April 17, 2024

Aluminum Casting Market driven by Increasing Automotive Production is Estimated to be valued

Aluminum castings offer strength, lightweight and corrosion resistance properties that helps automobile manufacturers to meet stringent fuel efficiency norms. Some common automotive parts made using aluminum casting include engine blocks, cylinder heads, suspension components, wheels and brake discs. The global automotive production has witnessed a steady growth over the past few years and this rise has led to increased demand for aluminum cast parts and components in the automotive industry. Many automakers are opting for aluminum intensive vehicle designs to lower the overall weight and curb carbon emissions from vehicles.

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 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Additive manufacturing has emerged as a promising production technique for complex aluminum castings. 3D printing technology allows aluminum parts to be produced with intricate internal passages and geometries that were not previously possible with traditional sand casting or die casting methods. This provides design flexibility to engineers for developing light weighting solutions. Major automakers like BMW, Ford and General Motors are investing in metal additive manufacturing research with a focus on automotive applications of aluminum casting. They are experimenting with direct metal laser sintering and binder jetting processes to 3D print functional aluminum prototypes and low volume production parts with better performance. Widespread adoption of additive casting is expected to disrupt the conventional aluminum casting supply chains over the coming decade.

Porter’s Analysis
Threat of new entrants: The aluminum casting market requires large investments in technology and R&D for alloy development. This poses a high barrier for new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of numerous established aluminum casting suppliers. However, buyers can negotiate on price and delivery terms.

Bargaining power of suppliers: The bargaining power of suppliers is low since aluminum is freely available as a raw material from numerous suppliers globally. Suppliers cannot influence prices.

Threat of new substitutes: Alternatives like steel and plastic parts pose a threat. However, aluminum casting has an advantage over them in terms of lightweight, corrosion resistance, and durability.

Competitive rivalry: The market is highly competitive with players competing based on innovation, quality, and cost.

Key Takeaways
The Global Aluminum Casting Market Size is expected to witness high growth over the forecast period.

Regional analysis: Asia Pacific is the fastest growing as well as the largest market for aluminum castings mainly due to easy availability of raw materials and low production costs. China dominates Asia Pacific’s aluminum casting market owing to major automotive and industrial manufacturing base. North America and Europe are also significant markets driven by recovering automotive sales.

Key players: Key players operating in the aluminum casting market are Alcoa Corporation, Ryobi Limited, Aluminum Corporation of China Limited, Endurance Technologies Limited, Dynacast Charlotte, and Lockheed Martin Corporation.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it