June 16, 2024

Die Casting Market Growth to Be driven by Advancements in Aluminum Alloys

The Die Casting Market is a manufacturing process wherein metal is heated to a liquid state and injected via a pump at high pressure into reusable steel molds. Aluminum and zinc alloys are commonly used in die casting due to properties like durability, corrosion resistance and light weight. The end products find widespread applications in automotive components, consumer electronics, appliances and electrical hardware. Advancements in aluminum alloys have led to development of alloys with improved strength, thermal conductivity and machinability, simplifying the manufacturing process and allowing more complex part designs.

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 market provides numerous opportunities primarily in the automotive sector, with growth in electric vehicles, connected vehicles and vehicle lightweighting through use of die cast lightweight components. Technological advancements include development of 3D printing capabilities for die casting, and use of hybrid materials and recycling technologies to improve sustainability.

Market drivers: The key driver for the die casting market is growth in the automotive industry globally. As automobile production increases across regions, demand for die cast automotive components will rise significantly. Other factors driving the market include growth of consumer electronics and widespread use of die casting in manufacturing household appliances and hardware due to properties like corrosion resistance. Shift towards electric mobility will further propel demand over the forecast period.

Challenges in Die Casting Market
The die casting industry faces several challenges such as increasing raw material prices, shortage of skilled labour, technology evolution and maintenance of complex die casting machines. Steel, aluminium and zinc are the primary raw materials used in die casting and fluctuation in prices impacts product cost. It is difficult to find experienced die casters due to complex manufacturing process requiring precision. Frequent process and design upgrades are needed to improve productivity which requires huge investments. Maintaining die casting machines involves significant downtime and repair expenses. Development of air-tight dies for high pressure die casting of aluminium alloys poses technical challenges. Stringent environmental regulations regarding emissions and waste disposal increase compliance costs.

SWOT Analysis
Strength: Precision manufacturing capability for mass production of complex shapes. Weakness: High setup and tooling costs for small batch sizes. Opportunity: Growth in automotive, consumer electronics and appliance industries driving demand. Threats: Stiff competition from injection molding for plastic parts.

Geographically, Asia Pacific region accounts for over 45% of global die casting market value led by China, India, Japan and other Asian countries. This is due to low manufacturing costs and presence of major automobile manufacturers in the region. North America is the second largest market due to strong automotive production in US and Canada. Europe is another major regional market led by Germany, UK, Italy and France. The Middle East & Africa region is expected to exhibit fastest growth during the forecast period supported by rapid industrialization in GCC countries.

The automotive industry constitutes the largest end-use segment of die casting market valued at over US$ 25 Bn in 2024. Asia Pacific region contributes almost half of the global automotive die cast parts demand driven by China, Japan and India being major auto manufacturing hubs. Consumer electronics is another fast growing end-use industry utilizing die casting for mobile phones, laptops, TVs and home appliances. Growth in construction and agriculture equipment also fuels 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