However, volatility of aluminum prices, due to sanctions and trade wars between countries, and the increasing employment of zinc die casting are acting as major hindrances for the growth of the market studied.
Key Market Trends
Vacuum Die Casting Segment is Expected to Witness the Fastest Growth Rate
The vacuum die casting segment of the market studied was expected to witness a CAGR of 8.90%, during the forecast period.
There have been significant developments and improvements in the conventional die casting process. Currently, the ultra-high-vacuum die casting process is applied for producing large and thin component parts, such as space-frames and pillars, which are usually welded to automobile chassis.
Electrical and hydraulic components in an automobile, work simultaneously. Reliability and quality are given prime importance in transmission parts. The transmission system in an automobile is a complex combination of mechanical functions. It is prone to extreme conditions and environments. This enhances the importance of integrity. Valve bodies, stators, and clutch pistons are some of the commonly die casted transmission parts in the automotive industry.
It has been accepted that, ultra-vacuum die casting produces better weldable automotive products than most of the die casting processes. However, products produced in this process are large and require huge-sized die casting machine, like 2,500-4,000 metric ton of die clamping force. This impacted the popularity of the ultra-high-vacuum die casting process among OEMs and large die casters.
However, vacuum die casting production process eliminates the air from the mold and allows the front of molten metal to merge freely without forming any shuts or pores, which is a major issue in pressure die casting process.
A sudden shift from pressure die casting to vacuum may not be possible, due to the higher productivity and ease of manufacture of the automotive die casting parts, which employ pressure die casting method. However, this change is gradual and expected to continue to increase, during the forecast period.
The Asia-Pacific Region Dominated the Automotive Parts Aluminum Die Casting Market, and is Expected to Witness the Fastest Growth Rate
The Asia-Pacific region dominated the market studied and accounted for 47.18% market share in 2018, and it is also expected to witness the fastest growth rate during the forecast period.
In Asia-Pacific, China dominated the market studied in 2018, followed by Japan and India. In 2016, the country registered more than 26,000 metal casting plants. The Chinese automotive industry accounted for 27.3% of the total demand for castings in the country. The Chinese economy is growing and the disposable income of the middle-class consumers is also increasing. This, in turn, reflects positively on the growing demand for vehicles. Over the past five years, owing to the low production costs in the country, the demand for vehicle production has gone up drastically. Passenger car sales in 2019 has witnessed a 9.6% decline, to 21.44 million units in China as compared to the previous year. However, with several initiatives taken by the company to boost the automotive industry, the passenger car sales are expected to increase over the forecast period, which in turn is driving the demand for aluminum die casting market in the country.
However, in 2018, the country witnessed a decline in vehicle sales by 3%, owing to the trade tensions and shaky consumer confidence. Additionally, industry experts predict a further decline by 5% in vehicles sales in 2019. However, with the rise in demand for electric vehicles in the country, the demand for aluminum die casted parts is expected to increase in the coming years.
The automotive parts aluminum die casting market is fragmented. Expansion of business segments and manufacturing plants, joint ventures with local manufacturers in key geographies, and mergers and acquisitions are the key strategies adopted in the market studied.