May 22, 2024

Die Casting Market is Anticipated to Witness High Growth Owing to Rising Automobile Production

The die casting market is widely utilized for manufacturing complex components used across various industries such as automotive, aerospace, industrial machinery, electronics, telecommunications and more. Die casting offers advantages such as precision, repeatability, speed and affordability for mass production. With rising automobile production globally, the need for precision die casted components are increasing across engines parts, chassis, gearboxes and other automobile assemblies. The process helps manufacturers reduce manufacturing time and costs through automation and near net shape casting abilities.

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 key opportunities in the die casting market include growing demand from electric vehicles, increasing focus on lightweight die casted components and adoption of additive manufacturing for tooling.

The die casting market players are expanding globally with new production facilities and acquisitions especially in Asia Pacific and North America to cater to the growing demand. For instance, major players like Alcast, Endurance and Ryobi have production plants in China, Mexico and other low-cost manufacturing countries.

Market drivers: Growing automobile production driven by supply side factors like rising disposable incomes, urbanization and changing consumer preferences are driving the die casting market growth.

Market restraints: High setup and tooling costs associated with die casting limits its adoption for low volume production runs. Further, volatile prices of raw materials like zinc and aluminium pose challenges.

Segment Analysis
The die casting market is segmented into pressure die casting and non-pressure die casting. Pressure die casting segment currently dominates the market and accounts for over 60% share as it allows for high production outputs. It is preferred for producing parts that require complex interior cavities, tight tolerances and a smooth surface finish. Some common applications of pressure die casting include producing housings for automotive and industrial machinery components.

The non-pressure die casting segment is further divided into permanent mold die casting and die casting. Permanent mold casting is growing at a faster pace due its ability to produce parts with more intricate designs and greater dimensional accuracy compared to sand casting. It is largely used for manufacturing transmission cases, engine parts and large aluminum castings for industrial machinery.

Global Analysis
Regionally, Asia Pacific is the largest as well as the fastest growing market for die casting. China dominates APAC due to presence of a large automotive manufacturing base and machine tools industry. Growth in the region is driven by rising automobile production along with increasing use of die cast parts in industrial machinery and equipment sector.

Europe is another major regional market led by Germany, Italy and France. Strong automotive manufacturing sector coupled with presence of precision engineering companies fuel the demand for die cast products. North America is comparatively mature yet continues to create opportunities owing to recovery in automobile sales and demand from aerospace industry. Mexico has emerged as a key sourcing hub for die cast parts for US and Canadian manufacturers.

*Note:

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