Magnesium Alloy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Magnesium Alloy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The magnesium alloy market is expected to register a CAGR of approximately 4% during the forecast period.

The market was negatively impacted due to COVID-19. Due to supply chain disruptions, work stoppages because of the measures imposed by governmental authorities to slow the virus spread negatively impacted the market. Hence, such impact and uncertainties due to the COVID-19 outbreak acted as a stumbling block for the magnesium alloy market. However, the market gained momentum and is expected to recover in the coming years.

• The increasing production activities of engineering components for weight reduction is the major driving factor for the market growth.
• Conversely, issues associated with the corrosion and welding of magnesium alloys are expected to hinder the market growth.
• The rise in popularity of magnesium alloys in artificial human implants and medical devices is an opportunity for the market's growth.
• Asia-Pacific dominated the globe, with the most significant consumption from China and India.

• Magnesium alloy applications offer various benefits. They are employed in the engine block and wheel production, which, in turn, supports weight reduction, especially for sports cars.
• Automotive manufacturers use magnesium alloys in production to increase automobiles' fuel efficiency and performance. Magnesium alloys are resistant to higher temperatures, making them the preferred choice in the engine blocks of automobiles.
• According to the OICA, in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year's production of 77.6 million units.
• Many large automotive manufacturers, like Audi, Mercedes-Benz, Ford, Jaguar, Fiat, and Kia Motors Corporation already replaced steel and aluminum with magnesium alloys in their vehicles. In the fiscal year 2022, AUDI AG delivered 1,212,275 vehicles worldwide and earned a revenue of USD 46.98 billion.
• Magnesium alloy exhibits the highest tensile strength, distinguishing it from other wrought alloys. Magnesium-Zinc-Zirconium alloys are mainly used for specialist solutions, whereas thorium-containing alloys are used for work at elevated temperatures.
• For instance, ZK60 alloy is used for aircraft parts that require high strength and resistance to dynamic loads. Elektron 43 magnesium alloy manufactured by Luxfer MEL Technologies underwent extensive flammability testing by the Federal Aviation Administration (FAA) to be used in the aircraft seat frames.
• The growing demand for commercial aircraft due to increasing air passengers and air transport for trade operations triggered the production of magnesium alloys. For instance, in North America, according to the Boeing Commercial Outlook 2022-2041, the total deliveries of new airplanes accounted for 9,310 units by 2041, with a market service value of USD 1,045 billion.
• These developments are expected to boost the demand for magnesium alloy over the forecast period.

• Asia-Pacific is expected to dominate the global market, owing to China's highly developed automotive sector and the developing production of aerospace components in recent years. China, Taiwan, and South Korea include substantial electronic production bases for manufacturing cameras, cell phones, laptops, and portable media devices.
• According to JEITA (Japan Electronics and Information Technology Industries Association), in November 2022, the total production of the electronics industry reached USD 7,098.34 million. In December 2022, Japan exported electronics worth USD 8,395.45 million.
• In India, the electronics market witnessed a growth in demand, with market size increasing rapidly. India's electronic goods exports fetched USD 16.67 billion in December 2022, compared to USD 10.99 billion in the same month of 2021. The growing electronics and appliances market in India and China may push further Asian-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 vast number of magnesium alloy manufacturing industries.
• According to China Export Data, the top 3 exporters of Magnesium alloy are China with 8,955 shipments, followed by Germany with 2,844, and South Korea at the 3rd spot with 2,724 shipments.
• In February 2023, Chongqing Wansheng Economic Development Zone started the construction of a high-performance Mg-alloy production base and Mg-Al alloy R&D center projects with an investment of USD 144 million.
• Moreover, the growth of various manufacturing industries in China, India, and other ASEAN countries is expected to support the demand for magnesium alloys in the future.

The magnesium alloy market is partially consolidated, with a few major players dominating a significant portion. Some major companies are Magontec Industry Ltd, Advanced Magnesium Alloys Corporation (AMACOR), US Magnesium LLC, and Smiths Advanced Metals.

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