Aluminum Casting Market 2023: Growth, Size, Share, Analysis and Forecast 2030

Aluminum Casting Industry Overview

The global aluminum casting market reached a valuation of USD 90.97 billion in 2022, with expectations to grow at a compound annual growth rate (CAGR) of 5.1% from 2023 to 2030. A primary driver for this market growth is the increasing utilization of aluminum in the automotive industry, where its high strength and lightweight properties make it an ideal material for vehicle production. Currently, approximately 30-40% of aluminum is used in each lightweight vehicle annually, and this is projected to rise to nearly 70% in the coming years. This shift is largely due to strict global regulations aimed at reducing fuel emissions. According to the Federal Reserve Bank of St. Louis, global sales of lightweight vehicles reached 17.385 million units in May 2019. The growing demand for lightweight vehicles, fueled by concerns over environmental pollution, higher disposable incomes, and evolving consumer lifestyles, is expected to boost the demand for aluminum casting over the forecast period.

In the United States, rising demand for general utility and sports utility vehicles (SUVs) is further propelling the market for aluminum casting. According to LMC Automotive, a leading automotive consultancy firm, the U.S. is expected to offer over 90 mainstream SUV models by 2023. Additionally, automotive manufacturers are under increased regulatory pressure to reduce vehicle emissions. Under the Corporate Average Fuel Economy (CAFE) standards, passenger cars are required to achieve a fuel economy target of 54.5 miles per gallon by 2026, as a response to the rising greenhouse gas emissions. This regulatory environment is expected to further stimulate the demand for aluminum casting in the U.S. as manufacturers work to improve fuel efficiency by using lighter materials.

The application of aluminum casting is also expanding into sectors such as agricultural equipment, construction machinery, mining, and other heavy-duty applications. This growth is particularly notable in developing economies like India and Brazil, where there is a pressing need to modernize equipment to improve productivity and efficiency. India, one of the world's largest producers of agricultural equipment like tractors, tillers, and harvesters, illustrates this trend. Tractor sales in India are projected to grow at a rate of around 8.0% from 2018 to 2022, which is likely to increase demand for aluminum casting in the agricultural machinery sector as well.

Gather more insights about the market drivers, restrains and growth of the Aluminum Casting Market

Regional Insights:

Asia Pacific Market Leadership:

Asia Pacific held the largest volume-based market share of over 44.0% in 2022, largely due to the rapidly expanding manufacturing sector in countries like China and India.
Many automakers are moving or expanding their production facilities to these countries, primarily attracted by low labor costs and favorable government policies.
For example, 100% Foreign Direct Investment (FDI) is permitted through the automatic route for auto components in India, making it easier for foreign companies to invest and operate.
In December 2018, Continental, a Germany-based automotive giant, invested USD 25.65 million to establish a premium surface materials facility in Pune, India, with an annual production capacity of 5 million square meters, highlighting the region’s growing importance in the global automotive supply chain.

North America Market Trends:

In North America, the demand for lightweight vehicles is expected to grow steadily over the coming years, largely driven by regulations set by the North American Free Trade Agreement (NAFTA).
NAFTA mandates include achieving a target fuel efficiency of 54.5 miles per gallon by 2025, which is being implemented in two phases.
To meet these targets, automotive manufacturers are required to reduce vehicle body weight by 25%, a move that is likely to significantly boost demand for aluminum casting in the region as lightweight materials become increasingly essential.

European Market Dynamics:

Europe was the second-largest regional market for aluminum casting in 2021, benefiting from its well-established automotive industry and strict regulations aimed at reducing CO2 emissions.
Emission standards like Euro 6c, which incorporates real driving emissions (RDE), and Euro 6b, as well as the World Harmonized Light Vehicle Testing Procedure (WLTP), are driving demand for lightweight materials in Europe.
These regulations encourage the adoption of aluminum, which offers weight-saving advantages, thereby supporting market growth for aluminum casting in the region over the upcoming years.

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Key Aluminum Casting Company Insights

The market is competitive and is likely to expand on account of the growing penetration of aluminum castings in EVs. For instance, in September 2020, Tesla announced the installation of aluminum casting machines for the production of chassis at a German plant, for increasing its EV production. This enables the company to leverage the market growth. Some prominent players in the global aluminum casting market include: