The global aluminum die casting market size was valued at USD 24.91 billion in 2018 and is expected to register a CAGR of 10.1% from 2019 to 2025. Demand from growing building and construction sector and increasing aluminum content in vehicles are the key drivers.
Increasing adoption of high-strength and lightweight castings, specifically in the auto sector is projected to propel the demand for finished products. Manufacturers are focusing on such products owing to compliance norms of fuel efficiency as per the directives given by regulatory authorities of the U.S. and Europe.
U.S. and China are the key choices for this new expansion plan by manufacturers. For instance, Ta Chen International Inc. is expected to add new casting mill in the U.S. by 2022. Similarly, China Zhongwang Holdings Ltd. is likely to add a new casting facility in the Chinese province of Liaoning by 2019.
The use of pure aluminum is rare due to the high cost of extraction. Secondary aluminum is widely preferred across the industry, as it is economical and offers customization as per the specific application or end-use. In addition, recycled aluminum has widely gained popularity among the buyers, as the customers are demanding for products with low carbon footprint.
Leading companies in the market have introduced new technologies that are expected to transform the industry over the forecast period. For consistent designing and processes, Computer-Aided Process Planning (CAPP) systems are now becoming a norm in the industry. CAPP systems help link manufacturing and design. Computer Aided Three-Dimensional Analysis (CATIA) is used in many leading foundries.
In terms of revenue, the pressure die casting process accounted for a market share of nearly 58.6% in 2018. The process is widely popular around the globe due to its unique advantage of producing high volume products. It is likely to witness significant growth over the forecast period, owing to the steady demand from the automotive sector.
Pressure die casting can be performed via high or low pressure processes. Nearly 70% of the products are manufactured using high pressure process whereas low pressure process accounts for nearly 30% of the global pressure die casting industry. The high pressure process in the industry is considered idle for achieving higher production rates and is largely used in various industries.
Low pressure process is used in the production of low quantity products with high unit cost owing to the slower casting cycles.However, with the advancement in technology and the initiatives pursued by manufacturers, cycle of this process is significantly reduced in the last few years. For instance, in 2016, Kurtz Holding was able to successfully reduce the casting cycle by nearly 50%.
The transportation sector is one of the primary industries for the growth of the aluminum die casting market. Within the transportation segment, lightweight vehicles are considered to be the key driver for growth in the forthcoming years. Automakers in different countries are focusing on lightweight vehicles. For instance, top OEMs in India, such as Tata Motors, Mahindra & Mahindra, Eicher Motors, and Ashok Leyland, are exploring possibilities to develop energy efficient vehicles by using aluminum. The transportation sector accounted for 61.5% of revenue share in 2018.
Government initiatives to boost the auto sector around the world are projected to assist market growth. For instance, Canadian government initiatives such as the Automotive Supplier Innovation Program, helps the automotive suppliers in their product and process innovations. In order to create the program, the government proposed an Economic Action Plan that provides USD 100 million over five years from 2015-2016 to reduce the costs incurred on R&D activities and innovations. This initiative also supports the Automotive Innovation Fund by strengthening Canada’s components supply base and supporting automotive R&D in the country.
In terms of volume, the consumer durables segment is projected to expand at a CAGR of 10.8% from 2019 to 2025. Aluminum die cast products are used in cameras, laptops, smartphones, flat screen TVs, furniture, and sporting equipment, among others. Electronics manufacturers including Sony, LG, and Philips have successfully replaced steel and plastic with aluminum.
Asia Pacific was the largest region accounting for nearly 45% of the market share in 2018.Increasing demand for automobiles in countries such as China and India is projected to drive the growth over the forecast period. Advantages such as cheap labor costs in China and India encourage manufacturers to set up production facilities in the region. The regional production of automotive vehicles held 54.8% of the total motor vehicles production in 2018 as per the study published by the OICA.
Central and South America aluminum die casting held a volume share of 6.1% in the global market in 2018 and is projected to expand at a CAGR of 4.1% from 2019 to 2025. In 2017, the government of Colombia eliminated import tariffs on up to 1,500 electric vehicles by 2019 and will increase up to 3,000 electric vehicles by 2023.
North America was valued at USD 4.43 billion in 2018 and is anticipated to exhibit strong growth over the forecast period. The regional demand is driven by growing output from construction and automotive sector. As per the U.S. Census Bureau, construction spending was valued at USD 1,314.6 billion in 2018.
In an attempt to gain a competitive edge, the market players have started focusing on inorganic growth strategies. For instance, In March 2017, Consolidated Metco, Inc. announced its partnership with Protean Electric to develop electric in-wheel drive systems, which will be used in medium- and heavy-duty commercial vehicles.
Market participants include Alcoa Corporation; Walbro; Dynacast; Gibbs Die Casting Corporation; Ryobi Ltd.; Consolidated Metco, Inc.; Bodine Aluminum, Inc.; Martinrea Honsel Germany GmbH; and Alcast Technologies.
Report Attribute |
Details |
Market size value in 2020 |
USD 32.6 billion |
Revenue forecast in 2025 |
USD 48.93 billion |
Growth Rate |
CAGR of 10.1% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Volume in kilotons, revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Volume forecast, revenue forecast, company share, competitive landscape, growth factors and trends |
Segments covered |
Product, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; France; Italy; Russia; India; China; Japan; South Korea; Brazil; South Africa |
Key companies profiled |
Alcoa Corporation; Walbro; Dynacast; Gibbs Die Casting Corporation; Ryobi Ltd.; Consolidated Metco, Inc.; Bodine Aluminum, Inc.; Martinrea Honsel Germany GmbH; Alcast Technologies |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global aluminum die casting market report on the basis of process, end-use, and region:
Process Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Pressure Die Casting
High Pressure Die Casting
Low Pressure Die Casting
Others
End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
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, 2014 - 2025)
North America
The 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
b. The global aluminum die casting market size was estimated at USD 29.7 billion in 2019 and is expected to reach USD 32.6 billion in 2020.
b. The global aluminum die casting market is expected to grow at a compound annual growth rate of 10.1% from 2019 to 2025 to reach USD 51.1 billion by 2025.
b. The pressure die casting process dominated the aluminum die casting market with a share of 77% in 2019. This is attributable to the steady demand from the automotive sector due to its unique advantage of producing high volume products.
b. Some key players operating in the aluminum die casting market include Alcoa Corporation; Walbro; Dynacast; Gibbs Die Casting Corporation; Ryobi Ltd.; Consolidated Metco, Inc.; Bodine Aluminum, Inc.; Martinrea Honsel Germany GmbH; and Alcast Technologies.
b. Key factors that are driving the aluminum die casting market growth include demand from the growing building and construction sector and increasing aluminum content in vehicles are key drivers.
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