The die casting market is valued at USD 65.5 billion in 2020 and is anticipated to reach USD 93.9 billion by 2026, at a CAGR of about 6.19% during the forecast period.

The outbreak of COVID-19 and the subsequent shutdowns have affected the die casting sector in several countries. The negative impacts of the pandemic are visible in the global manufacturing sector in the first half of 2020. Hence, the reduction in production rates due to the pandemic-induced disruptions affected the growth of the market during the initial few months at the starting of the year but after the restrictions were lifted the market gained its lost momentum by the end of 2020.

The market studied is largely driven by supply chain complexities in the die casting industry, the expanding automotive market, increasing penetration of die casting parts in industrial machinery, the growing constructional sector, and employing aluminum casts in electrical and electronics.

The CAFÉ standards and EPA policies to cut down automobile emissions and increase fuel efficiency are driving the automakers to reduce weight of the automobile by employing lightweight non-ferrous metals. Subsequently, employing die-cast parts as a weight reduction strategy is acting as a major driver for the former market in automotive segment.

However, crunch in raw material supply, volatility in raw material prices, and environmental regulations on emission for the metallurgy industries are acting as major barriers for the market growth.

Key Market Trends

Automotive Application Leads the Market

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Polymers and non-ferrous materials accounted for over 40% of the total materials used in an automobile, as of 2020. In the present scenario, nearly 30-35% of the auto components in a vehicle are made of aluminum alloys, which are mostly developed using high pressure die casting process.

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.

The automobile manufacturers, globally, are using lightweight magnesium and magnesium alloys to reduce the overall vehicle weight, and in turn, improve the fuel economy. Magnesium is a viable alternative to steel, aluminum, and other structural materials, and has certain attractive properties. It is 36% lighter per unit volume than aluminum and 78% lighter than steel. When alloyed, magnesium has the highest strength-to-weight ratio among all structural metals. Many interior components, such as steering column brackets and steering wheel armatures, are made of magnesium

Asia-Pacific will Dominate the Die Casting Market

The growing automobile industry, India and China emerging as cost-effective die casting manufacturing hubs, demand from the industrial sector, and increased scope of application in windmills and telecommunications are expected to drive the die casting market at a faster pace in the Asia Pacific region.

With the growth in automotive lighting and energy-saving trends, expanding the industrial and manufacturing sector, the die casting market grew substantially in the Asia-Pacific region. Cheaper labor and low manufacturing costs in India and China further propelled the market growth in these countries. During the past two decades, small privately run factories in this region have become much competitive and professional in producing die-cast components.

Thailand is emerging as a major automobile exporting country, driven by Japanese FDI. Chinese manufacture sector is growing very fast and is poised to make its dent in the international trade arena. India is consolidating its position with strong domestic and external demand for high-quality die-cast components at lower prices. All these factors together are driving the market for die casting parts market in the Asia-Pacific region.

Competitive Landscape

The global market for die casting is highly fragmented, with many regional small- and medium-scale players from the developing countries entering the market.

Major recognized players, such as Nemak, Georg Fischer Automotive, Ryobi Die Casting, Rheinmetall AG, Form Technologies Inc. (Dynacast), and Shiloh Industries, together accounted decent shared in the overall global market share.

These key players have focused their revenues on R&D to come up with better production processes and alloys. This strategy may assist in the production of premium quality die-cast parts for the global automotive and industrial sectors. Key players have also expanded their presence, globally, through various mergers, expansions, partnerships, joint ventures, and acquisitions.

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