The global magnesium market is set to gain traction from the increasing demand for a safer alternative to lithium-ion batteries. Fortune Business Insights™presented this information in a new report. The report further states that the market size was USD 4,115.0 million in 2019 and is projected to reach USD 5,928.1 million by 2027, exhibiting a CAGR of 5.4% during the forecast period.
COVID-19 Pandemic: High Demand from Beverage Can Manufacturers to Boost Growth
The COVID-19 pandemic has caused an abrupt halt in supply chains, production facilities, and raw material mining across the globe. Hence, a wide range of industries are struggling to keep up with regular revenues to sustain in the market. But, the demand for magnesium is set to surge owing to itsincreasing application in the beverage can manufacturing industry. Our detailed research reports will provide the best insights into the market for battling the pandemic.
Drivers Restraints-
Increasing Usage in Automotive Components to Accelerate Growth
Being one of the lightest metals with excellent strength, magnesium is capable of resisting high temperatures. It is used to manufacture automotive components by alloying with aluminium. The U.S. Automotive Material Partnershipdeclared that90 lbs of Mg can replace 150 lbs of aluminum, while 250 lbsof the same can replace 500 lbs of steel. It can reduce around 15% of the weight of vehicles. These factors are expected to propel the magnesium market growth in the near future. However, the metal has low corrosion resistance, which, in turn, may hamper growth.
Segment-
DesulfurizationSegment to Grow Steadily Fueled by Rising Government Investments
Based on the application, the desulfurization segment earned 13.2% in terms of the magnesium market share in 2019. This growth is attributable to the increasing investments by government agencies, especially in developing nations to enhance their pre-existing infrastructures.
Regional Insights-
Asia Pacific to Dominate Stoked by Surging Production of Vehicles in China
Geographically, Asia Pacific held USD 1,394.3 million in 2019 in terms of revenue. It is set to remain at the forefront because of the presence of major consuming and producing countries in the region. Besides, the rising production of automotive in China and India would aid growth.
North America, on the other hand, is expected to grow significantly on account of the rising usage of the metal in place of aluminium and steel in automobile bodies. In Europe, countries, such as the U.K., France, and Germany would contribute to growth backed by the urgent need to lower carbon emissions and lower vehicle weight.
Competitive Landscape-
Key Players Focus on Collaboration New Plant Development to Intensify Competition
The global market for Mgis highly fragmented. Several reputed companies are investing huge sums in research and development activities to introduce novel products. Some of the others are aiming to co-develop new products by collaborating with local firms. Below are the two latest industry developments:
- September 2020:Alliance Magnesium Inc. (AMI) collaborated with the Carrefour d’innovation sur les matériaux de la MRC des Sources (CIMMS). It will aid AMI to benefit from the latter’s 50% technical staff, equipment, and facilities. At the same time, it will be able to gain access to its laboratory.
- August 2020: Latrobe Magnesium Limited (LMG) will soon build its new magnesium plant in Victoria’s Latrobe Valley. It is currently investigating the usage of a hydromet process blended with the thermal reduction process.
Source:https://www.fortunebusinessinsights.com/magnesium-market-104713
