The global aluminum parts gravity die casting market size was valued at USD 6.20 billion in 2021. It is expected to reach USD 9.56 billion by 2030, growing at a CAGR of 4.92% during the forecast period (2022–2030).
Die-cast aluminum is an aluminum type that is melted under intense pressure and poured into mold cavities. It is a non-expendable method that provides various sizes, thicknesses, and shapes. They can be produced either with the cold chamber process or with the hot chamber process. Aluminum die casting is a manufacturing technique that creates metal objects with intricate geometries, sharp edges, precise dimensions, and textured surfaces. Die casting frequently employs aluminum alloys due to the material's lightweight and high dimensional stability, which permits the creation of low-density, long-lasting products. Technological innovation and advancement, the use of aluminum die-casting for various applications, and the increasing adoption of high-strength and lightweight castings, particularly in the auto sector, are the main factors propelling the aluminum die-casting market.
Compared to other die-casting methods, the advantages of using a gravity die to create aluminum components are as follows: producing high-quality, heat-treatable aluminum components with less expensive tooling than high-pressure die casting. Compared to pressure die casting and investment die casting, the production of aluminum parts by gravity die casting is significantly lower because a single mold can be used more than once to create the same part. Due to this, a lot of aluminum part manufacturing companies prefer to produce aluminum parts using gravity die-casting. Since the gravity die-casting method is used to produce a variety of components in numerous end-user industries, the expansion of these sectors, including defense, automotive, and medical, is anticipated to fuel the growth of the global gravity die-casting market over the forecast period.
Aluminum die-castings are prone to flaws in their production rate, surface quality, and removal process. Gravity dies casting of aluminum parts has high initial tooling costs, so die casting, sand casting, and investment die casting are used instead. Die casting is used for high-volume production, provides high accuracy, and can create complex part shapes, so aluminum manufacturers prefer it. Investment die casting produces complex parts with more acceptable tolerances, superior finishes, and thin walls. Gravity dies casting alternatives include centrifugal die casting, plaster mold casting, carbon dioxide mold casting, ceramic casting, and shell mold casting. Due to their many benefits, the above casting processes are becoming more popular among aluminum part manufacturers, slowing the global gravity die-casting market for aluminum parts.
Since road transportation contributes to about 17% of the world's emissions of greenhouse gases (GHGs) that cause global warming, the automotive industry is a significant source of emissions. Due to growing concerns about global warming, regulatory bodies from various nations focus on reducing emissions from multiple sources, including the automotive industry. Regulating bodies are enforcing strict emission standards with the same goal in mind. A 15% weight reduction in a vehicle increases efficiency by about 7%, so implementing such strict emission standards motivates manufacturers to reduce vehicle weight. As a result, many automakers are concentrating on using carbon fiber instead of aluminum and steel.
High strength, exceptional creep and corrosion resistance, lightweight, low coefficient of thermal expansion, availability in various forms, design flexibility, and low thermal conductivity are just a few benefits of carbon fiber. Carbon fiber is ideally suited for various automotive applications because of its characteristics above. However, the high price of carbon fiber is preventing its widespread use in the automotive sector. Many studies and research projects are being carried out to mass produce carbon fiber, lower its price, and increase its adoption in the automotive and other industries.
High precision and digital machinery are increasingly being used to improve the quality and durability of aluminum casts for industrial, automobile, and electronic applications with the advent of improved casting technology. Moreover, the rapid industrialization of emerging economies like India and China has increased the demand for aluminum casts in telecommunications, energy (windmills, transmission parts, etc.), and other industrial components. Aluminum high-pressure die-cast components are widely used in numerous industrial contexts. The method generates lightweight, highly adaptable components for complicated designs. Enhanced aluminum production and consumption are expected to cause profound shifts in the European Union and Asia-Pacific.
In 2020, about 37.08 million tons of refined aluminum were produced in China, making it the largest producer in the Asia-Pacific region. By 2020, Indonesia had produced as much refined aluminum as China, about 220,000 metric tons. The United States also produced 7.50 million tonnes of aluminum in the same year, while Europe produced about 3.80 million metric tonnes. Similarly, major competitors are increasing their mergers and partnerships to fuel industry expansion.
The global aluminum parts gravity die casting market is segmented by application.
Based on Application, the global aluminum parts gravity die casting market is bifurcated into automotive, electrical and electronics, and industrial applications.
The automotive segment is the highest contributor to the market and is expected to grow at a CAGR of 4.99% during the forecast period. The automotive segment is subdivided into parts and components and vehicle types. The market for aluminum gravity die-casted parts in the automotive industry is driven by the constant efforts made by all regions of the world to enact regulations for lowering emissions and enhancing fuel economy. As a result, automakers invested in modernizing vehicles and pushed aluminum gravity die-casting for lighter vehicles.
