Canada Automotive Parts Die Casting Market - Growth, Trends, and Forecasts (2020 - 2025)

The Canada Automotive Parts Die Casting Market is Segmented by Production Process type (Pressure Die Casting, Vacuum Die Casting, Squeeze Die Casting and Semi-Solid Die Casting), by Raw Material Type (Aluminium, Zinc, Magnesium and Others) and by Application Type (Body Assembly, Engine Parts, Transmission Parts and Others)

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

5 %

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Market Overview

The Canada automotive parts die casting market is expected to grow at a CAGR of over 5% during the forecasted period (2020 - 2025)

  • Die casting is an effective and economical process which could be moulded into various forms. High-speed production, high dimension accuracy and stability, strength, and simple assembly is the reason for wide use of die casting materials in automotive industry. Most of the applications in automotive industry are fulfilled by this die casting process.
  • To meet the emissions regulations and policies OEMs are trying to reduce weight of automobiles by employing lightweight non-ferrous metals. Die casting process has been adapted as the main strategy. Die casting process has many advantages compared to traditional methods. High speed production, accuracy, stability, strength to weight ratio, better finish, and simple assembly.
  • The high cost associated with metal dies means large capitals are required and this process is profitable only to high-volume production. This process is limited to metals with high-fluidity, and casting weight must be between 30 grams and 10 kilograms. This process might result in porosity. This prevented usage of any heat treatment or welding process on the surface. Also, this process is only for parts in which softness is required, parts with hardening and tempering cannot be made with this process. OEMs are working on improving the technology and this market is expected to grow during the forecasted period.
  • Canada's average vehicle fuel economy is one of the lowest in the world, consuming an average of 8.9 Litres of gasoline per 100 kilometers. Because CO2 emissions are related to fuel economy, the Canadian government is taking steps to reduce the emissions which will have a positive impact on market growth during the forecasted period.
  • Canada exported a total of USD40,713,873,000 worth cars in 2019 which is an 11% increase from 2015. Canada ranked 5th in terms of revenue generated through automotive exports. Sales to the European Union has been increased significantly, especially after the Comprehensive Economic and Trade Agreement (CETA) between Canada and EU was approved by the European parliament in 2017. USMCA is also expected to enhance trade in

the United States and Mexico.

Scope of the report

The Canada automotive parts die casting market report contains the latest trends and technological developments in the market and demand by metal type, production process type, application type, and share of major players across the market.

By Production Process Type
Pressure Die Casting
Vacuum Die Casting
Squeeze Die Casting
Semi-Solid Die Casting
By Raw Material
Aluminum
Zinc
Magnesium
Others
By Application Type
Body Assembly
Engine Parts
Transmission Parts
Others

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Key Market Trends

Aluminium is Expected to Grow with the Highest CAGR

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.

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Pressure Die Casting Captures the Largest Market Share

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.

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Competitive Landscape

The Canada automotive parts die casting market is neither consolidated nor fragmented. Few major players in the market are Dynacast, Endurance Technologies, SYX Die Casting, Sandhar Group, Sunbeam Auto Pvt. Ltd. among others. In 2017, Dynacast acquired Singnicast. 

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Production Process Type

      1. 5.1.1 Pressure Die Casting

      2. 5.1.2 Vacuum Die Casting

      3. 5.1.3 Squeeze Die Casting

      4. 5.1.4 Semi-Solid Die Casting

    2. 5.2 By Raw Material

      1. 5.2.1 Aluminum

      2. 5.2.2 Zinc

      3. 5.2.3 Magnesium

      4. 5.2.4 Others

    3. 5.3 By Application Type

      1. 5.3.1 Body Assembly

      2. 5.3.2 Engine Parts

      3. 5.3.3 Transmission Parts

      4. 5.3.4 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Amtek Group

      2. 6.2.2 Dynacast Inc.

      3. 6.2.3 ALUMINIUM DIE CASTING (CHINA) LTD.

      4. 6.2.4 ECO Die Castings

      5. 6.2.5 CASTWEL AUTOPARTS PVT. LTD.

      6. 6.2.6 GIBBS DIE CASTING GROUP

      7. 6.2.7 Endurance Technologies Ltd.

      8. 6.2.8 SYX Die Casting

      9. 6.2.9 Sandar Technologies

      10. 6.2.10 Sunbeam Auto Pvt. Ltd.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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