MAGNESIUM METAL MARKET ANALYSIS

Global magnesium metal market was valued at US$ 4.71 Bn in 2022, and is expected to exhibit a CAGR of 9.77%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 9.93 Bn by 2030. The rising product demand from die casting and aluminum alloy applications in different end use industries is expected to fuel the market growth. Due to its excellent electromagnetic screening property and heat conductivity, magnesium is perfect for these applications. Aluminum, which is frequently used in these applications, gains strength as a result. Additionally, it is anticipated that over the course of the forecast period, the market will grow in response to the rising demand for lightweight components, particularly in the automotive and aerospace industries.

Global Magnesium Metal Market - Impact of Coronavirus (COVID-19) Pandemic

Despite the fact that these factors influence health care, they do not exhibit any signs of deflation. However, since its other applications have been halted as a result of the log down, materials cannot be used in the production of goods. Thus, magnesium has generally remained steady. It appears that between 2021 and 2022 the compared to now, the situation will be much more normal. It is still difficult to forecast the actual outcome for magnesium metal during the projected period because the coronavirus kills more people than the majority of other causes.

Global Magnesium Metal Market: Growth Drivers

Increasing Use in the Production of Aluminum Alloys

Magnesium enhances the moderate and high strength properties of metals, particularly aluminum alloys, without sacrificing ductility. Commercially available plates and sheets of aluminum alloys with magnesium added are listed in the 5000 series. Manufacturing of aerospace parts, auto parts, industrial parts, tools and machinery, among other uses, are among the major applications of aluminum alloys. The manufacturing of automobiles is evolving as more people opt for electric vehicles. For instance, The Organization International des Constructeurs d' Automobiles (OICA) estimates that in 2022, new car sales and registrations will total close to 69 million units across all OICA member nations. The market demand for aluminum alloys would therefore increase as the number of vehicles produced or sold increased.  Additionally, 50 million passenger cars were produced globally in the first three quarters of 2022, up almost 9% from the same period in 2021. The market for electric vehicles, however, may likely drive up demand for aluminum alloys. It is anticipated that the market will be driven by the rising demand for lightweight components across numerous applications. For instance, The World Economic Forum (WEF) estimates that in the first half of 2022, nearly 4.3 million new battery-powered electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold worldwide. Aluminum alloys are also used in aircraft because they are strong and light. Because a lighter plane requires less lift force and thrust to fly, it is a good way to save energy and reduce fuel consumption. Manufacturing has been triggered by the increasing demand for commercial aircraft due to an increase in air passengers and air transport for trade operations. It includes high-strength and lightweight aircraft capable of carrying heavy loads while maintaining efficient performance. According to Boeing's commercial outlook for 2022-2030, the North American region will account for approximately 22% of the global fleet by the end of the forecast period (2030). It is also expected that over the next two decades, a total of 9,310 fleet deliveries will be made, with single-aisle accounting for nearly 70% of total deliveries in the region. Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Owing to all of these factors, the global market for metal magnesium is expected to grow during the forecast period.

Figure 1. Global Magnesium Metal Market, By Application, in 2022

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Rising New Aircraft Production will Drive Market Growth

Metal has long been used in civil and military aircraft. Reduce the weight of air and spacecraft, as well as projectiles, to help reduce emissions and increase fuel efficiency. Due to the limited ongoing improvements in aluminum weight reduction, the high cost of fiber metal laminates or carbon fiber composites, and the poor impact and damage properties of low-density plastics when exposed to extreme temperatures, magnesium is an ideal material for use in these applications. Thrust reversers for the Boeing 737, 747, 757, and 767, as well as jet engine fan frames and aircraft and helicopter transmission casings, are made of magnesium. Furthermore, rising demand for fuel-efficient and lightweight aircraft for military and commercial applications is expected to drive magnesium demand. From 2021 to 2040, large aircraft manufacturers such as Boeing, headquartered in the U.S., will deliver approximately 43,610 new commercial aircraft worldwide, with 9,160 delivered in North America, 17,645 in Asia Pacific, 8,705 in Europe, 3,000 in the Middle East, 2,530 in Latin America, 1,540 in Russia and Central Asia, and 1,030 in Africa. Furthermore, Airbus stated that there is a demand for approximately 29,700 small aircraft, such as the A220 and A320 families, and approximately 5,300 medium aircraft, such as the A321XLR and the A330neo. 4,000 deliveries in the large segment, which the A350 serves, are expected by 2040. In addition, the Federal Aviation Administration (FAA) projects that the number of aircraft in the U.S. commercial fleet will increase from 5,882 in 2020 to 8,756 in 2041, a 2% annual growth rate, after declining by 22.9% (1,746 aircraft) in 2020. As a result, it is anticipated that the demand for magnesium for aircraft production will rise along with the rising production of new aircraft, which will further fuel the expansion of the global magnesium metal market size during the forecasted period.

Global Magnesium Metal Market: Market Restraints

Strict rules and regulations regarding automotive and areospace

Magnesium metal is highly suitable for welding and is chemically reactive, which is expected to restrict the adoption of magnesium metal. Moreover, it is not suitable for heat applications and it gets shrinks at extremely cold temperatures. All these disadvantages are expected to restrict the adoption of magnesium metal, which in turn expected to hinder the market growth over the forecast period.

