The global 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.
Magnesium metal is a lightweight silver-grey metal with a hexagonal close-packed crystal structure. It has the lowest density among structural metals commonly used today. These properties make magnesium metal highly advantageous for applications where weight savings is critical such as in automotive and aerospace industries. Magnesium is highly corrosion resistant and provides high specific strength to alloys. Due to its good castability, magnesium metal is easily formed into complex 3D shapes.
Market key trends:
Magnesium finds widespread use as an alloying agent to produce light weight and high strength aluminum alloys as well as titanium alloys used in aerospace industry. Growing aerospace industry footprint especially in emerging economies is fueling the demand for magnesium alloys. For instance, according to International Air Transport Association, air passenger traffic in India is projected to grow at 6-7% annually over next 20 years indicating huge potential for aluminum casting and forgings industry in the country. Furthermore, magnesium metal is increasingly being used in die casting applications to produce components for automotive, electronics and 3D printing industries driven by need for eco-friendly light weighting of vehicles. Shifting focus towards reducing vehicle weight and increasing fuel efficiency is expected to drive the magnesium metal market during the forecast period.
Threat of new entrants: Low barriers to entry due to low capital requirement and technology. However, established companies have significantly large market share.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and fragmented nature of buyers.
Bargaining power of suppliers: Suppliers have high bargaining power due to limited number of raw material suppliers and suppliers are well established.
Threat of new substitutes: Threat of substitution is low as magnesium has unique properties however aluminum can be considered as substitute.
Competitive rivalry: Intense competition among existing players to gain higher market share. Key players are focusing on expanding production capacity and global footprint.
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 aluminum alloy industry.
Regional analysis: Asia Pacific dominates the global magnesium metal market and is expected to continue its dominance during the forecast period. This is attributed to rising production of magnesium metal in China. North America and Europe are also significant markets and expected to exhibit steady growth.
Key players: 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.