The demand for magnesium metal in the automotive and aerospace industries declined as the pandemic imposed an abrupt stoppage to the production facilities, raw material mining, and supply chains. Moreover, in the year 2022, China reduced the production of magnesium from September to December 2022 to fulfill its green ambitions. This, affected the global magnesium metal industry as China produces more than 50% of the magnesium in the world. According to the U.S. Geological Survey, in August and September, many smelters in China closed capacity to comply with energy consumption targets, leading to further shortages and increased prices.

Key Takeaways

  • Asia-Pacific dominates the magnesium metal market, owing to the increasing automotive and aerospace industry in the region. The growing per capita income and urbanization coupled with the increasing population are the major factors expanding the automotive and aerospace industry in APAC.
  • The rising production of magnesium metal is also estimated to uplift the market in the upcoming years. For instance, in June 2022, Western Magnesium acquired 122-acre land to set up its first commercial magnesium metal production plant in Ohio.
  • Currently, one of the major factors driving the growth of the magnesium metal industry is the increasing consumption of aluminum alloy in the beverage can manufacturing industries.
  • Magnesium is one of the rapidly emerging markets. The industry has changed dramatically over time, mainly due to continued growth and integration in aerospace and defense products. During the forecast period, extensive growth of fuel-efficient and lightweight vehicles is expected to drive the global magnesium metal market demand.

Magnesium Metal Market Segment Analysis - By Product

Magnesium alloys held the largest share in the magnesium metal market in 2022 and is estimated to grow at a CAGR of 8.1% by revenue during the forecast period 2022-2027. Magnesium alloys are alloys made up of magnesium (the lightest structural metal) with other metals, such as aluminum, zinc, manganese, silicon, copper, rare earth, and zirconium. Alluring properties such as low density (two-thirds that of aluminum), good high-temperature mechanical properties, and good to excellent corrosion resistance, are the major reasons behind the adoption of magnesium alloys in several end-use sectors. In recent years, the establishment of new magnesium alloy plants has further uplifted the magnesium metal market growth. For instance, in December 2019, Danieli Group received an order for a new plant to be installed in the new magnesium sheet complex in Shandong, China, trusting its Danieli Fata Hunter Twin Roll Casting technology. Additionally, in September 2022, Baosteel Metal, a Chinese lightweight material manufacturer, struck a deal with the Hebei municipal government to establish a magnesium alloy industrial park in the city of Henan province, north China. Baosteel Metal is a subsidiary of Baowu Steel, China's largest steel maker. It bought 14 percent of China's largest magnesium alloy maker, Nanjing Yunhai Special Metals, in August 2022. The company plans to invest 15 billion yuan (US$ 2.31 billion) in the park to build a 300,000 t/yr magnesium-based product factory.

Magnesium Metal Market Segment Analysis - By Application

Aluminium alloys held the largest share in the magnesium metal market in 2022 and is estimated to grow at a CAGR of 7.8% by revenue during the forecast period 2022-2027. The addition of magnesium metal as an alloying element to aluminum increases strength and enhances their strain hardening ability. These aluminium alloys are used extensively for structural applications, since, they possess the highest strength. Magnesium is added in an amount ranging from less than 1% to approximately 10% and enhances the mechanical characteristics as well as the corrosion resistance of aluminium alloys. The rising growth and increasing investments in the aluminum packaging industry will drive the usage of aluminium alloys, utilized to make aluminum packaging material. For instance, in July 2022, Showa Aluminum Can Corporation (SAC), a can manufacturer, launched its third aluminum can manufacturing facility in Vietnam with an overall plant capacity of 1.3 billion cans per year. Additionally, the Aluminum Beverages Can Association of India (ABCAI) promotes the use of aluminum instead of plastic and glass as a packaging material for use in the food sectors of the country. Thus, surging the magnesium metal market growth, to be incorporated into aluminium alloys.

