Automotive Parts Aluminum Die Casting - Global Market Outlook (2021 - 2028)

Automotive Parts Aluminum Die Casting - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Automotive Parts Aluminum Die Casting Market is accounted for $50,910.50 million in 2021 and is expected to reach $99,210.15 million by 2028 growing at a CAGR of 10.0% during the forecast period. Aluminum die castings are lightweight and possess high dimensional stability for complex part geometries and thin walls. Aluminum withstands good corrosion resistance and mechanical properties as well as high thermal and electrical conductivity, making it a good alloy for die casting. Low-density aluminum metals are essential to the die casting industry. The Aluminum Die Casting process retains a durable strength at very high temperatures, requiring the use of cold chamber machines. The molten metal is still contained in an open holding pot which is placed into a furnace, where it is melted to the necessary temperature. The open holding pot is kept separate from the die casting machine and the molten metal is ladled from the pot for each casting because these high temperatures would damage the normal pumping system. The pressure requirements for cold chamber castings are typically higher than those of hot chamber die castings.

Market Dynamics:

Driver:

Increasing adoption in automotive industry

The automotive industry is highly efficient in adopting new technologies to make their vehicles faster and safe at the same time. They use modern technologies and incorporate mechanisms to ensure every component used within vehicles is of perfect shape, quality, and size. Aluminium die casting is one such mechanism that can help in the delivery of intricate components that can be used within breaking mechanism and for manufacturing other parts of different types of vehicles. Aluminium die casting company makes use of reliable metals like aluminium and zinc to make dedicated structures and components which ultimately can be used of vehicles for better reliability and durability. Automobile manufacturers can make vehicles lighter and safer by ensuring the perfect quality of their internal as well as external components. Moreover, the use of aluminium as a material for creating different components for vehicles can help in the delivery of better resistance to heat infection with better effectiveness.

Restraint:

Cost issues and resource inefficiencies

Although die-casting being an energy-intensive processes the die-casting companies cannot apply for an exemption from, or reduction of the reallocation charge. Almost 8% of the production costs in die casting go to energy costs; hence, the uncertainties in natural gas and petroleum price also influence the industry, drastically increasing overall production cost. Die-cast tooling and die-cast engineering require a significant degree of capital. Additionally, the usage of metals as raw materials comes with price instability and any fluctuations in the global economy, influx in exchange rates, make the cost of raw materials volatile. Demand side of the aluminium and zinc alloy market is pressurizing the supply side and prices are further expected to grow up during the forecast period.

Opportunity:

Rising demand from the electric vehicles

Electric vehicle industry has been rapidly developing internationally due to a confluence of factors such as emission norms, industry shifts and shift in consumer preferences. Electric or hybrid vehicles also benefit significantly, where drive and power train elements such as electric motors can be manufactured using structural components made of die-cast aluminium, zinc and copper. Demand for electric and hybrid vehicles is increasing because of growing environmental concerns regarding CO2 emissions and efforts by government authorities (EC) and programs (such as Europe NCAP) to make vehicles more fuel-efficient. With the recovery of the economy in many countries, real income of the people is expected to grow up, along with the shift of consumer preference to fuel efficient vehicles, which will further increase the adoption of electric vehicles in the forecast period.

Threat:

Disrupted supply chain due to covid-19

The automotive die casting manufacturing industry has faced a heavy challenge due to less revenue generating and decreased demand for OEMs. Dearth of functional capital and stoppage of production of the automotive sector is worsening the situation of automotive market and its component. Besides, consumers are being unable to visit car showrooms due to social distancing and government-enforced closures. In addition, the increasing contribution from shared mobility to automotive sector will reduce due to various norms imposed by governments. Additionally, disrupted supply chain would stop the exchange of goods, which in turn would affect the automotive Die Casting market.

