Magnesium Wheel Market

Market Overview

The global magnesium wheel market size was valued at USD 22.56 billion in 2022. It is estimated to reach USD 27.03 billion by 2031, growing at a CAGR of 2.03% during the forecast period (2023–2031). The global magnesium wheel market is primarily boosted by the surging demand for lightweight materials from the automotive industry. Moreover, there has been a growth in research and development to overcome the shortcomings of magnesium alloys and introduce one with better properties. This surge in R&D has led key players to introduce new magnesium alloy products, and automotive manufacturers are widely employing this in their new vehicle models.

Magnesium wheels are wheels made from mostly magnesium alloys. Magnesium wheels are manufactured through either casting, which involves pouring molten metal into a mold and letting it harden, or forging, which mechanically deforms a pre-made bar. Magnesium possesses several fundamental characteristics that render it a desirable foundational metal for wheels: its lightweight nature, exceptional damping capability, and elevated specific strength.

Magnesium is the least heavy metallic material that can be used for structural purposes. Magnesium wheels have a density that is 1.5 times lower than that of aluminum. This allows them to be built to be much lighter than aluminum alloy wheels while still maintaining similar strength. Many racing wheels used in competitive racing are constructed from magnesium alloy.

Market Dynamics

Market Drivers

Growing Demand for Lightweight Automotive Components

The growing need for lightweight automobile components that enhance fuel efficiency and decrease carbon emissions is a significant factor driving the magnesium wheel market. Magnesium wheels can be engineered to have a much lower weight than aluminum alloy wheels while maintaining equivalent strength. Lighter vehicles consume less fuel and require lower power to propel the vehicle as they need to overcome less inertia, significantly reducing the amount of CO2 generated. This can lead to reduced fuel consumption, decreased greenhouse gas emissions, and enhanced vehicle performance. According to industry specialists, reducing vehicle weight by 10% can improve its mileage by almost 6% to 8% and increase fuel economy. Moreover, magnesium wheels can assist in complying with the strict emission norms and regulations set by different governments and environmental authorities.

Growing Research and Development

Growing research and development is an important driving force for the magnesium wheel market. Magnesium possesses numerous characteristics that render it an appealing foundational metal for wheels, yet it also exhibits certain limitations, including susceptibility to corrosion, flammability, and limited flexibility. Hence, it is imperative to create novel magnesium alloys and coatings that can effectively surmount these obstacles and augment the efficiency and longevity of magnesium wheels. Researchers from the University of Manchester have created a novel magnesium alloy that is 50% lighter than steel and 30% lighter than aluminum. This alloy exhibits excellent resistance to high temperatures and pressures. This alloy can produce magnesium wheels for a wide range of vehicles.

Market Restraint

High Cost of Magnesium and its Alloy

A significant limitation of the magnesium wheel market is the huge expense of magnesium and its alloys and the costly manufacturing process of forged wheels. Magnesium is a rare and costly metal, and its manufacturing and processing necessitate substantial energy and financial resources.

Forged wheels are produced through the mechanical deformation of a pre-made rod using a high-powered forging press. This is followed by machining the forged blank into the desired wheel shape. The procedure at hand is characterized by more intricacy and expense than casting. Casting entails the introduction of molten metal into a mold, followed by solidification. Forged wheels are pricier than cast wheels and are seldom bought by non-professional drivers for normal road usage. These factors are anticipated to hinder market expansion.

Market Opportunities

Introduction of Innovative Magnesium Alloys and Subsequent Applications

The surge in extensive R&D has led to the launch of new magnesium alloys by key players. For instance, in September 2018, Allite introduced its new alloy called 'Super Magnesium'. Super magnesium is a newly developed alloy 33% lighter than aluminum. It is also more rigid and durable and costs less than carbon fiber compared to the same weight. Allite intends to showcase its latest alloy at the Interbike exhibition to attract bicycle brands and encourage them to use this innovative material for bike production.

Furthermore, the key automotive manufacturers widely use these magnesium alloys in automotive applications. For instance, in October 2022, Cadillac, an American automobile manufacturer General Motors division, revealed that the forthcoming Blackwing variants of the CT4-V and CT5-V will feature magnesium wheels. Cadillac emphasizes that the 2022 CT4-V Blackwing and CT5-V Blackwing will be the sole General Motors products to incorporate magnesium wheels in the foreseeable future. These factors are expected to create opportunities for market expansion.

Regional Analysis

Based on region, the global magnesium wheel market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

European magnesium wheel market share is expected to expand substantially during the forecast period. Europe is the largest global producer of motor vehicles, and turnover generated by the automotive industry accounts for over 7% of the EU's GDP. The growth of the European region is primarily attributed to the presence of prominent automobile manufacturers who prioritize introducing new vehicles and enhancing their current product lineup by using magnesium wheels. Volkswagen, BMW, Skoda, Audi, and Rolls Royce are among the major automobile OEMs in the region that are introducing vehicles with magnesium wheels to increase their market share. For instance, Porsche introduced its GT2 RS model with magnesium wheels in 2018, which resulted in significant weight savings of approximately 11 kg.

Other vehicle manufacturers are also employing magnesium to develop their newly launched products. For instance, in May 2023, Brose, a German company specializing in e-bike drives, recently unveiled a new cargo e-bike system known as the Drive H Mag. This new e-bike is poised to transform electric cargo bikes with its lightweight design, remarkable torque, and optimal performance. The drive utilizes a magnesium casing and weighs only 2,900 grams. Although the Drive H Mag is lightweight, it possesses a torque rating of 90 Newton meters. In order to comply with European e-bike rules, the maximum speed cannot exceed 15 miles per hour while loaded with different types of e-cargo, and the nominal power cannot exceed 250 watts. Such aspects are anticipated to boost the market expansion in Europe.