Magnesium Metal Market Segment Analysis - By End-Use Industry

The automotive segment held the largest share in the magnesium metal market in 2022 and is forecasted to grow at a CAGR of 6.0% by revenue during the forecast period 2022-2027. In the automotive industry, magnesium metal is utilized as a superior material due to its less weight, which is 36% lighter than aluminum and 78% lighter than iron per unit volume. Also, alloying magnesium metal has the highest strength-to-weight ratio as compared to other structural metals. Magnesium metal is utilized in the gearbox, steering column, driver’s airbag housings, front end, and IP beams, and also in seat frames, fuel tank covers, and steering wheels. The usage of magnesium in the automotive industry can offer more than just reducing weight such as improving handling and turning capabilities, and in addition, frequencies that reduce vibration and overall noise can be obtained through the tuning of magnesium parts. The increasing production and sales of electric vehicles have raised the demand for magnesium metal in the automotive industry, to achieve weight reduction. For instance, according to the International Energy Agency (IEA), electric car sales reached a record 3 million in 2022, up by 40 percent from 2019. The Net Zero Emissions by 2050 scenario projects 300 million electric cars on the road and account for over 60% of new car sales, compared with only 4.6 percent in 2022. Thus, the rapidly rising sales of electric vehicles are estimated to drive the growth of the automotive industry, and in turn the magnesium metal market.

Magnesium Metal Market Segment Analysis - By Geography

Asia-Pacific held the largest share in the magnesium metal market in 2022 up to 53.5% by revenue, owing to the growing demand for magnesium metal from its flourishing end-use industries in the Asia-Pacific region. China is the world’s largest construction market and is forecasted to grow at an annual average growth of 8.6% between 2022 and 2030 according to Fitch Solutions Infrastructure Report. The increasing number of new housing units and significant investments in the construction sectors are driving the demand for magnesium metal in China. According to the India Brand Equity Foundation, the residential building sector is set to expand dramatically, with the federal government intending to build 20 million affordable houses in metropolitan areas across the country under the Union Ministry of Housing and Urban Affairs' ambitious Pradhan Mantri Awas Yojana (PMAY) scheme. Therefore, rising government initiatives and investments in the construction sector are major factors driving the market growth. Also, magnesium metal is widely used in food & beverage for packaging purposes. The South Korean government has invested around US$70 million in the food sector to create a new ‘Fund of Funds aimed at boosting sustainability and digitalization across the nation’s food system. Also, the food & beverage market of South Korea is expected to reach US$99.28 billion by 2024, witnessing a CAGR of 3.9% according to the British Chamber of Commerce in Korea. This will gradually boost the demand for magnesium metal during the forecast period.

Magnesium Metal Market Drivers

Rising Production of New Aircrafts will Drive the Market Growth:

The aircraft industry has a long history of employing metal in a variety of civil and military applications. To help reduce emissions and increase fuel efficiency, it is necessary to reduce the weight of air and spacecraft, as well as projectiles. Due to the limited ongoing improvements in aluminum weight reduction, the high cost of fiber metal laminates or carbon fiber composites, and the poor impact and damage properties of low-density plastics when exposed to extreme temperatures, magnesium is an ideal material for use in these applications. Thrust reversers for the Boeing 737, 747, 757, and 767, as well as jet engine fan frames and aircraft and helicopter transmission casings, include magnesium. Moreover, the rising demand for fuel-efficient and lightweight aircraft for military and commercial applications is anticipated to drive the demand for magnesium. Large aircraft manufacturing companies such as Boeing, headquartered in the USA, will deliver about 43,610 new commercial aircraft globally, of which 9,160 will be delivered in North America, 17,645 in Asia-Pacific, 8,705 in Europe, 3,000 in the Middle East, 2,530 in Latin America, 1,540 in Russia and Central Asia, and 1,030 in Africa from 2022-2040. Additionally, Airbus stated that around 29,700 small aircraft, such as the A220 and A320 families, and roughly 5,300 medium aircraft, such as the A321XLR and the A330neo, are in the demand for new aircraft. By 2040, 4,000 deliveries in the large segment, which the A350 covers, are expected. Furthermore, according to the Federal Aviation Administration (FAA), after declining by 22.9% (1,746 aircraft) in 2022, the number of aircraft in the US commercial fleet is estimated to rise from 5,882 in 2022 to 8,756 in 2041, a 2% annual growth rate. Thus, it is anticipated that with the rising production of new aircraft, the demand for magnesium for aircraft production will also increase, which would further drive the growth of the global magnesium metal market size in the projected period.

Magnesium Metal Market Challenges

Availability of Substitutes Can Hinder the Market Growth:

One of the major challenges that the magnesium metal market faces is the presence of alternative metals. Aluminum and zinc could be used as a substitute for magnesium in castings and wrought items. In most applications, magnesium's light weight is an advantage over aluminum and zinc in castings and wrought products; however, its expensive cost is a drawback in comparison to these substitutes. Aluminum is quite stable, less expensive, and due to its strength, does not bend easily under stress. Whereas, magnesium alloys solidify faster than other metals. Magnesium is less stable, more expensive, and, due to its softness, bends easily when stressed. Calcium carbide, rather than magnesium, can also be used to desulfurize iron and steel. Thus, due to the huge availability of substitutes, the market for magnesium metal industry is estimated to face challenges in the upcoming years.

