May 26, 2024
Die Casting Market
Ict

Die Casting Market Is Expected To Be Flourished By Growth In EV Industry

Die casting is a metal casting process in which molten metal is forced into a mold cavity under high pressure. The process produces complex shapes with high precision and repeatability. Die castings are used in the production of a variety of consumer and industrial goods including automotive parts, power tools, and white goods. Die cast components are commonly used in electric vehicles for housings, engine parts, wheels, batteries, and more. The global EV market is growing rapidly driven by supportive government policies and regulations regarding emission reduction. This is expected to drive demand for die cast parts in EV manufacturing over the coming years.

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 Dynamics

The growth of the EV industry is one of the major drivers of the die casting market. EV adoption is increasing globally due to their environmental benefits and supportive government policies. Battery electric vehicles need lightweight yet durable components such as housings, gears, bearing caps, and wheels that can withstand high torque and revolutions. Die cast aluminum alloys and magnesium alloys are the preferred choices for these applications due to their high strength-to-weight ratio. The demand for die casting from EV producers is therefore expected to increase substantially in the coming years.

Another driver is the cost advantages of die casting over other manufacturing processes such as machining. Die casting offers opportunities for mass production of complex components in high volumes with reduced labor costs. Additionally, it reduces material waste compared to subtractive techniques. These cost benefits have led to the increased usage of die casting across industries.

Segment Analysis

The die casting market is dominated by the aluminum die casting segment. It accounts for over 60% of the total market share owing to increasing demand from automotive industry. The automotive industry applies aluminum die casting for various components like engine parts, wheels, and other structural parts due to aluminum’s light weighted nature. This reduces the overall weight of the vehicle and improves fuel efficiency.

PEST Analysis

Political: Any changes in regulations regarding vehicle emission norms will directly impact the demand for die casted aluminum auto components. Most countries are imposing stringent emission standards which is driving the demand for light weighted components.
Economic: A stable economic growth especially in automotive and electronics industry boost the demand for die casting. As consumer purchasing power increases, demand for vehicles and consumer durables rise which benefits the die casting market.
Social: With rising environmental concerns, consumers prefer vehicles and appliances which have lower carbon footprint. This compels automakers and electronics manufacturers to use die casted aluminum parts which reduce the overall weight.
Technological: Advancements in die casting techniques like high pressure die casting improves production efficiency. New aluminum alloys are developed which provide better strength to weight ratio. This allows complex designs to be casted.

Key Takeaways

The global  Die Casting Market Demand is expected to witness high growth over the forecast period due to rising demand from automotive and electronics industry.

Regional analysis: North America region dominates the global die casting market with over 30% share owing to strong presence of automobile manufacturers in the US and Canada. Asia Pacific region is expected to witness fastest growth due to growing vehicle production in China and India along with electronics manufacturing hub in these countries.

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. Key players are investing in advanced casting techniques to improve production and develop new aluminum alloys. They are also focusing on light weight die casted components to capture more business from electric vehicle makers.

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