The global magnesium alloys market size is expected to reach USD 6.62 billion by 2027 registering a CAGR of 9.9%, according to a new report by Grand View Research, Inc. Increasing magnesium content per vehicle is projected to drive the demand of magnesium alloys products over the next forecast period.
Auto manufacturers are now shifting to lightweight materials, such as magnesium, aluminum, and composite materials, to reduce the emissions from vehicles. Rising preference for fuel-efficient vehicles is projected to boost the usage of such lightweight materials, thereby augmenting the product demand.
In terms of mass, magnesium is the lightest metallic material used in the die casting process. Magnesium alloys have 30% lesser density than aluminum, which boosts their usage in vehicles and aerospace applications. Also, as compared to aluminum and steel, these components can save nearly 25 to 40% and 55% of weights respectively.
Aerospace & defense sector is projected to provide numerous growth opportunities for the market as the product is widely used in airplane structures. China is a key producer of magnesium and accounted for more than 80% of the production in 2018, as per data published by the United States of Geological Survey. However, recent outbreak of coronavirus disease (COVID-19) is projected to hinder market growth in the country.
Numerous companies and research institutes are investing in R&D for the development of advanced products. This is likely to have a positive impact on the market growth. For instance, in July 2019, Monash University found a technique that can be useful in producing lightweight and stronger alloys for automotive and aircraft applications.
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Further key findings from the report suggest:
- The automotive & transportation was the largest application segment in 2019 and is likely to expand further at the fastest CAGR during the forecast period
- The growth of the segment is attributed to incessant production of vehicles and increasing magnesium content per vehicle
- Asia Pacific held the highest volume share in 2019 and is projected to maintain its position during the forecast period
- Rapid expansion of the automotive sector and increasing demand for electric vehicles (EVs) are anticipated to remain key drivers for the regional market
- Key vendors in the global market are Magontec Ltd.; Magnesium Elektron Ltd.; Ka Shui International Holdings Ltd.