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The die casting market is driven by the growing automotive industry globally. Die casting is widely used in automotive components such as engine parts, wheels, gear shifters, and other components due to its ability to produce intricate parts with close dimensional tolerances in high volumes. Growing vehicle demand has prompted automakers to strengthen their production capabilities, thereby driving the demand for die casting. Moreover, die casting offers advantages such as lightweight parts, intricate shapes, and corrosion and wear resistance to automotive components.
The global die casting market is estimated to be valued at US$ 71.59 billion in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing automotive industry: The key trend fueling the growth of the die casting market is the growing demand for automobiles globally, especially in emerging economies. Die casting is widely used in automotive manufacturing due to its ability to produce complex and lightweight components in high volumes. According to industry estimates, over 90 million vehicles are produced annually worldwide. Growing vehicle demand from markets such as China and India is prompting major players to expand their production capacities which is positively impacting the demand for die casting and contributing to the market growth over the forecast period.
SWOT Analysis
Strength: The die casting market benefits from strong manufacturing capabilities, precision, flexibility and economy of scale. Die casting products find applications across sectors like automotive, industrial machinery, electronics etc.
Weakness: Die casting processes require high capital investment in dies and machinery. Any design changes involve reworking the dies which adds to production costs and lead time. Poor quality of dies can also impact product quality.
Opportunity: Growth in key end-use industries like automotive, consumer durables and electronics bodes well for the die casting market. Developing economies are witnessing rising automobile ownership which offers scope for market expansion. Shift toward lightweight components in vehicles also drives demand for die cast components.
Threats: Stringent environment protection laws pose challenges to metal casting facilities. Volatility in raw material prices is a key threat. Substitution threat from competing manufacturing processes like injection molding also impacts market prospects.
Key Takeaways
The global die casting market is expected to witness high growth over the forecast period of 2024 to 2031. The automotive industry accounts for the largest share of die cast components globally.
Developing regions in Asia Pacific and Latin America are emerging as dominant markets owing to rising automobile production and sales. Countries like China, India, Mexico and Brazil offer significant opportunities for die casting companies.
Key players operating in the die casting market are Alcast Technologies, Arconic, Consolidated Metco, Inc., Dynacast International Inc., Gibbs Die Casting, Ryobi die casting Inc., Bodine Aluminum, Martinrea Honsel Germany GmbH, Leggett & Platt, Endurance Technologies Ltd., Empire Die Casting Company, Alcoa Inc., Hitachi Metals Ltd, Nemak S.A.B. de C.V., GF Casting Solution AG, Shiloh Industries Inc., Rheinmetall Automotive AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi. The market is semi-consolidated in nature. Major players are focusing on expanding their production capacities and capabilities through mergers, acquisitions and greenfield projects globally to strengthen regional presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
