Market Trends of Magnesium Compounds Industry
High Demand from Construction Segment
- Magnesium compounds, mainly magnesium oxide, are largely utilized as refractory materials in furnace linings for producing iron and steel, nonferrous metals, glass, and cement, which are further utilized in the construction industry.
Also, magnesium chloride brine finds the largest application at construction sites.
Magnesium compounds found in seawater have a wide range of applications in the construction industry. Aluminum-magnesium alloys, for example, are widely used in the construction sector.
Rapid residential and commercial building expansion is the main driver of China's growth. According to the World Bank, China is encouraging and enduring a continuous urbanization process, with a projected rate of 70% by 2030.
Also, according to the National Bureau of Statistics of China, China's construction output peaked in 2022 at a value of about USD 4.11 trillion. As a result, these factors tend to increase the demand for magnesium compounds in the construction sector.
Also, India is expanding its commercial sector. Several projects have been going on in the country. For instance, the construction of the CommerzIII Commercial Office Complex, worth USD 900 million, started in Q1 2022.
The project involves the construction of a 43-story commercial office complex with a permissible floor area of 2,60,128 m2 in Goregaon, Mumbai. The project is expected to be completed in Q4 2027. thus supporting market growth.
Thus, owing to the above-mentioned factors, the market is expected to grow significantly during the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to account for the largest market for magnesium compounds during the forecast period owing to expanding construction, automotive, etc. industries in major countries such as China, India, Japan, etc.
- According to the U.S. Geological Survey, China is the world's largest producer of magnesia and magnesite and the primary exporter of magnesia to the United States and the rest of the world.
- The world's largest producer of cement is China, and thanks to the expansion of the construction sector, demand for cement is constantly rising. China's infrastructure investment increased by 8.7% year over year in the first ten months of 2022, which is 0.1% more than in the first three quarters, according to the National Bureau of Statistics of China. Thereby enhancing the demand for the studied market.
- Also, magnesium is highly used in the automotive industry, as it is the lightest structural metal in the automotive sector.
- In India, during FY 2021-22 (April 2021-March 2022), according to the Society of Indian Automobile Manufacturers (SIAM), the country's automotive industry produced a total of 22,933,230 vehicles, compared to 22,655,609 units from April 2020-March 2021. thus supporting market growth in the automotive sector.
- Thus, owing to the above-mentioned factors, the Asia-Pacific region is expected to benefit market growth significantly during the forecast period.
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