US: 1.646.568.9797 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
Industry Insights, Market Size, CAGR, High-Level Analysis: Aluminum Casting MarketThe global aluminum casting market size was valued at USD 50.5 billion in 2019 and register a CAGR of 6.4% from 2020 to 2027. Increasing use of aluminum in automobiles owing to high strength and lightweight is likely to drive the market over the coming years. Nearly 30-40% of aluminum is being used per light weight vehicle every year and is likely to reach 70% over the coming years owing to stringent regulations on reducing fuel emissions across the globe. According to the Federal Reserve Bank of St. Louis, the global sales of lightweight vehicles reached 17.385 million units in May 2019. Thus, increasing demand for lightweight vehicles on account of soaring environmental pollution, rising disposable incomes, and changing lifestyle of consumers is anticipated to boost the demand for aluminum casting. Increasing demand for general utility and sports utility vehicles are anticipated to drive product demand in U.S. For instance, according to the automotive consultancy firm LMC Automotive, the U.S. is likely to have more than 90 mainstream SUV models by 2023. Moreover, automobile manufacturers in the country are under increasing pressure to meet the regulatory requirements pertaining to the environmental impact of vehicles. As per Corporate Average Fuel Economy (CAFE), passenger cars are required to reach a fuel economy target of 54.5 miles per gallon by 2026 owing to increasing emission of greenhouse gases, which in turn, is anticipated to augment market growth. The application scope of aluminum casting is widening in agricultural equipment, construction equipment, mining equipment, and other heavy-duty machinery. The growth in these types of machinery is largely attributed to developing economies such as India and Brazil, where there is a high need for modernizing equipment to attain greater levels of productivity and efficiency. India is among the largest manufacturers of farm equipment like tractors, tillers, and harvesters. Tractor sales in the country are expected to grow by nearly 8.0% from 2018 to 2022, thereby driving the market. On the flip side, factors such as high prices of aluminum casting machinery, along with high investments in technological advancements in aluminum casting, are likely to hamper market growth. Moreover, strict rules and guidelines laid down by the U.S. Environmental Protection Agency (EPA) and the European Environment Agency regarding harmful emissions into the environment during the casting process is likely to hinder market growth in the coming years.
Process InsightsThe die casting segment accounted for a volume share of 52.7% in 2019 owing to rising demand for aluminum casting products in the automotive sector. Die casting is used to manufacture various auto parts such as engine, cylinders, gears, and flywheel, which are used in high-end vehicles to mass produce vehicles. This is owing to factors such as low cost of die casting and strict CO2 emission laws being laid down around the world. Aluminum die casting is further segmented into pressure die casting and others. The distinct characters offered by pressure die casting such as smooth surface finish, easy filling of cavity, strong mechanical properties, and tighter dimension tolerance is expected to assist segment growth, especially in the automotive sector. The others category includes vacuum and squeeze die casting. Permanent mold casting is a process to manufacture a large number of cast products using a single mold structure that is made from high temperature withstanding material such as cast iron and die steel. The finished product from permanent mold casting has a superior finish with high dimensional tolerance, which makes it suitable in the manufacturing of motorsport and recreational vehicle components. Rising demand for motorcycles, especially in U.S., is likely to drive the demand for permanent mold casting over the coming years. As per data published by the U.S. International Trade Commission (USITC) in 2018, the new registration of 600cc or less motorcycles increased from 58.3 thousand units in 2013 to 63.4 thousand units in 2017. Thus, steady demand from the motorcycle segment is likely to offer ample opportunities for manufacturers of aluminum permanent mold casting in the near future.
