Automotive Parts Aluminum Die Casting Market Trends

Statistics for the 2023 & 2024 Automotive Parts Aluminum Die Casting market trends, created by Mordor Intelligence™ Industry Reports. Automotive Parts Aluminum Die Casting trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Automotive Parts Aluminum Die Casting Industry

Increasing Aluminum Penetration in Automobiles is Likely to Bolster Demand

Aluminum is the most preferred metal for die casting. Within the automotive application, hybrid and electric vehicle technologies are on the rise. Taking North America as an example, since 2016, there was an increase in terms of aluminum content of 62 lbs (28 kg) per vehicle, with 2020 reaching a total vehicle content figure of 459 lbs (208 kg). It is expected to reach 570 lbs (258 kg) by the year 20230. The shift toward the light truck and battery electric vehicles primarily drives it.

Further, it is expected that by 2026, 550 lbs (250 kg) of aluminum content per vehicle for light-duty trucks. This increase is seen primarily in three main areas of material usage: aluminum auto body sheets, castings, and extrusions. A good example of this is Tesla’s Model-S BEV, which uses over 800 lbs (360 kg) of aluminum for structural components, castings, extrusions, and the whole body of the vehicle.

On the other side, rising prices and risks associated with raw material sourcing are expected to hinder market growth during the longer-term forecast period. Base metal prices are under pressure in recent weeks due to the looming trade war between the United States and the rest of the world. The imposition of tariffs on imports from the US allies (including the European Union, Mexico, and Canada) on aluminum (10%) and steel (25%) by the President-elect is expected to increase the domestic aluminum prices.

Moreover, the increasing production and sales of passenger cars in several emerging economies, such as India, Thailand, Indonesia, Egypt, and other Middle East & African countries, are anticipated to drive the automotive parts aluminum die casting market during the forecast period.

Automotive Parts Aluminum Die Casting Market: Aluminum Consumption in Light Vehicles in North America from 1975 to 2030, in net pounds per vehicle

Asia-Pacific Region Anticipated to Witness Significant Growth

Asia-Pacific is expected to witness the fastest growth rate during the forecast period. In the Asia-Pacific region, major countries like India, China, and Japan are expected to contribute significantly to the development of the market over the forecast period. China is one of the major producers of die-casting parts, and the growing adoption of passenger cars in the region is likely to provide an optimistic impact on the market.

For instance, according to the China Association of Automobile Manufacturers, China's car production reached 27.02 million units in 2022, an increase of 3.4% year-on-year, while sales increased by 2.1% to 26.86 million units.

The Asia-Pacific region, being one of the world's largest manufacturers of vehicles, tends to attract major market manufacturers. Many players adopt growth strategies, such as geographic expansion and production capacity expansion, to stay competitive in this market. For instance,

  • In January 2022, a Chinese part supplier ordered super die-casting machines from a Tesla partner, hinting at potential adoption by NIO and XPeng. The machines enable one-piece manufacturing, reducing production time and costs, and align with Tesla's goal of improving efficiency in its supply chain.

Amidst all the factors promoting the market and the factors that can lead to disruption in the market, the strong preference of the customers toward aluminum products and the ongoing trend of increased usage of aluminum is expected to provide a significant growth opportunity in the market.

Automotive Parts Aluminum Die Casting Market: Automotive Parts Aluminum Parts Die Casting Market - Growth Rate By Region (2023 - 2028)

Automotive Parts Aluminum Die Casting Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)