May 23, 2024

Die Casting Market Estimated to Witness Growth Due to Rising Application in Automotive Industry

The die casting market has witnessed significant growth in recent years owing to increasing application in automotive, consumer goods and industrial machinery sectors. Die casting is a metal casting process that involves forcing molten metal under high pressure into a mold cavity. The key advantages of die casting include precision, production of complex shapes with close dimensional tolerances, and the ability to cast a wide variety of metals. The growing automotive production globally has driven the demand for precision parts and components produced through die casting. The need for lightweight composites and aluminum parts in vehicles for better fuel efficiency has further fueled the growth of die casting market.

The Global Die Casting market is estimated to be valued at US$ 71.59 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the die casting market are Alcast Technologies, Arconic, Consolidated Metco, Inc., Dynacast International Inc., Gibbs Die Casting, Ryobi die casting Inc., Bodine Aluminum, Martinrea Honsel Germany GmbH, Leggett & Platt, Endurance Technologies Ltd., Empire Die Casting Company, Alcoa Inc., Hitachi Metals Ltd, Nemak S.A.B. de C.V., GF Casting Solution AG, Shiloh Industries Inc., Rheinmetall Automotive AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi.

The die casting market provides ample growth opportunities arising from increasing application of casting aluminum and magnesium for lightweight auto parts. Additionally, development of new aluminum alloys to improve casting properties and part performance will further drive adoption of die casting. Technological advancements such as automated die casting robots, real-time production monitoring systems and 3D printing of die cast molds are enhancing productivity and quality.

Market drivers: The key driver boosting the die casting market is growing demand from the automotive industry. Automakers are increasingly adopting die casted components to reduce vehicle weight and meet stringent fuel emission standards. Another major factor is the replacement of iron and steel components with die casted aluminum and magnesium alloys across industries for their superior properties. Increasing penetration of electric vehicles worldwide will further fuel growth as they require more die casted parts for batteries and drive mechanisms.

The die casting market is facing challenges like rising raw material costs, shortage of skilled labor, and fluctuations in demand from end-use industries. Aluminum and zinc, which are the primary raw materials used in die casting, have become more expensive over the past year due to supply chain issues and geopolitical tensions. This has increased production costs for die casting manufacturers. Another challenge is the shortage of experienced die casting operators and engineers. Operating die casting machines requires technical skills that take time to learn. The labor force with die casting expertise is aging, and not enough new talent is entering this field. Further, demand from the automotive industry, which is a key end-market, fluctuates according to economic cycles. When auto sales decline, it adversely impacts the die casting industry. Managing volatile demand cycles poses an ongoing challenge.

SWOT Analysis

Strength: Die casting enables high-volume, complex production of near-net shape components with close dimensional tolerances. Weakness: Dies used in die casting have high initial costs and long lead times for design/manufacturing. Opportunity: Emerging technologies such as 3D printing are enabling more agile die casting tooling design and production. Threats: Rival casting methods such as permanent mold casting offer flexibility at lower volume production levels.

Geographical Regions

The Asia Pacific region currently dominates the die casting market and accounts for over 40% of the global market value. China is the largest producer and consumer of die cast parts due to strong automotive, industrial machinery and hardware manufacturing sectors. North America is another major region supported by a well-established automotive industry led by the US, Canada and Mexico.

Fastest Growing Region

Europe is projected to be the fastest growing region for the die casting market during the forecast period from 2024 to 2031. This can be attributed to initiatives by European governments to boost local EV and renewable energy production. Countries like Germany, Italy, France and UK are witnessing heavy investments in electric vehicle manufacturing and wind turbine production, driving the demand for die cast components.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it