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Metal Magnesium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Global Metal Magnesium Market was accounted for 956. 69 kilotons in 2021 and is expected to grow with a CAGR of 5. 80% during the forecast period (2022-2027). The market was negatively impacted by the COVID-19 pandemic in 2020.
New York, June 09, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Metal Magnesium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06249285/?utm_source=GNW
However, the demand has increased in 2021, due to the rise in consumption from various growing end-user sectors, such as automotive, electronics, and others. Specifically, in automotive, metal magnesium is used in the manufacturing of car bodies, seat frames, steering wheels, transmission cases, and others. Moreover, in electronics, metal magnesium is used in heat dissipation systems, television and computer casings, and others.
Key Highlights
Over the medium term, the growing demand for magnesium for alloying with other metals and increasing demand for lightweight materials in the aerospace and automotive industry are expected to drive the market’s growth.
On the flip side, fluctuation in the prices of metal is expected to hinder the market growth.
Incrasing adoption of electric vehicle is likley to act as an opportunity for the metal magnesium market.
The Asia-Pacific region dominated the market and is also likely to witness the highest CAGR during the forecast period.
Key Market Trends
Aluminum Alloys Segment to Dominate the Market
The magnesium offers moderate as well as high strength characteristics to the metals, especially aluminum alloy without impacting the ductility. Aluminum alloys with magnesium added are placed into the 5xxx series and are commercially available in plates and sheets forms.
The added proportion of magnesium in aluminum increases strength through solid solution strengthening and improves their strain hardening ability. These alloys are the highest strength non-heat-treatable aluminum alloys and thus are, used extensively for structural applications.
Major applications of aluminum alloys include aerospace parts manufacturing, automotive components manufacturing, industrial components, tools, machinery, and others.
On account of its superior advantages of high specific strength, high processability, predominantly anti-erosion, increased conductivity, and eco-friendly nature, aluminum alloys are widely used in the fields of electric module packaging, electronic technology, automotive body structure, wind and solar energy management
High strength aluminum alloys with added magnesium content are widely used in the production of aerospace components owing to their superior strength, durability and lightweight characteristics. Usage of aluminum alloys in the aerospace industry has been prominent for the past many years, considering factors such as reliability, reasonably isotropic, low cost compared to more exotic materials, high strength, corrosion resistance, and lightweight.
The global automotive industry is currently witnessing switching trends as consumer inclination toward electric vehicles is changing dynamics of the manufacturing process. As per OICA, the global automotive production has declined in 2020; accounted for over 77.62 million units, a decline from over 92 million units in previous year. The global automotive production in 2021 was increased to 80.16 million units.
However, the rise in demand from electric vehicle segment is likely to ascend the demand for aluminum alloys. Further, the growing demand for lightweight components across several application industries are anticipated to ascend the market.
Aluminum alloys are installed in aircraft owing to their high strength and lightweight characteristics. An effective way to increase energy efficiency and reduce fuel consumption is reducing the mass of aircraft, as a lower mass requires less lift force and thrust during flight.
The growing demand for commercial aircraft on account of increasing air passengers and increased air transport for trade operations has triggered manufacturing. This covers high-strength and lightweight aircraft that can carry heavy loads at efficient performance.
For instance, Airbus estimates about 39,000 deliveries of new aircraft by 2040. This include 4000 deliveries of large aircrafts, and over 29,000 deliveries of small aircrafts in A220 and A320 Families.
Increasing investment in R&D for weight reduction in industrial machinery has significantly contributed. This has implemented the critical components in the machinery to reduce weight.
Asia-Pacific Region to Dominate the Market
Asia-Pacific is the largest consumer of metal magnesium in the global market, with significant consumption from countries such as China, India, and Japan, among others.
Metal magnesium is mainly used in aluminum alloys, die-casting, iron and steel, metal reduction, and others. Moreover, Aluminum alloys and die-casting have been increasingly used in manufacturing automotive parts, aerospace parts and equipment, and other such end-user industries. Asia-Pacific region has a significant share in the global automotive, aerospace, and electronics market.
For instance, According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles. The country produced 1,82,42,588 vehicles from Q1 to Q3 of 2021, which accounted for about 31.86% of the global volume. The production of vehicles for 2021 was 2,60,82,220 units. The growing production of automobiles in the country is expected to drive the consumption of metal magnesium in aluminum alloy and die-casting, thereby benefiting the market’s growth.
The demand for electric vehicles in China is anticipated to witness strong growth during the forecast period because of the rapid development due to rising government initiatives, increasing number of manufacturing companies, and increasing charging infrastructure.
A growth of 106% in battery-plugged-in electric vehicles was witnessed in November 2021 compared to the same period in 2020. The country’s sales of electric vehicles reached 413,094 units in November 2021. In addition, the market share also increased to 19%, including 15% of all-electric and 4% of plug-in hybrid cars.
China is one of the largest manufacturers of aircraft and one of the largest markets for domestic air passengers. Moreover, the aircraft parts and assembly manufacturing sector in the country has been growing at a rapid pace, with the presence of over 200 small aircraft parts manufacturers.
China’s aerospace industry is projected to return to profitability in 2022 after facing a significant decline in the previous years. In addition, the Civil Aviation Administration of China (CAAC) has estimated the aviation sector to recover domestic traffic to around 85% pre-pandemic levels.
The Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion, which is further expected to raise the market demand for metal magnesium.
According to the Boeing Commercial Outlook 2021-2040, around 8,700 new deliveries will be made in China by 2040, with a market service value of USD 1,800 billion. Due to such new deliveries in the country, the demand for metal magnesium consumption in aluminum alloys and die-casting is anticipated to grow during the forecast period.
Furthermore, in India, according to the OICA, 2020, 43,99,112 vehicles were produced in 2021, which increased by 30% compared to 33,94,446 units manufactured in 2020. Moreover, the government’s reforms, such as “Aatma Nirbhar Bharat” and “Make in India” programs, are expected to boost the automotive industry in the near future. ?
The Indian automotive sector is optimistic about reaching pre-pandemic levels of production volume in 2022 after laying a solid foundation in 2021 despite manufacturing being hampered by a semiconductor shortage. With demand for passenger vehicles remaining strong despite rising commodity prices, many automakers are eager to adopt new technologies, particularly EVs.? Thus, the expansion of the automotive sector is anticipated to benefit the market’s growth during the forecast period.
In the aerospace sector, according to the India Brand Equity Foundation (IBEF), the country’s aviation industry is expected to witness INR 35,000 crore (~USD 4.99 billion) investment in the next four years.
According to IATA (International Air Transport Association) report, India is expected to become the third-largest aviation market in the world by the end of the forecast period.
The country is projected to have a demand for 2,100 aircraft over the next two decades, amounting to over USD 290 billion in sales. ?Owing to these factors, the demand for aluminum alloys and consumption of magnesium in die-casting applications from the aerospace sector is expected to rise in the coming years., thereby benefiting the market’s growth.
Therefore, all the aforementioned factors are likley to significant impact on the demand for the metal magnesium market in the Asia-Pacific region, through the years to come.
Competitive Landscape
The metal magnesium market is partially consolidated in nature, with a few players dominating a significant portion of the market. Some of the key players in the studied market include Nanjing Yunhai Special Metal Co. Ltd, Taiyuan Tongxiang Magnesium Co. Ltd, Regal-metal, Wenxi YinGuang Magnesium Industry (Group) Co. Ltd, and US Magnesium LLC, among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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