The Total Addressable Market (TAM) for Automotive Part Die Casting was valued at USD 63.6 billion in 2022. It is projected to reach USD 113.90 billion by 2031, growing at a CAGR of 6% during the forecast period (2023–2031).
Die casting is the process used to create metal automotive parts with a precise shape, precise dimensions, and a smooth or textured surface. Engine components, gearbox covers, motor covers, shade pole and fork covers, component and heat sink covers, and auto fork covers are some examples of die-cast metal parts found in automobiles. Simulation-based casting is one of the most cutting-edge tendencies in the die-casting sector for automobile components. It's put to use in the manufacture of parts that are robust, economical, and precise. It's easier and more accurate than traditional methods of predicting where and when defects will occur, and it cuts down on waste and operational costs. To meet the needs of the automobile industry, many die-casting companies are switching to casting based on computer simulation.
The global automotive parts die casting (aluminum, magnesium, and zinc) market is evolving thanks to the rise of the industrial internet of things and Industry 4.0. There are many upsides to implementing IoT in the industrial sector, such as increased productivity, new ways of doing business, fresh streams of income, reduced risk, and stricter safety regulations. Casting manufacturing can benefit from incorporating electrical devices to increase output and quality. Mechanical stresses, such as deformations, tensile forces, and vibrations, can be detected, measured, and analyzed with the help of sensors embedded in castings. One of the significant changes that will propel the global market forward in the coming years is the widespread use of simulation-based casting. According to projections, raw material price volatility will be the most significant factor slowing market expansion. A die's longevity depends on the molten material temperature and the length of the cycle. Cast iron cannot withstand high pressures, so die-casting dies are typically made of more durable materials.
Rising price fluctuations for aluminum, magnesium, and zinc would slow the expansion of the automotive parts die-casting market. Because of how crucial the raw materials are to the die-casting process, any disruptions in the supply chain can result in significant financial losses for automakers. Furthermore, future demand for automotive parts dies casting may be stifled by such price fluctuations, thereby stifling the market. Due to an excess supply and weaker demand across the aluminum value chain, alumina prices are expected to remain under pressure for the foreseeable future. Aluminum prices are expected to rise in the domestic market due to tariffs imposed on steel imports from the European Union, Mexico, and Canada (25% tariff) and aluminum imports from the rest of the world (10%).
Rapid climate change calls for immediate action to reduce carbon emissions. If we fail to do this, it will have catastrophic and permanent effects on human civilization. The emissions of vehicles on the road are a significant source of greenhouse gases. The automobile industry must be singled out for emission reductions to be successful. Battery technology has led to significant structural differences between EVs and ICE vehicles. To comply with these new environmentally friendly regulations, businesses in every country have begun implementing similar policies. As these regulations allow cars to improve fuel efficiency and reduce emissions, they will create lucrative opportunities for the automotive parts die-casting market.
The global automotive part die casting market is segmented by type and application.
Based on type, the global automotive part die casting market is bifurcated into pressure die casting, vacuum die casting, squeeze die casting, and semi-solid die casting.
The pressure die casting segment is the highest contributor to the market and is expected to grow during the forecast period. Castings are made by forcing a molten metal or alloy into a mold at high speed, and pressures in a process known as pressure die casting. High-pressure die casting is more widely used than low-pressure die casting, the other primary type of pressure die casting. High-volume, high-speed production of significant, lightweight alloy components is now possible with pressure die-casting technology. Increased demand for pressure dies casting in the global automotive part die-casting market can be attributed to the automotive industry's efforts to reduce carbon dioxide emissions in response to growing environmental consciousness and the subsequent rise in the value placed on fuel economy. The transmission of a car is a highly sophisticated mechanical system. It is vulnerable to harsh environments. It highlights the importance of honesty and honesty alone. Die casting is widely used in automotive transmission to make components like valve bodies, stators, and clutch pistons.
Based on application, the global automotive part die casting market is bifurcated into body assemblies, engine parts, and transmission parts.
The transmission parts segment is the highest contributor to the market and is expected to grow during the forecast period. Significant transmission components are among the most common automotive parts to die cast. Automatic transmissions are among the most complex mechanical, electrical, and hydraulic components to work together, particularly in the heavy truck market. Die casting improves the durability of transmission components like valve bodies, stators, and clutch pistons because they are subjected to harsher conditions and environments. A vehicle's primary purpose is transportation, where transmission components come in. Because of its crucial role, transmission is the most common segment type. Compared to other auto components, its production volume is much higher for brand-new vehicles and for maintenance and replacement. Die-casting methods have greatly aided this industry's progress, making it possible to produce transmissions quickly with intricate designs.
The global automotive part die casting market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant shareholder in the global automotive part die casting market and is expected to grow during the forecast period. As a result of rising incomes in the region, the Asia-Pacific region now accounts for the majority of the global automotive parts die-casting market. Asia-Pacific is expected to grow during the projection period due to the government's new policies. The new regulations promote the use of die casting in the automotive industry. Automotive parts die casting is experiencing a boom in Asia-Pacific as China and India develop into major automotive production centers and attract manufacturers worldwide.
North America is expected to grow during the forecast period. Rising demand for cars and light trucks means a booming market for automotive die casting in North America. As reported by the Mexican Automobile Manufacturers Association (AMIA), the demand for automotive die-cast part suppliers in Mexico is expected to grow to nearly 3.8 million in 2020. In the United States alone, over 30 die-casting companies employ over 400 die-casting plants to produce auto parts for engines and transmissions. Alcoa Corporation, Shiloh Industries Inc., Dynacast Inc., Pace industries Inc., Ryobi die casting Inc., Gibbs die casting, and many others are among the most prestigious American die-casting manufacturers. The primary concern of these powerhouses is expansion.
The most important markets for automotive part die casting in Europe during the anticipated period are expected to be Germany, Italy, and Russia. At the moment, die casters in Europe are concentrating on high-end vehicles like the new Jaguar I-Pace, BMW 8 Series, and Mercedes-Benz C-Class. Rheinmetall AG, GF Automotive, Martinrea, Nemak, and Alucast are just some of the major players in Europe's automotive part die casting market. It announced that retaliatory tariffs against U.S. aluminum imports could go into effect on January 1, 2021. During the forecast period, this government action is expected to boost domestic output and, by extension, market growth.
Over the forecast period, the die-casting market for automotive components is expected to expand significantly in the Middle East and Africa. Die casting for automotive parts is expected to increase in the Middle East and Africa as automakers look for ways to cut vehicle weight. State and local governments in countries like Argentina and Brazil are creating opportunities for foreign investors by providing the auto manufacturing industry with various incentives, which bodes well for the growth of the die-casting market in LAMEA. Thus, automakers are extending their reach beyond the traditional manufacturing zone and purchasing cheaper components, such as die-casting parts, from local vendors.
The global automotive part die casting market’s major key players are
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