Aluminum castings market to grow nearly double as demand for energy-efficient and lightweight vehicles burgeons
Die Castings Process to Make Headway in Aluminum Castings Market Amid High Popularity of Bulk Manufacturing
Fact.MR in its latest study highlights the key growth factors, latest developments, opportunities, challenges, and market statistics to offer a better understanding of the global aluminum castings market. It also sheds light on the key trends influencing growth through various segments, including process, end use, and regions.
The global aluminum castings market is set to grow at a steady rate of 1.8x in the forecast period (2019-2029). Rising demand for energy-efficient and lightweight vehicles is likely to boost the demand for aluminum casting in industries, which is resulting in the substitution of aluminum cast goods for iron and steel metals.
Aluminum’s excellent corrosion resistance, high durability, and lightweight nature have influenced the global vehicle market to be design-oriented. Growing popularity of SUVs and sports cars will significantly boost the use of aluminum, resulting in the replacement of heavy metal parts with lighter aluminum cast elements.
The aluminum castings market benefits significantly from growing demand in key end-use industries such as aerospace & defense, building & construction, and automotive. Surging use of aluminum in the automotive industry as a result of increased demand for fuel-efficient and lightweight automobiles to reduce carbon emissions can potentially support market expansion in the coming decade.
The rapidly developing construction sector in emerging countries can also be a profitable opportunity for vendors offering various types of casting products. Rising infrastructure development projects and increased infrastructure investments by governments of various countries are also expected to push the construction industry, which would drive the demand for aluminum castings.
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The die casting process segment accounted for the largest market share and it was also the fastest-growing sector during the historical period. Die casting is a more popular process in primarily every end-use application owing to its widespread use in the automobile industry.
It permits high cast and provides the ability to mold dry cast into the desired shape throughout the casting process. It also offers bulk and speedy manufacturing, as well as superior finish, thus making it a time and cost-effective technique.
The Asia Pacific region is projected to be the largest market for aluminum die castings and it is set to exhibit the highest CAGR during the forecast period. China, India, and Japan are the primary contributors to the aluminum casting industry in Asia Pacific. Growth is mainly attributed to rapid expansion of the building and construction industry.
China is expected to remain at the forefront in Asia Pacific as it is considered to be the world’s largest engineering hub. Increasing demand for consumer goods, as well as ongoing advancements in the aerospace sector, are expected to propel the Asia Pacific market throughout the forecast period.
Key Takeaways:
- Based on process, more than half of the market share is accounted for by the aluminum die casting segment.
- The permanent mold casting process accounts for more than 42% of the global aluminum castings market share.
- By material, the others segment is estimated to grow 2.0x in the global aluminum castings market by 2029.
- In terms of region, East Asia is anticipated to exhibit considerable growth at 7.7% CAGR through 2029 in the aluminum castings market.
- Europe holds the second highest aluminum castings market share with more than 1/4 of global sales.
Growth Drivers:
- Increasing number of commercial aircraft deliveries is set to augment the global aluminum castings market.
- Implementation of strict norms by governments to compel manufacturers to lower the environmental impact of automotive is likely to aid growth.
Restraints:
- Rising substitution of aluminum alloys with alternative materials may hinder sales of aluminum castings in the next decade.
- Increasing popularity of composites and magnesium alloys is set to obstruct expansion of the aluminum castings market.