Die Casting Market Is Estimated To Witness High Growth Owing To Surging Automobile Production & Increasing Adoption of Lightweight Materials
The Die Casting Market is estimated to be valued at USD 78.12 billion in 2024, exhibiting a CAGR of 7.30% over the forecast period (2024-2031). The market is witnessing significant growth owing to the surging automobile production across the globe as die casting is extensively used in automobile components. Furthermore, the increasing adoption of lightweight materials in the automotive and non-automotive industries is further propelling the demand for die casting.
Market Dynamics:
The die casting market is driven by surging automobile production and the increasing adoption of lightweight materials. The automotive industry is continually evolving with technological advancements and stringent emission norms. Die casting facilitates the production of intricate and complex components required in modern vehicles with higher precision. This has resulted in the increased utilization of die casting metal parts in automobiles. Furthermore, the growing need to reduce vehicle weight to improve fuel-efficiency is augmenting the demand for lightweight die casted components such as engine parts, transmission components, and wheels. Additionally, non-automotive industries including electronics and hand tools are also adopting die casting to develop products using lightweight materials. The aforementioned factors are expected to propel the growth of the die casting market substantially over the forecast period.
Market Drivers:
Growing Automotive Industry is Driving the Demand for Die Casting Components
The automotive industry has seen steady growth over the past few years and is one of the largest end users of die casting components. Vehicles require a variety of die cast parts such as engine parts, dashboards, gear knobs, air conditioner assemblies, and others. As automakers continue to launch new models and upgrades, the demand for precision die cast parts also rises. The growing sales of passenger cars and commercial vehicles globally is directly fueling the growth of the die casting market.
Rising Use of Non-ferrous Metals is Boosting the Market Growth
There is an increasing preference among manufacturers for non-ferrous alloys like aluminum, magnesium, and zinc for die casting applications due to their excellent casting properties and light weight. This has led die casting foundries to invest more in non-ferrous die casting capabilities. Non-ferrous metals allow parts to be produced in complex geometries and help in weight reduction of finished components, satisfying the demands of various end-use industries. The rise in the usage of non-ferrous alloys instead of conventional metals like iron is positively impacting the die casting market.
Market Restraints:
High Capital Requirement
Setting up a die casting facility involves huge investment in advanced casting machines, tooling equipment, automation systems, and infrastructure. This puts die casting beyond the reach of small component producers. The high initial setup and operating costs associated with die casting production is a key challenge, especially for new entrants. Additionally, frequent tooling changes required for varied casting applications further increases costs. The capital intensive nature of die casting deters many players and acts as a major market restraint.
Volatility in Raw Material Prices Hampers the Market Growth
The die casting industry is highly dependent on primary raw materials like aluminum, zinc, magnesium, and related alloys. Unpredictable fluctuations in the prices of these non-ferrous metals disrupt production planning and budgeting for casting manufacturers. Rising metal prices directly impact the operating costs and profit margins of die casting companies. Similarly, volatility in crude oil prices affects the costs of ancillary consumables like lubricants and die release agents. Inconsistent raw material pricing poses serious risks and restrains the overall growth potential of the die casting market.
Market Opportunities:
Booming Electrical and Electronics Industry
The electrical and electronics (E&E) sector has seen tremendous expansion driven by the proliferation of smartphones, laptops, consumer appliances, and others. Die cast components find widespread applications in the manufacture of housings, connectors, switches, and panels for various E&E products. The booming demand from this end-use creates new opportunities for die casting players to cater to the lightweighting and miniaturization needs of the E&E industry.
Growing Trend of Metal Replacement Offers Lucrative Prospects
Manufacturers across industries are actively pursuing metal replacement strategies to reduce component weight. Die casting allows the production of complex, near-net shape parts using lightweight metals like aluminum and magnesium alloys. This helps replace heavier materials like steel and cast iron. The ongoing shift towards metal replacement through precise die casting opens up substantial opportunities for casting companies to collaborate with OEMs on new product development and supply lightweight die cast parts.
Link - https://www.coherentmarketinsights.com/market-insight/die-casting-market-4567
Key Market Developments:
- In August 2022, Wencan Group Co., Ltd. declared its plans to establish a production hub for aluminum die-cast parts tailored for New Energy Vehicles (NEVs) within the Lu'an Economic and Technological Development Zone, located in Anhui Province
- In May 2022, the Tamil Nadu Small Industries Development Corporation invested INR 5.8 Crore to inaugurate a communal facility center specializing in aluminum high-pressure die casting
- In January 2022, Koch Enterprises, Inc., a subsidiary of Gibbs Die Casting, completed the acquisition of Amprod Holdings, LLC, thereby broadening its product portfolio across the U.S.
- In March 2022, Ningbo Tuopu Group Co. Ltd (Tuopu Group) announced the successful assembly of an integrated, large-scale die-casting rear cabin, developed using a 7,200-ton giant die-casting machine at the Hangzhou Bay plant in Ningbo
- In April 2021, Aludyne revealed the acquisition of the Shiloh Industries CastLight division, which focuses on manufacturing aluminum die-casting parts
Market Key Players:
Key companies covered as a part of this study include Alcoa Corporation, Bocar Group, Endurance Technologies Limited, Engtek Group, Form Technologies Inc., Georg Fischer Limited, Koch Enterprises, Linamar Corporation, Meridian Lightweight Technologies UK Ltd, Nemak, Rheinmetall AG, Rockman Industries, Ryobi Die Casting Ltd, Sandhar Group, Shiloh Industries, and Sundaram Clayton Ltd.
