Magnesium Chloride Market

Magnesium Chloride Market: Derivatives to Play a Pivotal Role in Demand Acceleration: Global Industry Analysis (2013 -2017) & Opportunity Assessment (2018 - 2028)

2018-05-15
REP-GB-3996
293 pages

An Incisive, In-depth Analysis on the Magnesium Chloride Market

This study offers a comprehensive, 360 degree analysis on the Magnesium Chloride market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Magnesium Chloride market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

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The magnesium chloride market is anticipated to witness a moderate growth rate with China taking the lead over all the developed regions. The availability of alternatives for deicing application have somehow restricted the usage of magnesium chloride salts across several industrial applications. However, the demand for magnesium chloride in the synthesis of magnesium derivatives and building material which is increasing at a rapid pace is expected to create incremental opportunities for the market players in the coming years.

The pressing need to maintain high water quality standards, especially in developed regions such as Western Europe and North America is expected to lead to a rise in the investments in wastewater treatment processes in chemical industries, power plants, and municipal waste treatment centres in the coming years. Growing population, urbanization, industrial growth, and oil and gas production are among the other driving factors for growing focus on wastewater treatment, globally. According to the American Society of Civil Engineers, the estimated wastewater treatment expenditure in the U.S. is expected to increase to approximately US$ 78 Bn by 2020.

China will stay on the vanguard with maximum production and sales of magnesium chloride

Magnesium chloride is gaining traction across numerous applications in China, especially in the production of magnesium metal and derivatives and in pharmaceutical and personal care applications. Mainly, Flakes and Prills forms are used for the said applications. With the increase in demand for magnesium chloride in the last few years, various small players have entered the marketplace with a considerable output capacity to cater to the local demand as well as the demand generated from the overseas market. These manufacturers are dedicated towards the production of solid (both flakes and prills) type of magnesium chloride.

For instance, Shouguang Dingsheng Chemical Co., Ltd. inaugurated its magnesium chloride production complex capable of producing magnesium chloride hexahydate flakes of almost about 20,000 Tons per annum. Weifang Yuze Chemical Co., Ltd. has a considerable production capacity of 100,000 Tons per annum for magnesium chloride in granular and flake forms. On these grounds, China has been taking the lead in the global magnesium chloride market and is expected to retain its leading position in the coming years as well.

The support from the Chinese government is also one of the core factors that is expected to take this market forward in the coming years. In China, the 12th fifth year plan comprises opportunities to support the new materials industry, promote the establishment of large-tonnage advanced magnesium chloride production lines through the leading scientific and technological projects of the country and also promote the industrialization and commercialization of magnesium chloride based products.

North America and Western Europe are likely to closely trail China owing to growing demand from deicing applications

Over the past few years, cities and states in the Northern hemisphere have been facing extreme winter weather conditions. Owing to this, regular road maintenance has become a necessity to for addressing the challenges created by these natural factors. Use of magnesium chloride as a deicing agent is gaining traction in North America and European region due to its various beneficial attributes. Magnesium chloride starts working within 25 minutes of its application in snow-covered roads, which reduces crashes, injuries, and accident cost by over 80%. As a result of this, the demand for magnesium chloride is expected to rise extensively in both North America and Western Europe.

An Overview of the Global Magnesium Chloride Market with Reference to the Global Chemicals and Materials Industry Outlook

Recycle and reuse practices are impacting the sales of virgin materials, resulting into lesser dependency on volume-driven growth. New materials are showcasing potential for driving value-based growth, but chemical companies are still some time away from achieving voluminous production, while maintaining high quality at the same time. Barring few exceptions, a majority of players are still prioritizing short-term volume growth over long-term value growth. Pressure on improving bottom-line is influencing manufacturers to improve efficiency and reduce operational costs. The impact of value-driven growth may not be visible in the short-term, but long-term outlook remains in favor of a balanced approach between value and volume.

Manufacturers are under increasing pressure to incorporate digital solutions in their offerings. Forward-thinking manufacturers are investing in technology to reduce human interference and streamline key operational aspects such as ordering and shipping. Resonating its influence over every industry, Internet of Things (IoT) has the potential to transform and disrupt the chemical sector. Connectivity through IoT devices is gaining traction, whereas product-level sensors on dispensing equipment and barrels are helping manufacturers track their consignments digitally. Through assessment of long-term benefits, chemical companies are capitalizing on digitization by adopting digital platforms & processes that eliminate human error in profit-associated operations.

Manufacturers continue seeking low-priced feedstock in a bid to marginally reduce pre-production costs. Industry leaders are joining forces to replace fossil fuel-derived feedstock with bio-based alternatives. However, concerns related to producing affordable and sustainable feedstock at mass scale remains a challenge. Access to quality and affordable feedstock will continue to remain a focus area for manufacturers. Chemical manufacturing processes are running on limited energy, while volume of feedstock is getting stranded at ports as disapproval from import authorities keeps disrupting supply chains in sectors, such as oleochemicals and petrochemicals industries.

Chemical manufacturers have promised support and adherence to governments & regional authorities that are committing towards green, sustainable initiatives. Development of bio-alternatives is gaining momentum. Research & academic institutes are teaming up with manufacturers to formulate sustainable substitutes for commonly-used chemical substrates. Many companies are keeping a close eye on advancements in “green chemistry.” Shift towards eco-friendly chemicals will gain momentum in the future on the back of government regulations and end-user preference. Rising costs of fossil fuels will also instrument the upsurge for sustainable chemicals manufacturing.

List of factors tracked in the Chemicals and Materials Market Report

Chemical Industry Value Add
Chemical Sales
Per Capita Consumption
Standard Capacity Factors
Plastics Consumption Outlook
Glass Consumption Outlook
Policies and Regulations
Historical growth of top players
Growth in associated markets
Net trade scenario
Apparent production capacity

Research Methodology

FMI utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.

Data Collection

FMI collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.

Data Validation

In this phase, FMI validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.

Data Analysis and Projection

Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.

For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.

Standard Report Structure