Australia Automotive Parts Magnesium Die Casting Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.46 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Automotive Parts Magnesium Die Casting Market Analysis
The Australian automotive parts magnesium die-casting market was valued at USD 507.52 million in the current year and is projected to grow to USD 624.64 million in the coming five years, registering a CAGR of 3.46% in terms of revenue during the forecast period.
- The COVID-19 pandemic hampered the market in focus for the year 2020, primarily attributed to declining vehicle sales and production. Vehicle sales in Australia declined by 13% in 2020 as compared to 2019 vehicle sales. However, post-pandemic, the automotive industry witnessed significant growth in 2021. The overall increase in vehicle sales and expected increase in electric vehicle sales is anticipated to primarily drive the market during the forecast period.
- Over the medium term, lightweight vehicles are gaining popularity among vehicle manufacturers owing to the enhanced fuel economy of automobiles with the adoption of lightweight automotive materials manufacturing crucial parts. Additionally, the lightweight of vehicles must be done without compromising safety before quality and performance.
- Rising installation of magnesium die-cast components in passenger and luxury car segments, a rising establishment of new magnesium molding machinery, increasing automation in the die-casting industry (resulting in a rise in productivity), and high demand from the automotive industry, drawing the attention of automotive manufacturers toward highly durable die casting parts.
- The enactment of stringent emission norms across the country will likely witness significant market growth. The rising consumer trend towards lightweight vehicles is likely to increase the penetration of lightweight parts, such as magnesium and carbon fiber reinforced plastic, to manufacture vehicle components, which in turn is anticipated to boost the market.
- Using magnesium in automotive parts provides certain benefits; for instance, automotive parts made from magnesium are 75% lighter than steel, 33% lighter than aluminum, possess high-impact resistance, a high strength-to-weight ratio, are 100% recyclable, and have an abundant material supply, with excellent dimensional stability.
- Automakers are utilizing magnesium for designing and manufacturing a wide range of products, such as instrument panel frames, steering wheels, seat frames, gearboxes, airbag housings, brackets, front-end carriers, engine blocks, and structural components.
Australia Automotive Parts Magnesium Die Casting Market Trends
Pressure Die Casting Process dominating the market
- The rise in demand for electric vehicles and a shift in consumer preferences have pushed vehicle manufacturers to replace heavier components with lightweight which are manufactured from alloys like Magnesium. According to Electric Vehicle Council (EVC), the number of electric vehicles on Australian roads has almost doubled over the past year, growing from 44,000 at the beginning of 2022 to more than 83,000 at the start of the year 2023.
- Major vehicle manufacturers use magnesium alloy for applications like mirror housings, steering columns, driver's airbag casings, seat frames, and dash encasings. The growing trend towards greater battery and fuel efficiency, along with the demand for improved performance, has driven increased interest in high-pressure diecast magnesium alloys. These alloys have an excellent combination of mechanical properties and the highest strength-to-weight ratio of any structural metal.
- A major concern is its cost. Manufacturers want the best performance while spending the least. Magnesium Die Casting doesn't seem to agree with that. It is more expensive than Aluminum Die Casting and not a budget-friendly option, which is likely to affect the market growth in coming years.
- In addition, the companies manufacturing EVs are also actively procuring pressure diecasting machines and are adopting this technology to make themselves ready for growing consumer demand.
Increased Application in Body Parts
- Structural cast magnesium applications are increasingly used in the premium Car segments for applications such as suspension domes, longitudinal carriers, cross-members, doors/gates, and A-B-C pillars.
- Moreover, as body die-casting components are increasingly popular in the automotive industry, owing to their multiple applications, several original equipment manufacturers (OEMs) are already using such components in their key models. Currently, they are proving their strengths above all with upper-class cars such as the new Jaguar I-Pace, the BMW series 8 Coupé, or the Mercedes-Benz C class.
- In addition, the trend of lightweight vehicles driven by demand from the electric vehicle industry to further support the market's growth over the forecast period. So, accordingly, as the demand for lightweight body parts is soaring, companies are working towards dedicated units for production.
- The automotive industry is highly competitive, with fuel economy and emission control demand driving this. Indeed, with an increasing number of vehicles on the roads, it is more important than ever to reduce weight to improve fuel efficiency and reduce CO2 emissions.
- Additionally, the reduced weight allows manufacturers to save money on transportation costs, which they can then pass on to their customers. Consumers will benefit from lower prices and increased fuel efficiency due to using lighter vehicles, which in turn is likely to enhance the demand for magnesium die-casting body parts in vehicles in the coming years.
