The global magnesium alloys market size was valued at USD 1.7 billion in 2022 and is projected to reach a value of USD 7.0 billion by 2031, registering a CAGR of 16.8% during the forecast period (2023-2031). The increased use of magnesium alloys in the automotive and transportation end-use sectors and the electronics end-use industries will likely fuel magnesium alloy market growth in the coming years.
Magnesium alloys are metallic alloys composed chiefly of magnesium as the base metal and additional elements. These alloys are known for their low density, high strength-to-weight ratio, and corrosion resistance. Because magnesium is a light metal with a density of roughly two-thirds that of aluminum and one-quarter that of steel, magnesium alloys are appealing for applications where weight reduction is critical. The great demand for magnesium alloys from the electronics, medical, automotive and Transportation, aerospace and military, and power tools industries can be credited to the magnesium alloys market share.
Another factor expected to drive market expansion throughout the forecast period is increased demand for magnesium alloys for lightweight automotive parts. However, the volatility of magnesium pricing and concerns with weldability and corrosion resistance are expected to be roadblocks to the market's growth.
Highlights
The automotive industry's concentration on lowering vehicle weight to meet severe fuel efficiency and emission criteria greatly influences the magnesium alloys market trend. Magnesium alloys reduce weight in producing numerous automobile components such as gearbox cases, engine blocks, and structural sections.
Stringent fuel efficiency and emission laws worldwide pressure manufacturers to investigate lightweight materials for vehicle construction. Automakers are mandated to meet particular fuel efficiency targets under the Corporate Average Fuel Economy (CAFE) requirements in the United States and comparable rules in other regions, supporting the use of lightweight materials.
Furthermore, the growing popularity of electric vehicles (EVs) is increasing the demand for lightweight materials to counteract the weight of batteries and expand the driving range. According to the International Energy Agency (IEA), electric car sales will continue to rise through 2023, with 14 million sold by the end of the year. This marks a 35% increase year on year. The United States has witnessed a 55% increase in electric vehicle sales, while Europe has seen a 15% increase in sales.
Subsequently, automotive manufacturers aggressively implement magnesium alloys in partnership with material suppliers to achieve performance and environmental requirements. BMW, for example, has used magnesium alloys in various car components. Automakers and material suppliers are collaborating to enhance alloy compositions for specific uses. According to the International Organization of Motor Vehicle Manufacturers (OICA), new car registrations in December 2023 climbed by 6.7% in November. To satisfy the criteria of current vehicle design, the rising automobile manufacturing creates a constant demand for lightweight materials such as magnesium alloys.
Magnesium metal is somewhat expensive compared to other materials such as aluminum and steel. The increased cost of magnesium can affect the entire cost of magnesium alloy components, potentially rendering them less competitive in price-sensitive sectors. Magnesium exports in the United States averaged USD 4,965 per ton in 2022. This was a 2.9% rise over the previous year. The high cost of magnesium can directly impact the overall cost of manufacturing magnesium alloy components and products. This cost problem may impact the adoption of magnesium alloys, particularly in price-sensitive areas where cost-effectiveness is essential. According to the US Geological Survey (USGS), the price of magnesium in the United States in 2021 was roughly USD 2,500 to USD 3,000 per metric ton. During the same period, aluminum, another lightweight metal commonly used in similar applications, was priced at around USD 2,100 to USD 2,200 per metric ton.
Furthermore, according to the World Bank Commodity Price Data, magnesium prices have fluctuated over time, impacted by demand, supply, and production costs. These oscillations contribute to the economic difficulties connected with magnesium's high cost. When selecting materials for car components, the automobile industry, a significant consumer of magnesium alloys, must consider cost. For example, producers must assess the cost-effectiveness of magnesium alloys in automotive parts such as engine blocks and gearbox cases against the benefits of reduced weight.
The aerospace industry's ongoing pursuit of high and low-strength and weight materials presents prospects for magnesium alloys in aircraft construction. The aircraft industry requires materials that can contribute to light-weighting without compromising structural integrity. Magnesium alloys, with their low density and good mechanical qualities, align with the aerospace industry's goals of improving fuel efficiency and overall performance. Magnesium alloys are used in various aircraft components, including structural elements, engine parts, and interior components.
As a result, magnesium alloys are being investigated for applications where weight reduction is crucial. For example, magnesium alloys in aviation components can contribute to lower overall aircraft weight, resulting in fuel savings and a lower environmental effect. The aircraft industry's emphasis on fuel efficiency and sustainability corresponds to the features of magnesium alloys. As a result, there is a growing emphasis on exploring and applying magnesium alloys in aerospace manufacturing. The expansion of the aerospace industry, driven by increased air travel and demand for new aircraft, provides an ongoing potential for magnesium alloys to enhance their position in this sector. Furthermore, developing new aircraft types and integrating evolving technology in aviation create opportunities for magnesium alloys to be considered for creative aerospace solutions.
| Study Period | 2020- | CAGR | 16.8% |
| Historical Period | 2020-2022 | Forecast Period | - |
| Base Year | 2023 | Base Year Market Size | |
| Forecast Year | Forecast Year Market Size | ||
| Largest Market | Asia Pacific | Fastest Growing Market | North America |
The global magnesium alloys market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Asia-Pacific is the most significant global magnesium alloys market shareholder and is estimated to grow at a CAGR of 16.9% over the forecast period. The largest region in the magnesium alloys market is Asia-Pacific, particularly China, due to its high production rate and acceptance of these products. China's growing demand for magnesium alloys, particularly in the automotive and electronics industries, and its considerable manufacturing capabilities helped it build a position in Asia-Pacific. China's robust magnesium production industry and thriving manufacturing ecosystem have propelled it to the forefront of the magnesium alloy market. According to JEITA (Japan Electronics and Information Technology Industries Association), total electronics industry production will reach USD 7,098.34 million in November 2022. Japan exported electronics worth USD 8,395.45 million in December 2022.
