DIE CASTING MARKET ANALYSIS

Die Casting Market Size and Trends

The die casting market is estimated to be valued at US$ 78.12 billion in 2024 and is expected to reach US$ 127.92 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031. Die casting is commonly used in automotive applications where it is valued for its ability to produce complex shapes in high volumes for components like engine parts.

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The demand for die casting is expected to be primarily driven by the automotive industry over the coming years. As electric vehicles see higher adoption rates, die casting will play a key role in manufacturing drivetrain components like motors and transmission parts which require precision. Growth in other industries such as consumer electronics will also support the rising demand for die casting techniques to manufacture housings, frames, and other metal parts.

Growth in the Automotive Industry

The automotive industry has experienced steady growth over the past couple of decades. Increasing vehicle production across the globe is boosting the need for high-quality and cost-effective die casting components. Automakers around the world are manufacturing more vehicles every year to cater to the growing demand from consumers. This rise in automotive manufacturing is fueling the need for numerous die casted auto parts such as engine parts, transmission components, steering parts, and other complex structural components.

Most die casted parts in the automotive industry have intricate designs and tighter tolerances for dimensional accuracy. This ensures smooth operation and efficient performance of vehicles. Die casting is preferred over other manufacturing processes as it allows for complex designs to be casted in high volumes at reasonable costs. It also helps automakers comply with various performance and emissions standards more effectively. With automakers continuing to launch new vehicle models every year and older models seeing demand, the production of die casted auto components is poised to grow substantially. Various auto market forecasts indicate vehicle manufacturing will increase steadily over the coming years across both developed and emerging nations. This bodes well for the die casting industry as it further expands its penetration in the automotive sector.

For instance, in March 2021, Rheinmetall AG secured an engine block supply contract exceeding EUR 100 million for a prominent Germany-based car manufacturer, with full-scale production slated to commence in 2023 and contract duration extending beyond 2030.

Growth of Consumer Electronics Industry

Another key growth driver for the die casting industry is the booming consumer electronics market. Cell phones, laptops, desktop computers, gaming consoles, wearable devices, smart home appliances and various other electronic gadgets are becoming an integral part of daily life. Manufacturers in the consumer electronics space are constantly introducing innovative new product designs with added features to attract consumers. Die casting helps electronics brands meet rising expectations of consumers in terms of product design, functionality, and performance.

Complex and lightweight enclosures for portable consumer devices like smartphones and tablets are commonly made from die casted magnesium and aluminum alloy components. This provides strength without adding unnecessary weight. Die casting facilitates the creation of intricate internal frames that deliver structural rigidity. It also aids effective heat dissipation - a critical factor considering the powerful yet compact internals of modern smartphones. As electronics continue to shrink in size while packaging more processing power and connectivity features, die casting is playing a bigger role. It allows makers to cast net-shape parts with great precision and in large volumes to lower production costs. With demand for consumer electronics showing no signs of abating across both developing and developed nations, die casting is expected to see growing use in this high-potential sector.