The global metal magnesium market size was valued at USD 3.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2020 to 2027. Increasing die casting requirements in automotive and various structural applications is projected to assist in the growth of the market for metal magnesium. Magnesium is one of the lightest materials and has an excellent strength to weight ratio. It has high thermal and electrical conductivity and the ability to withstand high operating temperatures. Magnesium alloyed with aluminum is used in various applications including vehicle parts, RFI and EMI shielding, electrical housings, and electrical connectors.
The U.S. accounted for 82.5% of the revenue share in the market for metal magnesium in 2019. The market in the country is mainly driven by the use of magnesium for casting applications in the automotive industry. As per the International Trade Administration (ITA), sales of lightweight vehicles in the country reached more than 17.0 million units for the fourth consecutive year in 2019. Also, total foreign direct investment for the automotive sector reached over USD 110.0 billion in 2018.
Investment in automotive R&D is one of the key factors which are projected to assist in the demand for magnesium related products. As per the ITA, USD 18.0 billion was spent in automotive R&D, almost one-fifth of global spending. Additionally, the country exported 1.8 million light vehicles to other countries in the world.
Other applications such as wind turbines, aerospace and defense components, and compressed gas storage are projected to provide lucrative opportunities to market vendors over the coming years. The U.S. added nearly 9,132 MW of new wind capacity in 2019 and reached a cumulative wind capacity of 105, 591 MW in 2019.
In terms of volume, the aluminum alloys segment was the largest application in 2019 and accounted for a market share of over 36.0% in 2019. The addition of magnesium metal in alloys increases strength and strain hardening ability. These alloys are non-heat-treatable alloys and are used for structural applications. Some of the applications include buildings, pressure vessels, train and truck bodies, chemical tankers, and armored vehicles.
In terms of revenue, die casting application is projected to witness a CAGR of 9.0% in the metal magnesium market from 2020 to 2027. Demand from aerospace and defense applications are projected to provide lucrative opportunities for market vendors. Some of the key applications include cast gearboxes for helicopters, auxiliary casing, and transmission components.
Applications of magnesium metal in the automotive include instrument panel, seat pan, steering column parts, door inner panel, door handle, chassis parts, transmission case, and engine block. Other key applications include titanium reduction, iron and steel making, and power tools.
Asia Pacific accounted for a revenue share of 51.0% in 2019 in the market for metal magnesium. Increasing automotive production in China and India are the long term drivers for the growth of the market for metal magnesium. China is also the largest producer of magnesium metal and produced nearly 900 kilotons of magnesium in 2019. The demand for magnesium metal is mainly projected to increase owing to the rising demand for light-weighting vehicles to reduce harmful emissions.
In terms of volume, North America is projected to grow at a rate of 7.6% in the market for metal magnesium over the forecast period. The substitute of steel with aluminum is projected to increase over the coming years. This is likely to provide a boost to the consumption of magnesium metal in aluminum alloys. Magnesium casting is also used in the automotive industry instead of steel, iron, and aluminum.
Stringent regulations regarding carbon dioxide emissions are projected to play a key role in rising demand magnesium-based products. Due to growing environmental awareness, automakers in North America, Europe, and Asia Pacific are likely to focus on lightweight vehicles to improve fuel efficiency. This is projected to boost the demand for magnesium metal die-cast parts and aluminum alloys.
Research and development activities for magnesium alloys and aluminum alloys are projected to affect the market dynamics positively. Various institutes and research organizations are projected to focus on new magnesium alloys. For instance, the University of North Texas and Indian Institute of Technology have collaborated to develop new magnesium alloy which can replace aluminum and steel. This alloy is likely to be used in the automobile industry. Some of the prominent players in the metal magnesium market include:
Nippon Kinzoku
VSMPO-Avisma
Solikamsk Magnesium Works
Latrobe Magnesium
Alliance Magnesium
Esan
Dead Sea Magnesium
Report Attribute |
Details |
Market size value in 2020 |
USD 3.3 billion |
Revenue forecast in 2027 |
USD 6.8 billion |
Growth Rate |
CAGR of 8.8% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative Units |
Volume in kilotons, revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Volume forecast, revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; Russia; France; China; Japan; India; Brazil; Saudi Arabia; South Africa |
Key companies profiled |
Nippon Kinzoku; VSMPO-Avisma; Solikamsk Magnesium Works; Latrobe Magnesium; Alliance Magnesium; Esan |
Customization Scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016to 2027. For the purpose of this study, Grand View Research has segmented the global metal magnesium market report based on application and region:
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Die casting
Aluminum alloys
Titanium reduction
Iron and steel making
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Mexico
Europe
Germany
Russia
France
Asia Pacific
China
Japan
India
Central & South America
Brazil
Middle East & Africa
Saudi Arabia
South Africa
b. The global metal magnesium market size was estimated at USD 3.46 billion in 2019 and is expected to reach USD 3.33 billion in 2020.
b. The metal magnesium market is expected to grow at a compound annual growth rate of 8.8% from 2020 to 2027 to reach USD 6.79 billion by 2027.
b. Aluminum alloys dominated the metal magnesium market with a share of 37.6% in 2019, owing to its increasing aluminum content in vehicles.
b. Some of the key players operating in the metal magnesium market include Nippon Kinzoku, VSMPO-Avisma, Solikamsk Magnesium Works, Latrobe Magnesium, Alliance Magnesium, and Esan.
b. The key factors that are driving the metal magnesium market include increasing automotive production and growing penetration of magnesium die casting products in automobiles.
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The mining industry accounts for a vital share of the global economy and is responsible for supplying key raw materials for several applications and end-use industries, thus being a key sector of focus amidst the ongoing pandemic outbreak. Mining industries in China are expected to return to normal operations by Q3 of 2020 as enterprises indicated towards the returning of their workers soon. Moreover, Iron ore producers are known to be the least impacted. Major players such as BHP and Vale reported experiencing no major influence on their operations due to the COVID-19 virus. The iron ore prices reached above USD 90 per ton amidst the pandemic situation which may negatively impact the end-use industries. The report will account for Covid19 as a key market contributor.