United States Automotive Parts Die Casting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Automotive Parts Die Casting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States automotive parts Die-Casting market for automobiles has matured and is witnessing steady growth over the past couple of years. Though affected by the economic crisis and government tax policies that affected the small firms, as a whole, the regional market continues to dominate the global market, with the growing automobile industry in the country.

Key Highlights

• The market studied is largely driven by supply chain complexities in the die casting industry, the expanding automotive market, increasing penetration of die casting parts in industrial machinery, the growing constructional sector, and employing aluminum casts in electrical and electronics.
• The CAFÉ standards and EPA policies to cut down automobile emissions and increase fuel efficiency are driving the automakers to reduce weight of the automobile by employing lightweight non-ferrous metals. Subsequently, employing die-cast parts as a weight reduction strategy is acting as a major driver for the former market in automotive segment.
• However, crunch in raw material supply, volatility in raw material prices, and environmental regulations on emission for the metallurgy industries are acting as major barriers for the market growth.
• However, with the outbreak of coronavirus during 2020, the whole supply chain of automotive industry was impacted very badly. The OEMs are struggling to keep their operations going, as the forced lockdown impacted their cash positions very badly. In the demand side, the end consumers are also fighting hard to manage their finances, as the pandemic resulted in job losses.

Key Market TrendsCost Issues and Resource Inefficiencies

In the light of climatic changes, the global regulatory authorities have set predefined targets for climate protection and energy savings and thereby have made huge initiatives to implement them in recent years. The decisions and measures adopted to protect the climate are having a significant impact on the die casting foundries. The European Union has plans to bring down the primary energy usage to around 20% by the year 2020. The energy savings target (i.e., to cut primary energy usage) has been formulated for the subsequent period, extending to the year 2050.

Die-casting involves sophisticated gating technology, and the level of complexity varies with the pressure of injected molten material. Casting cost varies as per the requirements and changes in material content, net-shape capability and complexity, tooling, and conversion costs. Die-cast tooling is also often regarded as the biggest in terms of cost, and die-cast engineering involves a significant degree of capital that is required for developing suitable gating systems. In addition, the initial costs are also substantially huge for making and manufacturing a suitable non-ferrous die-cast part required by the end-user industries. The gestation period for the investment incurred is also longer due to the implementation of several capital-intensive advanced tools and machinery in the production process.

Although dies have a relatively long wear life and could be economically used in large production facilities, the high start-up cost makes it costlier than conventional vehicle component production. High precision equipment and the extension of casting technologies are increasingly being employed to improve the stability and quality of the component. Thus, the cost involved is significantly high for making and manufacturing suitable die-cast components required for the automotive, industrial, and electronic applications.

Growing Industry Competition

Empire Die Casting, an Ohio-based aluminum and zinc die caster, and other plants have installed advanced electric aluminum melting, distribution, and holding systems that will cut the amount of energy needed to melt aluminum by 80%. Die casters have successfully implemented a closed-loop system to recycle and reuse as much material as possible within their processes. They recycle everything from office paper to hydraulic fluid to machining chips. This results in very little waste being transported to the landfill. These steps taken by the Die casting firms within the U.S and across North America acted as major driving factors for sustained growth of the market in the country. Increased automation in the die casting industry spiked the productivity and a parallel demand for the former from the automotive industry is dragging the attention of automotive manufacturers towards highly durable aluminum die casting parts.

Competitive Landscape

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.

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.

These key players have focused their revenues on R&D to come up with better production processes and alloys. This strategy may assist in the production of premium quality die cast parts for the global automotive and industrial sectors. Key players have also expanded their presence, globally, through various mergers, expansions, partnerships, joint ventures, and acquisitions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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