The Asia-Pacific region is projected to experience the fastest growth rate in the market. This is primarily due to the soaring production and export of magnesium and the growing demand for high-end and performance vehicles in nations like China, India, Japan, and South Korea. China dominates the global magnesium market as the leading producer and exporter, responsible for over 80% of worldwide magnesium production. China is the foremost consumer of magnesium wheels, with Japan and South Korea following suit. Moreover, there is an increase in the number of automotive manufacturing facilities by companies in nations like Japan, India, China, and South Korea to increase their production capacities to cater to the ever-growing demand from the increasing population. This will also increase the demand for automotive components like wheels. As these manufacturers focus on producing lightweight vehicles, the region's demand for magnesium wheels increases.

Furthermore, countries such as China, Japan, Vietnam, and Indonesia have implemented various emission control policies that align with the Euro emission control standards. In 2016, the Government of India announced that the country would bypass the Bharat Stage V emission standards and adopt Bharat Stage VI emission standards by 2020. In 2020, the Supreme Court issued a judgment that banned the sales and registration of vehicles following BS-IV norms in the country starting April 1, 2020. This, in turn, is expected to provide a huge growth opportunity to the lightweight materials market in automotive production in India. This, in turn, is anticipated to drive the magnesium wheels market in the Asia-Pacific region.

In North America, research and development efforts centered on magnesium's potential in automotive applications are rising, which bodes well for the region's future. Local governments that impose stringent environmental regulations will encourage car companies to spend money on R&D. Therefore, companies like Ford Motors and General Motors, based in the United States, have allocated more than USD 34.5 billion to research and development initiatives. Moreover, the US Department of Energy has launched many initiatives and schemes to encourage the adoption of lightweight materials, such as magnesium, in automobiles. These include the establishment of the Lightweight Materials National Laboratory Consortium (LightMAT) and the Magnesium Vision 2020 program.

In addition, according to data released by the International Organization of Motor Vehicle Manufacturers in 2019, the United States, Canada, and Mexico were ranked among the top 15 automotive manufacturers worldwide. These nations collectively manufactured about 16.78 million cars. The region also benefits from the presence of prominent automotive manufacturers and racing teams that employ magnesium wheels. The United States is the foremost market for high-end and performance automobiles and motorcycles, and it is home to several renowned racing competitions, including Formula One, IndyCar, NASCAR, and MotoGP. All these factors contribute to the regional market expansion.

Segmental Analysis

The global magnesium wheel market is bifurcated into manufacturing, vehicle, and end-user.

Based on manufacturing, the global magnesium wheel market is segmented into cast and forged. 

Forged magnesium wheels are produced through a pre-made rod's mechanical deformation (forging) using a high-powered forging press. There are several distinct forging procedures, each including a multi-step process. The forged blank is then subjected to machining processes such as lathe-turning and milling to shape it into a wheel by removing any surplus metal. A forged magnesium wheel exhibits a weight reduction of 25 percent compared to a cast wheel. As a result, forged wheels provide fuel efficiency and other notable benefits.

In addition, aligning the metal fibers and maximizing the directed pattern's arrangement along a wheel's spokes is made feasible by the forging process. The combination of reduced grain size and improved mechanical features leads to excellent performance, making forged magnesium wheels highly sought after by motor racing professionals and knowledgeable driving enthusiasts.

Based on vehicles, the global magnesium wheel market is bifurcated into bikes and premium/sports cars. 

The premium/sports cars segment is expected to grow significantly, as magnesium wheels are more suitable and preferred for high-end vehicles that require high speed and stability. Magnesium wheels are utilized in high-end and sports vehicles for multiple reasons, principally owing to their distinctive combination of characteristics that render them appropriate for high-performance purposes. Magnesium alloys exhibit a notable strength-to-weight ratio, demonstrating robustness and structural stability while maintaining a low mass. High-performance sports automobiles must strike a balance between weight and strength. These wheels have excellent thermal conductivity, facilitating the efficient dissipation of heat produced during braking. This can enhance braking performance and mitigate brake overheating under demanding driving situations.

Based on end-users, the global magnesium wheel market is bifurcated into OEM and aftermarket.

An original equipment manufacturer (OEM) is a business that delivers goods utilized as parts in another company's products, which is referred to as a value-added reseller (VAR). The Value-Added Reseller (VAR) collaborates closely with the Original Equipment Manufacturer (OEM), who frequently tailors designs as per the specific requirements and specifications of the VAR, as most of the magnesium wheels are installed by the original equipment manufacturers during the vehicle production, thus, boosting the expansion of the segments.

Recent Developments

• September 2023- The Tata International subsidiary Stryder Cycles unveiled the CONTINO collection of premium alloy bicycles. Eight new models with a variety of multi-speed configurations, including Mountain Bikes, Fat Bikes, BMX, and High-performance City Bikes, comprise the CONTINO lineup. This groundbreaking lineup also features the 27.5 T Galactic, the very first magnesium bicycle in India.
• March 2023- Allite introduced a series of Super Magnesium rims. It is purported that these are the initial rims ever manufactured utilizing Allite's "revolutionary Allite Super Magnesium alloy." In contrast to the R370 rims, designed exclusively for road use, the G370 and G380 rims are designed for gravel.