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17. October 2016

With increasing demand from auto sector, global magnesium market to grow by 5.73% by 2020'

With increasing demand from auto sector, global magnesium market to grow by 5.73% by 2020'

Several auto components that are usually manufactured using ferrous casting materials (iron) are being replaced by non-ferrous casting materials, such as magnesium.

The global magnesium market will reach 1,250 thousand metric tons by 2020, growing at a CAGR of 5.73 percent, in terms of volume, according to the latest market study released by Technavio. The market was 946 thousand metric tons in 2015.

A steady shift from traditional metal casting to non-ferrous casting favors the growth of the market. Currently, many organizations across telecommunications, automotive, and industrial machinery have started developing lightweight products to improve quality and reduce the overall weight.

For instance, several auto components that are usually manufactured using ferrous casting materials (iron) are being replaced by non-ferrous casting materials, such as magnesium.

The top three segments for the global magnesium market, as per the report are:

1. Aluminium alloys

By volume, the global magnesium market for aluminum alloys was 315 thousand metric tons in 2015 and will reach 419 thousand metric tons by 2020, growing at a CAGR of 5.87 percent.

The packaging industry is the largest user of aluminum-magnesium alloys followed by transportation, and construction.

2. Die casting
By volume, the global magnesium market for die casting was 314 thousand metric tons in 2015 and will reach 416 thousand metric tons by 2020, growing at a CAGR of 5.79 percent.

Magnesium cast finds application in various industries such as automotive, aerospace, electronics, and ships. The automotive and transportation industries is one of the largest end-users for magnesium die-cast components such as assemblies, housings, and brackets. Average use of magnesium per vehicle is about two to three kilograms which could also go as high as 26 kilograms for some vehicles.

“The increase in demand from the automotive industry is one of the major drivers for the global magnesium casting market. Magnesium alloyed with other metals is often used to manufacture automobile wheels, which helps enhance their strength and durability, and makes them lightweight. The evolution of the use of magnesium in the automobile industry in engine blocks also led to the growth of the magnesium die casting market,” says Ajay Adikhari, a lead metals and minerals analyst from Technavio.

3. Steel desulfurization
By volume, the global magnesium market for steel desulfurization was 107 thousand metric tons in 2015 and will reach 140 thousand metric tons by 2020, growing at a CAGR of 5.52 percent.

Magnesium, with or without other ingredients, is injected into crude iron melts for desulfurization. Magnesium is preferred over calcium carbide as a desulfurization reagent in the steel desulfurization process. This preference is because the latter produces acetylene in the presence of water, and thus, is less preferred.

The automotive, mechanical machinery, infrastructure and construction, metal products, electrical equipment, and domestic appliance industries drive the global steel market, which transfers into the demand for magnesium for steel desulfurization. Of these, the infrastructure and construction industry consumes more than 51.53% of the global steel production. The automotive and mechanical machinery industries are the other two major consumers of steel.

Source: timesofindia.com

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