Magnesium metal has high strength-to-weight ratio, which makes it 35% lighter than aluminum and over 78% lighter than steel. It is highly recyclable and widely used for producing a variety of consumer and industrial products. Due to its lightweight property, magnesium is increasingly used in automotive, aerospace, and electronic industries for manufacturing components like chassis frames, wheels, seats etc.
The Magnesium Metal Market is estimated to be valued at US$ 5.17 Mn in 2023 and is expected to exhibit a CAGR of 9.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the magnesium metal market is increasing usage in automotive industry. Magnesium helps automakers reduce vehicle weight and increase fuel efficiency. Around 10 kg of magnesium can help reduce the vehicle weight by around 30 kg. Increasing demand for light-weight vehicles by consumers as well as stringent emission regulations by governments worldwide are propelling the usage of magnesium in automobiles. For example, according to National Highway Traffic Safety Administration, U.S. auto fuel economy standards require an average fleet-wide fuel efficiency of 40.3–41 mpg by 2026, which is driving OEMs to use more magnesium components for weight reduction.
Porter’s Analysis
Threat of new entrants: High capital investment requirements for magnesium metal production plants pose a barrier to the entry of new players in the market. Bargaining power of buyers: Large buyers such as aluminum and steel producers can influence the prices of magnesium metal due to their high demand and significant bargaining power. Bargaining power of suppliers: There are limited suppliers of raw materials such as magnesium ores for magnesium metal production. This gives suppliers greater control over prices. Threat of new substitutes: Lack of close substitutes for magnesium metal keep rivalry moderate.
Competitive rivalry: Moderate due to large capital requirement and differentiated production processes of established players.
SWOT Analysis
Strengths: Magnesium metal has a high strength-to-weight ratio and is increasingly used across applications such as aerospace and automotive industries. It is also recyclable and contributes to lightweighting of vehicles.
Weaknesses: Production of magnesium metal requires high energy consumption. Fluctuations in raw material prices can impact production costs.
Opportunities: Growing demand for fuel-efficient and lightweight vehicles is expected to drive the adoption of magnesium metal across automotive chassis, engine components, and safety-related applications. Expanding aerospace industry also offers scope for greater magnesium metal consumption.
Threats: Stringent environmental regulations around magnesium metal production can increase compliance costs for players. Substitutes such as aluminum and plastics pose competition.
Key Takeaways
The Global Magnesium Metal Market Growth is expected to witness high growth, exhibiting CAGR of 9.7% over the forecast period, due to increasing demand for lightweight materials from automotive and aerospace industries.
Regionally, Asia Pacific dominates the global magnesium metal market and the trend is expected to continue over the forecast period. China leads the Asia Pacific regional market owing to presence of domestic magnesium metal players and demand from aluminum alloy and die-casting industries.
Key players operating in the 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. These players are focusing on capacity expansion plans to cater to the growing demand for magnesium metal.
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