Global Magnesium Alloys in Automotive Market Research Report Forecast: (2025-2030)

Market Definition

Magnesium alloys are prepared by mixing various other chemical elements in magnesium to enhance its properties, mainly increasing corrosion resistance and reducing its weight. The market consists of companies that manufacture such alloys and supply them to the automotive industry, where they are used in manufacturing seat frames, steering, wheels, engine components, body panels, etc.

Market Insights & Analysis: Global Magnesium Alloys in Automotive Market (2025-30):

The Global Magnesium Alloys in Automotive Market size was valued at around USD 2.2 billion in 2024 and is projected to reach USD 4.3 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 12% during the forecast period, i.e., 2025-30. These blends have lower weight coupled with high robustness which makes them high in demand in the automotive industry in current times. The parts made of magnesium alloy weigh one-third less compared to those made of aluminum. It is observed that raw magnesium has limited decomposition resistance property, which prevents various end-users from considering it in their products. Yet, companies continuously ventured into research over the past few years to nullify those drawbacks.

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These advancements hit the mass market in the year 1970, as AZ 91 magnesium alloy with high corrosion resistance was introduced. After that, various magnesium alloys were introduced with unique properties. In 2022, the AZ 91 alloy was treated with surface melting treatment, which resulted in a further increase in the corrosion resistance. Thus it refined the microstructure leading to increasing surface hardness and wear resistance. These innovations have been done to alter the properties of magnesium alloys which have increased their demand in the automotive industry that seeks lightweight material having such chemical properties, to manufacture various parts of vehicles like gearbox, front end and IP beams, steering column and wheels, fuel tank covers and seat frames etc. to lower the overall weight and increase its efficiency whilst maintaining the quality.

In addition, luxury cars utilize magnesium alloys in crankcases, roof panels, and engine blocks due to their formable, corrosion-resistant, and vibration-dampening properties. For instance, BMW uses magnesium in the crankcase of its straight six-power unit. These cars have recorded the highest sales in 2023 in emerging economies like India, Japan, and China. India sold 42,700 units of luxury cars in 2023 from automakers like BMW, Audi, and Volvo. Moreover, Electric vehicles employ magnesium-aluminum alloys to create lightweight battery housings, to reduce the weight of the battery pack while maintaining its integrity. These are high in demand for their vibrant applications in new generation supercars and this demand shall increase in the forecast period as well.

Global Magnesium Alloys in Automotive Market Driver:

Increased Focus of the Automotive Industry on Reducing the Weight of Vehicles – Automobile manufacturers are focusing on improving the fuel efficiency of the vehicle while maintaining the design, comfort, and features and this is achieved by decreasing the overall vehicle weight and that is the reason for employing magnesium alloys in various parts of the vehicle. Magnesium alloys are used in engine blocks, in wheels they have better damping and heat transmission, clutch housings, cylinder head covers, seat frames, and body components. They have a high strength-to-weight ratio, high heat dissipation, and high vibration-damping properties. For instance, Chevrolet made an engine holding structure known as a cradle with magnesium alloy that weighs around 10.5 Kg. It earlier had a similar component made of aluminum that weighed around 18 Kg. More such parts help in further reducing the weight of the vehicle.

Therefore, to reduce the weight of vehicles and make their transit more efficient, magnesium has gained high popularity in this industry, and this trend is expected to continue in the future as well due to the superior properties and expected low-price production of magnesium alloys in the future.

Global Magnesium Alloys in Automotive Market Opportunity:

Increasing Popularity of Electric Vehicles – Electric vehicles have gained high traction in recent years. For instance, approximately 14 million electric-powered cars were sold around the world in 2023, which is 20% of the total cars sold, including ICEs. This further increases the demand for electric cars that have a long traveling range. This can be addressed by using lightweight parts in electric vehicles as they can reduce the energy required to move the vehicle. As a result, the elements made up of magnesium alloys can be the best alternative. Moreover, innovations in manufacturing procedures of such alloys are expected to reduce their price in the coming years. Therefore, the use of magnesium alloys in electric vehicles to reduce their weight and increase the travel range is expected to provide a good growth opportunity for the market.