Some of the automotive industry's most frequently used die-cast transmission parts are valve bodies, stators, and clutch pistons. Utilizing a vacuum to reduce porosity to a minimum has become the newest trend in the production of transmission valve bodies. In an automobile, the hydraulic and electrical systems operate simultaneously. The most critical factors in transmission parts are dependability and quality. An automobile's transmission system is a highly intricate concoction of mechanical operations. Since these components are vulnerable to harsh environments and conditions, maintaining their integrity is of the utmost importance.
Over the past ten years, there has been a significant increase in the demand for production equipment and mechanical engineering parts in various industries. Major corporations investing in new plants and reinvesting in their existing ones are indications of market manifestation. The industrial sector uses aluminum gravity die-casting parts extensively, from small parts of intricate machinery to large die-cast housings and structures. As soon as the government loosened restrictions, the manufacturing sector recovered earlier than anticipated. Following the supply chain disruption, governments began to encourage domestic manufacturing. The American government's support for household products and initiatives like Make in India are just two examples of the push for local manufacturing. The industrial sector will begin to expand in the upcoming years.
By region, the global aluminum parts gravity die casting market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Asia-Pacific is the most significant shareholder in the global aluminum parts gravity die-casting market and is expected to grow at a CAGR of 5.39% during the forecast period. The largest exporter of aluminum and aluminum-related goods worldwide is China. China was the second-largest exporter of aluminum in 2019, with exports valued at USD 26 billion, nearly USD 10 billion more than Germany. In addition, China is referred to as "the world's factory" in addition to its low labor costs due to its robust business environment, lack of regulatory compliance, low taxes and duties, and competitive currency practices. The biggest producer of electrical and electronic equipment worldwide is China, which is anticipated to drive market growth over the forecast period.
Europe is expected to grow at a CAGR of 4.63%, generating USD 1,897.26 million during the forecast period. The leading nations that export aluminum to Germany are Chile, Canada, Australia, Austria, the United Kingdom, Belarus, Belgium, and Bulgaria. Germany is a well-known automotive industry leader and one of the top car producers in the world. Germany currently ranks third in car production and fourth in vehicle production, making the country's automotive sector one of the most competitive and innovative industries. With a market share of 52% among western European nations and 31% in the EU, Germany is ranked as the top car producer in Europe. Germany finances the expansion of R&D in the automotive industry. In actuality, the nation has contributed 60% of the R&D growth in Europe over the past few years. Germany spent the most money among the other sectors—more than 20 billion euros—on R&D in the automotive industry. The nation's high rate of automobile production is fostering market expansion.
North America is anticipated to grow significantly over the forecast period. High-horsepower diesel engines, defense, gas turbines, machine tools, compressors, pumps, valves, medical equipment, light construction equipment, articulated trucks, photo imaging, and printing are just a few industries that use gravity die-cast aluminum parts. For consumption in 2020, the US imported about 3.2 million metric tons of aluminum. One of the biggest suppliers of aluminum to the United States is Canada. Most primary aluminum produced in Canada is exported to the United States, where it is used extensively in manufacturing.
Socioeconomic variables and state-specific unemployment rates significantly impact the market for gravity die-cast parts in the United States. Due to the impending trade war between the United States and other countries, even base metal prices have been under pressure recently (especially in China). The United States wants to increase domestic production by reducing its reliance on imports and on nations that produce aluminum, like China and Russia. This is anticipated to support the nation's market expansion.
With more than 51% of the population and 48% of the region's GDP, Brazil is the largest country in South America. Brazil consumes 8.6 kg of aluminum per person annually, compared to an average of 11 kilograms worldwide. In terms of global aluminum production, Brazil comes in at number 14. The automotive industry is the country's largest end market for aluminum gravity die casting. With the growth of the service sector in the nation, the participation of the industrial sector slightly decreased. Brazil is the world's third-largest producer of bauxite, demonstrating the country's accessibility to large-scale raw materials. The nation has seen an increase in the demand for agricultural machinery in recent years. During the anticipated period, this growth is anticipated to aid in the market's expansion.
The biggest market for aluminum gravity die casting in the Middle East and Africa is South Africa. Gauteng, Kwa-Zulu Natal, and the Western Cape are the three regions of South Africa with the highest concentration of foundries. Increasing commercial activity has made South Africa a significant automobile exporter to many African nations. The country's market is anticipated to expand due to rising production and low material and labor costs. The automotive and manufacturing sectors are the primary end markets for the South African aluminum gravity die-casting industry. The die-casting sector in South Africa is anticipated to pick up speed and grow significantly going forward with assistance from the BRICS nations and anticipated economic stability.
The Global Aluminum Parts Gravity Die Casting Market’s major key players are
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