Automotive Casting Market Size

Automotive Casting Market Size

Automotive Casting Market size crossed USD 107.2 billion in 2020 and is expected to exhibit around 5.8% CAGR between 2021 and 2027. Positive outlook of automotive production will propel the industry growth.

Many car manufacturers are trying to reduce vehicle weights in order to improve fuel economy and minimize emission levels. The traditional metals such as cast iron are now being replaced by lightweight materials like aluminum to reduce overall vehicle weight along with improvement in vehicle efficiency. Increasing population, rising spending propensity and technological progressions will positively influence global automotive production.

Stringent government regulations imposed by regulatory bodies will motivate automotive manufacturers to minimize vehicle weights. European Union specified various regulations and legislation to control the CO₂ emission levels from automobiles. Due to these regulations, the amount of emissions has been reduced significantly in the past few years. According to European Environmental Agency, average CO₂ emission levels from passenger cars is reduced by 40.2 Gco2/km from 2007 to 2017. Recently, the European Parliament and the Council adopted Regulation (EU) 2019/631 specifying the guidelines regarding CO₂ emission performance standards for new passenger cars and new light commercial vehicles for the period after 2020.
 

The coronavirus pandemic has crippled the automotive industry in a significant manner. Due to imposition of strict lockdowns, automotive production facilities were partially or completely closed globally resulting in a significant decline in production output. Additionally, supply chain associated with automotive industry was severely affected owing to transportation restrictions. This has hampered the growth of automotive casting market in 2020. As lockdown restrictions and transportation bans are getting lifted in the second half of 2020, the market will gain its momentum in a slow and steady manner. However, significant amount of time is required for the market to fully stabilize and achieve peak growth rates.