Aluminum Die Casting Industry Overview
The global Aluminum Die Casting Market was valued at USD 69.36 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030. The increasing use of aluminum in various applications, such as transportation and telecommunication, is projected to boost market growth over the forecast period. A rising preference for castings offering high strength and light weight is a key factor driving this trend. In the transportation industry, manufacturers must comply with regulations to enhance fuel efficiency and reduce harmful emissions, which can be achieved by incorporating lightweight materials in vehicle production.
The U.S. is a significant producer and consumer of aluminum die casting. The U.S. market's growth was severely impacted in 2020 due to a sharp reduction in product demand following the onset of the COVID-19 pandemic, leading to a downturn in both production and consumption activities. However, this period was marked by a significant increase in acquisition activities, with global players targeting regional companies.
Detailed Segmentation:
- Production Process Insights
Based on production process, pressure die casting held the largest revenue share of more than 78.0% in 2022. The large share is attributed to phenomenal characteristics provided by the process including easy filling of cavity, smooth surface finish, tighter dimension tolerance, and strong mechanical properties. The growing preference for pressure die casting is expected to propel the market growth, especially in the automotive sector, during across the coming years.
- Application Insights
The industrial segment comprises agricultural, construction, and mining equipment. The aluminum cast products are used in the components of the aforementioned machinery. The rising infrastructural developments in Asian countries are expected to boost the demand for construction equipment across the forecast period.
The product demand in the building and construction segment is dominated by the use of aluminum die-cast products in houses, with various applications such as door handles, roofing, curtain walling, and windows. The rising replacement of iron and steel due to the changing consumer preferences is impacting the market growth on a positive note.
- Regional Insights
North America is anticipated to witness steady growth across the forecast period. Emphasis on reaching pre-covid levels and the incorporation of sustainable solutions is anticipated to augment product demand in the region. For example, in December 2020, Rio Tinto introduced a new series of high-quality aluminum alloys to support recycling by the die casters. Such initiatives are anticipated to prove fruitful for the market growth over the forecast period.
Gather more insights about the market drivers, restraints, and growth of the Aluminum Die Casting Market
Key Companies & Market Share Insights
The market for aluminum die casting is extremely competitive owing to the presence of numerous players across the globe. The ongoing coronavirus pandemic had a harsh impact on the sales and production of the players in the market. Companies had halted their production activities during the lockdown period, which had a negative impact on their sales.
With ease in restrictions, many companies have resumed their operations by adhering to safety protocols. In September 2020, Tesla announced its plan to replace hundreds of robots in its car factory in Germany with giant machines for making simpler chassis parts for raising its EV production. Moreover, the company plans to build compact cars for the European markets, which is further anticipated to bring more investments in the manufacturing facility and augment demand for aluminum die casting. Some prominent players in the global aluminum die casting market include:
- Alcast Technologies
- BUVO Castings
- Chongqing CHAL Precision Aluminium Co., Ltd.
- Consolidated Metco, Inc.
- Endurance Technologies Limited
- FAIST Group
- GF Casting Solutions
- GIBBS
- Martinrea Honsel Germany GmbH
- Madison-Kipp Corporation
- Ryobi Limited
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