Australia Automotive Parts Magnesium Die Casting Market Size

Australia Automotive Parts Magnesium Die Casting Market Analysis

The Australian automotive parts magnesium die-casting market was valued at USD 507.52 million in the current year and is projected to grow to USD 624.64 million in the coming five years, registering a CAGR of 3.46% in terms of revenue during the forecast period.

• The COVID-19 pandemic hampered the market in focus for the year 2020, primarily attributed to declining vehicle sales and production. Vehicle sales in Australia declined by 13% in 2020 as compared to 2019 vehicle sales. However, post-pandemic, the automotive industry witnessed significant growth in 2021. The overall increase in vehicle sales and expected increase in electric vehicle sales is anticipated to primarily drive the market during the forecast period.
• Over the medium term, lightweight vehicles are gaining popularity among vehicle manufacturers owing to the enhanced fuel economy of automobiles with the adoption of lightweight automotive materials manufacturing crucial parts. Additionally, the lightweight of vehicles must be done without compromising safety before quality and performance.
• Rising installation of magnesium die-cast components in passenger and luxury car segments, a rising establishment of new magnesium molding machinery, increasing automation in the die-casting industry (resulting in a rise in productivity), and high demand from the automotive industry, drawing the attention of automotive manufacturers toward highly durable die casting parts.
• The enactment of stringent emission norms across the country will likely witness significant market growth. The rising consumer trend towards lightweight vehicles is likely to increase the penetration of lightweight parts, such as magnesium and carbon fiber reinforced plastic, to manufacture vehicle components, which in turn is anticipated to boost the market.
• Using magnesium in automotive parts provides certain benefits; for instance, automotive parts made from magnesium are 75% lighter than steel, 33% lighter than aluminum, possess high-impact resistance, a high strength-to-weight ratio, are 100% recyclable, and have an abundant material supply, with excellent dimensional stability.
• Automakers are utilizing magnesium for designing and manufacturing a wide range of products, such as instrument panel frames, steering wheels, seat frames, gearboxes, airbag housings, brackets, front-end carriers, engine blocks, and structural components.