The Japan automotive parts zinc die casting market is anticipated to register a CAGR of over 3 %, during the forecast period (2020 - 2025).
- The usage of zinc die casting is almost 28% in the automotive industry, for applications, like inertia disks, retractor gears, etc., followed by the building and hardware sectors. Along with merits, like resistance, versatility, toughness, and low cost, zinc die casting produces low-level emissions in air and water.
- In order to reduce automobile emissions and increase fuel efficiency, CAFÉ standards and EPA policies are driving the automakers to reduce the weight of the automobile, by employing lightweight non-ferrous metals. Employing die-cast parts as a weight reduction strategy is a major driver for the automotive segment of the market. Although heavier than aluminum, the lower cost of these parts and higher intricacy allowance make them more suitable in certain applications.
- As compared to other die casting parts, zinc die casting parts are usually equipped with better mechanical properties, like toughness, and offer higher surface finish and lower thermal shock during casting (as a result of their lower operating temperature).
- The market witnesses opportunities in the form of the increasing electric vehicle sales, which require higher density of lightweight components. Major companies, like Dynacast, are focusing on identifying affordable raw materials and alloys that offer better durability.
Key Market Trends
Rising Demand for Vacuum Die Casting and Enactment of Stringent Emission Regulations
Globally, countries have formulated stringent emission norms to cater to the cause of reducing global warming. Efforts are being made by governments worldwide, to minimize the negative effects of global warming and reduce the carbon footprint.
The European Union introduced the Euro VI norms in 2014, according to which, nitrogen oxide emissions must be below 0.4g/KWh and particulate emissions must be below 0.01g/KWh.
Earlier, pressure die casting was the majorly employed production process. However, the vacuum die casting process has been gaining popularity over the past couple of years, due to its better welding characteristics, higher mechanical strength, and lower gas porosity.
Passenger Vehicle Sales Driving Growth
Despite of a decline in demand for a couple of years in the region, owing to the factors such as the socio-political situation in the country, and uncertainty over future environmental regulation, the Japan passenger vehicle market still remains important market in the world. The market is well diverse with several different models available for end users with different fuel types.
Die casters in Italy now focusing on sourcing for better technologies to improve and enhance the quality of the castings. Further, the country’s foundry industry is being recognized and endorsed by foreign enterprises resulting in a full swing development of foreign trade. All these factors together are expected to maintain a steady growth in the power train parts zinc die casting market in Japan.
The automotive parts zinc die casting market is majorly dominated by few players Dynacast, Brillcast Manufacturing LLC, Pace Industries, Sandhar Technologies Ltd, Ashok Minda Group, and Kemlows Die Casting Products Ltd, among others.
The companies are focusing on providing the best quality products to the customers, by investing in RandD projects and conducting certification programs. For instance, Sandhar Technologies Ltd objective is to be the leader in its chosen products and processes, be the trusted partner in the growth of the stakeholders, offer competitive prices to the customers through technical innovations and process standardization, have a strong RandD base to ensure high quality, provide services that enhance customer satisfaction, create benchmarks for all sets of industries, and be a socially accountable organization.
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