by Magnesium oxide, also known as magnesium peroxide or magnesia, is a widely used mineral product in refractory applications due to its resistance to heat and electrical conductivity. Magnesium oxide is extensively utilized in refractory linings, bricks and mortar in industrial furnaces, kilns, incinerators and boilers where extreme heat resistance is required. Refractory materials made from magnesium oxide can withstand temperatures up to 3,000 degrees Fahrenheit without melting or losing strength. The global magnesium oxide market is estimated to be valued at US$ 6.8 billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Magnesium oxide provides excellent thermal shock resistance, acid resistance and low thermal conductivity. It enhances the lifespan and performance of equipment used in industries such as iron & steel, cement, non-ferrous metal and glass. Additionally, magnesium oxide has superior insulating properties and helps retain heat inside furnaces, thereby improving energy efficiency. Owing to these advantages, magnesium oxide finds widespread application as a basic refractory material for linings in rotary kilns, blast furnaces, smelting furnaces and incinerators. The rising manufacturing activity along with growing industrialization in emerging economies has augmented the demand for industrial equipment that utilize magnesium oxide refractory materials.
Market key trends:
One of the key trends witnessed in the global magnesium oxide market is the increasing consumption of dead-burned magnesium oxide. Dead-burned magnesium oxide has higher purity levels with low carbon content and provides enhanced resistance to corrosion. It is commonly used as a raw material in the production of inorganic chemicals, paints and coatings. The paints & coatings industry utilizes dead-burned magnesium oxide as a filler and reinforcing agent. Expanding paints & coatings sector, driven by the thriving construction industry is largely propelling the consumption of dead-burned magnesium oxide. In the forecast period, expanding end-use industries coupled with rising industrialization in developing nations is estimated to augment the global demand for magnesium oxide, thereby spurring the market growth.
Porter’s Analysis
Threat of new entrants: Low economies of scale and high capital requirements pose as barriers for new competitors to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, brands and consolidators yield significant influence.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of raw materials from a number of sources globally.
Threat of new substitutes: Substitute products like calcium carbonate and aluminum hydroxide pose a moderate threat.
Competitive rivalry: The market is competitive owing to the presence of many regional and global players.
Key Takeaways
The global Magnesium Oxide market is expected to witness high growth. With a CAGR of 6.4%, the market size is projected to reach US$ 6.8 billion by 2024 from US$ 4.9 billion in 2019.
Regional analysis – North America dominates the market currently owing to the growing construction industry in the US. Asia Pacific is expected to be the fastest growing region on account of rising infrastructure development activities in China and India.
Key players – Key players operating in the Magnesium Oxide market are RHI Magnesita, Martin Marietta Magnesia Specialties, Grecian Magnesite, Nedmag Industries, ICL, Premier Magnesia, Baymag, Magnezit Group.
