Aluminium Casting Market By Process (Die casting, Permanent mold casting, Sand Casting), By Application (Transportation, Industrial, Building & construction, Others) - Growth, Future Prospects And Competitive Analysis, 2024 - 2032

10 Oct 2022 Format PDF icon PPT icon XLS icon Request Sample

The aluminium casting market is anticipated to grow at a CAGR of 7.5% during the forecast period of 2023 to 2030. The expansion of the aluminium casting market is primarily attributable to the expanding use of aluminium in various industries, particularly the transportation sector, the industrial sector, and the building and construction sector. Because it improves fuel efficiency and minimises environment-degrading events like carbon dioxide emission, the automotive industry has a consistent demand for it, and this desire is expected to continue in the foreseeable future. During the forecast period, these are the primary drivers that will be driving demand for aluminium casting.  The annual growth rate of the worldwide production of motor vehicles has increased, which has further opened up chances for the expansion of markets around the world. According to estimates provided by the European Automobile Manufacturers Association (ACEA), the global production of motor vehicles reached 77.9 million units in the year 2020. A considerable increase in automobile manufacturing may be credited to APAC countries such as China, India, and Japan, all of which contributed significantly to the growth in overall output. It is anticipated that an increase in the manufacturing of motor vehicles around the world will, in turn, lead to an increase in the demand for aluminium cast items within the automotive industry.

Aluminium Casting Market

Increasing Preference for Cast Aluminium Over Steel and Iron

Tempered aluminium also goes by the name cast aluminium. Its quality is to be able to function normally even when subjected to high temperatures and yet manage to keep its weight down. Casting is advantageous for a number of reasons, the key one being that it can make complex shapes with a little amount of subsequent machining required. Aluminium is preferred over steel and iron due to the superior mechanical properties that aluminium possesses though steel and iron are less expensive than aluminium. However, to reduce the cost of the final product aluminium is often blended with magnesium, iron, and copper before being used. Because it is resistant to corrosion, aluminium is a great material to use in cans and vessels, both of which are used to store food and beverages. Another benefit is that aluminium die casting products may be made in a variety of shapes and sizes

The method of making simple to intricate parts using an aluminium casting can be characterised as the process of pouring liquid aluminium under high pressure into a die cavity. This can be done in a variety of ways, depending on the complexity of the item being manufactured. The mould is produced with precision to have the correct proportions, size, quality, and finish surface. These die-cast alloys have a high level of surface finishing, are lightweight in comparison to other die-cast alloys, and are able to withstand the highest possible temperature during operation.

The demand for aluminium casting is affected by a variety of factors, some of which are the material's advantageous properties, such as its low weight, complete recyclability, competitive pricing, and visually pleasing look. Additional properties include the ability to conduct electricity and heat. Sustainability and energy efficiency are two other major characteristics that are driving the rise of the market for aluminium casting.

High Strength and Low Weight of Aluminium Leads to The Growth in Various Sectors

Due to the fact that aluminium is far lighter than iron, it makes for an excellent choice when looking for a metal or substance to use in the construction of lightweight automobiles. Aluminium is lighter because it has a lower density than other metals. The growing need for aluminium across a variety of industries is primarily responsible for the expansion of the market for aluminium casting. This is especially true in the transportation sector, the industrial sector, and the building and construction sector. The automotive sector has a steady demand for it because it improves fuel economy and minimises environment-degrading events like carbon dioxide emission.

The expansion of economies, rising interests in building, electronics, and mining projects, as well as rising interests in acquiring equipment, are driving the growth of the market for aluminium casting. In addition, rising interest in purchasing equipment are driving the growth of the market. The growing demand for aeroplanes in developing economies like India and China, for example, is another factor that is driving this rise. In the manufacturing industry, materials made of cast aluminium can frequently be found in jet engines or aviation engine parts.

Growing Application of Aluminium in The Automobile and Aerospace Industries

A key factor responsible for driving up the market demand for aluminium over the next few years will be its growing application in automobiles and aerospace industries as a result of the material's high strength and low weight. It is projected that the market will grow even more as a direct result of the increased demand for sport utility vehicles and general utility vehicles. This is expected to lead to the expansion of the market. In addition, it is utilised in the production of a wide variety of goods, including electrical goods, industrial goods, and kitchenware, amongst a great many other things. It is projected that over the next few years, the market will be driven by the expanding application of aluminium in automobiles due to the material's high strength and low weight. This prediction is based on the fact that aluminium possesses both of these characteristics. Every year, approximately 30–40% of aluminium is used in the production of lightweight vehicles, and this number is expected to rise to 70–80% over the next several years as a result of more stringent rules on the reduction of fuel emissions across the globe.

