by Aluminum casting involves the process of melting and pouring aluminum into molds to obtain complex shapes that can be used in various end-use industries such as automotive, aerospace, industrial machinery, and others. Aluminum castings are used to manufacture mechanical components for machines and equipment, which require surfaces that can withstand high stresses and pressures. They are a viable alternative to ferrous castings for applications where lightweight yet corrosion-resistant and high-strength parts are required. Automotive manufacturers are increasingly adopting aluminum castings for powertrains, wheels, brake calipers, and cylinder head covers as aluminum is 33% lighter than steel and helps improve fuel efficiency.
The global aluminum casting market is estimated to be valued at US$ 75.61 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing automotive production worldwide remains a key driver for the global aluminum casting market over the forecast period. As per OICA data, global vehicle production rose by 3.3% year-on-year to reach 94.3 million units in 2022. Automakers favor aluminum casting as it helps reduce vehicle weight and consequently improves fuel efficiency to comply with stringent government emission regulations. Further, continuously expanding economies of Asian countries such as China and India, where aluminum consumption is rising steadily, also supports market growth. However, volatile raw material prices remain a challenge. Aluminum ingot prices declined by 3.5% y-o-y to $2,388 per ton in 2022 on slowing global demand and fears of recession.
SWOT Analysis
Strength: Aluminum casting offers high strength to weight ratio which helps in reducing the overall weight of components. This enables improved fuel efficiency in automotive applications. Aluminum has high corrosion resistance which extends the life of components used across industries. The process of aluminum casting provides dimensional accuracy and precision in production of components.
Weakness: Aluminum casting requires extensive machinery and tooling which increases the initial costs. Quality control during casting process is challenging to maintain precise tolerances and dimensions. Changes to the casting design require modifications to the dies and tooling which leads to additional expenses.
Opportunity: Growth of automotive production especially in electric vehicles is opening new avenues for aluminum casting manufacturers. Electronics industry demand for aluminum cast housings and parts is on the rise. Increasing penetration of aluminum casting across renewable energy applications like solar panels and wind turbines presents new growth opportunities.
Threats: Volatility in aluminum prices impacts the manufacturing costs. Stringent emission regulations pose technical challenge to reduce emissions from casting facilities. Developments in additive manufacturing and 3D printing technologies provide alternatives to traditional casting processes.
Key Takeaways
The Global Aluminum Casting Market Size is expected to witness high growth over the forecast period. The global aluminum casting market is estimated to be valued at US$ 75.61 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030.
North America currently dominates the market owing to large automotive production and presence of major casting players. The region’s market is expected gain share due to wide adoption of electric vehicles which use aluminum casting components for lightweighting. Asia Pacific exhibits fastest growth supported by increasing automobile manufacturing especially in China and India. Japanese and Chinese firms have leading market share and are focusing on capacity expansions to cater rising regional demand.
Key players operating in the aluminum casting market are Keysight Technologies, Alcoa Corporation, Ryobi Limited, Walbro, Consolidated Metco Inc. They are focusing on new product development and enhancing production capabilities through acquisitions and expansions. For instance, Alcoa has completed the expansion of its aluminum casting facility in Tennessee to support automotive industry. Ryobi has entered joint venture with Fiat Chrysler to produce aluminum castings for Jeep vehicles manufactured in Detroit. Considering the fragment nature of the market, collaborations and mergers will continue among casting players.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