Use of magnesium metal and its alloys for certain applications such as automotive and aerospace are required to follow some regulatory bodies and this is expected to hinder the market growth of magnesium metal. Due to strict rules and regulations major players are restricting the adoption of magnesium metal, which is expected to hinder the market growth.

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Global Magnesium Metal Market: Market Segmentation

The segment's maximum revenue share of more than 37.5% in 2021 was accounted for by the die casting application segment. With the segment recording the fastest CAGR during the forecast period, the trend is anticipated to continue. Due to its good heat conductivity and electromagnetic screening property, magnesium is used as an ideal material in die casting applications. The second-most significant market application segment is aluminum alloys. When corrosion resistance and lightweight characteristics are needed, aluminum alloys are frequently used in engineering components and structures. The growing demand for lightweight materials in aircraft manufacturing to reduce the weight of commercial aircraft is expected to drive segment growth. Titanium and its alloys are widely used in a variety of applications because of their high strength, chemical stability, and low density. Titanium is widely used in spacecraft, aircraft, and missiles, and it is also finding use in the medical field. The rising demand for titanium from various industries is expected to drive up production and, in turn, drive up demand for magnesium. Magnesium is an important reagent in the production of iron and steel because it is used to remove excess sulfur from hot metal, which is a necessary step in the production of high-quality steel. Furthermore, magnesium alloys are used in the production of aircraft, spacecraft, machinery, automobiles, portable tools, and household appliances, as well as steering columns, gearboxes, seat frames, steering wheels, and other automotive machinery.

Global Magnesium Metal Market: Regional Analysis

Asia Pacific had the highest revenue share of more than 45.0% in 2022 and is expected to grow at the fastest CAGR from 2022 to 2030. The increasing consumption of aluminum and steel from end use industries such as electric vehicles (EVs) and construction is driving the Asia Pacific regional market growth. Furthermore, rising demand from China and India's automotive and aerospace industries is expected to support market growth in this region. Furthermore, demand from the steel industry in India and Japan will aid overall market growth. In 2022, North America had the second-largest revenue share of the global market.

The market in North America is expected to grow steadily over the next few years. This is primarily due to increased demand for aluminum and titanium alloys in the automotive and aerospace and defense industries. The demand for EVs has increased in Europe, as evidenced by a 137% increase in EV sales from 2022 to 2030. Furthermore, defense spending in Russia and Italy has increased due to increased demand for aircraft, missiles, and other military equipment. Thus, the positive outlook of European countries' aerospace, transportation, and electrical and electronic industries is expected to drive the regional market over the forecast period.

Global Magnesium Metal Market: Recent Developments

• In February 2023, Western Magnesium Corporation announced plans to build a new magnesium metal production facility in Nevada, U.S. with an initial annual capacity of 25,000 metric tons, as well as a new research and development center. Through this expansion, the company hopes to serve automotive, aerospace, airline, eco-friendly technology companies, and defense contractors with the help of this new production facility.
• In July 2022, Chongqing Boao Magnesium-Aluminum Metal Manufacturing Co. Ltd (a wholly owned subsidiary of RSM Group/Nanjing Yunhai Special Metals Co. Ltd) has completed a high-performance magnesium-aluminum alloy and deep processing project (Phase II project) in Chongqing City. The new manufacturing facilities may include a magnesium particle production workshop with a capacity of 7,200 tons per year.
• In October 2021, General Magnesium Corporation and International Cobalt Corp. are pleased to announce that Laurentian Bank Securities Inc. has served as the firms' Financial Advisor. International Cobalt disclosed the terms of a definitive agreement in a press release issued on August 11, 2021."Business Combination Agreement" with GMC and 2857695 Ontario Inc., International Cobalt's recently integrated, wholly-owned subsidiary. According to the terms of the agreement, International Cobalt will acquire all of GMC's issued and outstanding shares.
• In October 2021COVER TECHNOLOGIES INC. announced that its wholly-owned subsidiary, Mag One Operations, will begin the next phase of determining the feasibility of producing magnesium metal using Tech Magnesium's novel Aluminothermic Reduction Process. Through its Industrial Research Assistance Program (NRC-IRAP), the National Research Council of Canada (NRC) supported the preparatory work in 2019. In 2019, Mag One and Tech Magnesium signed a Technology Acquisition Agreement.

 Global Magnesium Metal Market: Key Companies

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.

*Definition: Magnesium metal is one of the lightest metal which can be used for structural applications. It is a silvery-white metal and can be extracted from seawater or brines. One of the major application areas of magnesium metal is the production of aluminum where it is used to improved physical properties and process ability of metal. They are mostly used to make lighter components and also used in iron and steel desulphurization applications. Furthermore, it is also used as a reluctant in the manufacturing of metals such as hafnium, titanium, uranium, and zirconium. Some of the end user of magnesium metal are automotive, electronics, aerospace, packaging and printing. Additionally, they are also used in the petroleum industry in the production of crude oil production.