May 21, 2024
Ict

Die Casting Market is expected to be Flourished by Increasing Adoption of Aluminum Die Castings in Automotive Industry

Die casting refers to the process of forcing molten metal under high pressure into a mold cavity. The mold cavity is created using reusable metal tools, called dies. Common die casting alloys include zinc, aluminum, magnesium, and copper. Die castings are widely used in the automotive, transportation, and aerospace industries for applications that require lightweighting, corrosion resistance, and durability. Some common applications of die castings include engine parts, transmission parts, steering and suspension components, wheels, and exterior body parts. The growing use of lightweight aluminum and magnesium alloys for automotive applications is expected to drive growth of the die casting market.

The global die 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, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The growing adoption of aluminum die castings in the automotive industry is expected to be a major driver for the die casting market over the forecast period. Aluminum possesses lightweight and corrosion-resistant properties suitable for automotive applications such as engine blocks. Its use helps reduce vehicle weight and boost fuel efficiency, in line with increasingly stringent emission regulations worldwide. Moreover, aluminum castings can significantly lower manufacturing costs as compared to machined aluminum components.

Another driver for the market is the growing demand for electric and hybrid vehicles globally. EV/HEV architectures utilize more aluminum than conventional internal combustion engine vehicles to improve driving range through reduced weight. Critical electric powertrain components such as battery housing, power electronics housing, electric motor housings are well-suited for die casting production. As governments worldwide implement policies and incentives to boost adoption of green vehicles, sales of EVs and HEVs are expected to surge, benefiting aluminum die casting component manufacturers.

Segment Analysis
The global die casting market is dominated by the aluminum segment which accounts for around 70% of the total market share. Aluminum is predominantly used for die casting due to its light weight, corrosion resistance and durability properties. It allows the production of complex components for varied end-use industries like automotive, industrial machinery, consumer durables, and others. Growing environmental concerns is further driving the consumption of aluminum for manufacturing lightweight vehicles and equipment in order to improve fuel efficiency.

PEST Analysis
Political: Trade agreements favoring free trade between countries boost the growth prospects of the die casting market. Stringent emission norms promoting usage of lightweight materials in automotive sector.
Economic: Growing automotive production and sales across developing nations owing to rising disposable income levels. Investments in industrial machinery and infrastructure development projects increasing die casting demand.
Social: Increasing urbanization and changing lifestyles fueling the sales of consumer appliances and durable goods. Growing health awareness expanding medical device manufacturing.
Technological: Advancements in die casting techniques like low-pressure die casting (LPDC) enabling production of complex shapes with close dimensional tolerances. Adoption of robotics and automation improving productivity.

Key Takeaways
The global die casting market is expected to witness high growth between 2024 to 2031 driven by factors like growing automotive production, increasing investments in industrial machinery and gaining traction of lightweight components.

Regional analysis: Asia Pacific region currently dominates the die casting market accounting for around 50% of the global demand. China stands at the forefront with the highest casting capacity due to large automotive and electronics manufacturing bases in the country. India is also emerging as a major market supported by government initiatives like ‘Make in India’ attracting investments in the automotive and engineering sectors.

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. These players are focusing on new product launches, acquisitions and enhancing operational efficiencies through automation and digitization to strengthen their global presence.

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