Aluminum Die Casting Market Size, Share & Trends Report

Aluminum Die Casting Market Size, Share & Trends Analysis Report By Application (Transportation, Telecommunication, Building & Construction), By Production Process, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Aug, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-324-9
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 169

Report Overview

The global aluminum die casting market size was valued at USD 23.99 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2021 to 2028. Increasing usage of aluminum in various applications, such as transportation and telecommunication, is anticipated to boost market growth over the forecast period. A rising preference for high strength and lightweight castings is a prominent driving factor. In the transportation industry, manufacturers must comply with regulations to enhance fuel efficiency and reduce harmful emissions, which is possible by the incorporation of lightweight materials in the production of vehicles.

U.S. aluminum die casting market size, by production process, 2018 - 2028 (USD Billion)

The U.S. is a prominent producer and consumer of aluminum die casting. The upward growth trajectory of the U.S. market was severely impacted in 2020 as the product demand reduced drastically on account of the emergence of the COVID-19 pandemic, which led to a downfall in both production and consumption activities. However, during this period, the acquisition activities increased significantly wherein global players targeted regional players.

For instance, in March 2020, Martinrea International Inc., which is engaged in the design, development, and manufacturing of propulsion systems and lightweight structures, announced that it has acquired the structural components business segment of Metalsa S.A. de C.V. The acquisition has resulted in the addition of six plants including facilities in the U.S., Mexico, Germany, South Africa, and two in China. The strategic initiative is projected to propel the growth of Martinrea International Inc., thereby expanding its product portfolio and customer base.

However, product demand is expected to stabilize over the forecast period. The rise in military spending in the country, coupled with rising investments in automation and robotics, is anticipated to prove fruitful for the market growth. The U.S. has been ranking first in terms of military spending in the world over the past many years. The utilization of castings in military aircraft and other equipment is anticipated to augment due to the rising spending in the military sector.

The growth of the building and construction industry is another growth driver for the market. For instance, construction spending in the U.S. increased by 1.7% from December 2020 to January 2021. This is a positive sign for the market. Aluminum die castings find application in windows, curtain walling, shop partitions, cladding, and prefabricated buildings, among others, in the construction industry.

The market growth declined in 2020 and is expected to remain sluggish in 2021 as well owing to the pandemic outbreak. A steep decline in raw material prices, unemployment, minimal production, and disruptions in transport impacted the manufacturing of aluminum die castings. For example, primary aluminum prices peaked at USD 1,810 per ton on January 21, 2020 and dropped to 1,421.5 on April 8, 2020.

Production Process Insights

Pressure die casting held the largest revenue share of more than 77.0% in 2020. 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 anticipated to propel the market growth, especially in the automotive sector, across the coming years.

Pressure die casting is further segmented into high and low, where the former dominated the market in 2020. The latter’s share is limited owing to the long casting cycle. High pressure die casting (HPDC) is preferred for delivering higher production rates and is thus extensively used in various industries.

The other types of die casting include vacuum die casting and squeeze die casting. The demand for these aforementioned processes is likely to be generated by novel applications, such as the casting of turbine blades and solar sensors. Due to the refined grain size and strong mechanical properties, the finished product offers higher tensile strength and lowers stress rupture capability.

Application Insights

The transportation segment held the largest revenue share of more than 63.0% in 2020. Within the transportation segment, lightweight vehicles are considered to be the key factor behind the growth of aluminum products. The share of die-cast parts is expected to grow by nearly 4.9 kilograms by 2021.

Global aluminum die casting market share, by application, 2020 (%)

The industrial segment held a significant revenue share in 2020. It 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

Asia Pacific dominated the market and accounted for over 45.0%share of the global revenue in 2020. The region is characterized by the presence of skilled labor at low cost, which makes it the most lucrative region for manufacturers to set up production facilities. Moreover, a shift in the global production landscape toward South Asian countries is expected to positively influence the market growth over the forecast period.

China accounted for a key share in the regional market in 2020, considering the widespread presence of the end-use industries in the country. It is one of the largest manufacturing hubs in the world. Moreover, China spends a large amount on military and defense. Although China’s manufacturing operations were also impacted owing to the COVID-19 pandemic, the country reported a fast recovery compared to other parts of the world.

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.

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

  • MartinreaHonsel Germany GmbH

  • Madison-Kipp Corporation

  • Ryobi Limited

Aluminum Die Casting Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 24.81 billion

Revenue forecast in 2028

USD 35.64 billion

Growth Rate

CAGR of 5.1% from 2021 to 2028

Market demand in 2021

8,932.3 kilotons

Volume forecast in 2028

11,376.9 kilotons

Growth Rate

CAGR of 3.3% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion, volume in kilotons, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, competitive landscape, growth factors, and trends

Segments covered

Production process, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; France; Italy; Russia; China; India; Japan; South Korea; Brazil; South Africa

Key companies profiled

Alcast Technologies; BUVO Castings; Chongqing CHAL Precision Aluminium Co., Ltd.; Consolidated Metco, Inc.; Endurance Technologies Limited; FAIST Group; GF Casting Solutions; GIBBS; MartinreaHonsel Germany GmbH; Madison-Kipp Corporation; Ryobi Limited

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global aluminum die casting market report on the basis of production process, application, and region:

  • Production Process Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Pressure Die Casting

      • High Pressure Die Casting

      • Low Pressure Die Casting

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Transportation

      • General Road Transportation

      • Sports Road Transportation

      • Heavy Vehicles

      • Aerospace & Aviation

    • Industrial

      • Agricultural Equipment

      • Construction Equipment

      • Others

    • Building & Construction

    • Telecommunication

    • Consumer Durables

    • Energy

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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