Automotive Casting Market Analysis

Automotive Casting Market Analysis

Aluminum material segment is likely to witness over 4% CAGR by volume through 2027. Use of aluminum in automotive production observed significant upward growth trajectory in the past few decades and it will continue its strong growth in upcoming years. Aluminum’s density is one third that of steel and is lighter than steel. Every kilogram of aluminium used in a car approximately reduces the overall weight of the vehicle by one kilogram. Moreover, it is extremely malleable and has excellent corrosion resistance and flexibility.

Vehicles made from aluminum have better acceleration, superior braking and excellent handling. The key benefit of using aluminum in automotive manufacturing is improvement in fuel efficiency. Vehicles made from aluminum offer safety benefits needing shorter stopping distances thereby minimizing the risk of possible collisions significantly. Furthermore, it offers significant environmental benefits as approximately 90 percent of automotive aluminum scrap can be recycled and recovered. Such trends will bolster the use of aluminum in automotive manufacturing.

Die casting is poised to capture more than 50% of the automotive casting market volume share by 2027. The process is used to produce components requiring superior dimensional accuracy and excellent surface quality. It is majorly used for casting non-ferrous metals such as aluminum, magnesium, zinc, etc. It is perfectly suitable for mass production and parts produced with this technique possess high strength. Aluminum die cast parts are widely used in automotive industry owing to their weight reduction benefits.

Various components produced by aluminum die casting include cylinder heads, engine blocks, suspension parts, wheels, etc. Strict regulatory environment associated with production of vehicles with better fuel economy and reduced CO₂ emission levels will benefit the growth of die casting in future.

Automotive casting market from engine applications will generate about USD 70 billion by 2027. As engine is heart of the vehicle, high efficiency of engine is of utmost importance. Engine components require high level of dimensional accuracy in order to work at desired levels and casting process aids in achieving these results. Positive outlook of automotive sector will trigger the penetration of casting within engine within engine segment.
 

In 2020, passenger cars segment accounted for above 50% market share and is set to see strong growth from 2021 to 2027. Advent of technology coupled with emphasis on reducing the vehicle weight will propel the market growth. However, supportive government initiatives and financial support will boost the automotive production in coming years. Changing consumer dynamics amidst serious competition amongst vehicle manufacturers have resulted in increasing focus towards light weighting of vehicles and incorporation of new materials.
 

Asia Pacific captured more than 50% of the automotive casting market share in 2020 propelled by large number of automotive production facilities accounting for significant portion of global automotive production. Moreover, the region consists large number of foundries thereby procurement of raw materials is easy and less costly. Various governments within this region have formulated initiatives for accelerating the growth of automotive sector.