Global Automotive Parts Aluminum Die Casting Market to Grow at a CAGR of about 7.8% by 2030.

The aluminum die castings, thin walls, and complicated geometries offer good dimensional stability. Aluminum is a tremendous diecasting alloy due to its strong electrical and thermal conductivity, outstanding mechanical qualities, and corrosion resistance. During the forecast period, the market is anticipated to be driven by the increasing demand for lightweight automobiles and the expanding use of aluminum in diecasting automotive components in response to tight global environmental laws. Market Dynamics Increasing Demand for Light Weight Vehicles to Drive the Global Automotive Parts Aluminum Die Casting Market In recent years, developments and innovations in vehicle parts have accompanied the emergence of new technology. Lightweight materials for the production of automobile components are attracting widespread interest. The enhanced fuel economy of automobiles due to the usage of lightweight materials in auto parts is a significant factor in this phenomenon. Moreover, vehicle illumination must prioritize safety over performance and quality. Consequently, manufacturers favor aluminum due to its numerous advantages. Even though aluminum has been used for a long time, the market demand is driven by new advancements that increase the strength and ductility of aluminum and related casting technology. Elon Musk, CEO of Tesla, said in September 2020 that for the new Model Y, 70 components bonded and riveted to the car's rear underbody would be replaced with a single aluminum casting machine-made module. In addition, as the market for electric and hybrid vehicles expands, automakers are replacing heavy metals such as steel and iron with lightweight materials like aluminum. As a result of the trends above and technological advancements in enhancing aluminum's potential with various alloy combinations to meet consumer needs, the automotive parts aluminum die-casting market is anticipated to offer profitable prospects for industry participants. The Shift in the Mobility Industry toward Electrification to Provide Opportunities for the Global Automotive Parts Aluminum Die Casting Market Off-road vehicles such as construction equipment, railroads, trains, defense vehicles, and aircraft are electrifying their propulsion systems to increase energy efficiency and lower emissions of pollutants and other greenhouse gases. The market expansion is fueled by rising environmental concerns, the need for a sustainable transportation strategy, and positive government actions. For instance, the UK government awarded AVID Technology and Caterpillar Inc. EUR 33 million for building electrical construction equipment. In reaction to this shifting trend, businesses are preparing to adapt their operations to the electrification of vehicles. Mark Aluminium Die Casting, for example, invested in a new 600-ton diecasting plant to produce high-pressure aluminum die-cast parts for water pumps and oil pumps developed for the next generation of environmentally friendly vehicles. Batteries are an element of the propulsion system of EVs and hybrids; as a result, their architecture is fundamentally different from that of ICE vehicles. To offset the weight of several batteries and related motors, most car manufacturers use more aluminum than steel in their vehicles. This scenario is anticipated to improve aluminum die-casting machinery market sales over the forecast time. Key Highlights The global automotive parts aluminum die casting market was valued at USD 26 billion in 2021 and is estimated to reach a predicted value of USD 50 billion by 2030 at a CAGR of about 7.8% during the forecast period (2022 – 2030). By production process, the global automotive parts aluminum die casting market is segmented into vacuum die casting, squeeze die casting, pressure die casting, and gravity die casting. The pressure die casting segment accounted for the largest market share and is estimated to grow at a CAGR of 8.2% during the projected period.  By application type, the global automotive parts aluminum die casting market is segmented into body parts, engine parts, transmission parts, battery and related components, and other application types. The body parts segment accounted for the largest market share and is estimated to grow at a CAGR of 7.8% during the forecast period.  Regional Insights By region, the global automotive parts aluminum die casting market is segmented into North America, Europe, Asia Pacific, and LAMEA. Asia Pacific accounted for the highest market share and is estimated to grow at a CAGR of 8.2% during the forecast period. To remain competitive in this market, businesses grow their production capacity. For example, IKD Co. Ltd announced in March 2020 that it might sign an investment agreement with the Administrative Commission of Liudong New District in the city of Liuzhou. IKD would invest 500 million CNY in constructing five subsidiaries in Liuzhou, per the agreement. These subsidiaries may undertake a lightweight car aluminum die-casting project requiring great precision. The project may involve processes such as high-pressure die casting, the application of molding technologies, die fabrication, and the processing of molten aluminum. The project includes a 24-month building timeline and a 60,000-square-meter facility that may be capable of producing 30 million high-precision aluminum-alloy die castings yearly. These variables drive segment expansion. Europe is the second largest region. It is estimated to reach an expected value of USD 10 billion by 2030 at a CAGR of about 7.8% during the forecast period. The manufacturing sector generates 25% of the gross domestic product. The United Kingdom is the ninth-largest industrial nation in the world. On January 1, 2021, the government signaled to impose of retaliatory tariffs on US aluminum imports. It is projected that this government move will improve domestic output and, as a result, market growth throughout the foreseeable future. There is a rise in the need for electric vehicles in the country. During the projected period, it is expected that vehicle production and sales will rise, resulting in a substantial need for aluminum die castings. With the rising demand for luxury automobiles, it is projected that light metal castings, particularly aluminum die-castings, will acquire popularity in the region.  North America is the third largest region. Due to increased CO2 emissions and the enactment of stringent CAFE and EPA regulations, it is anticipated that significant industry participants would include aluminum die casting in their production processes. According to the North America Die Casting Association, about 30 die casting businesses and over 400 die casting operations produce vehicle engine and gearbox parts in the United States. Alcoa Corporation, Shiloh Industries Inc., Dynacast Inc., Pace industries Inc., Ryobi die casting Inc., Gibbs die casting, and many others are among the leading die casting manufacturers in the United States. These prominent players rely on growth tactics to obtain a competitive edge over other companies, such as expanding and creating production facilities. In addition, with over 13 significant automakers headquartered here and an average annual production of 11 million vehicles, the United States is one of the world's most important automotive markets. As a result of the reasons mentioned above and developments in the United States, the aluminum die-casting market for automotive parts is predicted to experience robust expansion over the forecast period. Competitive Landscape Key players in the global automotive parts aluminum die casting market are Form Technologies Inc. (Dynacast), Nemak, Endurance Technologies Limited, Georg Fischer Limited, Koch Enterprises (Gibbs Die Casting Corporation), Sundaram Clayton Ltd, Bocar Group, Shiloh Industries, Engtek Group, Rheinmetall AG, Rockman Industries, Ryobi Die Casting Ltd, Linamar Corporation, Meridian Lightweight Technologies UK Ltd, Sandhar Group. Market News April 2022 - Ryobi will be exhibiting at EUROGUSS 2022 in Nuremberg, Germany.  May 2022 - According to people who know the situation, PENANG-based Engtek Group is considering relisting on Bursa Malaysia. It has appointed RHB Investment Bank and Hong Leong Investment Bank to assist. Global Automotive Parts Aluminum Die Casting Market: Segmentation By Production Process Pressure Die Casting Vacuum Die Casting Squeeze Die Casting Gravity Die Casting By Application Type Body Parts Engine Parts Transmission Parts Battery and Related Components Other Application Types By Region North America Europe Asia Pacific LAMEA