April 24, 2024
Ict

Die Casting Market is Anticipated to Witness High Growth Owing to Increasing Demand from Automotive Industry

The die casting market involves the production of components through the die casting process which includes injecting molten metal under high pressure into reusable molds. Die casting is highly productive and cost-effective in producing complex shapes with high precision and accuracy. It finds widespread application in the automotive industry for manufacturing engine blocks, wheel housings, gearbox casings and other components. With growing automobile sales globally, the demand for die casted components from OEMs has increased considerably. Additionally, die casting allows the use of a wide variety of materials like zinc, aluminum and magnesium alloys as per the specific application which adds to its versatility.

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 from 2024 to 2031.

Key Takeaways
Key players operating in the die casting 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 several growth opportunities such as developing alloys with superior strength to weight ratio, reduced porosity and improved corrosion resistance. Several OEMs are outsourcing die casting components to lower costs which is benefiting die casting manufacturers globally. Geographically, the Asia Pacific region dominates the global die casting market and various players are expanding their operations in China and India to leverage low costs and growing automobile demand.

Market drivers: Rapid growth of the automotive industry especially in developing nations is a key driver for die casting market. Vehicles increasingly incorporate die casted components to reduce weight and costs. Growing demand for aluminum die casting from machinery, aerospace and defense industries is another major growth driver.

Market restraints: Volatility in raw material prices especially zinc and aluminum alloys impacts die casting costs. Stringent environmental regulations regarding disposal of hazardous die casting waste also acts as a restraint.

Segment Analysis
The die casting market is dominated by zinc die casting sub segment which accounts for over 50% of the overall market share. Zinc die casting is preferred material for die casting due to its relatively lower melting point which enables faster production cycles and lower energy consumption compared to other metals. In addition, zinc provides good structural strength along with excellent corrosion resistance properties which makes it suitable for various industrial and automotive applications.

Aluminum is another major sub segment in die casting market. Aircraft components, electronics parts and automotive components are some of the key applications areas of aluminum die casting. Properties like lightweight, high tensile strength and machinability makes aluminum an ideal material for die casting parts in automotive and aerospace industries.

Global Analysis
North America accounts for the largest share in the die casting market, driven by well established automotive industry in US and Canada. Presence of major OEMs and their large production facilities fuels the demand for die casting components. Asia Pacific region is poised to grow at the fastest pace during the forecast period. Expanding middle class population and rising automobile sales in China and India contributes to the growth of die casting market in Asia Pacific region. Furthermore, shifting of manufacturing facilities from developed markets to Asia Pacific by global automakers also supports the regional market growth. Europe holds a significant share backed by flourishing automotive, aerospace and industrial manufacturing sectors within the region.

*Note:

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