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The aluminum die casting market size is forecast to increase by USD 46.2 billion at a CAGR of 8.78% between 2023 and 2028. Market growth is influenced by various factors, including the increasing utilization of aluminum die casting within the automotive sector. This trend is driven by the demand for lightweight and durable components to enhance vehicle performance and fuel efficiency. Additionally, the ongoing urbanization and infrastructure development projects contribute to market expansion, as aluminum die casting finds applications in various construction projects and urban infrastructure development. Furthermore, the rising emphasis on renewable energy initiatives fuels the demand for aluminum die casting in the manufacturing of components for renewable energy systems such as wind turbines and solar panels. As industries continue to prioritize sustainability and efficiency, the market for aluminum die casting is expected to witness significant growth, driven by its versatility and suitability across diverse sectors including automotive, construction, and renewable energy.
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In the realm of the market, the process involves the precision casting of molten metal to meet the demands of the thriving automotive sector. High pressure die casting techniques play a vital role in accommodating the needs of rising vehicle production and facilitating lightweighting efforts. The aluminum market benefits significantly from this, offering solutions that align with industry demands for efficiency and performance. This synergy fosters innovation and growth within the market, ensuring its continued relevance and advancement.
The automotive segment is estimated to witness significant growth during the forecast period. Currently, nearly 30-35% of automotive components are made of aluminum alloys, mainly developed using high-pressure die-casting processes. Demand for aluminum parts produced utilizing high-pressure die casting has grown in many industrial applications in recent years, as the process allows for the production of lightweight parts and offers high flexibility.
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The automotive segment was the largest segment and was valued at USD 37.40 billion in 2018. Furthermore, increasing activities to replace iron and steel with aluminum in the auto industry and increasing investments in the auto and infrastructure sectors are expected to further boost market growth. The market growth is expected to improve during the forecast period to meet the growing demand for lightweight parts and high-conductivity metal parts from both the automotive and non-automotive sectors.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Growing demand for lightweight and high-strength castings is driving market growth in the region. In addition, the region is characterized by a source of cheap skilled labor, making it the most profitable region for various industrial manufacturers, such as automobiles, to establish manufacturing facilities. Additionally, the shift in the global manufacturing landscape towards South Asian countries is expected to have a positive impact on market growth during the forecast period.
The market plays a pivotal role across diverse sectors like the automobile industry, consumer products, and military and defense sector. With a focus on fuel efficiency and reducing harmful emissions, aluminum die casting is gaining traction in transportation and telecommunication applications. The electronics industry benefits from its lightweight properties, while regulations drive demand in industrial manufacturing. As vehicle production rises, high-pressure die casting techniques ensure quality in producing tools and fittings for various applications. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising renewable energy initiatives is the key factor driving the growth of the market. Aluminum die casting is used to produce parts such as covers, housings, brackets, and structural components in onshore and offshore wind turbines. Aluminum die casting is used to produce structures and mounting frames for solar panels. These components must be lightweight, corrosion-resistant, and able to withstand weather conditions.
Additionally, aluminum's die-cast ability to produce lightweight, durable, and thermally conductive parts makes it a valuable solution to meet the specific needs of renewable energy initiatives. Therefore, increasing renewable energy initiatives will drive the growth of the market during the forecast period.
Rising demand for electric vehicles is the primary trend shaping the growth of the market. In the electric vehicle market, to achieve high range with a given battery size and weight, reducing the weight of the electric vehicle is essential. Therefore, aluminum is the preferred material used in electric vehicles. The growing penetration of electric vehicles globally will continue to drive the aluminum die-casting market in the future.
Furthermore, according to the IEA, sales of electric and hybrid electric vehicles (HEVs) are expected to increase significantly and account for 30% of the global auto market by 2030, compared to 4% of the 86 million vehicles sold in 2019. Hence, the increasing demand for electric vehicles will drive the growth of the market during the market forecast period.
Increasing the use of advanced steel for automotive body parts is a challenge that affects the growth of the market. Steel is by far the best choice of automakers around the world. To improve passenger safety and vehicle performance, reducing vehicle weight has become a top priority for companies operating in the automotive industry. Advanced high-strength steel (AHSS) is the fastest-growing material in the automotive industry and a key material in reducing the mass of vehicles.
Additionally, the most popular lightweight material that competes with steel is aluminum. The use of aluminum in the automotive industry has increased slightly. However, car body structures made from aluminum cost 60-80% more than car body structures made from steel. Therefore, the higher cost and lower durability of aluminum compared to advanced steels such as AHSS will impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is propelled by demand from various sectors like the transportation sector and consumer electronics. With a focus on lightweight vehicles to meet CAFÉ standards and improve fuel economy, aluminum die casting offers safety and performance enhancements. It finds applications in engine blocks, gearbox cases, and structural pieces for automobiles, as well as in consumer electronics devices such as laptops, tablets, and smartphones. Additionally, it supports the renewable energy sector with components like mounting brackets for wind and solar power generation. However, challenges like supply chain disruptions, environmental regulations, and technological difficulties must be addressed to ensure process optimization and product quality in this dynamic market.
Further, the market is driven by the demand for lightweight materials in various sectors, including the automotive industry and construction activities. With advancements in die casting technology and process optimization, manufacturers can achieve high-quality products with enhanced thermal conductivity. Additionally, the industry benefits from material innovations and automation, mitigating challenges such as carbon emissions and energy efficiency concerns. Despite facing obstacles like raw material availability and geopolitical tensions, the market continues to thrive, supported by OEM plants and a skilled labour force, ensuring sustainable growth and development.
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Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.78% |
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Market growth 2024-2028 |
USD 46.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.47 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 53% |
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Key countries |
China, India, US, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alcast Technologies Ltd., Aludyne Inc., Amsted Industries Inc., Buhler AG, BUVO Castings BV, Chicago White Metal Casting Inc., Dynacast, Endurance Technologies Ltd., Georg Fischer Ltd., Gibbs, IBEX ENGINEERING PVT. LTD., Madison Kipp Corp., Martinrea Honsel Germany GmbH, Phb Inc., Ryobi Ltd., Sandhar Technologies Ltd., Sundaram Clayton Ltd., Sunrise Metal, Toyota Motor Corp., and Walbro LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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