The COVID-19 pandemic had a profound impact on manufacturing operations, and the market witnessed a slowdown due to supply chain disruptions and trade restrictions worldwide. However, the production of aluminum witnessed positive growth despite pandemic showering optimistic influence on the market.
New York, June 16, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Parts Aluminum Die Casting Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)" - https://www.reportlinker.com/p06095496/?utm_source=GNW
- According to the International Aluminum Institute, the primary production of aluminum was 5.48 million ton, with a year-on-year increase of 2.45% from 5.35 million ton in 2019.
In addition, factors such as rising demand for lightweight vehicles and the growing utilization of aluminum in diecasting auto parts to fuel growth of market during forecast period. Stringent environmental regulations and Cafe standards imposed across various regions to support adoption of die casting process.For instance,
- In December 2018, the EU set new regulations for carbon dioxide emissions for new passenger cars and commercial vehicles. The agreed-upon targets aim to reduce average CO2 emissions from new passenger cars by 15% in 2025 and by 37.5% in 2030, both relative to the 2021 base figure. A 15% reduction by 2025 and a further 31% for 2030 were agreed upon for light-commercial vehicles.
Asia-Pacific region expected to witness significant growth during the forecast period owing to growing investments and production plants establishments in the region. The growing adoption of aluminum in major economies such as India, China and Japan anticipated to contribute for overall development of market during forecast period.
Key Market Trends
Pressure Die Casting Segment To Hold Significant Market Share
The Pressure die casting market is expected to hold largest share in the market during the forecast period owing to growing adoption and consumer intrest across the world. The process is accessible around the globe because of its unique advantage in manufacturing high volume goods. Moreover, steady demand from the automotive sector, it is likely to contribute for substantial growth of market over the forecast period.
The high-pressure process in the industry is called idle for achieving higher output levels and is primarily used in various industries. The low-pressure process is used in the output of low-volume goods with top unit costs due to the longer casting cycles. Manufacturers across the world are adopting various growth strategies to expand their presence in the global market. For instance,
- In February 2021, Nantong Jiangzhong Photoelectricity Co., Ltd. Installed its Italpresse gauss TF5700 high pressure die casting (HPDC) machine at the company’s base in Jiangsu province, China.
- With its huge 3500 x 3500mm platens, the TF5700’s closing force of 5700 tons making it the ideal solution for large part production. Jiangzhong has also purchased a Westomat 3100 from StrikoWestofen to integrate seamlessly with the machine.
Asia-Pacific Region Anticipated To Witness Significant Growth
Asia-Pacific region is expected to witness the fastest growth rate during the forecast period. In the Asia-Pacific region, major countries like India, China and Japan to contribute significantly for the development of market over forecast period. China is one of the major producers of die casting parts, and growing adoption of passenger cars in the region to provide optimistic impact on the market. For instance,
- According to the China Association of Automobile Manufacturers, China’s car production reached 2.84 million units in December of 2020 and also increased 5.7% from a year earlier.
Asia-Pacific region being one of the world’s largest manufacturer of vehicles, tend to attract major manufacturers in the market. Many players are adopting growth strategies such as geographic expansion and production capacity expansion to stay competitive in this market . For instance,
- In February 2020, Ningbo Xusheng Auto Technology Co. Ltd announced that it may raise a maximum of CNY 1.2 billion for capital investment. The investment may be used for the second phase of construction of the high precision casting and forging components plant for new energy vehicles.
- In March 2021, Endurance Technologies Limited announced the construction of a new plant at Waluj to meet the demand of disk brake assembly business. Company is also setting up a cylinder-head low-pressure die-casting plant at Pantnagar, which will start operations in April-June 2021.
Amidst of all the factors promoting the market and the factors which can lead to disruption in the market, the preference of the customers towards the aluminum products and ongoing trend of increased usage of aluminium is expected to provide a significant growth in the market.
The Automotive Parts Aluminum Die Casting Market is consolidated and is led by globally and regionally established players.These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position. For instance,
- In January 2019, Bocar selected Facton EPC as the core technology solution to standardize costing and quoting across the enterprise as a part of their strategy to reduce the cost, andimprove their efficiency.
- In January 2019, Endurance Technologies Ltd acquired Italy-based aluminum die casting company, Fonpresmetal Gap SpA, for EUR 8.16 million. The Endurance Group in Europe has nine manufacturing plants at present, of which six are in Italy and three in Germany.
Some of the major players in the market are Rheinmetall AG, Nemak, Linmar Corporation, Koch Enterprises, George Fischer limited and many more.
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