Aluminum Castings Market
Aluminum Castings Market (Source - Primary and Secondary; Process - Die Casting, Permanent Mold Casting, and Sand Castings; Application - Automotive (Passenger Cars & LCV, Commercial Vehicles, and Motor Bikes) and Non-Automotive (Infrastructure and Industrial)) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025
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Global Aluminum Castings Market: Snapshot
A copious number of players – regional and international – are trying to surge ahead one another using multi-pronged strategies in the fragmented aluminum castings market. They are seen banking upon their diversified product portfolios and also product development to stay ahead of the curve in the market. Another area of focus for keen players have been cost-effective products that would help them pull in greater sales and thus improve profit margins.
The market for aluminum castings is being primarily bolstered by the flourishing automotive sector which is increasingly supplanting steel with aluminum on account of its light weight and high strength. A prominent trend in the market is the uptake of recycled aluminum on the back of stringent regulations over waste reduction and the major cost reduction they bring about.
According to a research study by Transparency Market Research, the aluminum castings market will likely rise at a steady 5.2% CAGR during the period between 2017 and 2025. At this rate, the market which was valued at US$ 25.23 bn in 2016, is projected to reach US$40.14 bn by 2025.
Secondary Aluminum Sees Massive Adoption Owing to Their Cost Benefits
Depending upon the source of aluminum castings, their market can be broadly split into primary and secondary. Between the two, the secondary source comprised of recycled aluminum is projected to hold a dominant share – both vis-à-vis volume and value – in the market in the next couple of years. The segment is expected to register a CAGR of 4.5% during the forecast period. Recycled aluminum is preferred since is results in savings of up to 90.0%, without compromising on the quality of the product.
There are various casting processes used in the market, namely permanent mold casting, die casting, and sand casting. Of them, the segment of die segment is seeing widespread uptake. This is because of a flourishing automotive industry that uses aluminum castings made by the process. Die process helps to create accurate dimensions in products and can be used in mass production as well. Going forward, the segment is expected to retain its dominant position by clocking a 5.0% CAGR over the course of the forecast period.
Application-wise, the global aluminum casting market can be broadly bifurcated into automotive and non-automotive segment. Of the two, the automotive segment can be further segmented into commercial vehicles, passenger cars and LCV, and motorbikes. The non-automotive segment can be further divided into industrial, infrastructure, etc. Automotive industry, decidedly, is at the forefront of driving the demand for aluminum castings since it is lightweight compared to steel and thus helps to bring down the weight of the entire vehicle making it fuel efficient.
Asia Pacific, Driven by China, Leads Market
From a geographic perspective, Asia Pacific accounts over the half the share in the global market for aluminum castings. In the years ahead, the region is expected to further increase its share by pulling in the maximum CAGR of 5.3% during forecast period between 2017 and 2025. China is said to be mainly powering the growth in Asia Pacific. Overall, the market in the region is expected to become US$22.67 bn by 2025.
Europe and North America are other key regions in the global market for aluminum castings. While Europe is expected to register a CAGR of 5.1% during the forecast period to become worth US$9.45 bn, North America is expected to rise at a CAGR of 4.9% to become worth US4.22 bn by 2025-end.
Arconic Inc., Dynacast International, Endurance Technologies Ltd., Nemak, and Ryobi Ltd. are some of the players that enjoy a stronghold over the fragmented aluminum castings market.
Aluminum Castings Market to Witness Strides on Back of Advancements in Instrumentation
Aluminum castings are perhaps the most versatile set of processes to manufacture wide range of aluminum products. They account for at least one-fifth of the overall world aluminium production worldwide. The aluminum castings market has witnessed rapid strides on the back of constant advancements in molding and separation technologies. In particular, the use of well-designed tooling is a key aspect shaping the product development lifecycle. Strides made in instrumentation have propelled new scope of unveiling product innovation. Traditionally substantial demand for aluminum products in vehicle power transmissions systems and automotive is a key trend spurring the demand in the aluminum castings market. Aluminum castings have been extensively employed in making variety of cookware with good material characteristics and durability. Rise in demand for aluminum cooking utensils in commercial and residential end-users is bolstering the expansion of avenues in the aluminum casting market. The growing popularity of heat-treatable aluminum cookware has boosted the prospects in the market. The market has also seen new application areas from the use of advanced sandcasting processes. Automobile companies had been quick to commercialize such processes with good business outcomes. Advances in alloys used with aluminum has also fueled the adoption rate of aluminum casting process, as these increase in ductility and strength of the final products.
