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The die casting process involves forcing molten metal under high pressure into a mold cavity. The advantages of die casting include its ability to produce complex shapes with close dimensional tolerances, high production rates and relatively low costs for high-volume production. Parts made through die casting are used across industries like automotive, equipment manufacturing, consumer electronics, and more. Within the automotive industry, die cast aluminum and zinc alloy parts are commonly used for housings, gearboxes, brake calipers and other non-structural components due to their strength-to-weight ratio and corrosion resistance
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 Automobile AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi. Key players are focusing on new product developments to cater to the increasing demand from end use industries especially automotive.
The global die casting market is expected to witness significant growth due to the rising demand from the automotive industry. Automobile manufacturers are increasingly adopting die casted parts for electric vehicles to reduce weight and improve performance. Battery packs and electric drive system components of EVs require die casted parts for their housings and enclosures.
North America, Europe, and Asia Pacific are expected to dominate the global die casting market due to presence of major automobile manufacturing hubs and shifting focus towards electric mobility. Major players are expanding their manufacturing facilities in developing nations to leverage lower costs and tap into new regional markets.
Market Key Trends
The increasing shift towards electric vehicles is a major trend in the die casting market. Automakers are actively working on developing affordable EVs for mass market adoption which requires lightweight construction to improve driving range on a single charge. Die cast aluminum and magnesium allow significantly lighter body panels and structural components as compared to conventional materials. This helps automakers comply with stringent emission standards while keeping production costs in check. Rising EV sales are expected to drive higher demand for precision die casted components in battery packs, electric drive systems and chassis over the forecast period.
Porter’s Analysis
Threat of new entrants: Die casting requires significant capital investments to establish or expand production facilities and procuring latest technologies which creates entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of multiple casting manufacturers but differentiated specifications and demand create dependency.
Bargaining power of suppliers: Suppliers of aluminium and zinc hold some power due to concentrated supply but dependency of casting producers moderate their position.
Threat of new substitutes: Plastic molding is major substitute but casting enjoys process advantage for mass production components with its precision and integrity.
Competitive rivalry: Intense competition among established brands to enhance technologies and reduce production costs.
Geographical Regions
North America accounts for around 30% of global die casting market value led by the automotive hubs in the US and Canada. Growth in the transportation sector supported by EV adoption is fuelling regional market growth.
Asia Pacific is the fastest growing region for the die casting market projected to expand at over 8% CAGR during the forecast period. China, India, Japan and South Korea are major countries driving regional market on back of surging manufacturing activities and automotive production volumes especially in China.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
