Market Overview:
The global Aluminum Casting Market is estimated to be valued at US$ 75.61 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Aluminum casting products find wide applications in automotive, construction, machinery, and other industrial applications owing to their light weight and high corrosion resistance properties. Aluminum castings provide dimensional stability and durability leading to reduced total life cycle costs and lower energy consumption.
Market key trends:
The rising adoption of aluminum castings in automotive industry is majorly driving the market growth. Aluminum casting helps in reducing vehicle weight and thus enhances fuel efficiency. This has prompted automobile manufacturers to increasingly utilize aluminum castings in engine blocks, wheels, and other components. In addition, aluminum castings experience low thermal expansion, high corrosion resistance, and enhanced lifespan which is further augmenting their preference in automotive parts. Furthermore, the growth of electric vehicles demand is also propelling the need for aluminum casting components like battery housing and motor casings to reduce vehicle weight and increase driving range.
SWOT Analysis
Strength: Aluminum casting allows for complex shapes to be produced in large volumes economically due to aluminum’s fluidity during the casting process. It also offers design flexibility, durability, and corrosion resistance.
Weakness: The casting process produces castings with lower strength compared to other metal forming processes like forging. Any porosity in the castings can significantly reduce material properties.
Opportunity: Increasing use of aluminum in automotive industry due to stringent fuel efficiency and emission regulations provide major growth opportunities. Replacement of steel and iron components with aluminum castings helps reduce vehicle weight.
Threats: Fluctuations in aluminum prices poses threats. Substitute materials like composites and plastics also pose challenge.
Key Takeaways
The Global Aluminum Casting Market Share is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period, due to increasing use of aluminum components in automotive industry for weight reduction. The automotive industry accounts for over 70% share of aluminum casting products due to its lightweight properties.
Regional analysis: North America dominates the market and is expected to continue its dominance during the forecast period as well. Availability of raw materials and presence of key automotive OEMs drives the North America market. Asia Pacific is the fastest growing region due to growth in automotive production and use of alternative materials in the region.
Key players operating in the aluminum casting market are Consolidated Metco, Inc., BUVO Castings, Bodine Aluminum, Shandong Xinanrui Casting, RusAL, Walbro, RYOBI Aluminium Casting (UK) Ltd., Dynacast, Rio Tinto, Alcoa Corporation. The key players focus on new product development and expansion strategies to gain competitive advantage in the market.