Australia Automotive Parts Magnesium Die Casting Industry Overview
Australian automotive parts magnesium die casting market is dominated by several key layers such as A.F. Dicasters, Dicast Australia Pty Ltd., Magnium Australia, Bühler AG, and others. Several key players are investing in the country to enhance the manufacturing facilities, which in turn is likely to witness major growth for the market during the forecast period.
For instance, in May 2022, the Australian government made a significant commitment by allocating USD 25.75 million to support Magnium Australia in the construction of a magnesium plant located in Rockhampton. This state-of-the-art facility will employ CSIRO-patented technology to efficiently produce a remarkable annual output of up to 120,000 tonnes of pure magnesium metal.
Meridian Light Weight Technologies emerged as the single largest supplier of magnesium automotive die-cast components in 2019. The key players in the market have focused their revenues on R&D to come up with better production processes and alloys. This strategy will assist in the production of premium quality die-cast parts for the automotive and industrial sectors. The key players have also expanded their reign globally through various mergers, expansions, and acquisitions.
Australia Automotive Parts Magnesium Die Casting Market Leaders
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A.F. Diecasters
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Diecast Australia Pty. Ltd.
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HARROP ENGINEERING
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Bühler AG
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MAGNIUM AUSTRALIA
*Disclaimer: Major Players sorted in no particular order
Australia Automotive Parts Magnesium Die Casting Market News
- July 2022: Magnium Australia developed manufacturing technology that enable Australia to take advantage of a USD 300 billion magnesium export opportunity.
- May 2022: GF Casting Solutions, a division of GF, Schaffhausen, and the Bocar Group, signed an agreement to offer a specialized range of products and services worldwide.
Australia Automotive Parts Magnesium Die Casting Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 Production Process Type
5.1.1 Pressure Die Casting
5.1.2 Vacuum Die Casting
5.1.3 Squeeze Die Casting
5.1.4 Semi-Solid Die Casting
5.2 Application Type
5.2.1 Body Assemblies
5.2.2 Engine Parts
5.2.3 Transmission Parts
5.2.4 Other Aplication Types
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 A.F. Diecasters
6.2.2 Diecast Australia Pty. Ltd.
6.2.3 HARROP ENGINEERING
6.2.4 Buhler AG
6.2.5 MAGNIUM AUSTRALIA
6.2.6 Dongguan Minghe Die Casting Company
6.2.7 Kemlows Diecasting Products Ltd
6.2.8 Cascade Die Casting Group Inc
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Australia Automotive Parts Magnesium Die Casting Industry Segmentation
Die casting is the process of pouring molten metal into the mold at high pressure. Magnesium is one of the lightest, and most ductile metals used in alloy die casting and machining.
The Australian automotive parts magnesium die casting market has been segmented based on the production process and application type. Based on the production process, the market is segmented into pressure die casting, vacuum die casting, squeeze die casting, and semi-solid die casting. Based on the application type, the market is segmented into body assemblies, engine parts, transmission parts, and other application types.
For each segment, the market sizing and forecast have been done based on the value (USD).
| Production Process Type | |
| Pressure Die Casting | |
| Vacuum Die Casting | |
| Squeeze Die Casting | |
| Semi-Solid Die Casting |
| Application Type | |
| Body Assemblies | |
| Engine Parts | |
| Transmission Parts | |
| Other Aplication Types |
Australia Automotive Parts Magnesium Die Casting Market Research FAQs
What is the current Australia Automotive Parts Magnesium Die Casting Market size?
The Australia Automotive Parts Magnesium Die Casting Market is projected to register a CAGR of 3.46% during the forecast period (2024-2029)
Who are the key players in Australia Automotive Parts Magnesium Die Casting Market?
A.F. Diecasters, Diecast Australia Pty. Ltd., HARROP ENGINEERING, Bühler AG and MAGNIUM AUSTRALIA are the major companies operating in the Australia Automotive Parts Magnesium Die Casting Market.
What years does this Australia Automotive Parts Magnesium Die Casting Market cover?
The report covers the Australia Automotive Parts Magnesium Die Casting Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Automotive Parts Magnesium Die Casting Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Automotive Parts Magnesium Die Casting Industry Report
Statistics for the 2024 Australia Automotive Parts Magnesium Die Casting market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Automotive Parts Magnesium Die Casting analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
