Aluminum Casting Market: Transportation Application Segment Accounted For The Largest Revenue Share
Aluminum Casting Industry Overview
The global aluminum casting market size is expected to reach USD 135.20 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.0% from 2022 to 2030. Rising demand for lightweight vehicles is anticipated to propel market growth as the product is used in manufacturing various auto components.
According to the Center for Automotive Research, the global sales of lightweight vehicles are expected to reach nearly 110 million units by 2026. The growth is attributed to stringent regulations on reducing fuel emissions, thus driving the need for lightweight materials such as aluminum. Vehicles made of aluminum offer better acceleration and better braking systems, thereby improving fuel economy.
However, despite steady demand from the automotive sector, the shift toward electrical drive is expected to negatively impact the market. A combustion engine requires 220 cast products and an electrical drive requires only 25 of them. Nonetheless, the growing demand for structural components and sensor casings of a vehicle is likely to continue as the electric engine or motor requires to die casting components to produce battery housings and casings. This, in turn, is anticipated to help keep product demand steady over the coming years.
In Asia Pacific, the market is dominated by China due to numerous economic benefits offered in the country when it comes to green energy. The country is the largest producer of primary aluminum in the world as well as one of the biggest consumers of aluminum globally. China has taken advantage of the availability of high-tech manufacturing facilities as well as a highly-skilled workforce, which is essential for the manufacturing sector.
Aluminum Casting Market Segmentation
Grand View Research has segmented the global aluminum casting market on the basis of process, application, and region:
Based on the Process Insights, the market is segmented into Die Casting, Permanent Mold Casting, and Others.
- The die casting segment accounted for the largest volume share of over 50.0% in 2021 owing to the rising demand for aluminum casting products in the automotive sector. Die casting is used to manufacture various auto parts such as engines, cylinders, gears, and flywheels, which are used in high-end vehicles to mass-produce vehicles. This is owing to factors such as the low cost of die casting and strict CO2emission laws being laid down around the world.
- Aluminum die casting is further segmented into pressure die casting and others. The distinct characteristics offered by pressure die casting such as smooth surface finish, easy filling of cavity, strong mechanical properties, and tighter dimension tolerance are expected to assist segment growth, especially in the automotive sector. The others category includes vacuum and squeeze die casting.
- Permanent mold casting is a process to manufacture a large number of cast products using a single mold structure that is made from high-temperature withstanding materials, such as cast iron and die steel. The finished product from permanent mold casting has a superior finish with high dimensional tolerance, which makes it suitable for the manufacturing of motorsport and recreational vehicle components.
Based on the Application Insights, the market is segmented into Transportation, Industrial, Building & Construction, and Others.
- The transportation application segment accounted for the largest revenue share of over 55.0% in 2021. The growth is attributed to the increasing demand for lightweight vehicles and aircraft globally. Sports vehicle is among the most lucrative segments in the lightweight vehicle sector. The popularity of sporting events, rallies, and races in North America and Europe continue to drive the demand for sports vehicles, thereby boosting the demand for aluminum casting.
- The building and construction segment is anticipated to exhibit a CAGR of 3.3% in terms of volume from 2022 to 2030 owing to the increasing use of aluminum casting products in houses. Aluminum casting can be employed in various applications such as roofing, door handles, windows, and curtain walling. The rising replacement of iron and steel due to changing consumer preferences and the benefits of aluminum, such as lightweight and aesthetic appeal, are anticipated to drive the market over the coming years.
Aluminum Casting Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
With ease in restrictions, many companies resumed their operations by adhering to safety protocols. For example, in May 2020, RUFFINI S.A. resumed switching on the melting tower to restart the production of cast components post 30 days of shutdown owing to COVID-19. The manufacturing and mining operations have begun as the government of various countries have eased lockdowns and restrictions. Thus, the growth in the end-use industries is expected to augment the demand for aluminum casting products.
The market is competitive and is likely to expand on account of the growing penetration of aluminum castings in EVs. For instance, in September 2020, Tesla announced the installation of aluminum casting machines for the production of chassis at a German plant, for increasing its EV production. This enables the company to leverage the market growth. Some prominent players in the global aluminum casting market include:
- Walbro
- Alcoa Corporation
- Consolidated Metco, Inc.
- BUVO Castings
- RDW Wolf, GmbH
- Georg Fischer Ltd.
- Dynacast
- GIBBS
- Ryobi Limited
- Martinrea Honsel Germany GmbH
- Bodine Aluminum
- Alcast Technologies
- Endurance Technologies Limited
- Aluminum Corporation of China Limited
Order a free sample PDF of the Aluminum Casting Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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