Aluminum Die Casting Market Report
Aluminum Die Casting Market by Production Process (Pressure Die Casting and Others), Application (Transportation, Industrial, Building & Construction, Energy, Telecommunication, Consumer Durables, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Aluminum Die Casting Overview
Complex and dimensionally correct metal items composed of aluminium alloys can be produced using a manufacturing technique called aluminium die casting. It is a flexible and popular process for producing premium components with outstanding mechanical qualities. A two-part mould is first produced, usually out of steel, to specify the shape and characteristics of the desired part. High pressure injection of molten aluminium is made possible by the mold's design. At temperatures between 660 and 720 degrees Celsius (1220 and 1330 degrees Fahrenheit), recyclable scrap metal or aluminium ingots are melted in a furnace. Then, using a plunger or hydraulic piston, the molten aluminium is poured into the mould. The high pressure ensures that the liquid metal fills the mould cavity fully and solidifies quickly (usually between 10 and 175 MPa or 1500 and 25,000 psi).
Global Aluminum Die Casting Market Analysis
The global aluminum die casting market size was $70.3 billion in 2022 and is predicted to grow with a CAGR of 5.5%, by generating a revenue of $119.9 billion by 2032.
COVID-19 Impact on Global Aluminum Die Casting Market
The COVID-19 pandemic had a profound impact on the aluminum die casting market. Global supply chains were hampered by the pandemic, which also affected the availability and shipping of the raw materials needed for aluminium die casting. Production capacity was impacted by the delays and interruptions in the supply of aluminium alloys brought on by lockdown procedures, travel restrictions, and temporary facility closures. The pandemic-induced economic downturn decreased demand for a variety of goods and parts, including those made of aluminium die casting. Lower production volumes and a slowdown in the aluminium die casting market were caused by a fall in demand across various industries, including automotive, aerospace, and consumer products.
The demand for aluminium die cast components has begun to increase as economies and businesses get back to work. A resurgence in demand for aluminum parts is being observed in industries like automotive, aerospace, electronics, and renewable energy, which is propelling the growth of the aluminium die casting market.
Rising Demand for Light Weight Parts in Various Industries to Drive the Market Growth
The development of light weight parts is a rising trend across industries as manufacturers strive to improve overall performance, reduce emissions, and improve fuel efficiency. Due to the high strength-to-weight ratio of aluminium alloys, aluminium die casting offers a fantastic solution for lightweight components in various industries including consumer electronics, aerospace, and transportation. The market for aluminium die casting is significantly influenced by the automobile sector. The popularity of aluminium die cast components in car manufacture has been spurred by the rising demand for automobiles as well as the necessity for lightweight materials to comply with strict emission laws. These parts include structural elements, engine blocks, and gearbox cases among others.
Volatility in Raw Material Prices to Restrain Market Growth
Prices of aluminium and other raw materials used in die casting, such as copper and zinc, may change due to market conditions, supply and demand considerations, and political and economic circumstances. The profitability of die casting producers may be impacted by fluctuating raw material costs, and maintaining steady client pricing may become difficult. A die casting plant must be set up with a significant initial investment in equipment, moulds, tools, and infrastructure. These capital costs may be hurdle for new entrants or small-scale businesses who are interested in entering the aluminium die casting market. For various component designs, the cost of creating and maintaining moulds can also be substantial, particularly for sophisticated and large-scale production.
Renewable Energy Sector to Drive Excellent Opportunities
The increased global emphasis on renewable energy sources such as wind and solar power offers various opportunities for the growth of the aluminium die casting market. Die casting can be used to make parts for solar panel frames, wind turbine generators, and other renewable energy equipment. Alloys made of aluminium are perfect for such uses since they are lightweight and strong. The aerospace sector is always looking for lightweight materials to increase fuel economy and lower emissions. Making intricate and lightweight aeroplane parts, including engine parts, structural components, and interior fixtures, is possible with aluminium die casting. A bright opportunity for the aluminium die casting market is presented by the expanding need for lightweight materials in the aerospace industry.
Global Aluminum Die Casting Market Share, by Production Process, 2022
The pressure die casting sub-segment accounted for the highest share in 2022. When compared to other manufacturing technologies, pressure die casting provides high production efficiency and cost effectiveness. Shorter production cycles and cost savings are achieved by eliminating the need for extra machining as complicated and complex shapes with precise tolerances can be produced in a single operation. Making lightweight components with thin walls while keeping strength and structural integrity is possible using pressure die casting. This is significant for sectors like automotive and aerospace where light weight components are essential for performance and fuel efficiency.
Global Aluminum Die Casting Market Share, by Application, 2022
The transportation sector accounted for the highest market size in 2022. In order to comply with strict emissions standards and cut operating costs, the transportation industry, particularly the automotive sector, is concentrating on increasing fuel efficiency. Engine blocks, gearbox cases, and structural components can all benefit from the lightweighting capabilities of aluminium die casting. Vehicles can increase fuel efficiency without sacrificing strength or safety by swapping out heavy components for lightweight aluminium alloys. Pressure to cut greenhouse gas emissions and embrace sustainable practises is growing in the transportation sector. By making it possible to create lightweight vehicles with lower operating costs and emissions, aluminium die casting helps to achieve these objectives.
Global Aluminum Die Casting Market Share, by Region, 2022
The Asia Pacific aluminum die casting market generated the highest revenue in 2022. Particularly in nations like China, India, Japan, South Korea, and Southeast Asian countries, Asia Pacific is experiencing strong industrial growth. The need for aluminium die cast components is being driven by this industrial expansion in several industries, including automotive, electronics, consumer products, infrastructure, and more. The Asia-Pacific region is the centre of automotive manufacturing. The demand for lightweight, high-quality aluminium die cast parts is fuelled by the expanding automotive industry in Asia Pacific, which supports the market's expansion.
Competitive Scenario in the Global Aluminum Die Casting Market
Product development and geographic expansion are common strategies followed by major market players. There are several major players functioning in the highly competitive global market. Some of the leading aluminum die casting market players are Alcast Technologies, Consolidated Metco, Inc., BUVO Castings, Madison-Kipp Corporation, Chongqing CHAL Precision Aluminium Co., Ltd., Endurance Technologies Limited, Martinrea Honsel Germany GmbH, FAIST Group, Ryobi Limited, GF Casting Solutions, and GIBBS.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Production Process
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the aluminum die casting market?
A. The size of the aluminum die casting market was over $70.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% during the forecast period.
Q2. Which are the major companies in the aluminum die casting market?
A. BUVO Castings and GIBBS are some of the key players in the global aluminum die casting market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Product development and geographic expansion are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. BUVO Castings and GIBBS are the companies investing more on R&D activities for developing new products and technologies.