Automotive Casting Market Growth Analysis

Market Highlights

The Automotive Casting Market is expected to grow from USD 102.27 billion in 2022 to USD 142.22 billion by 2028 at a CAGR of 5.60% during the forecast period.

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Several automakers are attempting to reduce vehicle weight in order to improve fuel efficiency and lower emissions. Traditional metals such as cast iron are being replaced by lightweight materials such as aluminum to reduce overall vehicle weight while improving vehicle economy. Growing population, rising spending power, and technological advancements are likely to have a positive impact on global automotive production.

Government rules imposed by regulatory organizations will encourage automotive manufacturers to reduce vehicle weight. To control CO2 emissions from automobiles, the European Union enacted a number of regulations and laws. As a result of these regulations, emissions have been significantly reduced in recent years.

Covid-19 Impact

The growth of the automotive industry was severely hampered by the outbreak of the pandemic. Automotive production facilities around the world were partially or entirely shut down as a result of severe lockdowns, resulting in a major drop in output. Furthermore, transportation constraints had a significant impact on the car industry's supply chain. The growth of the automotive casting market in 2020 was impeded by the grave turn of events triggered by the pandemic. The market gathered momentum slowly and steadily as lockdown limitations and transit bans were lifted in the second half of 2020. However, it will take a long time for the market to fully stabilize and reach peak growth rates.

Segments Analysis

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories-

By Material Type

• Iron 
• Steel 
• Aluminum 
• Others 

By Process Type

• Sand Casting 
• Die Casting 
• Investment Casting 
• Others 

By Application Type

• Engine 
• Transmission and Suspension 
• Brakes and Wheels 
• Others

By Distribution Channel Type

• OEM 
• Aftermarket 

By Vehicle Type

• Passenger Cars 
• Light Commercial Vehicles 
• Heavy Commercial Vehicles 
• Two-Wheelers 

By Region

• North America 
• Europe 
• Asia-Pacific 
• Rest of the World 

By Material Type

The market is bifurcated into iron, steel, aluminum, and others. Aluminum is likely to remain the most utilized material for automotive casting in the foreseeable future. Aluminum’s use in vehicle production has been steadily increasing over the last few decades, and this trend is expected to continue in the coming years. Aluminum is one-third the weight of steel and has a lower density. Each kilogram of aluminum used in a car reduces the overall weight of the vehicle by about one kilogram. It's also extremely pliable and corrosion-resistant.

By Process Type

The market is segmented as sand casting, die casting, investment casting, and others. The die-casting segment is expected to remain the most preferred process type during the forecast period. The process is used to manufacture components that require high dimensional accuracy and surface quality. It's mostly used to cast non-ferrous metals including aluminum, magnesium, and zinc. It's ideal for mass production, and the parts created with this process are quite strong. Because of their weight-saving properties, aluminum die-cast parts are majorly employed in the automotive sector.

By Application Type

The market is segmented into engine, transmission and suspension, brakes and wheels, and others. Among these application types, the engine application segment is likely to remain the biggest demand generator for automotive casting during the forecast period. Since the engine is the heart of the vehicle, its efficiency is critical. Engine components require a high level of dimensional accuracy in order to perform at their best, and the casting process helps to achieve this. The growth of casting within the engine segment is likely to be triggered by the positive outlook of the automotive sector.

By Vehicle Type

The market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and two-wheelers. The passenger cars industry is likely to dominate the market during the forecast period. The introduction of new technology, along with a focus on reducing vehicle weight, will move the market forward. Government measures and financial support, on the other hand, will help to enhance car production in the future years. Changing customer dynamics, combined with fierce competition among car makers, have resulted in a greater focus on vehicle lightness and the use of innovative materials.

Regional Analysis

In terms of regions, Asia-Pacific is expected to remain the largest market for automotive casting over the forecast period, fuelled by a large number of automobile manufacturing plants that account for a considerable share of global auto production. Furthermore, as the region has a high number of foundries, obtaining raw materials is simple and inexpensive. Several governments in this region have developed initiatives to stimulate the automotive industry's growth. North America and Europe are also expected to offer sizeable growth opportunities in the coming years.

Key Players

The following are some of the key players in the automotive casting market:

• Bell Foundry
• CFS Foundry
• Dawang Steel Castings
• Dynacast, Ryobi
• Endurance Technologies.
• Gibbs Die Casting
• Impro, Zetwerk
• Regensburger Druckgusswerk Wolf GmbH
• Sunrise Metal
• Zollern GmbH

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s automotive casting market realities and future market possibilities for the forecast period of 2023 to 2028. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

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