Market Trends of Automotive Die Casting Lubricants Industry
This section covers the major market trends shaping the Automotive Die Casting Lubricants Market according to our research experts:
Increasing Demand for Aluminum and Magnesium Die Casted Components to Drive the Market
- The die casting lubricant market has been segmented into aluminum & magnesium, tin, lead and zinc, copper, and brass, based on the metal used in the die casting process.
- Die-cast lubricants for aluminum and magnesium materials accounted for over 65% of the market, due to the high adoption of the materials, and the already matured usage of aluminum in the automotive industry.
- The lubricants for aluminum and magnesium are forecast to be the fastest-growing market, fuelled by still growing adoption of aluminum and rapid increase in usage of magnesium in vehicles.
- The market of die-cast lubricants is expected to increase, mirroring the growth in the share of aluminum in vehicles. Also, the increase in the use of magnesium is also expected to drive the market over the forecast period.
Asia-Pacific Expected to Grow at a Faster Pace
The die casting lubricant industry in Asia-Pacific is primarily driven by the growing automobile manufacturing industry, especially in countries, such as China, Japan, Korea, and India. The Chinese market is driven by strong growth in the number of automobiles in use across the country.
South Korea is expected to be one of the prospective markets for original equipment parts and for aftermarket parts. The growth of automobile component manufacturing from the OEM segment is driven primarily by the country's high level of domestic vehicle production.
India experienced high investment activities in the automotive industry in 2018. Many global automobile companies are planning investments in the country.
For instance, in December 2017, Kia Motors inaugurated a production facility in India, with an annual production capacity of 300,000 units. The company has launched its first model, the Kia Seltos during June 2019 and within three months from the launch, Kia entered the Top 5 OEMs in India. Similarly, the Morris Garage has also entered the market and Chinese leading manufacturer, the Great Wall motors is also planning to enter the Indian market. Several such developments are expected to further drive the die casting lubricants market.
Thereby an increase in the manufacture of components is expected to be witnessed in the country. With government-backed campaigns, like 'Make in India', the country is expected to grow at higher CAGR over the other countries, during the forecast period.
