Market Is Estimated To Witness High Growth Owing To Increasing Automotive Production And Growing Electronics Industry
Die Casting Market
The Die Casting Market is estimated to be valued at US$ 62.3 Bn in 2022 and is expected to exhibit a CAGR of 7.2% over the forecast period 2021 to 2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Die casting is a metal casting process that is characterized by forcing molten metal under high pressure into a mold cavity. The key advantage of die casting is its ability to produce complex shapes with great precision and accuracy. Die casting is widely used in manufacturing automobile parts due to its ability to deliver tight tolerances and superior surface finishes on a high-production basis.
Market key trends:
One of the key trends gaining traction in the die casting market is the integration of robotics and automation. Leading companies such as Alcast Technologies have implemented robotics automation in their foundries to enhance productivity and meet the rising demand from automotive OEMs. With robotics,casting defects have reduced significantly while production volumes have increased. Robotics is allowing die casters to produce complex parts with intricate details and achieve near net shape casting. The use of collaborative robots that can work alongside humans safely is opening up new opportunities for die casters to further automate downstream processes such as trimming, cleaning and packing. This is improving efficiency while reducing labor costs. The growing focus on Industry 4.0 technologies will further drive automation in die casting production over the coming years.
Porter's Analysis
Threat of new entrants: The die casting market has moderate threat of new entrants due to high capital requirements and need for technological expertise.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of diversified suppliers and standardized products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and less differentiation in raw materials.
Threat of new substitutes: There is low threat of new substitutes as die casting offers precision, speed and versatility compared to other metal fabrication processes.
Competitive rivalry: The die casting market faces high competitive rivalry due to large number of players globally providing price competition.
SWOT Analysis
Strength: Die casting offers precision, speed and versatility in producing intricate parts. It allows complex internal passages and close dimensional tolerances.
Weakness: Die casting requires high capital investments in die casting machines and dies. Process optimization is challenging requiring technological expertise.
Opportunity: Growing automotive industry drives the demand for die casted components. Advent of electric vehicles provides new areas of application.
Threats: Fluctuations in raw material prices and energy costs impact the production costs. Short product life cycles pose challenges.
Key Takeaways
The global Die Casting Market size is expected to reach US$ 62.3 Bn by 2028, expanding at a CAGR of 7.2% from 2021 to 2028 due to increasing use in automotive industry. The automotive industry accounts for over 50% of die casting demand for manufacturing vehicle parts and components such as gear boxes, steering parts, suspension parts etc.
Regional analysis Asia Pacific dominates the global die casting market with China, Japan and India being the major markets. This is attributed to presence of large automotive OEMs and tier players in the region driving demand. Europe and North America are other major regional markets for die casting.
Key players operating in the die casting market are Alcast Technologies, Arconic, Consolidated Metco, Inc., Dynacast International Inc., Gibbs Die Casting, Ryobi die casting Inc., Bodine Aluminum, Martinrea Honsel Germany GmbH, Leggett & Platt, Endurance Technologies Ltd., Empire Die Casting Company, Alcoa Inc., Hitachi Metals Ltd, Nemak S.A.B. de C.V., GF Casting Solution AG, Shiloh Industries Inc., Rheinmetall Automotive AG, Sigma Electric Manufacturing Corp., Pace Industries, and Guangdong Yizumi. The players focus on new product development, mergers and acquisitions to expand their market share.
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