Automotive Parts Die Casting Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The Automotive Die Casting Market is valued at USD 61.05 Billion in 2021 and is expected to reach USD 87.54 Billion by 2027, registering a CAGR of over 6.19% during the forecast period (2022-2027).
The COVID-19 pandemic had a profound impact on manufacturing operations, and the market witnessed a slowdown due to supply chain disruptions and trade restrictions worldwide. However, economic activities resumed across the world market to witness steady growth during the forecast period.
The market studied is largely driven by supply chain complexities in the die casting industry, expanding the automotive market, increasing penetration of die casting parts within the current automotive industry, and future use of die casting in electric vehicles.
The automotive industry witnessed dramatic growth over the past couple of years. Owing to new innovation, it has never restricted itself. At present, automotive manufacturers are striving to meet the targets for highly tensile chassis frames and strong automotive parts, which are long-standing, lightweight, and cost-effective.
CAFÉ standards and EPA policies to reduce automobile emissions and increase fuel efficiency are driving automobile manufacturers to reduce the weight of the automobile by using lightweight non-ferrous metals. Subsequently, the use of die-cast parts as a weight reduction strategy is acting as a major driver for the market studied.
Rules imposed by OSHA and the initiatives by the NADCA to improve the technical workforce in the die casting industry are expected to improve the overall production of the market studied.
The automobile industry is highly dependent on the Environment Protection Agency (EPA) regulations, owing to the high emissions of the automotive units. The move by the EPA to raise the miles per gallon (mpg) standards to 54.5 mpg by 2025 has actually helped the die casting industry, as the automotive industry concluded that the only way to get to those mileage standards is by manufacturing lightweight vehicles.
Automotive Parts Die Casting Market TrendsVacuum Die Casting is Expected to Witness a High Growth RateThere have been significant developments and improvements in the conventional die casting process. Currently, the ultra-high-vacuum die casting process is applied for producing large and thin component parts, such as space-frames and pillars, which are usually welded to automobile chassis.
Electrical and hydraulic components in an automobile work simultaneously. Reliability and quality are given prime importance in transmission parts. The transmission system in an automobile is a complex combination of mechanical functions. It is prone to extreme conditions and environments. This enhances the importance of integrity. Valve bodies, stators, and clutch pistons are some of the commonly die-casted transmission parts in the automotive industry. For instance,
There have been key developments and improvements in the conventional die casting process. Currently, the ultra-high-vacuum die casting process is applied for producing large and thin component parts, such as space-frames and pillars, which are usually welded to automobile chassis. For instance,
However, the shift from other processes to the vacuum die casting process is gradual and expected to continue to increase during the forecast period as manufacturers are trying to embed this technology into the process.
Asia-Pacific Region Expected to Play Key role in the MarketThe Asia-Pacific region is expected to dominate the market owing to the presence of key countries like India, China, Japan, etc. China is one of the major producers of die casting parts, accounting for more than 64.90% of the regional (Asia-Pacific) die casting market share.
The COVID-19 pandemic had a mild impact on the country’s automotive production owing to trade and travel restrictions imposed worldwide. For instance, In December 2020, According to the China Association of Automobile Manufacturers. China's car production reached 2.84 million units registering an increase of 5.7% from 2019. The production of passenger cars reached 2.33 million in December, while the respective figures for commercial vehicles were 509,000 units, up by 2.3% year-on-year.
Some of the major players have to change their expansion plans, product launches, production, etc., for other countries across India, Japan, China, etc. For instance,
The growing automobile industry, along with consumer demand for fuel-efficient vehicles and the latest advancements in die casting techniques, are expected to drive the growth of the Asia-pacific region over the forecast period.
Automotive Parts Die Casting Market Competitive AnalysisThe global market for die casting is highly fragmented, with many regional small-medium scale players from developing countries entering the market. Major recognized players, such as Nemak, Georg Fischer Automotive, Ryobi Die casting, Rheinmetall AG, Form Technologies Inc. (Dynacast), and Shiloh Industries, together accounted for over 16% of the overall global market share. These key players have focused their revenues on R&D, mainly to develop better production processes and alloys. For instance,
Koch Enterprises (Gibbs Die Casting Group), Linamar Corporation, Bocar Group, Endurance Group, Sandhar technologies, Sundaram Clayton Ltd, and Rockman Industries are a few other key players in the market.
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