16-Nov-2022 | Machinery and Equipments

Navi Mumbai, November 16, 2022- According to a new report published by Statzy Market Research, titled, “Die Casting Market", the Die Casting Market size was estimated at USD 61.12 billion in 2021 and is anticipated to increase to USD 86.3 billion in 2027, growing at a CAGR of 5.92% over the projected period (2022 - 2027).

Manufacturing activities were significantly impacted by the COVID-19 pandemic, and the global supply chain disruptions and trade restrictions caused a slump in the market. Nevertheless, steady growth is anticipated during the predicted period because of the global economy's recovery

The market under study is primarily driven by supply chain complexity in the die casting industry, the growing automotive market, the increasing use of aluminium casts in electrical and electronic components, and the increasing penetration of die casting parts in industrial machinery. Automotive manufacturers are being pushed by CAFÉ standards and EPA regulations to use lighter non-ferrous metals in their vehicles to reduce weight and improve fuel efficiency. Therefore, using die-cast parts as a weight-saving technique is a key factor driving the former market in the automotive sector.

Therefore, using die-cast parts as a weight-saving technique is a key factor driving the former market in the automotive sector. The metallurgical sectors' exposure to environmental rules on emissions, a shortage of raw materials, and volatile raw material costs, however, are posing significant obstacles to the market's expansion. Because of the growing demand for cars in nations like China and India as well as the expanding use of aluminium die casting in a variety of applications, the Asia-Pacific region is predicted to hold the biggest market share in the die casting industry. Due to increased output from the automotive and construction industries, North America is also anticipated to experience considerable expansion in the market for aluminium die casting.

Some Key Highlights from the Report

A significant role for aluminium is anticipated in the process of die casting.

As the technique produces lightweight parts and offers high flexibility for complicated designs, the demand for aluminium high-pressure die casting components has been rising across a variety of industrial applications over time. A result of the region's expanding aluminium production and consumption are predicted significant advancements in the Asia-Pacific region and Europe. One example is

  • With a total production of over 37.08 million tonnes of refined aluminium in 2020, China produced most of the metal in the Asia-Pacific region. Indonesia produced about 220,000 tonnes of refined aluminium in 2020, by comparison. More than 3.8 million metric tonnes of aluminium were produced in Europe in 2020, which brought global aluminium production to 7.5 million tons.
  • In order to further accelerate market growth, the major players are also engaging in an increasing number of acquisitions and partnerships. As an illustration, Jaya Hind Industries extended its technical partnership with KS Huayu AlutechGmbH (KSATAG) for the production of automotive cylinder blocks and cylinder heads until 2027 April 2021. Additionally, Sunrise Industries' new parts, including structural parts for chassis, electric vehicles, and other items have been added to the agreement's expanded list of permitted uses.
  • In order to fulfil the rising demand for lightweight components and high-conductivity metal parts from the automotive and non-automotive sectors, the aluminium die casting market is projected to continue to develop over the forecast period.

Region of Asia-Pacific Probability of Significant growth during the projected period, the die casting market is expected to be dominated by the Asia-Pacific region. The demand from the industrial sector, expanding applications in telecommunications and windmills, and the expanding vehicle industry are all predicted to accelerate the growth of the die casting market in the Asia-Pacific region. The Asia-Pacific market is anticipated to grow even faster thanks to cheaper labour and lower production costs in China and India. Businesses spend money upgrading their manufacturing capacities in order to remain competitive in this industry. For instance, IKD Co. Ltd. stated in March 2020 that it will enter into an investment deal with the Liudong New District Administrative Commission of Liuzhou city. The deal states that IKD will invest CNY 500 million in the creation of five subsidiaries in Liuzhou.

  • A non-binding memorandum of understanding (MoU) was signed in March 2021 by Sandhar Technologies Limited and Unicast Autotech (P) Ltd with the aim of buying the aluminium die casting company.
  • It is projected that throughout the forecast period, several of the technologically advanced nations, including India, China, and Japan, would have a significant impact on the die casting market's overall growth. It is projected that throughout the forecast period, demand for die-cast parts will expand due to regional governments' initiatives to promote the use of electric vehicles more. The Asia-Pacific region's die casting components market is being driven by all of these factors.

The Die Casting Industry Regional Growth Rates for the Die Casting Industry, 2022–2027

THE COMPETITIVE LANDSCAPE

  • Due to the substantial presence of both local and international competitors in the market, the die casting industry is a moderately fragmented one. The market's major competitors are concentrating on increasing their footprint on a global scale through a variety of mergers, partnerships, joint ventures, and acquisitions. 
  • For instance, Endurance Technologies purchased a 99% controlling stock share in the Trentino, Italy-based Adler SpA in April 2020. With the help of ten manufacturing facilities integrated in Italy and Germany, the acquisition is anticipated to expand the company's reach throughout Europe.
  • For the recently released Ford Mustang Mach-E automobile, which is made in North America, Nemak said in January 2020 that it might provide battery housing. The 2.2*1.5-meter battery housing is made up primarily of aluminium extrusions and stampings. These pieces are put together using robotic welding, glue, and self-piercing riveting.
  • Sundaram Clayton Ltd reported in January 2020 that commercial production had begun at the company's new facility located in SEZ Unit, Sri City, Andhra Pradesh.

Competitive Outlook (Revenue, USD Billion; 2021-2027)

  • Dynacast
  • The firm Oskar Frech GmbH + Co.
  • the company Zitai Precision Machinery Co.
  • AG Bühler
  • UBE
  • AEE Agrati Srl
  • The Toshiba Machine Company, Ltd.
  • Italian-born Gauss
  • Idra SL
  • Toyo Machinery & Metal Co.
  • Notable players
  • The market for Die Casting Innovations

RECENT EVENTS

  • Aludyne revealed that it had purchased the CastLight section of Shiloh Industries in April 2021. This department produces die-cast aluminium components.
  • For the goal of acquiring Unicast Autotech's aluminium die casting business, Sandhar Technologies and the company engaged in a non-binding Memorandum of Understanding in March 2021.
  • A German automaker awarded a contract to Rheinmetall AG in March 2021 for the supply of engine blocks worth over EUR 100 million. 2023 is the anticipated start date for full-scale production. More than 2030 is included in the contract's lifespan.
  • Endurance Technologies stated in February 2021 that it had begun commercial production at the new facility in Kancheepuram, Tamil Nadu, India. The facility will produce disc brake components for two- and four-wheel vehicles as well as aluminium die-castings.

Market Trends- Both the automotive and non-automotive industries are experiencing an increase in demand for lightweight parts and high-conductivity metal components.

For a sample report please visit: Global Die Casting Market

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