The Die Casting market is estimated to be valued at US$ 76.75 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Die casting is a metal casting process that is widely used to produce complex shapes with tight tolerances. It is often used for parts that require high accuracy of dimensions, material consistency and surface finish. Common applications include housings for electronics, cases for portable power tools, mechanical instrument cases, small gas engines and parts for transportation equipment like automobiles and motorcycles. The die casting process can produce parts that are not possible or economical to produce through other manufacturing methods. Parts can have sharp corners, thin walls and complex internal passages.
Market Dynamics:
Rise in automotive production is expected to drive growth of the die casting market over the forecast period. According to the International Organization of Motor Vehicle Manufacturers, global vehicle production grew by over 4% in 2022 from 2021 levels. Asia Pacific region accounts for over 50% of global vehicle production. The increase in disposable incomes and demand for personal mobility solutions are leading to steady growth in automobile sales worldwide. Die casting is commonly used in the automotive industry for manufacturing engine components, transmission components, wheels, and other exterior body parts due to advantages like dimensional accuracy, repeatability and design flexibility.
Another major driver for Global Die Casting Market expansion is the growth of the consumer electronics industry which utilizes die casting for producing enclosures and internal structures for a variety of products like computers, mobile phones, power tools etc. Rapid urbanization, changing lifestyles, and higher disposable incomes in developing countries are driving demand for innovative electronic devices and gadgets. Die casting is an effective process for mass production of precisely crafted metal parts needed in the electronics industry.
SWOT Analysis
Strength: – Die Casting allows for high volume production of complex designs at competitive costs. It provides excellent dimensional stability and surface finish. It offers design flexibility for intricate interior assemblies.- Die casting machines such as horizontal and vertical cold chamber machines provide higher production rates and casting thickness variability. – The process offers recyclability of aluminum and zinc alloys which contributes to sustainability.
Weakness: – Initial tooling costs for die casting dies are high. Frequent die changes increase production costs. – Zinc die castings pose galvanic corrosion issues when combined with dissimilar metals requiring special surface treatments.
Opportunity: – Growing automobile production and focus on lightweighting presents growth opportunities for aluminum and magnesium die cast components. – Increasing demand for durable, corrosion resistant enclosures and housings for industrial equipment, consumer goods enhance scope for zinc die cast parts.
Threats: – Stringent environmental regulations increase compliance costs for lead emissions from lead containing alloys. – Volatility in prices of raw materials like aluminum and zinc remain key threat.
Key Takeaways
The global die casting market is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing automobile production. Growing environmental regulations mandate use of lightweight materials offering scope for die cast aluminum and magnesium auto parts.
Regional analysis: Asia Pacific dominates the die casting market holding over 50% share led by China, India, and Japan on account of large automotive manufacturing hub and high consumption of consumer goods. North America and Europe remain other major markets driven by resurgence in automobile sales post pandemic.
Key players analysis: 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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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