End-use InsightsTransportation was the largest segment in the aluminum casting market and accounted for a revenue share of 59.6% in 2019. The growth is attributed to increase in demand for lightweight vehicles and aircrafts globally. Sports vehicle is among the most lucrative segments in the lightweight vehicle sector. Popularity of sporting events, rallies, and races in North America and Europe continue to drive the demand for sports vehicles, thereby boosting the demand for aluminum casting. The growth in the transportation segment is also supported by increasing demand for aircraft, as aluminum cast products are used in manufacturing jet or aircraft engines. A study published by Airbus in 2018 stated that the demand for new aircrafts is estimated to reach nearly 39,000 over the next 10 years. Rising demand for new aircraft is likely to propel the need for new jet engines, thereby, positively influencing the market for aluminum casting over the coming years. In the industrial end-use segment, construction equipment is likely to observe strong growth owing to rigorous infrastructure development across the globe. Asia Pacific has observed a surge of Chinese construction equipment manufacturers such as XCMG and Sany in this segment over the past decade, which is likely to result in steady demand for aluminum casting products. The building and construction segment is anticipated to exhibit a CAGR of 4.9% in terms of volume from 2020 to 2027 owing to increasing use of aluminum casting products in houses. Aluminum casting can be employed in various applications such as roofing, door handles, windows, and curtain walling. Rising replacement of iron and steel, due to changing consumer preferences and benefits of aluminum such as lightweight and aesthetic appeal, is anticipated to drive the market over the coming years.
Regional Insights of Aluminum Casting MarketAsia Pacific held a volume-based share of 46.1% in 2019 owing to rapidly expanding manufacturing sector in China and India. Automakers are shifting or expanding their production facilities in these countries owing to low labor cost and government policy support, such as 100% FDI allowed under automatic route for auto components.As of December 2018, Continental, a Germany-based automaker invested USD 25.65 million in setting up a premium surface materials facility in Pune, India with a production capacity of 5 million square meters and is expected to start operations in 2020. In North America, demand for lightweight vehicles is anticipated to grow at a healthy rate over the coming years on account of the North American Free Trade Agreement (NAFTA). It was announced with an intention to achieve the objective of 54.5 mpg fuel efficiency in two phases by 2025. This is forcing automotive players to achieve a 25% reduction in the weight of the car body, which in turn is likely to boost the demand for aluminum casting over the coming years. Europe accounted for a revenue share of 22.7% in 2019 owing to its established automotive sector, supported by stringent regulations on reducing CO2 emissions. Euro 6c with real driving emissions (RDE) and Euro 6b emission standards along with World Harmonized Light Vehicle Testing Procedure (WLTP) are likely to boost the demand for lightweight materials such as aluminum in the region, which in turn, is anticipated to augment market growth over the coming years. In Russia, growing product demand from agricultural equipment is anticipated to drive the market. The country has observed a growth of more than 20% in terms of agricultural output over the last five years. Thus, the steadily growing agriculture sector in the country is likely to boost the need for efficient agricultural equipment, thereby, positively influencing demand for aluminum casting over the coming years.
Market Share Insights of Aluminum Casting MarketKey market players include Alcoa Corporation; Aluminum Corporation of China Limited; Alcast Technologies; Bodine Aluminum, Inc.; Consolidated Metco, Inc.; Dynacast; Endurance Technologies Limited; Gibbs Die Casting Corporation; Martinrea Honsel Germany GmbH; Martinrea Honsel Germany GmbH; Ryobi Ltd; and Walbro. These companies are adopting various strategies to meet the growing product demand from potential customers. For instance, in June 2017, Walbro expanded its manufacturing operations in North America through its aluminum die casting facility in Sinaloa, Mexico.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Aluminum Casting Market Research ReportThis report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global aluminum casting market report on the basis of process, end use, and region:
Process Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)
- Die casting
- Pressure die casting
- Permanent mold casting
End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)
- Building & construction
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation & Scope 1.2 Market Definition 1.3 List of data sources 1.4 Information procurement 1.5 Information analysis 1.6 Market formulation & data visualization 1.7 Data validation & publishingChapter 2 Executive Summary 2.1 Market Outlook 2.2 Segmental Outlook 2.3 Competitive InsightsChapter 3 Aluminum Casting Market Variables, Trends & Scope | read more...