Aluminum casting involves a metal casting process in which molten aluminum is used to produce a part of desired shape. It is a common method of fabrication that involves pouring the molten aluminum alloy into a mold and allowing it to cool and solidify with the cavity shape. Aluminum castings are widely used in automotive, industrial machinery, aerospace, and construction industries where light weight and corrosion resistance properties are highly desirable. Major automotive manufacturers are increasingly using aluminum casting components for engine blocks, cylinder heads, and vehicle body components to reduce vehicle weight and improve fuel efficiency.
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 Dynamics:
Automakers are consistently focusing on reducing vehicle weight to meet strict emission norms and improve fuel economy. Aluminum remains an indispensable material for automakers in their pursuit of lightweighting. The shift towards electric vehicles also augurs well for aluminum casting demand since EVs use more aluminum per vehicle than conventional vehicles to extend driving range. Furthermore, increasing use of aluminum alloys for manufacturing engine blocks, transmission cases, wheels, and other components is expected to boost the aluminum casting market growth during the forecast period.
The growing preference of automakers and OEMs for aluminum casting over other alternatives owing to advantages such as ease of modification of design, recyclability, material economy, wear and corrosion resistance, and improved fuel efficiency will continue to propel the growth of the global market over the forecast period.
Segment Analysis
The global aluminum casting market can be segmented based on source, process type, end use industry, and region. Based on source, the market is dominated by primary aluminum as it accounts for around 60% of the total market share. Primary aluminum is preferred for manufacturing castings due to its purity and ability to withstand heavy loads and high temperatures.
PEST Analysis
Political: The aluminum casting market is favored by supportive government policies and regulations towards green manufacturing. Many countries provide incentives for localized aluminum production to reduce import dependence.
Economic: The market is driven by strong demand from end-use industries such as transportation, building & construction, and industrial machinery. Rapid urbanization and infrastructure development activities worldwide augment business opportunities.
Social: Aluminum castings find widespread usage due to their lightweight, corrosion resistance, and recyclability properties. Their use helps reduce carbon footprint and supports sustainability goals.
Technological: Developments in sand casting, permanent mold casting, and die-casting processes have improved production efficiency. Advanced 3D printing technologies are being researched for net shape casting of complex geometries.
Key Takeaways
The Global Aluminum Casting Market Size was valued at US$ 75.61 Bn in 2023 and is projected to reach US$ 113.53 Bn by 2030, expanding at a CAGR of 6.0% during the forecast period. The Asia Pacific region dominated with over 40% share led by China, India, and Japan on account of their large industrial bases and manufacturing hubs.
Regional analysis: The Asia Pacific region dominated the market owing to robust demand from the transportation sector in China and India. China accounted for around 1/3rd of the global aluminum die casting market share in 2023. Investments in electric vehicles and rail infrastructure expansion programs will fuel further growth.
Key players operating in the aluminum casting market are Alcoa Corporation, Ryobi Limited, Aluminum Corporation of China Limited, United Company Rusal, Arconic Inc., China Hongqiao Group Limited, Gibbs Die Casting Corp, and Nemak S.A.B. de C.V. Strategic partnerships with OEMs and expansion into new applications are core strategies adopted.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
