Global Aluminum Casting Market - 2024-2031

Global Aluminum Casting Market - 2024-2031

Global Aluminum Casting Market reached US$ 70.5 billion in 2023 and is expected to reach US$ 125.7 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.

A growing preference for high-strength, lightweight castings is a major driving force. Manufacturers in the transportation business must comply with laws aimed at improving fuel efficiency and lowering hazardous emissions. It is possible to include lightweight materials into car construction. Increased demand for general utility and sports utility vehicles is expected to drive product demand in U.S.

Automobile manufacturers in U.S. are under pressure to comply environmental regulations governing car emissions. According to Corporate Average Fuel Economy, passenger automobiles must achieve a fuel efficiency target of 54.5 miles per gallon by 2026 due to increased greenhouse gas emissions, which is expected to boost market growth.

In 2023, North America is expected to be the second-fastest growing region, holding about 25% of the global aluminum casting market. The emphasis on the implementation of sustainable solutions is expected to increase product demand in the region. For example, in December 2020, Rio Tinto started a new line of high-quality aluminum alloys to help die casters in recycling. Such activities are expected to prove beneficial for market growth during the forecast period.

Dynamics

Rising Road Construction

Road construction and expansion activities in the developing world are expected to increase significantly. The rise in infrastructure spending in many countries can be ascribed to the increased development of roads and highways for better transportation and connection between these countries' major economic centers. According to the India Brand Equity Foundation, the infrastructure sector has become one of the Indian government's primary focus areas.

In March 2021, a project to reconstruct an important road segment was won in Spain. The project costs US$ 293.8 million and covers a 70-kilometer stretch of the A4 roadway. In May 2021, Brazil announced a significant new roadway agreement. Improvements to the highway are projected to cost US$ 1.42 billion. New road developments are expected to strengthen the road network in both urban and rural areas, driving up demand for asphalt modifiers.

Growing Number of Mergers and Acquisitions

The rise of industrial activity, infrastructural projects and consumer markets provides opportunity for aluminum casting manufacturers to serve expanding markets. The leading firms are making an increasing number of acquisitions and collaborations in order to accelerate market expansion. For example, in August 2022, Wencan Group Co., Ltd. announced that it plans to develop a production base of aluminum die-cast parts for New Energy Vehicles in Lu'an Economic and Technological Development Zone, Anhui Province.

Sandhar Engineering Private Limited was established in October 2021 as a completely owned subsidiary company to produce and assemble various locking devices, electrical, electronic, mechanical, automobile and industrial parts. The aluminum casting market is expected to expand during the forecast period to fulfil the growing demand for lightweight components and high-conductivity metal parts from the automotive and non-automotive industries.

High Costs of Casting

Aluminum casting requires energy-intensive operations including melting, refining and casting. Fluctuations in energy prices, such as electricity and natural gas, can have a substantial impact on aluminum casting foundries' production costs and competitiveness in the market. The availability and cost of raw materials such as aluminum alloys, ingots and scrap can influence the profitability of aluminum casting foundries.

Fluctuations in global aluminum markets, supply-demand mismatches and trade policies can all contribute to raw material price volatility, which affects manufacturers' production costs and margins. Furthermore, the number of persons wanting services is not being met due to a lack of understanding of services and beliefs about disability, both of which influence treatment seekers. Furthermore, middle-income countries can impede market expansion due to a lower income profile and the rising cost of casting.

Segment Analysis

The global aluminum casting market is segmented based on process, alloy, end-user and region.

Rising Demand for Lightweight Materials Drives the Segment Growth

Building and construction is expected to be the fastest growing segment with 1/3rd of the market during the forecast period 2024-2031. Aluminum casting can be used in a variety of applications, including roofs, door handles, windows and curtain walls. The increased replacement of iron and steel due to changing customer preferences, as well as the advantages of aluminum, such as its lightweight and aesthetic appeal, will drive the segment growth.

The increased substitution of iron and steel due to evolving consumer tastes, as well as the benefits of aluminum, such as its lightweight and aesthetic appeal, are expected to drive the industry during the forecast period. Jindal Aluminium announced in 2024 that it will open a new fabrication division to produce engineered aluminum goods for the building and construction industries, including interior and exterior building products, windows & gates, furnishings, appliances, exhibition displays and roofing.

