Impact Analysis of Covid-19
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Magnesium Metal Market 2017–2027
Magnesium metal is one of the lightest metal which can be used for structural applications. It is a silvery-white metal and can be extracted from seawater or brines. One of the major application areas of magnesium metal is the production of aluminum where it is used to improved physical properties and processability of metal. They are mostly used to make lighter components and also used in iron and steel desulphurization applications. Furthermore, it is also used as a reductant in the manufacturing of metals such as hafnium, titanium, uranium, and zirconium. Some of the end-user of magnesium metal are automotive, electronics, aerospace, packaging and printing. Additionally, they are also used in the petroleum industry in the production of crude oil production.
The global magnesium metal market is estimated to surpass US$ 6.5 billion by the end of 2027, in terms of revenue, growing at CAGR of 7.2% during the forecast period (2019 to 2027).
Growing aircraft application of magnesium metal is expected to propel the market growth over the forecast period. In the aerospace industry it is used to make lightweight components due to the rising need for fuel-efficient aircraft and reduce the overall weight of aircraft. Magnesium is one of the lightest metal and is relevantly more stable which makes it ideal for making lightweight and durable aircraft a component such as a cabin and other interior parts. Hence, rising demand from the aerospace industry is projected to augment the market growth of magnesium metal.
Increasing production of titanium around the globe is expected to accelerate the market growth of magnesium metal. Growth of titanium market due to rising application from aerospace, chemicals, medical & healthcare industries is projected to accelerate the market growth of magnesium metal. Hence, the growing production of titanium to cater to rising need from the aforementioned application will favor the market growth.
Regionally, Asia-Pacific dominated the global magnesium metal market in 2018, reporting 46% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Magnesium Metal Market, Revenue Share (%), By Region, 2018
Magnesium metal is highly suitable for welding and is chemically reactive which is expected to restrict the adoption of magnesium metal. Moreover, it is not suitable for heat applications and it gets shrinks at extremely cold temperatures. All these disadvantages are expected to restrict the adoption of magnesium metal which in turn expected to hinder the market growth over the forecast period.
Use of magnesium metal and its alloys for certain applications such as automotive and aerospace are required to follow some regulatory bodies this is expected to hinder the market growth of magnesium metal. Due to strict rules and regulations major players are restricting the adoption of magnesium metal which is expected to hinder the market growth.
The rapid growth of the packaging industry around the globe is expected to offer enormous growth opportunity over the forecast period. According to the all4pack Paris, the world packaging market amounted to US$ 851 billion in 2017, an increase of 2.8% compared to 2016 at constant prices. It is projected to reach US$ 876 billion in 2018, based on the annual growth of 2.9%, could reach US$ 980 billion in 2022 and US$ 1,000 billion in 2023.
Growing production of aluminum around the globe due to rising demand from the various end-use application is expected to augment the market growth. Aluminum has a wide range of application due to its lightweight and inductility properties which makes it ideal for the packaging, automotive, and aerospace industry. Therefore, the growing demand for aluminum around the globe will positively impact the market growth.
Figure 2. Global Magnesium Metal Market – Opportunity Analysis
Increasing focus of manufacturers to introduce innovative magnesium metal products is a major trend that has been observed in the market. For instance, in October 2018, Allite launched super magnesium, is a first material to go-to-market from Ohio-based company Allite Inc. Lighter and stiffer than aluminum, less expensive than carbon fiber and with the lowest carbon footprint of any structural material throughout the value chain. This metal can be used across spanning medical, sporting goods, aerospace, automotive and beyond.
Many manufacturers are adopting smart strategies such as partnership and agreement in order to expand their market presence will favor the growth of the magnesium metal market. For instance, in January 2017, Meridian Lightweight Technologies, Plymouth, Mich., announces that Birmingham City University, England, has signed an exclusive partnership with Meridian, the world's largest producer of magnesium components, to showcase magnesium as a viable alternative for luxury car makers and the aerospace industry.
Figure 3. Global Magnesium Metal Market, Revenue Share (%), By Application, in 2018
On the basis of application, in 2018, aluminum alloys accounted the largest market share of 32% in terms of revenue, followed by die-casting and metal reduction, respectively.
Figure 4. Global Magnesium Metal Market – Opportunity Analysis
Key players operating in the global magnesium metal market are US Magnesium LLC., Dead Sea Magnesium Ltd., POSCO, RIMA Group, Solikamsk Magnesium Works OAO, Wenxi YinGuang Magnesium Industry (Group) Co., Ltd., Shanxi Wenxi Hongfu Magnesium Co., Ltd., Shanxi Wenxi Zhenxin Magnesium Co., Ltd., and Taiyuan Tongxiang Magnesium Co., Ltd.