by Die casting is a metal casting process that is characterized by forcing molten metal under high pressure into a mold cavity. The process is widely used to produce component parts for automotive, machinery and household equipment due to its high productivity and ability to create complex geometries. Around 60% of all die cast parts produced globally are used in automotive manufacturing. The seamless integration of die casting components into vehicle design helps automakers increase fuel efficiency and reduce vehicle weight. Moreover, die casted aluminum and zinc alloys provide strength without adding bulk and help meet stringent emissions regulations worldwide.
The global Die Casting Market is estimated to be valued at US$ 76.75 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the die casting market is the development of high-pressure die casting (HPDC) technology. HPDC enables components to be formed with complex shapes and thin walls by injecting molten metal into the mold under high pressure. Automakers are increasingly incorporating die cast aluminum HPDC components to reduce vehicle weight and improve fuel efficiency. For instance, around 40% of an average passenger car is composed of die cast aluminum parts produced via HPDC. Moreover, HPDC aluminum parts also enhance crash performance over conventional steel components.
Another major trend is the development of pressure-assisted/low-pressure die casting for magnesium alloys. Magnesium offers further weight reduction over aluminum but traditionally required higher gas pressure during casting. New pressure-assisted casting processes inject the melt into the mold at lower gas pressure while still achieving thin-walled geometries. This has enabled wider application of magnesium die casting in transportation and other sectors.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the die casting market is low as it requires high capital and technical expertise to setup a die casting facility. Significant economies of scale and branding give advantages to existing players over new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate in the die casting market as buyers have a access to multiple suppliers and dies casting parts are relatively low-cost suppliers offering undifferentiated products face pressure on margins.
Bargaining power of suppliers: The bargaining power of suppliers is low in the die casting market as raw materials used in die casting such as aluminium, zinc and magnesium are commodity in nature and available from numerous suppliers globally.
Threat of new substitutes: The threat of substitutes is moderate as other metal fabrication technologies such as forging and extrusion can be used for low volume production instead of die casting. However, die casting offers advantages of net shaping, complexity and quality.
Competitive rivalry: The competitive rivalry is high in the mature die casting market as players compete based on technology, quality, cost and delivery.
Key Takeaways
The global Die Casting Market Demand is expected to witness high growth over the forecast period supported by growing automotive production and increasing use of die cast parts in various end-use industries.
Regional analysis: Asia Pacific is the fastest growing region in the die casting market driven by thriving automotive and electronics industry in China and India. China dominates Asia Pacific die casting market with presence of leading automakers and their ancillaries. North America and Europe are major regional markets supported by establishment of diesel engine production facilities and recovery in automotive sales post COVID-19 pandemic.
Key players: Key players operating in the die casting market are Akamai Technologies, Apple Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc., Facebook, Inc., IBM Corporation, and Limelight Networks. Akamai Technologies, Microsoft Corporation and IBM Corporation are focusing on development of artificial intelligence and cloud-based solutions for die casting industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