The present COVID-19 pandemic has led to considerable changes in mircoeconomic and macroeconomic dynamics shaping the growth of the aluminum castings market. The outbreaks also triggered businesses in developing as well as developing countries to adopt new strategic frameworks to sustain their profitability. Further, the demand in end-use industries suffered substantially in the second quarter of 2020, mainly due to massive disruptions in supply chain. Major manufacturing hubs such as China started embracing the trend of de-globalization, which also affected the bottom-line of major industry players operating in the aluminum castings market.
Global Aluminum Castings Market: Overview
Aluminum Castings are the different articles made from aluminum using the casting process. Automotive pistons, cylinder heads, engines are some of the commonly manufactured articles using aluminum casting process. Aluminum Castings these days are majorly manufactured from secondary aluminum, i.e. aluminum obtained after recycling the used aluminum products. Aluminum cans, aluminum products from the automobiles and building & construction sector are the major products being recycled these days. Die Casting is a method that is usually employed for the production of aluminum castings for the automotive sector. It is the most widely employed method of castings throughout the globe. Asia Pacific dominated the aluminum castings market in terms of revenue as well as volume and is likely to do the same during the period of forecast.
Anticipated growth of the automotive industry is the major factor driving the demand for aluminum castings. Automotive sector is the major consumer of aluminum castings. Automotive sector is poised for a rapid growth in Asia Pacific. Also Europe, and North America are amongst the major producers of automobiles, and in turn the aluminum castings. Automotive segment is anticipated to dominate the market during the forecast period, and is expected to expand at a significant growth rate.
This report analyzes and forecasts the market for aluminum castings market at the global and regional level. The market has been forecast based on volume (in Kilo Tons) and revenue (US$ Mn) from 2017 to 2025, considering 2016 as the base year. The study includes drivers and restraints of the global aluminum castings market. It also covers impact of these drivers and restraints on demand for aluminum castings during the forecast period. The report also highlights opportunities in the aluminum castings market at the global and regional level.
The report includes detailed value chain analysis, which provides a comprehensive view of the global aluminum castings market. Porter’s Five Forces model for the aluminum castings market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, where in products, and application are benchmarked based on their market size, growth rate, and general attractiveness.
Global Aluminum Castings Market: Segmentation
The study provides a decisive view of the global aluminum castings market by segmenting it in terms of source of raw material, process, and application. In terms of source, aluminum castings are classified as primary and secondary. In terms of process, it is segmented as die casing, permanent mold casting, and sand casting. In terms of application, it is segmented into automotive- passenger cars & LCVs, commercial vehicles, and motorbikes, non-automotive- infrastructure, industrial, and other applications. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for aluminum castings in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides the actual market size of aluminum castings for 2016 and estimated market size for 2017 with forecast for the next eight years. The global market of aluminum castings has been provided in terms volume and revenue. Market volume has been defined in Kilo tons and revenue in US$ Mn. Market numbers have been estimated based on source, process, and application of aluminum castings. Market volume and size have been provided in terms of global, regional and country level markets.
Global Aluminum Castings Market: Research Methodology
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represented the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, magazines and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, SEC filings, and external proprietary databases, and relevant patent and regulatory databases such as infomine, OICA, Hoover’s, oneSOURCE, Factiva and Bloomberg, national government documents, statistical databases, trade journals, market reports, news articles, press releases, and webcasts specific to companies operating in the market.
We conduct primary interviews on an ongoing basis with industry participants and commentators to validate data and analysis. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The report comprises profiles of major companies operating in the global aluminum castings market. Key players in the aluminum castings market are Arconic Inc., Dynacast International, Endurance Technologies Ltd., Nemak, Ryobi Ltd., Alcoa Corporation, Eagle Aluminum Cast Products etc. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The global aluminum castings market has been segmented as follows: