Die casting endurance at its best
- The die casting market is anticipated to reach USD 81.48 billion by 2026 by registering a CAGR of about 5.92% during the forecast period (2021-2026)
- CAFÉ (corporate average fuel efficiency) standards and EPA policies to cut down automobile emissions and increase fuel efficiency is driving 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 the automotive segment.
Geo dynamics of die casting market
- In January 2021, General Motors unveiled its plans to manufacture Bright drop EV 600 commercial electric vehicles at its CAMI plant in Ingersoll, Ontario. Thus, growing developments and advancements in the electric vehicle industry and related establishments in Canada will provide lucrative opportunities for players in the die casting market in the foreseeable future.
- With the increasing demand for luxury automobiles, light metal castings, especially aluminum high-pressure die casted parts, are anticipated to gain prominence in the United Kingdom. Apart from all these factors, the demand for lightweight auto parts from the automotive industry is likely to drive the foundry industry to invest and adopt more advanced die casting machinery (CNC machines) in the parts manufacturing process.
- The federal government of France is anticipating over introducing new policies, like EURO 6 norms, to improve the country’s automobile industry. The government has been promoting lightweight vehicles and energy-saving trends, driving the demand for aluminum die castings.
Purview of development initiatives
- In April 2021, Toyota Industries Corporation and Siemens announced that they have cooperated to develop artificial intelligence that can predict product abnormalities in aluminum die casting, a key process in automotive air conditioning compressor production. This technology will improve quality and productivity by utilizing the AI application in Industrial Edge, the Siemens edge computing platform for industry.
- In March 2021, Sandhar Technologies Limited announced that it entered a non-binding MoU with Unicast Autotech (P) Ltd, for the purpose of acquiring aluminum die casting business.
Progressions in die casting space
- In April 2021, Aludyne announced the acquisition of Shiloh Industries CastLight division. This division manufacturers aluminum die casting parts.
- In March 2021, the group (Rheinmetall AG) won an engine block supply contract of over EUR 100 million for a German car manufacturer. Full-scale production is planned to begin in 2023. The lifetime of the contract extends beyond 2030.
Vital trends in die casting segment
- In Europe, by 2040, nearly 54% of new car sales and 33% of the global car fleet are expected to be electric. The European governments have formulated various policies and started projects for building the charging infrastructure across the region primarily to meet the electric vehicle sales target.
- Industry 4.0 and Big Data technologies have been widely adopted across leading die casting machinery manufacturers, as these have further enhanced the end products with improved quality, higher efficiency, long running lifespan, faster operating cycles, and less wastage issues.
- In response to the changing trend, companies are preparing themselves to mold their business operations toward vehicle electrification. For instance, Mark Aluminium Die Casting invested in a new 600- metric ton die-casting machine to manufacture high-pressure aluminum die casted parts for water pumps and oil pumps that are specifically designed for the next-generation green vehicles.
