April 13, 2024
Ict

Die Casting Market is Estimated to Witness High Growth Owing to Increasing Automotive Production

Die casting is a metal casting process by which molten metal under high pressure is injected into a mold cavity. It is suitable for high volume production in an efficiently low-cost manufacturing process. Die casted parts are used across various industries including automotive, industrial, aerospace, construction, telecommunications, and consumer durables. In the automotive industry, die casted components are used to manufacture engine parts, door locks, transmission components, air conditioning parts, and other structural components. The growing automotive production globally driven by rising vehicle ownership, changing consumer preferences, and government initiatives is anticipated to propel the demand for die casting in the upcoming years.

The Globaldie casting market is estimated to be valued at US$ 71.59 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Die Casting market are Alcast Technologies, Arconic, Consolidated Metco, Inc., Dynacast International Inc., Gibbs Die Casting, Ryobi die casting Inc., Bodine Aluminum, Martinrea Honsel Germany GmbH, Leggett & Platt, Endurance Technologies Ltd., Empire Die Casting Company, Alcoa Inc., Hitachi Metals Ltd, Nemak S.A.B. de C.V., GF Casting Solution AG, Shiloh Industries Inc., Rheinmetall Automotive AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi.

The growing automotive industry globally presents significant opportunities for die casting manufacturers to expand their market share. With rising investment in electric vehicles production, demand for die casted components is also expected to increase rapidly.

Major die casting companies are focusing on global expansion by establishing production facilities across regions with significant automotive hubs to cater to the regional demand and benefit from low production costs. For example, Alcast launched a new die casting plant in Mexico to supply American and European automakers.

Market drivers

The growing automotive production globally driven by rising vehicle ownership, changing consumer preferences, and stringent emission norms is a key driver for the die casting market. Expanding application of die casted parts across industries such as industrial machinery, aerospace, consumer durables is further augmenting market growth. Ongoing technological advancement in die casting processes and growing automation is also supporting manufacturers to improve efficiency and reduce production costs.

PEST Analysis
Political: Die casting market is governed by various standards and regulations regarding product quality, emissions, use of chemicals, and worker safety set by authorities like UL, FCC, and OSHA.

Economic: The demand for die casted components is dependent on the growth of the automotive, industrial machinery, consumer electronics, and telecommunication industries which are key end-use sectors.

Social: Factors such as growing urbanization, rising living standards, and changing lifestyles are increasing the demand for consumer electronics and automobiles that use die casting.

Technological: Advancements in robotics, 3D printing, and automation allow higher production volumes with precise dimensions and complex geometries, while reducing costs. Integration of Industry 4.0 technologies improves efficiency of manufacturing processes.

Geographical concentration
In terms of value, Asia Pacific leads the die casting market where China accounts for over 50% of worldwide die casting capacity. This is owing to strong presence of casting, automotive and electronics manufacturing industries in the region. North America and Europe are other major markets driven by automotive production.

Fastest growing region
The die casting market in Central and South America is estimated to grow at the fastest CAGR during the forecast period. This can be attributed to rising automobile production and sales in Mexico, Brazil, and Argentina due to increasing private vehicle ownership, infrastructure development and industrial expansion. Investments by automakers in production capacity expansions will fuel demand for die casting components from the region.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it