Die Casting Market – Growth, Trends, and Forecast (2020 – 2025)

0
19

New York, Sept. 07, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Die Casting Market – Growth, Trends, and Forecast (2020 – 2025)” – https://www.reportlinker.com/p05962010/?utm_source=GNW

– The CAFÉ standards and EPA policies to cut down automobile emissions and increase fuel efficiency are driving the automakers to reduce weight of the automobile by employing lightweight non-ferrous metals. Subsequently, employing die-cast parts as a weight reduction strategy is acting as a major driver for the former market in automotive segment.
– However, crunch in raw material supply, volatility in raw material prices, and environmental regulations on emission for the metallurgy industries are acting as major barriers for the market growth.
– However, with the outbreak of coronavirus during 2020, the whole supply chain of automotive industry was impacted very badly. The OEMs are struggling to keep their operations going, as the forced lockdown impacted their cash positions very badly. In the demand side, the end consumers are also fighting hard to manage their finances, as the pandemic resulted in job losses.

Key Market Trends
Cost Issues and Resource Inefficiencies

In the light of climatic changes, the global regulatory authorities have set predefined targets for climate protection and energy savings and thereby have made huge initiatives to implement them in recent years. The decisions and measures adopted to protect the climate are having a significant impact on the die casting foundries. The European Union has plans to bring down the primary energy usage to around 20% by the year 2020. The energy savings target (i.e., to cut primary energy usage) has been formulated for the subsequent period, extending to the year 2050.

Die-casting involves sophisticated gating technology, and the level of complexity varies with the pressure of injected molten material. Casting cost varies as per the requirements and changes in material content, net-shape capability and complexity, tooling, and conversion costs. Die-cast tooling is also often regarded as the biggest in terms of cost, and die-cast engineering involves a significant degree of capital that is required for developing suitable gating systems. In addition, the initial costs are also substantially huge for making and manufacturing a suitable non-ferrous die-cast part required by the end-user industries. The gestation period for the investment incurred is also longer due to the implementation of several capital-intensive advanced tools and machinery in the production process.

Although dies have a relatively long wear life and could be economically used in large production facilities, the high start-up cost makes it costlier than conventional vehicle component production. High precision equipment and the extension of casting technologies are increasingly being employed to improve the stability and quality of the component. Thus, the cost involved is significantly high for making and manufacturing suitable die-cast components required for the automotive, industrial, and electronic applications.

Asia-Pacific accounts to more than 55% of the Die Casting Market

The growing automobile industry, India and China emerging as cost-effective die casting manufacturing hubs, demand from the industrial sector, and increased scope of application in windmills and telecommunications are expected to drive the die casting market at a faster pace in the Asia Pacific region.

With the growth in automotive lighting and energy-saving trends, expanding the industrial and manufacturing sector, the die casting market grew substantially in the Asia-Pacific region. Cheaper labor and low manufacturing costs in India and China further propelled the market growth in these countries. During the past two decades, small privately run factories in this region have become much competitive and professional in producing die-cast components. However, the market in Asia-Pacific for automobile and related products was subjected to imperfect competition, which resulted in too much of everything–too much capacity, too many competitors and too much redundancy and overlap.

Thailand is emerging as a major automobile exporting country, driven by Japanese FDI. Chinese manufacture sector is growing very fast and is poised to make its dent in the international trade arena. India is consolidating its position with strong domestic and external demand for high-quality die-cast components at lower prices. All these factors together are driving the market for die casting parts market in the Asia-Pacific region.

Competitive Landscape
The global market for die casting is highly fragmented, with many regional small- and medium-scale players from the developing countries entering the market.

Major recognized players, such as Nemak, Georg Fischer Automotive, Ryobi Die Casting, Rheinmetall AG, Form Technologies Inc. (Dynacast), and Shiloh Industries, together accounted for over 16% of the overall global market share.

Koch Enterprises (Gibbs Die Casting Group), Linamar Corporation, Bocar Group, Endurance Group, Sandhar Technologies, Sundaram Clayton Ltd, and Rockman Industries are a few other key players in the market.

These key players have focused their revenues on R&D to come up with better production processes and alloys. This strategy may assist in the production of premium quality die cast parts for the global automotive and industrial sectors. Key players have also expanded their presence, globally, through various mergers, expansions, partnerships, joint ventures, and acquisitions.

Reasons to Purchase this report:
– The market estimate (ME) sheet in Excel format
– 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05962010/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need – instantly, in one place.

__________________________

A Global Asset Management Seoul Korea Magazine

This post was originally published on this site