Automotive Steel Casting Market: Introduction
- Increasing requirement for automotive vehicles in different end-use industries is expected to drive the automotive steel casting market. In automotive steel casting, the steel is heated until it reaches a molten state and subsequently, this liquid steel is used to manufacture various components of the vehicle. In this process, liquid steel is delivered into the hollow mold, which has different shape and size. Once the steel is cooled, it is removed from the mold as a finished product. This steel casting is also called as hot chamber die casting, which is commonly utilized to manufacture complex shapes and structures of the vehicle.
Key Drivers of Automotive Steel Casting Market
- Rise in disposable income of consumers has increased their spending power, which in turn is driving the sales of automotive vehicles and boosting the automotive steel casting market. Moreover, increase in government initiatives for infrastructure development increases the efficiency of transportation and distribution channels, which further propels the market. Rise in demand for automotive vehicles from different industries such as mining, construction, oil & gas, transportation, and logistics increases the need for automotive parts.
- Automotive manufacturers are using advanced technology to manufacture vehicles, which decreases their production time and cost, thereby enhances the use of steel casting components. Moreover, manufacturers employ latest technologies to develop durable components, which further improves the quality of the product. Furthermore, rising demand for electrification of vehicles is also driving the market.
Challenges in Automotive Steel Casting Market
- The high cost associated with the automotive die casting process hampers the market. Automotive steel casting is an expensive method as compared to other molding processes. Moreover, the cost required for steel purchase is also high as compared to that of other metals, which in turn retrains the market.
- The outbreak of COVID-19 hampered several businesses across the world, while automotive manufacturing was stopped, which further declined automotive sales and hindered the steel casting market. Along with automotive manufacturing, the steel casting industry also witnessed a shutdown, which also hampered the market. Moreover, disruption of global supply chains resulted in shortage of supply of raw material that is required for the production of automotive parts. This supply shortage restrained the automotive steel casting market.
Opportunities in Automotive Steel Casting Market
- Steel components are also used in electric and hybrid electric vehicles, which is expected to drive the automotive steel casting market during the forecast period. Demand for electric and hybrid vehicles is rising across the world due to a rise in fuel prices. Increasing government regulations for low vehicle carbon emission further boosts the manufacturing of electric vehicles. Increase in environment regulations prompt manufacturers to opt for fuel-efficient automotive solutions, which in turn is anticipated to drive the steel casting market.
- Manufacturing of luxury vehicles and sports cars requires high quality automotive components, while steel is one of the premium quality metals that can be used in luxury vehicles. Therefore, a rise in the demand for luxury vehicles in developed and developing countries is anticipated to propel the automotive steel casting market.
Automotive Steel Casting Market in Asia Pacific to Expand Significantly
- The automotive steel casting market in Asia pacific is estimated to expand significantly due to an increase in population, rise in urbanization, aggressive investments by vehicle manufacturers, and initiatives by governments for infrastructural development. Production of automotive vehicles, especially passenger cars and commercial vehicles, is rising due to the easy availability of steel in Asia Pacific. Moreover, increase in number of original equipment manufacturers of automotive parts in Asia Pacific further boosts the steel casting market in the region. Furthermore, the demand for premium vehicles, hybrid and electric vehicles is rising in Asia Pacific, which is estimated to drive the market in the region. Companies in China and other countries in the region are focusing on the development of electric vehicle charging stations, which is projected to increase the sales of EV, HEVs, and PHEV vehicles. Additionally, Europe has large number of automotive manufacturers who are investing in the design of eco-friendly components for their vehicles, which is estimated to further fuel the automotive steel casting market in the region.
Key Players Operating in Automotive Steel Casting Market
The automotive steel casting market is highly consolidated. A few of the key players operating in the global automotive steel casting market are:
- ArcelorMittal S.A.
- Hitachi Metals Co., Ltd.
- ThyssenKrupp AG
- TATA Steel
- Baosteel Group Corporation
- Voestalpine Group
- Nucor Corporation
- HBIS Group Co., Ltd.
- Nippon Steel Corporation
Global Automotive Steel Casting Market: Research Scope
Global Automotive Steel Casting Market, by Process
- Gravity Casting
- High-Pressure Die Casting (HPDC)
- Low-Pressure Die Casting (LPDC)
- Sand Casting
Global Automotive Steel Casting Market, by Application
- Body Assemblies
- Engine Parts
- Transmission Parts
Global Automotive Steel Casting Market, by Vehicle Type
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Electric Vehicle
- Hybrid Electric Vehicle
- Plug-in Hybrid Electric Vehicle
Global Automotive Steel Casting Market, by Sales Channel
Global Automotive Steel Casting Market, by Region
- North America
- Nordic Region
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.