Global Magnesium Alloys in Automotive Market Challenge:

High Cost Associated with Magnesium Alloys – There is a huge cost that is required for manufacturing and maintaining the parts that are made of magnesium alloys. This is because pure magnesium is very expensive, and it needs more investment to convert into a robust alloy through an expensive, energy-intensive process. For instance, as of Dec 2024, the price of AZ 91 magnesium alloy in China was around USD 2,440 per ton. Additionally, their other properties such as low melting point and low corrosion resistance further increase the cost of production as they require appropriate coatings and special welding techniques to address these challenges. Therefore, all these factors show the high cost associated with magnesium alloys, that prevent the automotive industry from using them in common passenger vehicles for budget buyers, hence limiting the market’s growth.

Global Magnesium Alloys in Automotive Market Trend:

Increasing Use of Magnesium Alloy Wheels in Supercars by OEMs – Various car makers are providing their customers with company-fitted magnesium alloy wheels in their vehicles. This is mainly done due to the lightweight and high strength of magnesium alloys. They are 32% lighter than the aluminum or steel rims. For instance, the newer versions of the Porsche 911 GT3 that are made after 2022, are equipped with forged magnesium wheels. They are used to reduce the rotating and non-suspension masses as well as the vehicle weight. Moreover, the 2021 and newer models of the Lamborghini Huracan STO come with magnesium alloys that are 20-25% lighter than aluminum wheels while maintaining the same load factor. Therefore, due to the advanced properties of magnesium alloys, they have highly gained attraction to sports car makers in recent years, and this trend is expected to remain in the future as well.

Global Magnesium Alloys in Automotive Market (2025-30): Segmentation Analysis

The Global Magnesium Alloys in Automotive Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–30 at the global level. Based on the analysis, the market has been further classified as:

Based on Application:

• Engine & Transmission Components
• Structural Components
• Wheels
• Interior Components
• Others

Based on the application of the magnesium alloys in automotive, wheels use the highest amount of magnesium alloy thus holding a market share of around 49%. The main reason behind this is the car automotive industries aim to reduce the weight of the vehicle while maintaining its strength and reliability. Various parts of an automobile can be made using other cheaper lightweight alternatives such as carbon fiber, but a very high strength is to be ensured in wheels, which makes magnesium alloys the only best alternative to date. As a result, various luxury and sports car makers have also started providing company-fitted magnesium alloy wheels in their cars in recent years. Therefore, due to the lightweight of magnesium alloy and no alternative in terms of strength, they are highly used in making wheels, and this dominance is expected to remain in the future as well.

Based on Alloy Type:

• Cast Alloy
• Wrought Alloy

Based on the type of alloy, wrought alloys are the most used segment in automotive with a market share of around 71%. This is because, in terms of reducing the weight of vehicles, magnesium alloys are chosen only when the strength is an important factor to be ensured. This is because of their high price as compared to other alternatives such as carbon fiber. As a result, magnesium alloys are used for making only rigid parts such as wheels, roofs, engine chassis, etc. As wrought alloys are known for their high strength, they are used in making such parts. Therefore, due to the high cost of magnesium alloys, they are avoided in interiors such as dashboards, steering, seat frames, etc., but when strength becomes an important factor, wrought alloys are the only lightweight alternative, thus making them the market leader.

Global Magnesium Alloys in Automotive Market (2025-30): Regional Projections

Geographically, the Global Magnesium Alloys in Automotive Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Regionally, the Asia-Pacific leads the market with a share of around 47% because this region is the largest manufacturer of motor cars, with China as the biggest producer. As a result, there is a high demand for magnesium alloys as they are used to make multiple lightweight car parts and help companies reduce the weight of vehicles and improve their performance & mileage. For instance, Chinese cars manufactured by China in 2023 were more than 30 million.

Moreover, this region is also experiencing increasing sales of luxury cars and electric vehicles which further increases the demand for magnesium alloys in the automotive industry as weight reduction is the main factor in these vehicle segments to improve the mileage, performance, and traveling range. For instance, around 63% share of the worldwide sales of EVs is captured by China only. Therefore, due to the high production and sales of vehicles equipped with magnesium alloy parts in Asia-Pacific, this region dominated the market and is expected to continue in the future as well.

Global Magnesium Alloys in the Automotive Industry Recent Development:

• 2023: Western Magnesium set up a new plant in Nevada, US. This development aimed to expand the production of magnesium and develop new alloys and IP with different industries.

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