February 24, 2024
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 7.4%

Growing Automotive Industry To Boost The Growth Of The Global Aluminum Casting Market

Market Overview:

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 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Aluminum casting refers to the process of forming aluminum metal into complex shapes by pouring it into molds. It is suitable for bulk production due to its ability to create complex geometries and is widely used in automotive, aerospace, industrial, building & construction and others. The major advantage of aluminum casting over other materials is its light weight. Being only one-third the weight of steel or iron, aluminum castings help reduce vehicle weight and improve fuel efficiency. They also provide excellent corrosion resistance, good finishing characteristics, high fatigue strength and dimensional stability. The global aluminum casting market is driven by growing demand from the automotive industry for lightweight components to increase fuel efficiency.

Market key trends:

One of the key trends in the aluminum casting market is the increasing demand for lightweight vehicles. Automakers are under pressure to improve fuel efficiency and reduce vehicle weight to meet stringent emission regulations. Aluminum cast components help reduce weight without compromising on strength. This is driving increased adoption of aluminum parts in powertrains, chassis and closures like doors. Another trend is the development of new aluminum casting alloy formulations with enhanced properties. Additives like lithium are allowing casters to create stronger and more ductile alloys. 3D printing technology is also evolving to produce complex aluminum casts using less material and waste. On the supply side, partnerships between casters and OEMs help deliver industry-specific solutions. Growing electric vehicle sales further boost the market as EVs use more aluminum than conventional vehicles.

Porter’s Analysis:

Threat of new entrants: Low capital requirements and availability of raw materials allow new players to enter the market easily. However, established players have economies of scale and customer loyalty benefits.

Bargaining power of buyers: Buyers have moderate bargaining power as they can negotiate prices due to availability of substitutes. However, rise in specialized applications increase buyer dependency on suppliers.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute materials like steel. However, aluminum casts have proven properties making it difficult to completely replace.

Threat of new substitutes: New substitute materials pose medium threat. While aluminum casts have corrosion resistance and strength benefits, composites and 3D printing continue to emerge.

Competitive rivalry: High as major players globally compete on casting quality, manufacturing technology and supply chain integration.

Key Takeaways:

The Global Aluminum Casting Market Share is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period 2023 to 2030, due to increasing demand from transportation and building & construction industries.

Regional analysis: North America dominated the global market in 2022 owing to presence of major automakers in the US and Canada. However, Asia Pacific is expected to grow at the fastest pace during the forecast period, led by China, Japan and India primarily due to increasing automotive production and positive economic outlook.

Key players: Key players operating in the aluminum casting market include Consolidated Metco, Inc., BUVO Castings, Bodine Aluminum, Shandong Xinanrui Casting, RusAL, Walbro, RYOBI Aluminium Casting (UK) Ltd., Dynacast, Rio Tinto, Alcoa Corporation. Bodine Aluminum is a leading player known for production of high-quality aluminum cast components for transportation and industrial markets.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it