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Global Metal Magnesium Market Size and Share Analysis 2023-2028
- Market Report
- ID: WMT342GM
- Delivery Time: 1 Business Day
- Tag: Metal Magnesium
The Global Metal Magnesium Market is projected to experience significant growth, expanding from 1,093.5 kilotons in 2023 to 1,415.7 kilotons by 2028, at a Compound Annual Growth Rate (CAGR) of 5.30% during the forecast period (2023-2028).
Magnesium, being the lightest structural metal, is commonly alloyed with other metals to enhance its strength. It boasts advantages such as a low specific gravity and a high strength-to-weight ratio. The alloying of magnesium with elements like manganese, aluminum, zinc, silicon, copper, zirconium, and rare-earth metals is widely practiced.
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1043.6 thousand tons in 2021
End-user Industry and Geography
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While the COVID-19 pandemic had a detrimental impact on the market in 2020, the demand rebounded in 2021, primarily driven by increased consumption in growing end-user sectors like automotive and electronics. Magnesium’s utilization in electronics for heat dissipation systems, television and computer casings, among others, contributed to the steady market growth in the post-pandemic era. This growth momentum is expected to persist throughout the forecast period.
In the short term, market demand is being stimulated by the rising need for alloying magnesium with other metals and the growing demand for lightweight materials in the aerospace and automotive industries. However, fluctuations in metal prices may pose challenges and hinder market growth.
In the upcoming years, the market is poised to witness further opportunities as the adoption of electric cars increases, leading to heightened demand for lightweight materials like magnesium.
The Asia-Pacific region is anticipated to dominate the metal magnesium market and is likely to exhibit the highest CAGR during the forecast period.
The market is segmented based on various factors, including end-user industry and geography.
Segmentation by End-user Industry
Iron and Steel
Other End-user Industries
Segmentation by Geography
North America – United States, Canada, Mexico
Europe – United Kingdom, Germany, France, Italy, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Latin America – Brazil, Argentina, and Rest of Latin America
Middle East and Africa – Saudi Arabia, South Africa, and Rest of Middle East and Africa
Magnesium plays a crucial role in providing moderate and high strength characteristics to metals, especially aluminum alloys, while maintaining their ductility. These alloys, categorized in the 5000 series, are readily available in the form of plates and sheets, finding extensive applications in aerospace parts manufacturing, automotive component manufacturing, industrial components, tools and machinery, among others.
With the increasing popularity of electric vehicles (EVs), the automotive industry is experiencing a transformative shift. In 2022, the total number of new automobile sales and registrations in OICA member countries was approximately 69 million units, indicating a potential surge in the demand for aluminum alloys. The growing inclination towards lightweight components across various applications, driven by the electric vehicle segment, is expected to boost the market further.
The rise in the adoption of EVs is evident from the statistics reported by the World Economic Forum (WEF). During the first half of 2022, around 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally, signifying a substantial increase in sales compared to the previous year. The increasing global market share of plug-in electric cars is an indicator of the growing demand for aluminum alloys used in EV manufacturing.
Apart from the automotive industry, aluminum alloys are extensively used in the aerospace sector due to their strength-to-weight ratio, enabling energy savings and fuel efficiency. The demand for commercial aircraft is on the rise, primarily driven by the surge in air passengers and air transport for trade operations.
The Asia-Pacific region is the dominant consumer of magnesium metal globally, with countries such as China, India, and Japan leading the consumption. The automotive, aerospace, and electronics industries hold significant market shares in the region, leading to increased usage of magnesium in these sectors.
China, being the largest manufacturer in the automotive industry, is predicted to witness exponential growth in the magnesium market. The country’s automotive production witnessed a 3.4% increase in 2022 compared to the previous year, with approximately 27 million automobiles produced during the same period. India is also poised to witness significant growth in its automotive industry, with forecasts indicating a market worth USD 300 billion by 2026.
China’s aggressive initiatives and increased manufacturing of electric cars have positioned it as the largest maker and buyer of electric vehicles, accounting for about half of the global market. The country’s new energy vehicle production saw a staggering 97% increase in 2022 compared to the previous year.
Japan is also stepping up its efforts towards electric vehicles, with plans to transition to 100% electric car sales by 2035. The United States companies are exploring various business opportunities in the growing Japanese electric vehicle market.
Considering these factors, the demand for magnesium metal in the Asia-Pacific region is expected to witness substantial growth in the coming years. The increasing adoption of electric vehicles and the buoyant automotive, aerospace, and electronics industries in the region are the key drivers behind this projected growth.
The metal magnesium market exhibits a partially consolidated nature, with several key players operating within the studied market. Among these prominent companies are Nanjing Yunhai Special Metals Co. Ltd., Taiyuan Tongxiang Metal Magnesium Co. Ltd., Dead Sea Magnesium (ICL Group), Wenxi YinGuang Magnesium Industry (Group) Co. Ltd., and US Magnesium LLC, among others (listed in no particular order).
Recent Industry Developments
In February 2023, Western Magnesium Corporation revealed its intention to construct a new production facility dedicated to manufacturing magnesium metal. The facility is slated to have an initial annual capacity of 25,000 metric tons and will be complemented by the establishment of a new research and development center in Nevada. The company aims to expand its operations to cater to various industries, including automotive, aerospace, airlines, eco-friendly technology companies, and Defense Contractors.
In July 2022, Chongqing Boao Magnesium-Aluminum Metal Manufacturing Co. Ltd, a wholly-owned subsidiary of RSM Group/Nanjing Yunhai Special Metals Co. Ltd, announced the successful completion of their Phase II project, a high-performance magnesium-aluminum alloy and deep processing project. The project is situated in Pingshan Industrial Park, Chongqing City. The new production facilities include several workshops, among which is a magnesium particle production workshop with a capacity of 7,200 tons per year.
Key Questions Answered
What is the projected size of the Metal Magnesium Market?
The Metal Magnesium Market is expected to reach 1,093.5 kilotons in 2023 and is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 5.30% to reach 1,415.7 kilotons by 2028.
What is the current size of the Metal Magnesium Market?
As of 2023, the Metal Magnesium Market size is expected to be 1,093.5 kilotons.
Who are the key players in the Metal Magnesium Market?
The major companies operating in the Metal Magnesium Market include Wenxi YinGuang Magnesium Industry (Group) Co. Ltd, US Magnesium LLC, Taiyuan Tongxiang Metal Magnesium Co. Ltd, Nanjing Yunhai Special Metals Co. Ltd, and Dead Sea Magnesium (ICL Group).
Which region is experiencing the fastest growth in the Metal Magnesium Market?
The Asia-Pacific region is estimated to have the highest Compound Annual Growth Rate (CAGR) over the forecast period (2023-2028) in the Metal Magnesium Market.
Which region holds the largest market share in the Metal Magnesium Market?
As of 2023, the Asia-Pacific region accounts for the largest share in the Metal Magnesium Market.