|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The aluminum parts gravity die casting market was valued at USD 5,351 in 2020 million. It is projected to reach USD 7,413 million by 2026, registering a CAGR of about 4.82% during the forecast period (2021-2026).
During the COVID-19 outbreak in 2020, the entire supply chain of the automotive industry was significantly impacted. The OEMs struggled to keep their operations going. However, as the lockdown and restrictions were relaxed, the automotive industry and the aluminum parts gravity die casting market regained their momentum.
The market is largely driven by supply chain complexities in the die casting industry, the expanding automotive market, increasing penetration of die casting parts in industrial machinery, the growing constructional sector, and employing aluminum castings in the electrical and electronics sector.
The CAFÉ standards and EPA policies to cut down automobile emissions and increase fuel efficiency are driving the automakers to reduce weight of the automobile by employing lightweight metals. Subsequently, employing die-cast parts as a weight reduction strategy is acting as a major driver for the former market in the automotive segment.
Scope of the Report
Gravity die casting is a permanent mold casting process, where the molten metal is poured from a vessel or ladle into the mold. The mold cavity fills with no force other than gravity, and the filling can be controlled by tilting the die.
The aluminum parts gravity die casting market report covers a detailed study on the latest trends and innovations in the market, which is segmented by application type (automotive (by parts and components (transmission parts, engine parts, brake parts, and other parts and components), vehicle type (passenger cars, commercial vehicles (trucks and buses), and other vehicles), electrical and electronics, industrial applications, and other applications) and geography. The report covers market size and forecast for the aluminum parts gravity die casting market by value (USD million), for all the above-mentioned segments.
|Electrical and Electronics|
Key Market Trends
Stringent EPA Regulations and Cafe Standards Driving Growth
The automobile regulatory frameworks in Europe and North America have been instrumental in creating a sustainable environment in the automobile industry.
The latest regulatory framework, Euro 6, which was introduced in 2011 and came into effect from September 2014 onward, changed the regulatory standards that have been crucial in determining the dynamics of the automotive market in the region. Since 2013, the EC (European Commission), along with EEA/EMEP, has been maintaining the record of emission performance standard for each new vehicle registered in Europe.
The emission regulations bind the automotive manufacturers together. The freight companies and fleet owners are rapidly moving toward incorporating more technologies that are expected to reduce the average emission rate.
- Thereby, a need to reduce vehicle weight for lowering emission levels has greatly encouraged the employment of die cast parts in vehicles.
- Automobile manufacturers are always looking for ways to make the vehicle components more efficient, in order to improve fuel efficiency of the vehicle and reduce carbon emissions. Lightweight construction, using efficient and cost-optimized aluminum die casted parts, plays a key role in achieving this goal. Companies, like Nemak, are focusing on the ‘lightweight’ trend and introducing electric vehicle products (manufactured by using HPDC process) into the automotive industry.
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Asia-Pacific Remains the Largest Market
Asia-Pacific is the largest automotive market in the world. China is the world's leading exporter of aluminum and aluminum products. In 2019, China's exports of aluminum were valued at USD 26 billion, almost USD 10 billion more than Germany, the second-largest exporter.
China is among the world’s largest suppliers of car parts, exporting motor vehicle parts and accessories worth USD 33.63 billion in 2019. In addition to its low labor costs, China is known as "the world's factory" due to its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.
In FY 2020, aluminum production in India stood at 3.6 MT. India is the second-largest foundry industry that produces castings in the world. Foundries in India are capable of producing gravity die casting products that serve a wide range of applications conforming to international standards.
The government’s focus on the ‘Make in India’ initiative, developing the automotive industry, and the stringent emission norms is driving the market growth. In FY 2019, 6.7 lakh passenger vehicles were exported from India. Companies such as Hyundai, Kia, Maruti Suzuki, and Volkswagen are exporting Indian-made cars to the African region instead of setting up the factory there, due to low-cost manufacturing and availability of parts suppliers in India.
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The market for aluminum parts gravity die casting is fragmented in nature, with the presence of many regional small-medium scale players across several countries, as well as large-scale/international players.
These key players focus their revenues on R&D to come up with better production processes and alloys. This strategy may assist in the production of premium quality die cast parts for the global automotive and industrial sectors. Key players have also expanded their operations globally, through various mergers, expansions, partnerships, joint ventures, and acquisitions. For instance, in 2021, Endurance Technologies announced the commencement of the commercial production of aluminum die castings and plans to carry out the integration of disc brake components with control brake modulators.
In January 2019, Endurance Technologies Ltd acquired Italy-based aluminum die casting company, Fonpresmetal Gap SpA, for EUR 8.16 million. The Endurance Group in Europe has nine manufacturing plants at present, of which six are in Italy and three in Germany.
In May 2019, Sundaram Clayton established its first overseas manufacturing facility in the United States, through an investment of INR 630 crore. The facility can produce 1,000 metric ton of castings.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter’s Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
22.214.171.124 Parts and Components
126.96.36.199.1 Transmission Parts
188.8.131.52.2 Engine Parts
184.108.40.206.3 Brake Parts
220.127.116.11.4 Other Parts and Components
18.104.22.168 Vehicle Type
22.214.171.124.1 Passenger Cars
126.96.36.199.2 Commercial Vehicles
188.8.131.52.2.3 Other Vehicles (Agricultural and Off-road)
5.1.2 Electrical and Electronics
5.1.3 Industrial Applications
5.1.4 Other Applications
5.2.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.2.4 South America
184.108.40.206 Rest of South America
5.2.5 Middle-East and Africa
220.127.116.11 South Africa
18.104.22.168 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Rockman Industries
6.2.2 Endurance Technologies Limited
6.2.3 Minda Corporation Limited
6.2.4 Hitachi Metals Ltd
6.2.5 MAN Group Co. United Kingdom
6.2.6 MRT Castings Ltd
6.2.7 Harrison Castings Limited
6.2.8 Vostermans Companies
6.2.9 CIE Automotive
6.2.10 Sundaram Clayton Ltd
6.2.11 GWP Manufacturing Services AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Aluminum Parts Gravity Die Casting Market market is studied from 2018 - 2026.
What is the growth rate of Aluminum Parts Gravity Die Casting Market?
The Aluminum Parts Gravity Die Casting Market is growing at a CAGR of 4.82% over the next 5 years.
What is Aluminum Parts Gravity Die Casting Market size in 2018?
The Aluminum Parts Gravity Die Casting Market is valued at 6544 Million USD in 2018.
What is Aluminum Parts Gravity Die Casting Market size in 2026?
The Aluminum Parts Gravity Die Casting Market is valued at 7413 Million USD in 2026.
Which region has highest growth rate in Aluminum Parts Gravity Die Casting Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Aluminum Parts Gravity Die Casting Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Aluminum Parts Gravity Die Casting Market?
Endurance Technologies, Minda Corporation Limited, Sundaram Clayton Limited, Rockman Industries, CIE Automotive are the major companies operating in Aluminum Parts Gravity Die Casting Market.