Aluminum casting offers design flexibility, corrosion resistance and strength to weight ratio advantages over other materials. Cast aluminum parts are widely used in automotive and transportation industries where light weighting is critical.
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 Opportunity:
The automotive industry has traditionally been one of the largest end-users of aluminum casting products due to its lightweight properties being capable of improving fuel efficiency. With stringent regulations and consumer demand for fuel-efficient vehicles, automakers are focusing on reducing vehicle weight through adoption of aluminum parts. It is estimated that aluminum usage in vehicles can reduce weight by 350-375 pounds per vehicle. The growing automotive production globally, especially in Asia Pacific regions is expected to drive significant growth of over 150 million vehicles annually by 2030, thereby presenting lucrative growth opportunities for aluminum casting market players to expand their product portfolio and supply to this growing industry.
Porter’s Analysis
Threat of new entrants: Low due to high initial investment required to establish foundries, mold technologies and skilled labor.
Bargaining power of buyers: Moderate due to the presence of many suppliers providing substitutes however differentiated products increase switching costs.
Bargaining power of suppliers: Moderate as well due to availability of substitute materials.
Threat of new substitutes: Low as aluminum castings have superior properties over other materials for various applications.
Competitive rivalry: High due to many competitors operating at global and regional levels.
SWOT Analysis
Strengths: Aluminum is light in weight with high strength, corrosion resistance and conductivity. Large production volumes lead to economies of scale.
Weaknesses: Highly dependent on aluminum prices which fluctuate. Molding techniques require improvements to reduce wastage.
Opportunities: Growing transportation and automotive industries increasing demand for lightweight components.
Threats: Substitution threat from composites and engineering plastics for certain non-structural applications.
Key Takeaways
The Global Aluminum Casting Market Size is expected to witness high growth over the forecast period of 2023 to 2030. 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.
Regional analysis indicates that Asia Pacific dominates the global market currently owing to high production volumes in China. The region is projected to maintain its lead during the forecast period as well on account of substantial investments by leading players and favorable government policies supporting local manufacturing.
Key players operating in the aluminum casting market are Keysight Technologies, Rohde & Schwarz GmbH & Co. KG, Anritsu, Tektronix, Inc. and ADVANTEST CORPORATION. Market growth can be attributed to rising automobile production , growing construction industry and increasing usage of aluminum castings in railways and aerospace sectors globally.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it