April 24, 2024

Die Casting Industry Witness Strong Demand Due to Lightweighting Trend

The die casting market involves the manufacturing of metal parts using specialized high-pressure metal dies. Key advantages of die casting include dimensional accuracy, repeatability of parts, and ability to produce complex shapes with tight tolerance. Components produced using die casting find applications across automotive, industrial machinery, consumer durables and more.

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 to 2031.

Key Takeaways

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. Key players like Alcast Technologies are focused on developing new alloys and manufacturing processes to reduce weight and improve performance of die cast parts.

The growing demand from the automotive industry is a major driver for the die casting market. Original Equipment Manufacturers are focusing on lightweighting vehicles to meet stringent fuel efficiency norms. Die cast aluminum and magnesium help reduce vehicle weight significantly compared to steel. Strict emission regulations across major economies are further propelling the use of die cast parts in vehicles.

Globally, the market is witnessing strong growth in Asia Pacific and Middle East & Africa region. Countries like China, India, Indonesia, Saudi Arabia, and South Africa are experiencing rising automobile production which is supporting expansion of die casting facilities in these markets. Meanwhile, in North America and Europe, strategic partnerships between die casters and automakers are enhancing regional presence.

Market Key Trends

One of the key trends shaping the die casting industry is growing focus on lightweighting solutions. Weight reduction plays a crucial role in meeting norms related to fuel efficiency and emissions. Die casting manufacturers are continuously investing in R&D to develop advanced lightweight alloys made of aluminum, magnesium, zinc and others. Adoption of innovative manufacturing technologies like thin-wall die casting is also enabling production of stronger yet lighter parts. These initiatives are expected to drive the lightweighting trend in the die casting industry over the coming years.

Porter’s Analysis
Threat of new entrants: The die casting market requires massive capital investments for setting up production facilities. This poses a significant barrier for new players.

Bargaining power of buyers: The presence of many producers offering similar products gives buyers several options and bargaining power.

Bargaining power of suppliers: Raw material suppliers like aluminum and zinc producers have some bargaining power due to consolidated supply.

Threat of new substitutes: Emerging molding and 3D printing technologies provide viable substitutes but die casting still holds advantages in volume production.

Competitive rivalry: Intense competition exists between top players to gain greater market share through product innovation, quality, and reliability.

Geographical Regions
North America accounts for the largest share of the die casting market value-wise due to strong automotive production. The USA, Mexico, and Canada are major markets.

The Asia Pacific region is growing the fastest with China, India, Japan, and South Korea at the forefront. Many international automakers have production facilities in these countries, driving regional market growth.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it