Increasing the use of aluminum in automobiles owing to high strength and lightweight is likely to drive the market over the coming years. Aluminum casting is a simple, inexpensive and versatile way of forming the aluminum into a wide range of products. Aluminum is not only a lightweight metal but also has properties such as excellent strength, high electrical conductivity, exceptional corrosion resistance, and excellent work-ability. Casting also allows the formation of complex designs using various metal forming techniques.
Transportation was the largest segment in the aluminum casting market and accounted for a revenue share of 59.6% in 2019.
The growth is attributed to an increase in demand for lightweight vehicles and aircraft globally. Sports vehicle is among the most lucrative segments in the lightweight vehicle sector. The popularity of sporting events, rallies, and races in North America and Europe continue to drive the demand for sports vehicles, thereby boosting the demand for aluminum casting.
The growth in the transportation segment is also supported by increasing demand for aircraft, as aluminum cast products are used in manufacturing jet or aircraft engines. A study published by Airbus in 2018 stated that the demand for new aircraft is estimated to reach nearly 39,000 over the next 10 years. Rising demand for new aircraft is likely to propel the need for new jet engines, thereby, positively influencing the market for aluminum casting over the coming years.
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 is likely to hinder market growth in the coming years.
To summery, the restraining factors of global aluminum casting market are as follows:
And what are the major driving factors of the global aluminum casting market?