The commercial vehicles segment is expected to be the largest during the forecast period

The commercial vehicles segment is estimated to have a lucrative growth. A huge demand of the production of commercial die casting products rose due to the magnification of various industries. This growth opened up various markets for the die casting industry to expand into diverse markets. For Commercial Vehicles, an attempt is made to replace existing Gear Shift Fork from FC Iron (Ferro Cast Iron) to ADC (Aluminum Die Casting) without compromising its strength & stiffness, considering/bearing all the worst road load cases and severe environmental conditions. ADC has good mechanical and thermal properties compared to FC Iron. In addition, die cast components are also making inroads into commercial vehicles and are therefore capturing new market segments.

The pressure die casting segment is expected to have the highest CAGR during the forecast period

The pressure die casting segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the growing adoption of and consumer interest in the segment across the world. The process is accessible globally because of its unique advantage in manufacturing high-volume goods. Moreover, steady demand from the automotive sector is likely to contribute to substantial growth of the market over the forecast period. The high-pressure process in the industry is called idle for achieving higher output levels and is primarily used in various industries. The low-pressure process is used in the output of low-volume goods with top unit costs due to the longer casting cycles.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. In the Asia-Pacific region, major countries like India, China, and Japan are expected to contribute significantly to the development of the market over forecast period. China is one of the major producers of die casting parts, and growing adoption of passenger cars in the region is likely to have an optimistic impact on the market. The Chinese economy is growing and the disposable income of the middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, owing to the low production costs in the country, the demand for vehicle production has gone up drastically. Moreover, with the rise in demand for electric vehicles in the country, the demand for aluminium die casted parts is expected to increase in the coming years.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. North American countries are making good contribution to the automotive industry with die-casting being support pillar for the market growth. Automotive industry is witnessing an upswing, with die casting makers their presence worth. Production of automobile has been witnessing a lucrative growth in United States, Canada, and Mexico. Over the past five years, owing to the low production costs in the country, the demand for vehicle production went up drastically. With the rise in demand for electric vehicles in these countries, the demand for aluminium die casted parts is expected to increase in the coming years. With technological advancements the manufacturers are expected to see raise in demand for car exports which intern will increase demand for die casting automotive parts as manufacturers are looking to reduce car weight in order to keep up with emission norms across the world.

Key players in the market

Some of the key players profiled in the Automotive Parts Aluminum Die Casting Market include Altizon Inc, Endurance Technologies Ltd (CN), Georg Fischer Limited, Interplex Holdings Ltd, Koch Enterprises, Martinrea Honsel, Nemak, Pace Industries, Rheinmetall AG, Rockman Industries, Ryobi Die Casting Inc, Sandhar Technologies, Shiloh Industries Inc, Sipra Quality Die Casting, and TEKSID SpA.

Key Developments:

In December 2021, Altizon Inc. (Altizon) announced that it is working with Sundaram Clayton Limited (SCL), a subsidiary of TVS Group, to scale up the deployment of its industry-leading Datonis Digital Factory, in casting and machining cells across all SCL plants in India and North America.

In March 2021, Endurance Technologies Limited announced that a new plant at Waluj is being set up to meet the demand of disk brake assembly business. This new plant began in August 2021. The company is also setting up a cylinder-head low-pressure die-casting plant at Pantnagar, which will start operations FY 2022.

In March 2021, Sandhar Technologies entered into a non-binding Memorandum of Understanding with Unicast Autotech for the purpose of acquiring its aluminum die casting business.

In March 2021, Rheinmetall AG group won an engine block supply contract of over EUR 100 million for a German car manufacturer. Full-scale production is planned to begin in 2023. The lifetime of the contract extends beyond 2030.

Production Processes Covered:
Semisolid Die Casting
Vacuum Die Casting
Pressure Die Casting
Squeeze Die Casting
Gravity Die Casting

Applications Covered:
Engine Parts
Transmission Parts (Wheel)
Body Parts (Chassis)
Battery and Related Components
Other Applications

End Users Covered:
Commercial Vehicles
Passenger Vehicles

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances