The magnesium alloy market is expected to register a CAGR of approximately 4%, globally, during the forecast period. The increasing production activities of engineering components for weight reduction purposes without compromising on the overall strength and the growing need for vibration damping capacity are driving the market growth. Magnesium alloy faces competition from other products, which is expected to hinder the market growth of magnesium alloy as a structural material.
Key Market Trends
Increasing Demand from the Automotive Manufacturing Industries
- The applications of magnesium alloys offer various benefits. They are employed in the engine block and wheels production, which, in turn, supports weight reduction, especially for sports cars.
- Automotive manufacturers have been using magnesium alloys in production to reduce weight, thereby, increasing the fuel efficiency and performance of automobiles. Magnesium alloys are preferred in engine blocks, as they are resistant to higher temperatures.
- Many large automotive manufacturers, like Audi, Mercedes-Benz, Ford, Jaguar, Fiat, and Kia Motors Corporation, have already replaced steel and aluminum with magnesium alloys in their vehicles.
- Magnesium alloys possess excellent impact resistance, and they absorb shocks and vibrations while traveling, in turn, providing a subtle and comfortable drive to the consumers. Magnesium alloys are also eco-friendly, as these alloys are recyclable.
Asia Pacific is Expected to Dominate the Market Studied
- Asia-Pacific is expected to dominate the global market, owing to the highly developed automotive sector in China, coupled with the developing production of aerospace components in recent years.
- Magnesium alloys have been increasingly used in the electronics industry, owing to the huge electronic production bases in China, Taiwan, and South Korea, for the production of cameras, cell phones, laptops, and portable media devices.
- According to the US International Trade Commission, China leads the market and exports a large quantity of magnesium alloys to Europe and North America, because of the large number of magnesium alloy manufacturing industries in the country.
- 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 in nature, with few major players dominating a significant portion of the market. Some of the major companies are Magontec Industry Ltd, Advanced Magnesium Alloys Corporation (AMACOR), US Magnesium LLC, and Smiths Advanced Metals, among others.
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