Geographical Penetration

Rising Automotive Production in Asia-Pacific

Asia-Pacific is the dominant region in the global aluminum casting market covering over 35% of the market. Cheaper labour and production costs in India and China are likely to drive regional market expansion. Furthermore, rising demand for electric and hybrid vehicles has shifted automakers' focus to adopting lightweight materials like aluminum as a substitute for heavy steel and iron in all types of vehicles.

For example, in May 2022, the Tamil Nadu Small Industries Development Corporation committed INR 5.8 crores to build a shared facility centre for aluminum high-pressure die casting. Furthermore, the expanding automobile manufacturing industries across the country are expected to raise demand for lightweight materials for automotive applications. For example, in February 2021, MG Motors indicated that INR 1,500 crore could be spent in the expansion and localization of its business to enhance production capacity at the Halol factory in Gujarat.

Competitive Landscape

The major global players in the market include Alcoa Corporation, RYOBI Aluminum Casting (UK) Ltd., Rio Tinto, Arconic Inc., Dynacast International, Endurance Technologies Ltd., Ryobi Die Casting, Consolidated Metco, Inc., BUVO Castings and Alcast Technologies.

COVID-19 Impact

The COVID-19 outbreak affected supply lines and caused delays in building and construction projects globally. Due to a scarcity of raw materials, labor and government rules, which forced ongoing projects to be halted, an economic crisis ensued, with construction being one of the hardest impacted sectors. During the third quarter of 2020, some local governments began measures to restart road, highway and building construction projects.

Following April 2020, the German Ministry of Transport and Digital Infrastructure resumed building and road construction. Since the second half of 2020, countries like Romania and India have begun highway and road construction. While other infrastructure sectors were severely impacted by the epidemic, the transportation industry experienced a banner year in 2020-21. As a result, when compared to the previous year, the construction sector is expected to grow substantially in 2021.

Russia-Ukraine War Impact

Geopolitical tensions and war can create market uncertainty, leading buyers and investors to pause. Geopolitical conflicts caused delays or cancellations in investment and expansion plans in the aluminum casting industry. Companies may be more cautious about capital spending and strategic decision-making until geopolitical issues are addressed.

Rio Tinto displayed sagacity in 2022, amidst the geopolitical upheaval caused by Russia's invasion of Ukraine, by terminating links with the Russian aluminum producer's subsidiaries while still owning a 20% share in Queensland Alumina Limited. The strategic action involved delaying the delivery of bauxite and alumina to the Russian giant, eventually using emergency step-in rights to prevent any economic advantage from coming to the restricted companies.

By Process
• Die Casting
Gravity Die Casting
Pressure Die Casting
Squeeze Die Casting
• Sand Casting
• Investment Casting
• Continuous Casting
• Shell Molding
• Lost-Foam Casting
• Centrifugal Casting
• Low-Pressure Casting
• Permanent Mold Casting

By Alloy
• 1000 Series
• 2000 Series
• 3000 Series
• 4000 Series
• 5000 Series
• 6000 Series
• 7000 Series
• 8000 Series

By End-User
• Automotive and Transportation
• Industrial
• Aircrafts
• Agriculture
• Military and Defence
• Building and Construction
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In 2024, Alcoa Corporation has announced that it will provide global cable producer Nexans with aluminum manufactured using a novel technology that eliminates all direct greenhouse gas emissions from traditional smelting. Nexans will be the first cable maker to use metal from the groundbreaking ELYSIS™ process, which substitutes all greenhouse gas emissions with oxygen.
• In 2023, Rio Tinto intended to increase its Alma, Quebec smelter's capacity for producing low-carbon, high-value aluminum billets by 202,000 metric tons. The current casting facility will be expanded to include new cutting-edge equipment such as furnaces, a casting pit, coolers, handling, inspection, sawing and packing systems.

Why Purchase the Report?
• To visualize the global aluminum casting market segmentation based on process, alloy, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of aluminum casting market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global aluminum casting market report would provide approximately 62 tables, 67 figures and 205 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies