by Magnesium oxide is used in various thermal insulation products owing to its high thermal conductivity which helps conduct and distribute heat quickly and evenly without compromising on insulation. Magnesium oxide is used as a fireproofing material in steel, cement, and asbestos products due to its heat resistant properties. It is also used as a refractory material in thermocouples due to its high melting point.
The global Magnesium Oxide Market is estimated to be valued at US$ 6.8 Bn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The demand for magnesium oxide is driven by growth in the refractories industry. Magnesium oxide is widely used as a refractory material in furnaces and kilns owing to its high thermal stability and insulating properties. It is extensively used as a lining material in steel furnaces and cement kilns. According to the World Steel Association, global crude steel production increased from 1,869 million tons in 2020 to 1,945 million tons in 2021, and is further expected to surpass 2 billion tons by 2030. The growth in steel production is expected to boost demand for refractories and thereby drive the magnesium oxide market over the forecast period.
SWOT Analysis
Strength: Magnesium oxide has unique physical and chemical properties such as high-temperature stability, non-combustibility, electrical insulation, etc. making it suitable for refractories, agriculture, construction, and other applications.
Weakness: Changing climatic conditions may impact production and supply of magnesite, the primary raw material for producing magnesium oxide. Dependence on China for raw material supply is also a concern.
Opportunity: Increasing use of magnesium oxide in wastewater treatment plants due to its capability to remove phosphorus, arsenic, fluoride and heavy metals from wastewater. Growing steel production to drive demand from refractories industry.
Threats: Volatility in crude oil and natural gas prices may increase production costs. Stringent environmental regulations regarding mining activities can restrain supplies.
Key Takeaways
The global magnesium oxide market is expected to witness high growth over the forecast period supported by expanding end-use industries.
Asia Pacific currently dominates the global market and is expected to continue its dominance over the forecast period. China accounts for over 50% of global magnesite reserves and is one of the leading producers and consumers of magnesium oxide globally. Countries like India and Japan are also major markets in the region.
Key players operating in the magnesium oxide market are Martin Marietta Materials Inc., Grecian Magnesite S.A., Premier Magnesia, LLC, Ube Industries Ltd., Robert Half International AG, Magnezit Group Europe GmbH, Magnesita Refractories SA, Kumas Manyezit Sanayi A.S., SMZ, a.s. Jelšava, Xinyang Mineral Group, Premier Periclase Ltd., and Israel Chemicals Ltd. The market remains largely consolidated with top players accounting for major market share. Companies are focusing on capacity expansions as well as developing magnesium oxide with high purity levels and specific properties to cater to the needs of varied end-use industries.
