Automotive Casting Market size to reach USD 169 billion by 2027, according to a new research report by Global Market Insights Inc.
Positive outlook of automotive production is likely to propel the industry growth. Global automotive production increased by around 15% from 2010 to 2019 and it will continue its growth over the coming years. Rising population, increasing disposable income levels, technology trends and supportive investments are set to drive the global automotive production. Such favorable trends associated with automotive industry coupled with increasing importance of lightweight materials to reduce the weight of vehicles are going to propel the automotive casting market demand.
High capital costs associated with few casting processes may create adversity in the industry revenue. Die casting, one of the main automotive casting techniques offer excellent results, however, it requires high capital costs as necessary casting equipment, dies and associated components are very expensive. Investment casting includes many complex steps thereby increasing the overall production costs. Additionally, this process requires specialized equipment and costly refractory material.
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Browse key industry insights spread across 260 pages with 334 market data tables & 23 figures & charts from the report, “Automotive Casting Market Size By Material (Iron, Steel, Aluminum), By Process (Sand Casting, Die Casting, Investment Casting), By Application (Engine, Transmission & Suspension, Brakes & Wheels), By Distribution Channel (OEM, Aftermarket), By Vehicle (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Two Wheelers), COVID19 Impact Analysis, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Iron segment’s growth will be attributable to its low cost requirements
Cast iron segment is expected to cross USD 30 billion by the end of 2027. It is used in automotive industry from a long period of time. The two main variants of cast iron, grey cast iron and ductile cast iron are widely used in automotive industry for manufacturing crankshaft, engine block, cylinder heads, brake discs, etc. Cast iron parts are less costly and offer excellent strength. However, cast iron is being replaced by aluminum owing to weight constraints.
Sand casting to account for considerable market share
Sand casting will grow at a CAGR over 3.5% in automotive casting industry. One of the main benefits of using this process is that it can work for wide range of ferrous and non-ferrous materials. Another significant benefit of this process is low tooling cost. Moreover, this process provides design flexibility and require short lead times. However, sand casting process has low dimensional accuracy and poor surface finish.
High quality of products will benefit the OEM’s growth
OEM segment is likely to capture more than 75% of the automotive casting market share through 2027. These products have high quality and adhere to vehicle manufacturers’ requirements. These products tend to have high life cycle and are cost efficient than their aftermarket counterparts.
Light commercial vehicles will witness around 5.5% CAGR from 2021 to 2027. Rapid industrialization and increasing manufacturing output will generate the requirements for additional goods transportation resources in future. Due to thriving growth of e-commerce and changing dynamics of supply chain, demand of light commercial vehicles is expected to witness solid growth in future. Additionally, light vehicle manufacturers are investing in research & development activities which will further support the industry growth within this segment.
The key players in automotive casting market include Dynacast, Ryobi, Zollern GmbH, Bell Foundry, Impro, Zetwerk, Regensburger Druckgusswerk Wolf GmbH and Endurance Technologies. In January 2019, Endurance Technologies acquired Fonpresmetal Gap SpA. This will help the company to increase its casting capacity, facilitate backward integration and solidify its position in European market.