Global Automotive Parts Die-Casting Market- Market Overview:

The global automotive parts die-casting market is expected to grow from USD 16.39 billion in 2022 to USD 28.79 billion by 2030, at a CAGR of 7.3% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand for lightweight vehicles.

As the name implies, die casting for automotive parts is a method of mechanized casting in which a liquid melt is injected into a mold at high pressure and rapid speeds. In these casting processes, permanent metal molds are used, which do not need to be discarded after casting. They are ideal for the series and mass production of components. It involves casting metal parts into metal molds or casting them at high speed and pressure to produce various automotive parts. Molten nonferrous alloys are then poured into these molds, allowing for standardized and rapid production of automotive parts. In the die-casting process of automotive parts, magnesium, zinc, and aluminum are the primary metals or materials used. The eco-friendly and cost-effective nature of die-casting parts in automotive parts has made them popular in the industry. A die-cast part has exact dimensions, strength, and weight and is produced with high quality. The entire process is standardized and enables manufacturers to reduce the amount of scrap or automotive waste they produce, which benefits the environment. In recent decades, technological advancements have allowed die-castings to become more flexible, allowing for better customization and product quality. Moreover, global environmental regulations are expected to fuel the market demand for lightweight vehicles and aluminum in diecasting automotive components during the Projection period.

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Market Dynamics:

Drivers:                          

• Rising demand for lightweight vehicles

The evolution of new technologies in recent years has led to advancements and innovations in auto parts. Lightweight materials are among them, gaining worldwide attention as a means to manufacture auto components. Lightweight materials in auto parts have improved the fuel economy of automobiles, which is one of the vital reasons for this popularity. Additionally, lighting must be done without compromising on safety before quality and performance is a priority.

Restraints:         

• Lack of skilled professionals

Skills are required to operate & maintain automotive die-casting devices and processes, whereas traditional automotive production did not require extensive technical knowledge, which will pose a challenge to market players. Labourers who previously operated traditional automotive parts production processes and systems do not have the skills necessary to operate the automotive parts die-casting industry; this skill gap will pose challenges.

Opportunities:

• Increasing demand for passenger vehicles

A rise in the middle-class population and an increase in living standards in emerging countries further influence the demand for passenger vehicles. Due to the availability of economic options in these vehicles, consumers have also tended to purchase these vehicles. Furthermore, the expansion of the automotive sector, investment booms, and increasing disposable income all contribute positively to the market for automotive parts die-casting.

Challenges:

• Fluctuating raw material prices

The rising prices of magnesium, aluminum, and zinc would hamper the growth of the automotive parts die-casting market. The raw materials are essential in the die-casting process, and supply chain disruptions can lead to capital losses for automotive manufacturers. As a result of such price volatility, automotive parts die casting could also be less adopted in the future, which would further limit the market growth.

Segmentation Analysis:

The global automotive parts die-casting market has been segmented based on product type, raw material, application, and region.

By Product Type

The product type segment includes pressure die-casting, squeeze die-casting, vacuum die-casting, semi-solid die-casting and gravity die-casting. The pressure die-casting segment led the largest share of the automotive parts die-casting market with a market share of around 48.4% in 2022. With a market share of around 44.9% in 2021, the pressure die-casting segment is the most popular product in the industry. Because of its easy accessibility, it is the most popular sub-segment in the product category. The machine is ideal for producing automotive parts as well.

By Raw Material

The raw material segment includes zinc, magnesium, aluminum, and others. The aluminum segment led the largest share of the automotive parts die-casting market with a market share of around 35.7% in 2022. A key aspect of aluminum's flexibility in the manufacture of automobile parts is its malleability and ductility. Its ability to form thin sheets and wires has contributed to its growing popularity in the automotive industry, as well as its ability to convert them into thin sheets and wires. Aluminum's lightweight nature makes it an excellent choice for reducing vehicle weight and increasing fuel efficiency.

By Application

The application segment includes the battery, body assemblies, transmission parts, engine parts, and others. The transmission parts segment led the largest share of the automotive parts die-casting market with a market share of around 49.8% in 2022. The primary function of a vehicle is moving, so transmissions are the most dominant segment of the market. For new vehicles and repairing/replacing, it is produced on a larger scale than other automotive parts. The complex designs of transmissions can be manufactured easily, with die-casting methods contributing significantly to the development of this segment.

Global Automotive Parts Die-Casting Market- Sales Analysis.

The sale of automotive parts die-casting expanded at a CAGR of 6.7% from 2016 to 2022.

A significant improvement has been made in conventional die-casting. Currently, the ultra-high-vacuum die-casting process is used to manufacture large and thin parts, including space frames and pillars, which are usually welded to automobile chassis.

Increased government initiatives in emission reduction are accelerating market growth, and manufacturers are investing more to meet government regulations, which further assists in market expansion.

As a result of rising disposable incomes, vehicle demand is increasing in developing economies such as China and India. In response to climate change, consumers are increasingly demanding vehicles that have a smaller carbon footprint, which in turn will drive the automotive parts die-casting market.

Thus, owing to the aforementioned factors, the global automotive parts die-casting market is expected to grow at a CAGR of 7.3% during the Projection period from 2023 to 2030.

By Regional Analysis:

The regions analyzed for the automotive parts die-casting market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the automotive parts die-casting market and held a 38.5% share of the market revenue in 2022.

