Home Advanced Materials Aluminum Casting Market Size, Share, Analysis and Forecast to 2031

Aluminum Casting Market

Aluminum Casting Market: Information by Type (Die Casting, Permanent Mold Casting), Application (Transportation, Industrial, Building, and Construction), and Regions—Forecast Till 2031

The global aluminum casting market was valued at USD 68.5 billion in 2022. It is projected to reach USD 152.55 billion by 2031, growing at a CAGR of 9.3% during the forecast period (2023-2031).  Aluminum casting is lightweight, offers high dime
Report Code: SRAM124DR

Market Overview

The global aluminum casting market was valued at USD 68.5 billion in 2022. It is projected to reach USD 152.55 billion by 2031, growing at a CAGR of 9.3% during the forecast period (2023-2031). 

Aluminum casting is lightweight, offers high dimensional stability for complex shapes and thin walls, good corrosion resistance, good mechanical properties, high thermal and electric conductivity, and retains strength at high temperatures. In the automotive industry, aluminum casting is important, especially in reference to light metal body construction. Aluminum casting is now widely used in various applications, for instance, in the aerospace industry. Increasing demand for lightweight vehicles and new construction around the globe due to rapid urbanization and industrialization are some of the key factors boosting the growth of the market. In the automotive sector, the demand for high-end cars with strong and resistant bodies has necessitated the use of effective aluminum casting. Furthermore, the light weight of aluminum casting helps manufacturers during the production process, which has also popularized aluminum casting across the world. Thus, advancements in the automotive sector are expected to propel the growth of the aluminum casting market.

Report Scope

Report Metric Details
Base Year 2022
Study Period 2021-2031
Forecast Period 2023-2031
CAGR 9.3%
Market Size USD 152.55 billion by 2031
Fastest Growing Market North America
Largest Market Asia Pacific
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Geographies Covered
  • North America
  • Europe
  • APAC
  • Middle East and Africa
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Market Dynamics

Market Drivers

Growing Demand in Automobile Industry

The production of motor vehicles is increasing every year at a stable rate globally, and it has created several opportunities for market growth. The Asia Pacific countries like China, Japan, and India have contributed the most to automotive production globally. The growing population of the upper middle class in India is also behind the growing demand in the automobile industry. Moreover, the demand is likely to increase further for aluminum cast products in the automobile industry over the forecast period. Aluminum is presently the second most commonly used metal in automobiles, and its use is growing at the fastest rate, a clear indication of the metal's increasing importance in automobile production. There has been a significant increase in the use of aluminum in vehicles, whether they are battery electric vehicles (BEVs), hybrids, or internal combustion engine (ICE) vehicles, due to a growing consumer awareness of sustainability and stricter emission standards. Due to the unique properties of aluminum, which lend themselves well to the automotive industry: Due to its high strength-to-weight ratio, aluminum makes vehicles significantly lighter, faster, more maneuverable, and high-performing.

Rapid Growth in Construction Industry

The use of aluminum is increasing at a rapid pace in the construction industry. Modern building and construction involve more than erecting structures as efficiently as possible. In addition to functional and economic criteria, aesthetic and design considerations, as well as ecological requirements, play an equally important role in building projects. This indicates that the materials utilized are of great significance. Throughout the 20th century, aluminum, the modern building material, established itself as an important factor in the building and construction industry. Aluminum enables the realization of every conceivable architectural concept, regardless of whether it is a new construction or a renovation. Possible applications range from facades and roof and wall systems to interior decoration and the design of living space and include windows and doors, balconies, and conservatories in the fields of surface treatment, thermal insulation and soundproofing, air conditioning, and solar heating. The growth of the construction industry and real estate sector will increase the adoption of aluminum due to its various benefits.

Market Restraint

Increasing Use of Substitutes like Magnesium

Magnesium alloys are used in vehicles to decrease noise and vibration levels, as compared to other metals. New studies have shown that magnesium can be used in the automotive industry to manufacture lighter and stronger vehicles. Although aluminum is used in aerospace, automotive, and defense components, magnesium is found to be 30% lighter than aluminum, which can threaten the market share of aluminum. Magnesium is competing with aluminum to become a perfect metal in the manufacturing of automobiles, which can create hurdles for the growth of the aluminum casting market.

Market Opportunities

Increasing Government Regulations to Control CO2 Emissions

Aluminum casting has gained popularity owing to its impeccable features, such as lightweight and high strength, which make it ideal for application in a multitude of industries. The automotive industry is one of the major end users of aluminum casting, where it finds adoption due to the need to improve fuel efficiency by reducing vehicle weight and, subsequently, reducing CO2 emissions. The transport sector significantly contributes to environmental pollution, and most auto manufacturers are focusing on producing lightweight vehicles to reduce carbon emissions. According to the United Nations Environment Programme, Partnership for Clean Fuel and Vehicles (PCFV) is the global public-private initiative promoting cleaner fuels and vehicles in developing countries. Seventy-three organizations from PCFV are focusing on lowering greenhouse gas emissions from road transport to achieve cleaner air by combining their resources and efforts.

Regional Analysis

The global aluminum casting market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific is the most significant shareholder in the global market and is expected to grow during the forecast period. Countries like China and India contributed majorly with their rapidly expanding manufacturing sectors. Automobile companies are setting up their manufacturing units in India and China because of low labor costs in these countries to reduce the cost of production of vehicles. The automotive industry in China anticipates a nearly 40 percent increase in orders by 2026. This is a result of the reviving and expanding economies in those regions. Currently, aluminum die-casting production in China is less expensive than in the United States.

North America is expected to grow significantly, with the highest CAGR during the forecast period 2023-2031. The expected growth is linked to the demand for fuel-efficient vehicles due to increasing fuel prices. Automobile companies are utilizing aluminum casting products to reduce the weight of vehicles and increase their efficiency of vehicles. The presence of electric vehicle giant Tesla is utilizing aluminum-cast products to increase the range of their electric vehicles. Alcoa Corporation will supply Ronal Group with low-carbon aluminum for the production of the wheels for the Audi e-Tron GT, Audi's first electric sports car. Elysis, a joint venture between Alcoa and Rio Tinto, has developed the new metal and is currently working to scale up the process for full commercial operation.

Europe is expected to grow at a steady CAGR, owing to the stringent regulations by European Union to reduce CO2 emissions have forced the manufacturers to use aluminum casting products that comparatively emit less CO2. European manufacturers and original equipment manufacturers (OEMs) are looking to provide environmentally friendly production processes and sustainable products. Die casting is one of the most cost-effective and sustainable processes among all of the modern production techniques that are available today. In fact, some of the highest-quality materials for die-casting are entirely recyclable. Die casting effectively complies with the "reduce, reuse, and recycle" tenets and provides dependable results for a wide range of industries.

The LAMEA is expected to grow at a moderate CAGR, owing to the rapid development in UAE and Saudi Arabia. In June 2022, Emirates global aluminum announced to develop silicon metal manufacturing project in UAE to supply it for aluminum production. Silicon is added to the aluminum casting process to increase its strength, especially for the automotive industry. The rising economic stability in South America is expected to propel the growth of the aluminum casting market.

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Segmental Analysis

The global aluminum casting market is segmented by type and application.

Based on type, the global market is bifurcated into die casting, permanent mold casting, and sand casting.

The die-casting segment is the highest contributor to the market and is expected to grow during the forecast period due to the rising demand for aluminum casting products in the automobile industry. Automobile parts such as engines, cylinders, and gears are made with die-casting methods for rapid and mass production of vehicles. The die casting method is further categorized into pressure die casting, vacuum, and squeeze die casting. The rise in demand for vehicles will increase the production of automobile parts, resulting in a rise in demand for aluminum-cast products over the forecast period.

The Permanent mold casting segment is expected to grow at a substantial CAGR, as it is widely used to produce a large number of cast products with a single mold structure. The single mold structure is made from materials such as cast iron and die steel. The aluminum cast products produced from permanent mold casting have a better finish compared to the die-casting method. Hence, it is suitable for manufacturing motorsport. The increase in demand for motorsport vehicles is likely to drive the market share of permanent mold casting over the forecast period.

Based on application, the global market is bifurcated into the transportation sector, industrial sector, and building and construction sector.

The transportation sector segment is the highest contributor to the market and is expected to grow during the forecast period. The larger share is linked to the increasing demand for lightweight and electric vehicles, aircraft, bicycles, and public transport. As aluminum is lightweight, it makes the vehicle more fuel efficient and increases the range, especially in the case of electric vehicles. Increasing emission laws by government regulatory authorities and consumer demand for higher fuel-efficient vehicles are collectively driving the demand for aluminum casting in the transportation sector. Increasing demand and production of airplanes around the world has further surged the demand for aluminum casting in the aerospace sector. The electric vehicle market is witnessing enormous growth, and it is going to increase the usage of aluminum in its production. This will likely drive the aluminum cast market over the forecast period.

The building and construction sector segment is expected to have significant growth with a high CAGR, owing to the increasing use of aluminum cast products in the construction industry. The construction and real estate sector is booming in the Asia Pacific, especially in China and India. Aluminum castings are increasingly utilized in the construction industry. In addition to being utilized for their architectural or aesthetic value, they also serve as the assembly method for the walls and window structures.

Top Key Players of Aluminum Casting Market

  1. Olson Aluminum Casting (U.S.)
  2. Rajshi Industries (India)
  3. Walbro, Alcoa Corporation
  4. Consolidated Metco Inc
  5. BUVO Castings
  6. RDW Wolf
  7. GmbH
  8. Georg Fischer Ltd
  9. Dynacast
  10. GIBBS, Ryobi Ltd
  11. Martinrea Honsel Germany GmbH
  12. Bodine Aluminum
  13. Alcast Technologies
  14. Endurance Technologies Limited
  15. Aluminum Corporation of China Limited

Recent Developments

  • September 2022, Alcoa established a partnership with Mission Possible to control global warming and use sustainable methods in the aluminum industry
  • October 2022, the Aluminum Corporation of China signed an agreement with Chinese EV startup NIO to form a strategic partnership.

Aluminum Casting Market Segmentations

By Type

  • Die Casting
  • Permanent Mold Casting
  • Sand Casting

By Application

  • Transportation Sector
  • Industrial Sector
  • Building and Construction Sector

By Regions

  • North America
  • Europe
  • APAC
  • Middle East and Africa

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global aluminum casting market?
The global aluminum casting market size is growing at a CAGR of 9.3% from 2023 to 2031.
Asia Pacific has the largest share of the market.
Significant growth in data volumeGrowing Demand in Automobile Industry is the key driver for the growth of the market.
Increasing government regulations to control CO2 emissions is one of the upcoming trend in the market.
The key players in the global Market include Olson Aluminum Casting (U.S.) ,Rajshi Industries (India) ,Walbro, Alcoa Corporation ,Consolidated Metco Inc ,BUVO Castings ,RDW Wolf ,GmbH ,Georg Fischer Ltd ,Dynacast ,GIBBS, Ryobi Ltd.

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