Furthermore, the electronics market in India has seen an increase in demand, with market size steadily expanding. In December 2022, India's electronic goods exports totaled USD 16.67 billion, up from USD 10.99 billion in the same month in 2021. The expanding electronics and appliances markets in India and China may further propel Asia-Pacific market growth. According to the US International Trade Commission, China leads the market and exports many magnesium alloys to Europe and North America because of the country's large number of magnesium alloy production industries. According to China Export Data, the top three exporters of magnesium alloy are China (8,955 shipments), Germany (2,844 shipments), and South Korea (2,724 shipments). With a USD 144 million investment, Chongqing Wansheng Economic Development Zone began constructing a high-performance Mg-alloy manufacturing base and Mg-Al alloy R&D center projects in February 2023. Furthermore, expanding various manufacturing industries in China, India, and other ASEAN nations will likely sustain future demand for magnesium alloys.
North America is anticipated to exhibit a CAGR of 17.0% over the forecast period. According to magnesium alloy market insights, North America ranks second in the market regarding adoption. The United States, in particular, spurred expansion in the region due to the presence of well-known businesses in the automotive and aerospace industries. Using lightweight materials to enhance fuel efficiency and meet regulatory criteria has increased demand for magnesium alloys in the United States automobile sector.
Europe holds a significant market share. The country's aerospace industry significantly used magnesium alloys for aircraft components, boosting regional market expansion. To meet severe pollution rules, European automakers may use magnesium alloys to fabricate lightweight components. For example, a European automaker may use magnesium alloy parts in electric vehicle (EV) battery enclosures to reduce weight. The European automotive sector manufactured 10.9 million passenger automobiles in 2022, an 8.3% increase over 2021. In addition, the EU raised auto exports by 24.4% to Euros 158 billion, while imports grew by 14.8% to Euros 62 billion.
Furthermore, the European region highly values sustainability and environmentally friendly methods. This development may impact the use of magnesium alloys, considering their reduced density and recycling potential.
Latin America emerges as a potential region, poised to proliferate in the magnesium metal market during the forecast period. This growth is being driven by the region's thriving aviation sectors, which have created a demand for lightweight magnesium components in aircraft manufacturing.
The Middle East and Africa (MEA) region is expected to experience rapid expansion in the magnesium metal market. With the region's thriving aviation industry, demand for magnesium in lightweight aircraft components is skyrocketing. This gives magnesium metal makers a fantastic opportunity to enter the Middle East and African markets and meet the ever-increasing aerospace industry needs.
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The global magnesium alloys market is segmented based on alloy type, end-use industry, and region.
The market is further segmented by alloy type into cast alloys and wheat alloys.
Cast Alloys generate the most revenue in the market.
Cast Alloys
Cast alloys are made by pouring molten magnesium into a mold and shaping it to the desired shape. This method enables the production of sophisticated and intricate pieces. Cast magnesium alloys may have a microstructure with more giant crystals and are often ideal for applications requiring complicated forms or more significant components. Cast Alloys enjoyed a strong position in the market at the time. Cast magnesium alloys are utilized extensively in various industries, including automotive, aerospace, and industrial applications. Their applicability in casting methods such as die casting, sand casting, and investment casting makes them popular. Cast magnesium alloys found widespread use in automobile components such as engine blocks and transmission cases because of their outstanding castability and lightweight qualities. This application supremacy contributed to the market significance of cast alloys.
Wrought Alloys
The wrought alloys segment grew at the fastest rate. Wrought magnesium alloys are commonly found in sheet, plate, bar, and extruded forms. Mechanical working, such as rolling, forging, or extrusion, is used to create wrought alloys, which impart precise mechanical properties and a refined microstructure. Wrought magnesium alloys often have a finer grain structure, which results in better mechanical characteristics. This qualifies them for applications requiring greater strength and formability. Their great strength and low weight make them ideal for applications such as aeronautical components and lightweight structures. Wrought magnesium alloys were rapidly used in the aerospace sector to reduce overall weight and increase fuel economy. Although wrought alloys were less prominent than cast alloys, this trend pushed their expansion.
The market can be bifurcated by application into Automotive and Transportation, Electronics, Aerospace and Defense, and Power Tools.
Automotive and Transportation are significant contributors to the market.
Automotive and Transportation
Magnesium alloys are widely used in the automotive and Transportation industries for components that require weight reduction without sacrificing strength. The car industry ruled the market. The search for lightweight materials to improve fuel efficiency and minimize emissions has expanded the use of magnesium alloys. These elements are widely used in automotive components such as gearbox cases, engine blocks, and steering columns. Their superior strength-to-weight ratio has resulted in improved vehicle performance, which has fueled the economy. With continued attempts to fulfill fuel efficiency norms, the automotive and Transportation sectors are important drivers of the magnesium alloys market.
Aerospace and Defense
Magnesium alloys are essential in the aerospace and defense industries, where weight reduction is critical for aircraft and military applications. Structural elements, interior components, and particular pieces that require lightweight materials. The aerospace industry was the fastest-growing market category because of magnesium alloys' superior light qualities, making them the preferred choice for producing interior elements and structural components. Magnesium alloys have found an ideal market in the aerospace sector, aiming to build fuel-efficient lightweight aircraft. As manufacturers studied improved production techniques and alloy formulas to meet stringent industry requirements, demand for magnesium alloys in aerospace applications grew steadily.
