The Asia Pacific Aluminum die casting market size is expected to reach a valuation of USD 19.63 billion by 2030, growing at a CAGR of 6.1% during the forecast period (2022–2030). Aluminium can be formed in a variety of ways, but Aluminum die casting is one of the most prevalent possibilities that designers think about using.
Many automotive, industrial, and telecommunications products are made using Aluminum die casting. Additionally, it is frequently utilised in the production of components for electrical, hydraulic, and lighting systems.
The production of intricate aluminium components is made possible using a metal-forming technique known as Aluminum die casting. After being heated to extremely high temperatures, ingots of aluminium alloy are melted down completely.
A large amount of pressure is applied before injecting liquid aluminium into the cavity of a steel die, which is also referred to as a mould. The cast aluminium component is revealed when the two sides of the die are separated after the liquid aluminium has cooled and hardened. The die is composed of two halves.
The aluminium product that you get as a result of this technique is very accurately shaped, has a smooth surface, and frequently requires very little or no machining at all. Because steel dies are used in Aluminum die casting, the process may be repeated several times using the same mould before it begins to deteriorate. As a result, Aluminum die casting is excellent for the manufacturing of aluminium components in large quantities.
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Increasing demand of Aluminium in automotive industry
With technological advancements, manufacturers are expected to see an increase in demand for car exports, which will increase demand for Aluminum die casting automotive materials as manufacturers seek to reduce car weight in order to meet global emission standards.
Aluminium is the metal with the fastest growth rate in the automotive industry. Aluminium's rapid growth has been driven in large part by the replacement of many powertrain components with die casting parts.
The Asia-Pacific automotive industry is one of the largest, with China, South Korea, Japan, and India at the forefront of production. Die casting is a cost-effective and versatile process that can be moulded into a variety of shapes. Die casting materials are widely used in the automotive industry due to their high speed of production, high dimension accuracy and stability, strength, and ease of assembly. This die casting process is responsible for the majority of applications in the automotive industry.
OEMs are attempting to reduce the weight of automobiles in order to meet emissions regulations and policies by using lightweight non-ferrous metals. The main strategy has been to adapt the die casting process.
Growth in construction industry
The rise of the construction industry in emerging economies like India, Indonesia, and others is primarily due to the government's ongoing support packages. The Indonesian central bank eliminated a 15% minimum mortgage down payment program and loosened loan disbursement rules to promote first-time homebuyers. Due to these government incentives, the Asia-Pacific region's construction sector is expected to increase steadily, fuelling demand for aluminium die cast products over the forecast period.
High Capital Cost
Die casting presents a number of challenges, the most significant of which is the large initial capital cost that must be incurred before the process can be started. During the casting phase of the process, a significant expenditure is necessary. Because the casting process requires expensive machinery and equipment, the makers ought to investigate options for mass manufacturing. For this reason, the producer should prioritise high production volumes if they want to think of it as an economically viable technique.
The Asia Pacific Aluminum die casting market has been segmented by process and end use.
The Aluminum die casting market has been divided into pressure die casting and others based on the process. The market is expected to be dominated by the pressure die casting process segment.
Pressure die casting has many advantages, including improved quality, long service life, high reliability due to homogeneity of mass-produced components, quick manufacturing, low die casting tooling maintenance, versatile design, and minimal assembly. As a result of the benefits, its widespread adoption in the sector is expected to drive the market over the forecast period.
Transportation, industrial, building & construction, telecommunication, consumer durables, energy, and others are the segments of the Asia Pacific Aluminum die casting market on the basis of end use. Moreover, the market is expected to be dominated by the transportation segment.
Because Aluminum die castings are lightweight and have good corrosion resistance, mechanical properties, and dimensional stability, their use in light and robust vehicles is growing. The adoption of lightweight vehicles is expected to fuel the rise of aluminium components in the transportation industry in the coming years, such as steering knuckles, crash management systems, closures, and structural die cast parts.
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The market is divided into China, India, Japan, South Korea, Australia & Rest of Asia Pacific, on the basis of country. Asia-Pacific is expected to be the largest market for Aluminum die casting. Growing economies such as China, India, and South Korea are driving regional market growth through increased spending in the manufacturing and end-use industries. Aluminum die casting market growth is expected to be driven by the developing manufacturing sector and increased investment across multiple sectors.
The energy industry has a significant presence in the Asia Pacific Aluminum die casting market, as Asia Pacific dominates global renewable energy installations. The pandemic, on the other hand, will have a short-term impact on the sector, such as a decrease in global energy consumption. Over the forecast period, the region's rise in the energy industry is likely to benefit Aluminum die casting demand.