Aluminum Casting Market Global Trends And Revenue Growth Up To 2030...

Aluminum Casting Market Global Trends And Revenue Growth Up To 2030

Posted 2024-11-01 06:14:43

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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

End-use Insights

Transportation Segment Overview:

In 2022, the transportation segment captured the largest revenue share, exceeding 58.0% of the total market.

Drivers of Growth:

The growth in this segment can be attributed to several key factors:
- An increasing global demand for lightweight vehicles and aircraft.

Lightweight Vehicle Sector:

Within the lightweight vehicle sector, sports vehicles stand out as one of the most lucrative segments.
- The rising popularity of sporting events, rallies, and races, particularly in regions like North America and Europe, significantly drives the demand for sports vehicles.
- This increased demand in turn boosts the need for aluminum casting, a critical component in manufacturing these vehicles.

Aircraft Demand:

Growth in the transportation segment is further supported by the surging demand for aircraft.
- Aluminum cast products play a vital role in the manufacturing of jet and aircraft engines.
- A study published by Airbus in 2018 projected that the demand for new aircraft is expected to reach nearly 39,000 units over the next decade.
- This rising demand for new aircraft is likely to propel the need for new jet engines, thereby positively influencing market growth.

Industrial Segment Growth:

In the industrial segment, the construction equipment sector is expected to witness robust growth in the coming years.
- This growth is driven by rigorous infrastructure development initiatives occurring globally.
- The Asia Pacific region has experienced a notable influx of Chinese construction equipment manufacturers, such as XCMG and Sany, over the past decade.
- This trend is expected to result in steady demand for aluminum casting products.

Building and Construction Segment Forecast:

The building and construction segment is projected to exhibit a compound annual growth rate (CAGR) of 3.4% in terms of volume from 2023 to 2030.
- This growth is attributed to the increasing utilization of aluminum casting products in various applications within residential buildings.
- Applications of aluminum casting in construction include:
  - Roofing
  - Door handles
  - Windows
  - Curtain walling
- The rising trend of replacing traditional materials such as iron and steel with aluminum is driven by changing consumer preferences.
  - Benefits of aluminum include its lightweight nature and aesthetic appeal, which are anticipated to further fuel market growth in the coming years.

Order a free sample PDF of the Aluminum Casting Market Intelligence Study, published by Grand View Research.

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