Aluminium Casting Applications in Heavy Duty Machineries

Aluminium casting is being utilised more frequently in a wider variety of heavy-duty machinery, such as agricultural equipment, construction equipment, mining equipment, and other heavy-duty machinery. This trend is expected to continue. The growth of the market for these types of machinery may be partially attributed to developing economies like India and Brazil, which have a significant requirement for upgrading machinery in order to achieve higher levels of production and efficiency. As a result, the market for these types of machinery has expanded. The majority of tractors, tillers, and harvesters are manufactured in India, making it one of the most significant producers of agricultural machinery in the world.

Aluminium Has the Potential To Replace More Conventional Materials Such As Iron And Steel

Since approximately ten years ago, one of the most acceptable solutions has been believed to be the utilisation of a lower weight in automobiles through the substitution of iron and steel auto parts with aluminium cast products. This has resulted in the lighter weight being utilised in automobiles. Customers also stand to gain economically from the fact that aluminium can be recycled. These benefits include a higher total return on investment, a longer lifespan for the vehicle, and environmental benefits in the form of lower fuel use. Additionally, the lifespan of the vehicle is extended. Aluminium has essentially taken the place of more conventional materials in the automobile sector, such as cast iron and steel. The increasing need for lightweight autos, the requirement for metal spares, and worries about the environment are all factors that are driving growth in the market for cast aluminium.

Ever-Increasing Demand for Consumer Goods & Automobiles Ensures Growth of Cast Aluminium Market

The ever-increasing demand for both consumer items and automobiles is providing the impetus for the expansion of the market for aluminium die casting. In addition, the growing investment in lightweight weapon systems by the military and defence sector is a significant element that is contributing to the expansion of the market. This is a major driver of market growth. Additionally, rising applications in sectors such as architecture and construction, electronics, and mining have led to the growth of the market.

The demand for lighter weight in the automotive and vehicle industries has been fuelled in part by the rapid implementation of stringent government rules aimed at reducing emissions and improving fuel efficiency. These measures are meant to increase fuel efficiency while simultaneously lowering pollution levels. Aluminium castings are utilised in a wide variety of applications, and as casting technology advances, increasingly precise machines and other devices are being utilised to increase the quality of the casts as well as their longevity. Aluminium castings are also used in a number of different applications. An increase in demand for aluminium casting in the automobile industry to enhance fuel efficiency and, as a result, cut CO2 emissions is one of the other reasons that is projected to drive expansion in the global market for aluminium casting. It is anticipated that this demand will be the primary driver of market growth.

High Price of Aluminium Is a Barrier

The high price of aluminium, in conjunction with the cyclical growth and decline of the automotive industry, creates a substantial barrier to the growth of the market. High pricing of aluminium casting machinery and significant expenditures in technological developments in aluminium casting is affecting the market. In addition, the stringent rules and guidelines that have been established regarding the release of harmful emissions into the environment during the casting process by the Environmental Protection Agency (EPA) of the United States and the European Environment Agency are likely to impede the growth of the market in the coming years.

Production Of Molten Aluminium Is a Challenge

The production of molten aluminium from raw bauxite is an energy-intensive process that calls for substantial volumes of power, water, and other resources. It takes a significant amount of electricity to transform the raw aluminium ore into the final product, which is why this step is so energy-intensive. Aluminium is processed by melting, which results in the production of carbon dioxide as well as other infectious agents. In order to make place for the raw materials that are necessary for aluminium casting, all of the native vegetation in the mining zone is wiped out and removed. This leads to a reduction in the amount of habitat and soil erosion.

Die Casting Process Held the Largest Share

The die-casting process held the largest revenue share in 2021. Die casting is popular and is used practically in all end-use markets, extensively used in the automotive industry. It enables mass production and rapid production and improves finishing, and as a result, it is a process that is efficient in terms of both the time it takes and the amount of money it costs. Sand casting is the process that should be used when there is a requirement for the production of only a small number of pieces. Casting an aluminium alloy in sand can result in increased mechanical qualities, and this can be attributed, in part, to the casting process. There is a perceptible increase in the material's final strength as well as its hardness and elongation as the temperature of the mould and the pouring is elevated. When casting with a permanent mould, it is common practice to make the casting moulds out of metal so that they can be reused.

