Aluminum Casting Market Is Slated To Witness Tremendous Growth In Future
Aluminum Casting Industry
The global aluminum casting market was valued at USD 90.97 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.1% from 2023 to 2030. One of the key factors driving this growth is the increasing use of aluminum in the automotive industry due to its high strength and lightweight properties. Currently, about 30-40% of the aluminum used annually is for lightweight vehicles, and this figure is expected to reach 70% in the coming years as a result of stringent global regulations aimed at reducing fuel emissions. For instance, data from the Federal Reserve Bank of St. Louis shows that global sales of lightweight vehicles reached 17.385 million units in May 2019. This surge in demand for lightweight vehicles, driven by concerns about environmental pollution, rising disposable incomes, and evolving consumer lifestyles, is expected to further boost the aluminum casting market.
In the U.S., increasing demand for general utility vehicles and sports utility vehicles (SUVs) is also expected to contribute to the growth of the aluminum casting market. According to LMC Automotive, the U.S. is projected to have more than 90 mainstream SUV models by 2023. Additionally, automobile manufacturers in the U.S. face growing pressure to comply with regulatory requirements aimed at reducing the environmental impact of vehicles. For example, under the Corporate Average Fuel Economy (CAFE) standards, passenger cars must meet a fuel economy target of 54.5 miles per gallon by 2026 due to the rising emissions of greenhouse gases. This regulatory push is anticipated to drive further growth in the aluminum casting market.
Beyond the automotive sector, the application of aluminum casting is expanding to industries such as agriculture, construction, mining, and other heavy-duty machinery. The demand for modernizing equipment in developing economies like India and Brazil is fueling this growth, as these countries seek to improve productivity and efficiency in their industries. India, one of the largest manufacturers of farm equipment such as tractors, tillers, and harvesters, is expected to see tractor sales grow by approximately 8.0% from 2018 to 2022, which will also contribute to the demand for aluminum casting in the agricultural sector.
Gather more insights about the market drivers, restrains and growth of the Aluminum Casting Market
Process Insights
Die Casting Segment Overview:
- The die casting segment accounted for the largest volume share, around 53.0%, in 2022, driven by the growing demand for aluminum casting products in the automotive industry.
- Die casting is widely used to manufacture various auto parts such as engines, cylinders, gears, and flywheels, which are essential components in high-end and mass-produced vehicles.
- The popularity of die casting in the automotive sector is attributed to its low cost and the increasing global enforcement of strict CO2 emission regulations.
Aluminum Die Casting Segmentation:
- Aluminum die casting is further classified into pressure die casting and others.
- Pressure die casting offers unique characteristics such as a smooth surface finish, easy cavity filling, strong mechanical properties, and tighter dimensional tolerances, making it particularly beneficial for the automotive industry.
- The others category includes processes like vacuum die casting and squeeze die casting, which are utilized in specific applications requiring high precision.
Permanent Mold Casting Process:
- Permanent mold casting involves the use of a single mold made from high-temperature-resistant materials like cast iron or die steel to produce a large number of cast products.
- Products made through permanent mold casting have a superior finish and high dimensional tolerance, making this process ideal for manufacturing components for motorsport and recreational vehicles.
Rising Demand for Motorcycles and Permanent Mold Casting:
- The growing demand for motorcycles, particularly in the U.S., is expected to drive the demand for permanent mold casting in the coming years.
- According to data from the U.S. International Trade Commission (USITC), new registrations of motorcycles with engines of 600cc or fewer increased from 58.3 thousand units in 2013 to 63.4 thousand units in 2017.
- This steady demand from the motorcycle segment presents significant opportunities for manufacturers of aluminum permanent mold casting products, which are expected to benefit from the rising trend.
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