Aluminum Casting Market Overview
The global aluminum casting market size was valued at USD 86.92 billion in 2021 and is expected to reach USD 135.20 billion by 2030, at a CAGR of 5.0% from 2022 to 2030.
The increasing use of aluminum in automobiles owing to its high strength and lightweight is likely to drive the market over the coming years. Nearly 30-40% of aluminum is being used per lightweight vehicle every year and is likely to reach 70% over the coming years owing to stringent regulations on reducing fuel emissions across the globe. According to the Federal Reserve Bank of St. Louis, the global sales of lightweight vehicles reached 17.385 million units in May 2019. Thus, increasing demand for lightweight vehicles on account of soaring environmental pollution, rising disposable incomes, and changing lifestyles of consumers is anticipated to boost the demand for aluminum casting.
Gather more insights about the market drivers, restrains and growth of the Global Aluminum Casting Market
Increasing demand for general utility and sports utility vehicles is anticipated to drive product demand in the U.S. For instance, according to the automotive consultancy firm, LMC Automotive, the U.S. is likely to have more than 90 mainstream SUV models by 2023. Moreover, automobile manufacturers in the country are under increasing pressure to meet the regulatory requirements pertaining to the environmental impact of vehicles. As per Corporate Average Fuel Economy (CAFE), passenger cars are required to reach a fuel economy target of 54.5 miles per gallon by 2026 owing to the increasing emission of greenhouse gases, which, in turn, is anticipated to augment market growth.
The application scope of aluminum casting is widening to agricultural equipment, construction equipment, mining equipment, and other heavy-duty machinery. The growth in these types of machinery is largely attributed to developing economies such as India and Brazil, where there is a high need for modernizing equipment to attain greater levels of productivity and efficiency. India is among the largest manufacturers of farm equipment like tractors, tillers, and harvesters. Tractor sales in the country are expected to grow by nearly 8.0% from 2018 to 2022, thereby driving the market.
On the flip side, factors such as high prices of aluminum casting machinery, along with high investments in technological advancements in aluminum casting, are likely to hamper the market growth. Moreover, strict rules and guidelines laid down by the U.S. Environmental Protection Agency (EPA) and the European Environment Agency regarding harmful emissions into the environment during the casting process are likely to hinder market growth in the coming years.
Aluminum Casting Market Segmentation
Based on the Process Insights, the market is segmented into Die Casting, Permanent Mold Casting and Others.
- The die casting segment accounted for the largest volume share of over 50.0% in 2021 owing to the rising demand for aluminum casting products in the automotive sector.
- Rising demand for motorcycles, especially in the U.S., is likely to drive the demand for permanent mold casting over the coming years.
Based on the Application Insights, the market is segmented into Transportation, Industrial, Building & Construction and Others.
- The transportation application segment accounted for the largest revenue share of over 55.0% in 2021. The growth is attributed to the increasing demand for lightweight vehicles and aircraft globally.
- The building and construction segment is anticipated to exhibit a CAGR of 3.3% in terms of volume from 2022 to 2030 owing to the increasing use of aluminum casting products in houses.
Based on the Aluminum Casting Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa (MEA)
- The Asia Pacific region held the largest volume-based share of over 44.0% in 2021 owing to the rapidly expanding manufacturing sector in China and India.
- In North America, demand for lightweight vehicles is anticipated to grow at a healthy rate over the coming years on account of the North American Free Trade Agreement (NAFTA).
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- Ceramic Tiles Market– The global ceramic tiles market size was estimated at USD 355.31 billion in 2021 and is expected to witness a CAGR of 7.1% from 2022 to 2030. Growth in the construction of office spaces, shopping malls, lodging spaces, and other utility spaces across the globe is likely to ascend the demand for the products across the globe during the forecast period.
- Aluminum Die Casting Market– The global aluminum die casting market size was valued at USD 69.36 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030.
Market Share Insights:
- September 2020: Tesla announced the installation of aluminum casting machines for the production of chassis at a German plant, for increasing its EV production. This enables the company to leverage the market growth.
- May 2020: RUFFINI S.A. resumed switching on the melting tower to restart the production of cast components post 30 days of shutdown owing to COVID-19. The manufacturing and mining operations have begun as the government of various countries have eased lockdowns and restrictions.
Key Companies Profile:
The market is competitive and is likely to expand on account of the growing penetration of aluminum castings in EVs. The manufacturing and mining operations have begun as the government of various countries have eased lockdowns and restrictions. Thus, the growth in the end-use industries is expected to augment the demand for aluminum casting products.
Some prominent players in the global aluminum casting market include,
- Alcoa Corporation
- Consolidated Metco, Inc.
- BUVO Castings
- RDW Wolf, GmbH
- Georg Fischer Ltd.
- Ryobi Limited
- Martinrea Honsel Germany GmbH
- Bodine Aluminum
- Alcast Technologies
- Endurance Technologies Limited
- Aluminum Corporation of China Limited
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