Europe Automotive Parts Die Casting Market Size

Europe Automotive Parts Die Casting Market Analysis

The Europe Automotive Parts Die Casting Market size is estimated at USD 12.02 billion in 2024, and is expected to reach USD 18.32 billion by 2029, growing at a CAGR of 7.28% during the forecast period (2024-2029).

• The COVID-19 pandemic severely impacted the automotive industry across the world. The disruptions in supply chain activities, the interruption in large-scale manufacturing, restrictions on travel, and the declining sales of vehicles during 2020 were responsible for the declining growth of the market. However, after the pandemic, a surge in the manufacturing volume of passenger cars and hybrid electric vehicles was observed in the country due to the easing of restrictions. The automotive parts die-casting market in Europe coped with all the losses that happened during the period and grew at a certain pace.
• Over the long term, the market studied is largely driven by supply chain complexities in the die-casting industry, expanding the automotive market, increasing penetration of die-casting parts in industrial machinery, growing commercial vehicle sector, and employing aluminum casts in electrical and electronics.
• The European industry, as a whole, has more than doubled the average amount of die-cast parts that have been used in passenger cars for the past 20 years. From just 50 kg of aluminum parts per passenger vehicle in 1990 to over 500 kg of it in the AUDI A8 model, the market for automotive parts die casting is evolving in the region and is expected to maintain moderate growth for the coming five years.
• Non-ferrous castings in Europe registered an average performance of 37 metric tons per employee in 2021, according to the latest statistics from the European Foundry Association (EFA). Over 80% of the castings produced in Europe are consumed by the automotive industry.
• The Corporate Average Fuel Economy (CAFÉ) standards and Environmental Protection Agency (EPA) policies to cut down automobile emissions and increase fuel efficiency are driving the automakers to reduce the weight of the automobile by employing lightweight non-ferrous metals. Demand from the commercial vehicle segment is one other factor that is driving the market. On the flip side, the shift toward electric vehicles is expected to act as a major restraint on the casting industry. A combustion engine contains approximately 220 casted parts, but only about 25 are needed for an electrical drive. Also, the number of people employed in European non-ferrous casting foundries has been volatile for the past five years.