Canada Automotive Parts Die Casting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

With technological advancements, Canadian manufacturers are expected to see a rise in demand for car exports which intern will increase demand for Aluminium die casting automotive materials as manufacturers are looking to reduce car weight to keep up with emission norms across the world.

Aluminum has the highest growth rate in terms of metals used in the automotive industry. Aluminum has achieved this high growth rate because it was largely supported by the substitution of many parts of the powertrain with die casting parts. With the introduction of electric automobiles in the market, the growth rate is expected to grow during the forecasted period. 90% of the Aluminium used in the automobiles can be recycled, which is proving to be more profitable for the OEMs as compared to steel. As countries are racing towards reducing energy usage, the Aluminium dies casting market is expected to grow during the forecasted period. According to European directives and standards (2000/53/EC-End Life 0f Vehicles), US Department of Transportation, and US EPA, the automotive manufacturing industry has to follow certain norms in regarding environmentally friendly recycling and dismantling of vehicles, higher fuel efficiency standards, and increase in use of recyclable materials which offers high potential for growth.

Canada is the largest aluminium exporter in the world, USD 5.3 billion worth aluminium being exported in 2019 which accounted to 10.1% of the world aluminium trade, this market is expected to grow during the forecasted period. Most OEMs are preferring to import Aluminium because they are cheaply available in other regions and to keep up with the government pollution norms.

With technological advancements Canadian manufacturers are expected to see raise in demand for car exports which intern will increase demand for automotive die casting parts as manufacturers are looking to reduce car weight in order to keep up with emission norms across the world. The automobile industry is highly dependent on the Environment Protection Agency (EPA) regulations, owing to the high emissions of the automotive units. The move by the EPA to raise the miles per gallons (mpg) standards to 54.5 mpg by 2025, has actually helped the industry, as the automotive industry concluded that the only way to get to those mileage standards is by manufacturing lightweight vehicles. The traditional metal die casting industry is also facing threat from the newly emerging composites market as composites provide the same physical properties and are much lighter than metal castings. European union target for CO2 emission reduction by 2030, 37.5% for cars and 31% for light commercial vehicles.

Owing to the advantages offered by the process of pressure die casting over other casting methods, the players in the industry are investing in expanding their operations in the country for fulfilling the demand of die casting for automotive in the country. Using the pressure die casting technique, high volumes of components can be produced with high accuracy over other processes. Also, the method is cost-effective and less time consuming, and other advantages and the demand in the country is enabling the significant players in the country to invest heavily and expand their operations. For instance. The applications and complexity of die casting products are constantly increasing. New alloy developments and process technologies are being developed to meet the specifications for structural and chassis. As well as castability, mechanical properties, and service life. Die casting industries are focusing on developing conformal cooling, joining technologies, heat treatment, and hybrid components. Recently, Intelligent temperature control for die casting has been developed which helps in reduction of porosity in the surface which results in higher casting quality, process stability, and high tool life.