The high pressure die casting market is estimated to register a CAGR of 6.36% during the forecast period, 2020-2025.
- The automobile regulatory framework in Europe, as well as North America, has proved to create a sustainable environment in the automobile industry. Moreover, the latest regulatory framework, the Euro 6, which had been introduced in 2011 and came into effect from September 2014 onward changed the regulatory standards that have been crucial in determining the dynamics of the automotive market in the region. Since 2013, the EC (European Commission), along with EEA/EMEP, has been maintaining the record of the emission performance standard for very new vehicle registered in Europe. Thus, the imposition of various laws may lead to growth in the market in the near future.
- The strict enactment of the Environment Protection Agency (EPA) regulations and Corporate Average Fuel Economy (CAFE) standards, coupled with the increase in the sales and demand for commercial vehicles, in the European region, as well as the growth of the electrical and electronics industry and construction industry, may drive the growth of the market in the coming years.
- CAFE standards and EPA policies to cut down the automobile emissions and increase fuel efficiency are driving the automobile manufacturers to reduce weight of the automobile, by employing lightweight non-ferrous metals. Thus, application of high pressure die casting components in the vehicles by the automobile manufacturers may provide growth opportunities for the market in the years to come.
Key Market Trends
The Automotive Segment Projected to Grow at a Fast Pace
The automotive segment of the global market is expected to witness the fastest growth rate during the forecast period. Traditionally, conventional and high-tensile steel constituted a majority of share in the automotive parts.
Employment of non-ferrous die casts in engine, body-in-white, chassis, steering parts, etc., has witnessed considerable growth, over the past five years. In the present scenario, nearly 30%-35% of the auto components in a vehicle are made of aluminum alloys, which are mostly developed using high pressure die casting process, due to its higher output volumes and immense flexibility in component designing.
All regions across the world have been consistently working toward enacting regulations for reducing emissions and improving fuel economy, which in turn, is driving the market for aluminum high pressure die casted parts in the automotive industry. This led to an outlay in the modernization of vehicles and encouraged automobile manufacturers to exert aluminum high pressure die casted parts for manufacturing of light-weight vehicles.
Additionally, adoption of electrification, not only in the passenger car segment, but also in the commercial vehicle, has been increasing over the past few years and may continue to increase during the forecast period. For instance:
- Similarly, in North America, the penetration of more high range electric buses, such as double-decker buses, from 2019, into the market is likely to drive automobile manufacturers to deploy more lightweight aluminum alloy auto parts for optimum vehicle efficiency.
- Some of the emerging countries in the Asia-Pacific region, like India, Indonesia, Nepal, etc., have started commercializing electric buses in the market, majorly since 2017, owing to the growing support from the governments toward eco-friendly transportation.
Some of the auto parts have been designed by zinc high pressure die casting (HPDC), where safety, corrosion resistant, and stability are the most required functionalities. Belt pretentioners, spark plug heads, housing of many starter motors, modern door locks, and door handles are some of the automotive application areas that prefer zinc HPDC parts. The adoption of zinc HPDC in automobiles may continue to increase during the forecast period, owing to the ongoing developments toward launching autonomous vehicles in the market, with driver’s and passenger’s safety as the main criteria for autonomous driving.
Asia-Pacific is Expected to Witness the Highest Growth
In 2019, the Asia-Pacific region dominated the global market and is also expected to witness the fastest growth rate during the forecast period. In the Asia-Pacific region, China is expected to dominate the regional market.
China is one of the major producers of die casting parts, and accounts for more than 64% of the regional (Asia-Pacific) die casting market share. The metal casting industry in China has more than 26,000 facilities, out of which 8,000 facilities produce non-ferrous castings. China produces over 49.3 million metric ton of castings.
- The Chinese foundries are focusing on innovation, in order to produce products that meet consumer preferences and international standards. Furthermore, in the die casting market, foundries are focusing on technical quality and brand orientation, which are considered as major growth drivers for the Chinese die casting market.
- On the downside, though China accounts for the largest production output across the world, the die casting market is not strong enough in the country. Environmental protection, energy saving, labor costs, and a shortage of engineers are some of the friction factors for the growth of the die casting market in the country.
Japan is the fourth largest producer of castings in the world. The number of metal casting foundries in Japan increased to 2,159. in Japan, the total casting production volume reached 5,490 thousand ton, with a production rate of 2,543 ton of castings per foundry. In 2016, the Japanese foundries manufactured over 1,380,570 metric ton of aluminum castings and 23,530 metric ton of zinc castings. Growing automobile industry, stabilizing industrial sector, consumer popularity for fuel-efficient vehicles, and latest advancements in die casting techniques are expected to drive the growth of the Japanese high-pressure die casting market.
The high pressure die casting market is highly fragmented with the presence of many regional and international players across the globe. The competition in the market has increased as many small and medium scale players from the developing countries entered and expanded their business in the market over past three years.
Major recognized players, such as Nemak, Georg Fischer Automotive, Ryobi Die casting, Rheinmetall AG, Form Technologies Inc. (Dynacast), and Shiloh Industries together accounted to over 16% of the overall global market share.
Koch Enterprises (Gibbs Die Casting Group), Linamar Corporation, Bocar Group, Endurance Group, Sandhar technologies, Sundaram Clayton Ltd. and Rockman Industries are few other key players in the market.
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