• The North American region witnessed a major share. Since CO2 emissions are rising in the country and strict CAFE and EPA laws have been instituted, major market players are expected to use aluminum die-casting as part of their production processes. Over 30 die-casting companies manufacture automobile engine and transmission parts in the United States, comprising more than 400 individual die-casting plants, according to the North America Die Casting Association. Due to strict CAFÉ standards to cut emissions and increase fuel efficiency, lightweight ferrous materials are being increasingly adopted to reduce automobile weight. Even though the United States and China are engaged in a trade war, the economy is expected to experience a recession during the next two years, and automobile sales are predicted to decline until trade tensions are resolved.
• Asia Pacific is anticipated to experience significant growth during the predicted period. In Asia Pacific, the fastest growth rate is attributed to an increase in disposable income, which has in turn led to a rise in vehicle demand. The government is expected to adopt new policies in the Projection period, which will encourage the adoption of automotive die-casting. In developing economies, the increasing demand for vehicles is facilitated by rising production capacities, contributing to the growth of die-casting.

Global Automotive Parts Die-Casting Market - Country Analysis:

• Germany

Germany's automotive parts die-casting market size was valued at USD 1.2 billion in 2022 and is expected to reach USD 2.12 billion by 2030, at a CAGR of 7.4% from 2023 to 2030.

As electric vehicle demand in the country continues to rise, the market for aluminum parts die casting is expected to grow over the Projection period. As luxury automobiles become increasingly popular, light metal castings, especially aluminum die-cast parts, are expected to gain prominence in the country during the Projection period

• China

China’s automotive parts die-casting market size was valued at USD 1.27 billion in 2022 and is expected to reach USD 2.3 billion by 2030, at a CAGR of 7.8% from 2023 to 2030.

A large part of China's die-casting production comes from passenger cars, which means the market is likely to be optimistic as a result. A 5.7% increase in Chinese car production in December 2020, according to the China Association of Automobile Manufacturers, is expected to boost the market for die-casting parts.

• India

India's automotive parts die-casting market size was valued at USD 0.98 billion in 2022 and is expected to reach USD 1.7 billion by 2030, at a CAGR of 7.7% from 2023 to 2030.

Die-cast parts are becoming increasingly popular in the automotive industry, and vehicle sales are increasing, which has contributed to the country's market growth. Additionally, strict government regulations have catalyzed the automobile industry's need for lightweight, nonferrous metals as a result of strict government regulations that aim to curb automobile emissions and improve fuel efficiency.

Key Industry Players Analysis:  

To increase their market position in the global automotive parts die-casting market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.

• Ningbo Parison Die Casting Co., Ltd.
• Endurance Technologies Limited.
• Spark Minda
• Ryobi Die Casting
• Castwel Autoparts Private Limited
• Tyche Diecast Pvt. Ltd.
• Raltor
• Kinetic Die Casting Company, Inc.
• Sunbeam Auto Pvt. Ltd.
• Rockman
• MINO Industry USA, Inc.
• Sandhar
• GF Casting Solutions
• Gibbs

Latest Development:

• In March 2022, as part of the Hangzhou Bay plant in Ningbo, Tuopu Group Limited announced a large die-casting rear cabin, developed on the 7,200-ton giant die-casting machine. Its length and width are about 1,700mm, resulting in a 15%-20% weight reduction. The Tuopu Group works with Human Horizons in integrated die-casting technology, in which dozens of components can be integrated into a single piece.
• In March 2021, A non-binding memorandum of understanding has been entered into between Sandhar Technologies Limited and Unicast Autotech Ltd for the acquisition of an aluminum die-casting business.
• In May 2022, The PENANG-based Engtek Group is considering relisting on Bursa Malaysia with the assistance of RHB Investment Bank and Hong Leong Investment Bank.

Report Metrics

Report Attribute	Details
Study Period	2022-2030
Base year	2022
CAGR (%)	7.3%
Market Size	16.39 billion in 2022
Projection period	2023-2030
Projection unit	Value (USD)
Segments covered	By Product Type, By Raw Material, By Application, and By Region.
Report Scope	Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered	Ningbo Parison Die Casting Co., Ltd., Endurance Technologies Limited., Spark Minda, Ryobi Die Casting, Castwel Autoparts Private Limited, Tyche Diecast Pvt. Ltd., Raltor, Kinetic Die Casting Company, Inc., Sunbeam Auto Pvt. Ltd., Rockman, MINO Industry USA, Inc., Sandhar, GF Casting Solutions, and Gibbs.
By Product Type	Pressure Die-Casting Squeeze Die-Casting Vacuum Die-Casting Semi-Solid Die-Casting Gravity Die-Casting
By Raw Material	Zinc Magnesium Aluminum Others
By Application	Battery Body Assemblies Transmission Parts Engine Parts Others
Regional scope	North America Europe Asia-Pacific South America Middle East and Africa

Scope of the Report

Global Automotive Parts Die-Casting Market by Product Type:

• Pressure Die-Casting
• Squeeze Die-Casting
• Vacuum Die-Casting
• Semi-Solid Die-Casting
• Gravity Die-Casting

Global Automotive Parts Die-Casting Market by Raw Material:

• Zinc
• Magnesium
• Aluminum
• Others

Global Automotive Parts Die-Casting Market by Application:

• Battery
• Body Assemblies
• Transmission Parts
• Engine Parts
• Others

Global Automotive Parts Die-Casting Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia-Pacific
  • Japan
  • China
  • India
  • Korea
  • Southeast Asia
• South America
  • Brazil
  • Peru
• Middle East and Africa
  • UAE
  • South Africa
  • Saudi Arabia