Aluminium exhibits high strength and is lightweight thus, the material finds an array of applications in a multitude of industries for instance, the use of aluminium casting as a replacement for heavy metals such as iron and steel in the automotive industry to reduce vehicle weight and subsequently, greenhouse gas emissions. Aluminum casting also finds extensive application in construction and transport industries wherein the latter is pegged to be the largest end user.
Geographically, the aluminium casting market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
In Asia Pacific, rapid population growth creates demand in housing and automotive industries, which is expected to drive the growth of the aluminium casting market in the region. The high strength and light weight of cast aluminium drive the material’s adoption and application across various industries. Asia Pacific is densely populated, which propels the growth of transportation and building & construction sectors. Additionally, the durability and ability of aluminium casting to bear high temperatures positively influence the application of cast aluminium products in transportation and other sectors. However, the replacement of aluminium alloys with magnesium in applications where strength and lightweight characteristics are the primary requirements, and high-temperature tolerance is given secondary importance, as well as the economic downturn in developed regions are hindering the growth of the aluminium casting market. Availability of skilled and cheaper labor, government incentives for small- and medium-scale industries, stringent emission norms, and favorable domestic environment for the automobile industry are further expected to drive the aluminium casting market in India.
Europe is projected to hold a significant share in the global aluminium casting market during the forecast period, due to the extensive use of aluminium casting in the automotive industry, especially in the manufacturing of electric cars. Many manufacturers of electric cars are expected to use aluminium casting to reduce the overall vehicle weight in order to increase fuel efficiency and add advanced features. For instance, according to the International Energy Agency, Norway is the world's most advanced market for electric cars and accounted for 39% of new electric car sales in 2017.
The Latin America and the Middle East and Africa region is expected to witness substantial growth in the aluminium casting market during the assessment period, 2019 – 2026, owing to the merger and acquisition activities taking place between regional and global leading players in order to expand their presence and strengthen their production and processing facilities. For instance, Vesuvius, the global leader in molten metal flow engineering, acquired CCPI in April 2019. CCPI Inc. is engaged in providing high-quality temperature measurement solutions and refractory materials to aluminium and steel industries.
The aluminium casting market has been segmented by process and application.
By process, the aluminium casting market has been segmented into die casting, permanent mold casting, and sand casting. The permanent mold casting segment has been gaining traction in the global aluminium casting market as this process is used to create highly repeatable parts with consistency; additionally, the rapid cooling rates of this process generate a more consistent microstructure. For instance, this casting is used to manufacture aluminium alloy wheels, which are durable, lighter than steel and require less energy to rotate; moreover, these wheels offer improved fuel efficiency, breaking, and acceleration.
By application, the market has been segmented into passenger cars, commercial vehicles, industrial, transportation, consumer product, and aerospace. Passenger cars, including electric cars, are expected to drive the demand for aluminium casting. Aluminium is the fastest growing automotive material, owing to its wide range of applications in the manufacturing of passenger cars. According to The WardsAuto and DuPont Automotive survey, engineers and designers will mostly prefer aluminium to satisfy the expected fuel economy and emission standards by 2025.
Aluminium Casting Market Segmentation