The die casting market is valued at USD 65.5 billion in 2020 and is anticipated to reach USD 93.9 billion by 2026, at a CAGR of about 6.19% during the forecast period.
The outbreak of COVID-19 and the subsequent shutdowns have affected the die casting sector in several countries. The negative impacts of the pandemic are visible in the global manufacturing sector in the first half of 2020. Hence, the reduction in production rates due to the pandemic-induced disruptions affected the growth of the market during the initial few months at the starting of the year but after the restrictions were lifted the market gained its lost momentum by the end of 2020.
The market studied 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 casts in electrical and electronics.
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 non-ferrous metals. Subsequently, employing die-cast parts as a weight reduction strategy is acting as a major driver for the former market in automotive segment.
However, crunch in raw material supply, volatility in raw material prices, and environmental regulations on emission for the metallurgy industries are acting as major barriers for the market growth.
Key Market Trends
Automotive Application Leads the Market
Polymers and non-ferrous materials accounted for over 40% of the total materials used in an automobile, as of 2020. In the present scenario, nearly 30-35% of the auto components in a vehicle are made of aluminum alloys, which are mostly developed using high pressure die casting process.
Electrical and hydraulic components in an automobile work simultaneously. Reliability and quality are given prime importance in transmission parts. The transmission system in an automobile is a complex combination of mechanical functions. It is prone to extreme conditions and environments. This enhances the importance of integrity. Valve bodies, stators, and clutch pistons are some of the commonly die-casted transmission parts in the automotive industry.
The automobile manufacturers, globally, are using lightweight magnesium and magnesium alloys to reduce the overall vehicle weight, and in turn, improve the fuel economy. Magnesium is a viable alternative to steel, aluminum, and other structural materials, and has certain attractive properties. It is 36% lighter per unit volume than aluminum and 78% lighter than steel. When alloyed, magnesium has the highest strength-to-weight ratio among all structural metals. Many interior components, such as steering column brackets and steering wheel armatures, are made of magnesium
Asia-Pacific will Dominate the Die Casting Market
The growing automobile industry, India and China emerging as cost-effective die casting manufacturing hubs, demand from the industrial sector, and increased scope of application in windmills and telecommunications are expected to drive the die casting market at a faster pace in the Asia Pacific region.
With the growth in automotive lighting and energy-saving trends, expanding the industrial and manufacturing sector, the die casting market grew substantially in the Asia-Pacific region. Cheaper labor and low manufacturing costs in India and China further propelled the market growth in these countries. During the past two decades, small privately run factories in this region have become much competitive and professional in producing die-cast components.
Thailand is emerging as a major automobile exporting country, driven by Japanese FDI. Chinese manufacture sector is growing very fast and is poised to make its dent in the international trade arena. India is consolidating its position with strong domestic and external demand for high-quality die-cast components at lower prices. All these factors together are driving the market for die casting parts market in the Asia-Pacific region.
The global market for die casting is highly fragmented, with many regional small- and medium-scale players from the developing countries entering the market.
Major recognized players, such as Nemak, Georg Fischer Automotive, Ryobi Die Casting, Rheinmetall AG, Form Technologies Inc. (Dynacast), and Shiloh Industries, together accounted decent shared in the overall global market share.
These key players have focused 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 presence, globally, through various mergers, expansions, partnerships, joint ventures, and acquisitions.
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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
5.1 By Application
5.1.2 Electrical and Electronics
5.1.3 Industrial Applications
5.2 By Process
5.2.1 Pressure Die Casting
5.2.2 Vacuum Die Casting
5.2.3 Squeeze Die Casting
5.3 By Raw Material
5.4.1 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
5.4.4 South America
184.108.40.206 Rest of South America
5.4.5 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 Form Technologies Inc. (Dynacast)
6.2.3 Endurance Technologies
6.2.4 Sundaram Clayton Ltd
6.2.5 Shiloh Industries
6.2.6 Georg Fischer Limited
6.2.7 Koch Enterprises (Gibbs Die Casting Group)
6.2.8 Bocar Group
6.2.9 Engtek Group
6.2.10 Rheinmetall AG (Rheinmetall Automotive, formerly KSPG AG)
6.2.11 Rockman Industries
6.2.12 Ryobi Die Casting Ltd
6.2.13 Linamar Corporation
6.2.14 Meridian Lightweight Technologies UK Ltd
6.2.15 Sandhar Group
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.