Growth in the Aluminum Die Casting Market
As you might expect, therefore, the future for the market is set for growth where other manufacturing industries continue to struggle. According to a recent report by Radiant Insights, the market will rise by 5.7% up to 2021, driven by the growing need for lightweight but durable die casting for a range of industries.
While die casting is increasing worldwide, as you might expect one of the markets that is expected to grow more than most is China. Indeed, Asia Pacific accounts for 60% of the market while North America (US and Canada) is the next biggest with 16%. The world market was worth some $55 million in 2015 and projections suggest that it will rise consistently to $80 million by 2022.
Nearly three quarters of the demand for aluminum die casting comes from the transportation sector with more than half of that aimed at components for cars and light commercial vehicles. The lightweight nature of aluminum is obviously a major attraction for auto manufacturers as well as the comparatively low cost compared to other materials.
Driving Factors for Aluminum Die Casting
- There is a much greater demand for lightweight and energy efficient materials particularly now that car manufacturers are moving towards hybrid and electric vehicles.
- Healthcare has also been an increasing factor in growth, for example, with the need to develop high strength parts for prosthetics and components for equipment such as MRI scanners.
- We are now moving well away from the financial crisis of 2008 and consumer confidence is returning. This in turn is increasing the desire for new appliances, including fridges and cookers as well as computers and other consumer goods.
Despite these factors, there are still plenty of challenges ahead for the aluminum die casting industry. The first is the environmental footprint of the production process itself. In the US, this may be helped by the current government which seems set on reducing regulation and cutting back on the promises of the Obama era Clean Power Plan. Another issue is accessing quality raw materials as the market begins to expand and demand increases. There's also the problem of the uneven PMI (Purchasing Managers Index), an indication of the health in manufacturing, across parts of Europe, though the impact of this has yet to be seen.
One final challenge for the future is the high level of skill that needs to be taught for the market to provide employees who are sufficiently trained in die casting methods. This is despite the increasing level of automation in the industry, something that has helped improve productivity. Initiatives between the NADCA in America and local colleges are currently trying to address this for the US market.
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