The global magnesium market was valued at USD 3.5 billion in 2019 and is anticipated to reach USD 6.8 billion by 2028, expanding at a CAGR of 8.8% during the forecast period, 2021–2028. The growth of the market is attributed to the rising requirements of several structural applications along with die casting requirements in automotive industry.
Magnesium is known to be the lightest material among its competitors with magnificent strength to weight ratio. Additionally magnesium being a good conductor of thermal and electricity, it has the capability to withstand high temperature. Magnesium alloyed with aluminum is used in several applications including electrical connectors, vehicle parts, electrical housings, RFI, and EMI shielding.
Silvery white metal magnesium is lighter compared to other metals such as aluminum and steel. It is easily accessible from various sources of minerals, such as sea water; thereby, its commercialization is expanding globally. Many industries are opting for magnesium for its utility; this in turn drives the market demand.
The Covid-19 pandemic affected the demand and supply of magnesium market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Rising tendency of using non-ferrous casting materials over metallic casting materials is boosting the expansion of the magnesium market around the globe.
- Increasing application of lightweight metals in telecommunication and automotive industries, due to better durability and quality is expected to drive the market.
- Magnesium has resistance to corrosion therefore it is replacing iron. This feature have further escalated its application in steering wheels, seat frame, and gearbox, thereby propelling expansion of the magnesium market.
- Increasing industries and infrastructural advancements the global magnesium market is witnessing rapid demand in recent years and it is projected to aid the market growth during the forecast period.
- Rising, population along with rising economic income leads to increase in vehicle population in nations such as the U.S., Germany, the U.K., and emerging economies such as China, India, and South Korea; therefore, directly aiding in the expansion of magnesium metal market.
- The Covid-19 situation had a hinder impact on the market due to unfavorable production and supply.
- Enlarging telecommunication industries are anticipated to boost the global magnesium market during the forecast period.
Market Segment insights
The magnesite segment is projected to expand at a high CAGR during the forecast period.
Based on category, the global magnesium market is segregated into magnesite, dolomite, and carnallite. The magnesite segment accounts for a key share of the market. The dolomite and carnallite segment is anticipated to expand at a rapid pace during the forecast period. Dolomite is a replacement for limestone and improves water penetration is vital factor propelling growth of the segment.
The automobile industry is projected to expand at robust CAGR
Based on application, the global magnesium market is divided into automobile industry, health care industry, and others. The automobile segment accounts key share of the market, attributed to rising demand for magnesium stainless steel alloy in automotive sector for its lightweight and high strength. Rising acquisition of high speed surgical drills in orthopedic surgeries the health care segment is segment is anticipated to expand at a rapid pace during the forecast period.
The market in Asia Pacific is expected to expand at a high CAGR.
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America holds the maximum share of the magnesium market in terms of revenue, demand, and consumption. This is due to rise in demand of magnesium in the automobile sector in the region. The market in Asia pacific is anticipated to expand at a rapid rate during the forecast period, attributed to presence of major production and consumption hubs of metal in the region. Large amount of aluminum magnesium alloys are used in the region.
Compititive Landscape
Key players in the global magnesium market include ICL, Ningxia Hui-Ye Magnesium Marketing, Posco, Shaanxi Fugu Tianyu Mineral Industrial, US Magnesium, and Wenxi YinGuang Magnesium Industry.
Companies are engaging in mergers, acquisitions and partnerships to extend their market share. Moreover they are focusing on expanding their product portfolio to leverage their market position.
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