The Growing Application Of Magnesium Metal In Automotive Industry Is Anticipated To Openup The New Avanue For Magnesium Metal Market

Magnesium Metal Market 


The Magnesium Metal Market is estimated to be valued at US$ 5.17 Mn or Mn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Magnesium metal is a silvery-gray, lightweight metal used in various applications such as automobile, aerospace, electronics and others owing to its high strength-to-weight ratio. It is around two-third lighter than aluminum and one-fourth lighter than steel. Majority of magnesium metal production is consumed by aluminum alloys for die casting applications in automotive industry due to its fatigue and corrosion resistance properties.

Market Dynamics:
The two major drivers for magnesium metal market are-
Growing automotive production- Global automotive production has grown significantly over the past few years owing to rising disposable incomes. Magnesium alloys castings are increasingly used in automobile engines and transmissions parts to reduce vehicle weight and improve fuel efficiency. This is expected to drive the demand for magnesium metal over the forecast period.
Increased usage in consumer electronics- Magnesium is used in housings and casings of smartphones, laptops, tablets and other consumer electronic devices to make them lighter. Growth in consumer electronics industry especially in Asia Pacific region will propel the magnesium metal consumption from 2023-2030.

Segment Analysis
The global magnesium metal market can be segmented on the basis of form into ingot, chips, granules, alloy, die casting, and others. The die casting segment holds the highest market share owing to increasing applications of die cast magnesium in automotive parts and electronics housings. Magnesium alloys in die casting form have superior properties like dimensional stability, die lube retention, corrosion resistance and rigidity making them ideal for manufacturing structural and interior automobile parts.

PEST Analysis
Political: Governments across the globe are supporting the use of magnesium in transportation and renewable energy sectors by offering subsidies. This is aimed at reducing the dependence on fossil fuels.
Economic: Growth in automotive production and renewable energy sectors along with rise in investments for magnesium production facilities is expected to drive the magnesium metal market growth during the forecast period.
Social: Rising environment concerns and push for green manufacturing are increasing the adoption of magnesium for its lightweight and corrosive resistance properties.
Technological: Development of high pressure die casting technology and alloying techniques are helping improve magnesium casting properties and expand its applications.

Key Takeaways
Global Magnesium Metal Market Size is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand from automotive industry. The automotive segment accounts for more than 30% share of global magnesium consumption owing to lightweight and anti-corrosion properties of magnesium alloys.

Regional analysis: Asia Pacific holds the major share of global magnesium metal market and is expected to remain the fastest growing regional market during the forecast period. This is attributed to the presence of emerging economies like China and India with growing automotive and infrastructure sectors. China, in particular, is the largest producer and consumer of magnesium globally.

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. The key players are investing in increasing magnesium metal production capacities to cater to the rising demand.
 


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