According to statistics from Hebei Messi Biology Co., Ltd., the proportion of domestically produced spherical magnesium oxide in China is about 15%. Spherical magnesium oxide has a high demand in the field of electronic components. In 2020, the output value of domestic electronic components has accounted for more than 50% of the total global market, and production capacity is expected to continue to be transferred domestically in the future.
From the perspective of international market size, the global market demand for spherical magnesium oxide continues to increase. It is understood that global spherical magnesia sales maintained a growth rate of about 10% in 2019, and the market size reached about 10,000 tons. In the past five years, the market size has continued to grow at a rate of about 8%. Japanese companies have an advantage in the magnesium oxide industry. More than 70% of the global spherical magnesium oxide market comes from Japan.
From the perspective of domestic market size: China’s semiconductor and integrated circuit industries are developing rapidly, which has led to a significant increase in market demand for magnesium oxide. According to statistics, from 2014 to 2018, the market size of China’s magnesium oxide industry grew rapidly from RMB 850 million to RMB 1.70 billion, with a compound annual growth rate of 18.1%. Benefiting from the prosperity of downstream demand, China’s magnesium oxide market size is expected to maintain a compound annual growth rate of 18% in the future, and the market size will grow to 3.9 billion yuan by 2023.
At present, the global high-end electronic materials industry is still dominated by developed countries such as Japan and South Korea. The magnesium oxide industry is developing rapidly in China, but domestic companies mainly produce powdered magnesium oxide. Most of the products are of low grade, and some cannot meet the quality requirements of high-end electronic material manufacturers for magnesium oxide. As a result, the domestic electronics industry has a negative impact on foreign countries. The company relies heavily on spherical magnesium oxide.
There is huge application space for spherical magnesium oxide in the Chinese market in the future. Japanese companies account for 75% of the global spherical magnesium oxide market. Among domestic spherical magnesium oxide manufacturers, only Hebei Messi Biology Co., Ltd. can achieve this. Although my country has made breakthroughs in spherical magnesium oxide production technology in recent years, there is still a gap with foreign products in terms of product purity and particle size, and domestic market demand still relies on imports.