Automotive part die casting is the process used for manufacturing sharply defined, accurately dimensioned, and smooth or textured-surface metal parts. In the automotive sector, cars have the highest number of die-cast parts, comprising mostly small metal parts, which include engine parts, covers for the gearbox, motor, shades pole, auto fork, components, and heat sinks.
Simulation-based casting is one of the latest trends in the automotive part die casting industry. It is used to produce reliable, cost-effective, and high-precision components. It reduces wastage and operational costs and predicts defects and their location easily and more precisely than conventional methods. Various die casting manufacturers are adopting simulation-based casting to fulfill the demand from the automotive industry. Furthermore, growth in the sales of electric and hybrid vehicles is compelling suppliers to adopt aluminum components to reduce vehicle weight. Therefore, the demand for light die-cast parts is expected to grow in tandem with the market penetration of electric cars.
The global automotive part die casting market is expected to grow at a CAGR of 7.0% during the forecast period, 2019–2026.
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On the basis of type, the pressure segment is expected to hold a prominent market share in the automotive part die casting market. In the pressure die casting process, molten metal or alloy is injected at high speed and pressure into a mold. Among the two main types of pressure die casting processes, high pressure die casting finds wider application as compared to low pressure die casting. Pressure die casting technology can produce large and light alloy parts in high volumes at great speeds. In light of environmental concerns and the emphasis on fuel efficiency, the automotive sector is taking measures to reduce CO2 emission, which is bolstering the demand for pressure die casting in the global automotive part die casting market.
On the basis of application, transmission parts are projected to register a high growth rate in the global automotive part die casting market. Transmission parts are among the largest parts commonly die cast in the automotive industry. Automatic transmission is one of the most complex combinations of mechanical, electrical, and hydraulic components working together, specifically in the heavy truck market. It is prone to more extreme conditions and environments; thus, die casting enhances the integrity of transmission parts, including valve bodies, stators, and clutch pistons.
Geographically, the global automotive part die casting market has been segmented into North America, Europe, Asia Pacific, and Latin America (LATAM), and the Middle East and Africa (MEA).
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Asia-Pacific is expected to hold a prominent market share in the automotive part die casting market. China and India are emerging as automotive hubs and global manufacturers are shifting to these countries, which is augmenting the demand for automotive parts die casting in the region. As per a study by the Aluminum Casters Association of India (ALUCAST), India’s automobile and electrical industries consume 70% of the aluminum die-cast parts.
North America is expected to witness significant growth in the automotive part die casting market on account of the increasing production of passenger cars and light commercial vehicles. According to the Mexican Automobile Manufacturers Association (AMIA), the country is expected to record the production of almost 3.8 million passenger cars and light commercial vehicles in 2020, which indicates the scope for automotive die-cast part suppliers in the country.
In Europe, Germany, Italy, and Russia are pegged to be the most prominent markets for automotive part die casting during the forecast period. Currently, European die casters are focusing on premium cars such as the new Jaguar I-Pace, BMW 8-series, and Mercedes-Benz C-class. Europe’s automotive part die casting market is fragmented with the presence of key players such as Rheinmetall AG, GF Automotive, Martinrea, Nemak, and Alucast.
MEA is observed to witness considerable growth in the automotive part die casting market during the forecast period, 2019–2026. As automakers continue to seek opportunities to reduce vehicle weight, the market for automotive parts die casting is likely to grow at a significant rate in the Middle East and Africa. For instance, in 2019, Alcoa Corporation announced a joint venture with the Saudi Arabian Mining Company Ma’aden to accommodate different facilities for the manufacture and assembly of aluminum powertrain and structural automotive components.
LATAM is likely to experience healthy growth in the automotive part die casting market on account of state and local governments in countries such as Argentina and Brazil creating opportunities for foreign investors by providing the auto manufacturing industry with a variety of incentives. Automotive manufacturers are thus expanding their footprint beyond the traditional manufacturing zone, and sourcing individual parts, including die casting parts, from suppliers in the region at cheaper prices.
Some of the prominent players in global automotive part die casting market are Consolidated Metco, Inc, Texas Die Casting, Rockman Industries Limited, Endurance Technologies Limited, Alcast Technologies, Alcoa Corporation, Dynacast, and Ryobi Die Casting.