Market Trends of Die Casting Industry
This section covers the major market trends shaping the Die Casting Market according to our research experts:
Aluminum Anticipated to Play Key Role in Die Casting Process
The demand for aluminum high-pressure die-casting parts has been increasing across numerous industrial applications over the years, as the process manufactures lightweight parts and provides high flexibility for complex shapes.
In recent years, automotive parts have witnessed advancements and innovations with the evolution of new technologies. Among them, the use of lightweight materials for the manufacturing of auto components has been gaining attention across the country.
One of the important reasons for this popularity is the enhanced fuel economy of automobiles with the adoption of lightweight automotive materials manufacturing crucial parts.
Additionally, the lightweight of vehicles must be done without compromising on safety, quality, and performance. Aluminum die-cast parts are durable and can be endlessly recycled therefore, aluminum is most preferred by manufacturers due to its varied advantages.
Moreover, there is a rising number of acquisitions and partnerships by the major players to further enhance development in the market. For instance,
- In August 2022, Wencan Group Co., Ltd. announced that it intends to build a production base of aluminum die-cast parts for New Energy Vehicles (NEVs) in Lu'an Economic and Technological Development Zone, Anhui Province.
- In October 2021, Sandhar Engineering Private Limited was incorporated as a wholly owned Subsidiary Company for carrying out the business of manufacturers, and assembling various Locking Devices, Electrical, Electronics, Mechanical, Automobile, and Industrial parts.
- In April 2021, Jaya Hind Industries extended its technical partnership with KS Huayu AlutechGmbH (KSATAG) for the manufacturing of automotive cylinder blocks and cylinder heads till 2027. The scope of the agreement has also been expanded to cover new parts from Sunrise Industries, such as Electric Vehicles, Structural parts for Chassis, etc.
- In March 2021, Sandhar Technologies entered a non-binding Memorandum of Understanding with Unicast Autotech to acquire its aluminum die-casting business
The growth of the aluminum die-casting market is likely to continue to increase during the forecast period to meet the increasing demand for lightweight components and high-conductivity metal parts from the automotive and non-automotive sectors.
Asia-Pacific Region Likely to Witness Significant Growth
The Asia-Pacific region is anticipated to hold the largest market share in the die-casting market during the forecast period. The growing automobile industry, demand from the industrial sector, and increased scope of application in windmills and telecommunications are expected to drive the die-casting market at a faster pace in the Asia-Pacific region.
Cheaper labor and low manufacturing costs in India and China are expected to further accelerate the market growth in the Asia-Pacific region. In addition, increased demand for electric and hybrid vehicles has turned automakers' focus to using lightweight materials like aluminum as a substitute for heavier steel and iron in all types of vehicles. For instance,
- In May 2022, Tamil Nadu Small Industries Development Corporation invested an amount of INR 5.8 Crore to establish a common facility center for aluminum high-pressure die casting.
The growing expansion of automotive manufacturing industries across the country is likely to increase the demand for lightweight materials for automotive applications. For instance,
- In February 2021, MG Motors announced that INR 1,500 crore may be invested in the expansion and localization of its business to increase its production capacity at the Halol plant in Gujarat.
- The government of India has proposed the use of aluminum per vehicle in India from 29 Kg to 160 Kg for the electric vehicle during the forecast period.
In addition, the companies manufacturing electric vehicles are also actively procuring these pressure diecasting machines and are adopting this technology to make themselves ready for growing consumer demand.
Several players adopt growth strategies, such as manufacturing capacity expansion, to stay competitive in this market. For instance,
- In July 2021, YIZUMI established the Die Casting Technical Service Center (TSC) in the United States and India that offers integrated solutions for die casting cells, dies, die casting process, and product debugging.
- In February 2021, Endurance Technologies commenced commercial production at its new plant in Vallam, Vadagal, Kancheepuram, Tamil Nadu. The plant manufactures aluminum die-castings and carries out the integration of disc brake components with control brake modulators for supplying machined aluminum castings to Hyundai, Kia, and Royal Enfield.