Magnesium Metal Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the magnesium metal market. The top 10 companies in the magnesium metal market are:

1. Dead Sea Magnesium Ltd.
2. Esan Eczacibasi
3. Luxfer Magtech
4. U.S. Magnesium LLC
5. Ust-Kamenogorsk Titanium and Magnesium Plant JSC
6. Alliance Magnesium
7. YinGuang Magnesium Industry Co. Ltd.
8. Shanxi Bada Magnesium Co. Ltd.
9. Fugu Xintian Magnesium
10. Solikamsk Desulphurizer Works Ltd.

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Table of Contents

1. Magnesium Metal Market- Market Overview
1.1 Definitions and Scope
2. Magnesium Metal Market- Executive Summary
2.1 Key Trends by Manufacturing Process
2.2 Key Trends by Product
2.3 Key Trends by Application
2.4 Key Trends by End-Use Industry
2.5 Key Trends by Geography
3. Magnesium Metal Market - Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Magnesium Metal Market - Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters Five Force Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Powers of Buyers
4.3.3 Threat of New Entrants
4.3.4 Competitive Rivalry
4.3.5 Threat of Substitutes
5. Magnesium Metal Market - Strategic Analysis
5.1 Value Chain Analysis
5.2 Opportunity Analysis
5.3 Product/Market Life Cycle
5.4 Distributor Analysis - Major Companies
6. Magnesium Metal Market - By Manufacturing Process (Market Size -US$ Million)
6.1 Thermal Reduction Process
6.2 Electrolytic Process
6.3 Recycling
7. Magnesium Metal Market - By Product (Market Size -US$ Million)
7.1 Pure Magnesium
7.2 Magnesium Compounds
7.3 Magnesium Alloys
7.4 Others
8. Magnesium Metal Market - By Application (Market Size -US$ Million)
8.1 Die Casting
8.2 Aluminum Alloys
8.3 Titanium Reduction
8.4 Iron & Steel Making
8.5 Others
9. Magnesium Metal Market - By End-Use Industry (Market Size -US$ Million)
9.1 Aerospace & Defense
9.2 Automotive
9.3 Construction
9.4 Medical & Healthcare
9.5 Packaging
9.6 Electronics
9.7 Others
10. Magnesium Metal Market - By Geography (Market Size -US$ Million)
10.1 North America
10.1.1 USA
10.1.2 Canada
10.1.3 Mexico
10.2 Europe
10.2.1 UK
10.2.2 Germany
10.2.3 France
10.2.4 Italy
10.2.5 Netherlands
10.2.6 Spain
10.2.7 Belgium
10.2.8 Denmark
10.2.9 Rest of Europe
10.3 Asia-Pacific
10.3.1 China
10.3.2 Japan
10.3.3 India
10.3.4 South Korea
10.3.5 Australia and New Zealand
10.3.6 Indonesia
10.3.7 Taiwan
10.3.8 Malaysia
10.3.9 Rest of APAC
10.4 South America
10.4.1 Brazil
10.4.2 Venezuela
10.4.3 Argentina
10.4.4 Ecuador
10.4.5 Peru
10.4.6 Colombia
10.4.7 Costa Rica
10.4.8 Chile
10.4.9 Rest of South America
10.5 Rest of the World
10.5.1 Middle East Saudi Arabia UAE Israel Rest of the Middle East
10.5.2 Africa South Africa Nigeria Rest of Africa
11. Magnesium Metal Market - Entropy
11.1 New Product Launches
11.2 M&As, Collaborations, JVs and Partnerships
12. Magnesium Metal Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
12.1 Dead Sea Magnesium Ltd.
12.2 Esan Eczacibasi
12.3 Luxfer Magtech
12.4 U.S. Magnesium LLC
12.5 Ust-Kamenogorsk Titanium and Magnesium Plant JSC
12.6 Alliance Magnesium
12.7 YinGuang Magnesium Industry Co. Ltd.
12.8 Shanxi Bada Magnesium Co. Ltd.
12.9 Fugu Xintian Magnesium
12.10 Solikamsk Desulphurizer Works Ltd.