1. Market Research
  2. > Automotive
  3. > Auto Parts Market Trends
Automotive Parts Aluminum Die Casting Market - Growth, Trends, and Forecast (2020 - 2025)

Automotive Parts Aluminum Die Casting Market - Growth, Trends, and Forecast (2020 - 2025)

  • February 2020
  • 121 pages
  • ID: 5865844
  • Format: PDF
  • By Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The automotive parts aluminum die casting market (henceforth, referred to as the market studied) is expected to reach a CAGR of over 7.5%, during the forecast period.

- The market studied is largely driven by supply chain complexities in the die casting industry, expanding automotive market, increasing penetration of die casting parts within the current automotive industry, and future use of aluminum casts in electric vehicles.
- CAFE standards and EPA policies, to cut down the automobile emissions and increase the fuel efficiency, are driving the automobile manufacturers to reduce weight of the automobile, by using lightweight non-ferrous metals. Subsequently, use of die cast parts as a weight reduction strategy is acting as a major driver for the market studied.
- Rules imposed by the OSHA and initiatives by the NADCA to improve the technical workforce in the die casting industry are expected to improve the overall production of the market studied.
- The automobile industry is highly dependent on the Environmental Protection Agency (EPA) regulations, owing to the high emissions of the automotive units. The move by the EPA to raise the mile per gallons (mpg) standards to 35.5 mpg by 2016, and then to 54.5 mpg by 2025, has actually helped the die casting industry, as the automotive industry concluded that the only way to get to those mileage standards is by manufacturing lightweight vehicles. Use of aluminum, specifically aluminum die casting, in many of the power train and engine areas, is one important way to achieve this. This is one of the major reasons for the predicted growth of the industry in the area of structural die-casting.

However, volatility of aluminum prices, due to sanctions and trade wars between countries, and the increasing employment of zinc die casting are acting as major hindrances for the growth of the market studied.

Key Market Trends
Vacuum Die Casting Segment is Expected to Witness the Fastest Growth Rate

The vacuum die casting segment of the market studied was expected to witness a CAGR of 8.90%, during the forecast period.

There have been significant developments and improvements in the conventional die casting process. Currently, the ultra-high-vacuum die casting process is applied for producing large and thin component parts, such as space-frames and pillars, which are usually welded to automobile chassis.

Electrical and hydraulic components in an automobile, work simultaneously. Reliability and quality are given prime importance in transmission parts. The transmission system in an automobile is a complex combination of mechanical functions. It is prone to extreme conditions and environments. This enhances the importance of integrity. Valve bodies, stators, and clutch pistons are some of the commonly die casted transmission parts in the automotive industry.

It has been accepted that, ultra-vacuum die casting produces better weldable automotive products than most of the die casting processes. However, products produced in this process are large and require huge-sized die casting machine, like 2,500-4,000 metric ton of die clamping force. This impacted the popularity of the ultra-high-vacuum die casting process among OEMs and large die casters.

However, vacuum die casting production process eliminates the air from the mold and allows the front of molten metal to merge freely without forming any shuts or pores, which is a major issue in pressure die casting process.

A sudden shift from pressure die casting to vacuum may not be possible, due to the higher productivity and ease of manufacture of the automotive die casting parts, which employ pressure die casting method. However, this change is gradual and expected to continue to increase, during the forecast period.

The Asia-Pacific Region Dominated the Automotive Parts Aluminum Die Casting Market, and is Expected to Witness the Fastest Growth Rate

The Asia-Pacific region dominated the market studied and accounted for 47.18% market share in 2018, and it is also expected to witness the fastest growth rate during the forecast period.

In Asia-Pacific, China dominated the market studied in 2018, followed by Japan and India. In 2016, the country registered more than 26,000 metal casting plants. The Chinese automotive industry accounted for 27.3% of the total demand for castings in the country. The Chinese economy is growing and the disposable income of the middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, owing to the low production costs in the country, the demand for vehicle production has gone up drastically. Passenger car sales in 2019 has witnessed a 9.6% decline, to 21.44 million units in China as compared to the previous year. However, with several initiatives taken by the company to boost the automotive industry, the passenger car sales are expected to increase over the forecast period, which in turn is driving the demand for aluminum die casting market in the country.

However, in 2018, the country witnessed a decline in vehicle sales by 3%, owing to the trade tensions and shaky consumer confidence. Additionally, industry experts predict a further decline by 5% in vehicles sales in 2019. However, with the rise in demand for electric vehicles in the country, the demand for aluminum die casted parts is expected to increase in the coming years.

Competitive Landscape
The automotive parts aluminum die casting market is fragmented, as major players, like Martinrea Honsel, Rheinmetall Automotive, Shiloh Industries, GF Casting Solutions, Ryobi Die Casting Inc., and Nemak, captured less than 30% of the market share in 2018.

Expansion of business segments and manufacturing plants, joint ventures with local manufacturers in key geographies, and mergers and acquisitions are the key strategies adopted in the market studied.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
15% Off

($4250)

  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.

ref:plp2020

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on