Transportation Remains the Most Dominant End User of Aluminium Casting

The transportation sector contributed about 60% of total revenue in 2021. The automotive industry's widespread incorporation of aluminium casting into applications both large and small is largely responsible for this phenomenon. The restrictions that have been passed by the government regarding emissions are becoming more stringent. In addition to this, there has been a notable increase in the desire for automobiles that have better gas mileage. As a result of these considerations, aluminium casting is becoming an increasingly popular option in the transportation sector, which is anticipated to further propel market growth. This expansion can be linked to the increased demand around the globe for lighter automobiles, which has led to the substitution of aluminium products for steel and iron components used in automobiles. The rise in popularity of lighter vehicles that achieve higher rates of fuel efficiency is largely responsible for the upward trend in the transportation industry's demand for cast aluminium goods. On the other side, it is anticipated that the industrial sector is expected to be the fastest-growing market segment, thereby registering the highest CAGR during the forecast period of 2023 to 2030. This category includes all of the different kinds of heavy machinery, such as those used in construction, mining, and agriculture. The components of the aforementioned machinery all make use of the aluminium cast goods in some capacity.

The Asia Pacific is the Fastest Growing Market as Their Automotive Industries Grow

Asia-Pacific is expected to rise at the highest CAGR, thereby leading the growth during the forecast period. This is due to the fact that China and India have only relatively lately established themselves as important centres for the automobile industry. As a direct consequence of this, global companies have relocated or extended their activities inside this region, which has had an impact on the level of demand for the product not just within the region but also on a global scale. The region is also home to the most robust market for aluminium casting. This is due to the fact that a number of countries that are consistently ranked among the top producers of aluminium in the world can be found within this region. China, Australia, the United Arab Emirates, and India are the four countries in Asia that rank first in the world in terms of their aluminium output respectively.

The aerospace markets of Europe and North America are lucrative markets for aluminium

Europe and North America are lucrative markets due to the presence of a lucrative automobile sector as well as important airlines manufacturing businesses such as Airbus, Boeing, Cessna, and Bombardier in these regions. This makes Europe and North America the next largest markets in the world. Because of this, Europe and North America now hold the respective positions of second and third largest markets. Aluminium is often obtained through importation from countries located in Asia and the Pacific; onsite engineering is performed in accordance with customer specifications.

In the future, the growth of the automotive industry in emerging economies will have a positive impact on the demand for lightweight materials due to the fact that more vehicles will be produced. It is anticipated that there will be a significant increase in the consumption of aluminium as a result of the growing demand for SUVs and sports cars, which will result in the substitution of heavier metal components for lighter aluminium cast materials. This expansion will be backed by supportive policies from the government as well as preferences for electric vehicles held by customers.

The Competitive Advantage Will Be Propelled Forward Through Mergers and Acquisitions Activity.

Alcoa Corporation, Ryobi Ltd., Conmet, Dynacast, Hokare Machinery, Aerostar Manufacturing, Rockman, Rajshi Industries, Arconic Inc., WAFCO, Endurance Technologies, CaneKast, and other companies are key players in the aluminium casting market. Key competitors in this market are implementing a variety of strategies to effectively produce products while minimising production waste. CaneKast completed the acquisition of Superior Aluminium Castings in May of 2021, which assisted the company in further solidifying its position within the local market. These businesses have implemented a number of different expansion methods in order to bolster their position in the market. Market expansions through new product development, mergers and acquisitions, and collaboration are the key growth strategies that these players have adopted in order to enhance their product offering and regional presence in order to meet the growing demand for aluminium casting from emerging economies. 

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Aluminium Casting market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Aluminium Casting market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2022-2032
Base Year 2023
Forecast Period  2024-2032
Historical Year  2022
Unit  USD Million
  • Die casting
  • Permanent mold casting
  • Sand Casting

  • Transportation
  • Industrial
  • Building & construction
  • Others (household appliances, engineering tools, and telecom sector)

 Region Segment (2022-2032; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Aluminium Casting market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2032.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Aluminium Casting market?
  • Which is the largest regional market for Aluminium Casting market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Aluminium Casting market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Aluminium Casting market worldwide?
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