Market Trends of North America Automotive Parts Die Casting Industry
This section covers the major market trends shaping the North America Automotive Parts Die Casting Market according to our research experts:
Magnesium Die Casting Grows with Highest CAGR
Owing to the availability of magnesium in the region along with its properties such as light in weight and most pliable metal, use of magnesium die casting is increasing with a very high rate. In 2018, United States became third largest producer globally, of Magnesium with production around 50,000 tonnes.
The automobile manufacturers are using light weight components for vehicles in engine as well as other body parts to reduce the overall weight of the vehicle and increase the fuel efficiency to attract more demand. The demand for pressure die-castings made from magnesium alloys is growing as they for natural reasons have a relatively low self-weight, can be formed into complex parts and manufactured at relatively low costs
Magnesium alloys can form a great shield against electromagnetic and radio interference, despite their high conductive qualities. For this reason, Magnesium alloy products, are used frequently in EMI shielding in vehicle parts.
United States Captures the Largest Market in 2019
During the year 2019, the automobiles sales in the United States witnessed a slight growth but crossed the 17 million mark with a total sale of passenger and commercial vehicles to 17.5 million.
With the presence of several major OEMs and component manufacturers in the country, and their spending towards research and development of innovative die casting processes and materials to reduce the overall weight of the vehicle and increase the fuel efficiency is driving growth for the industry. For instance, in February 2020, Tesla invents new aluminum alloy for die casting electric car parts, the new alloy can maintain high-yield strength and high conductivity.
Owing to the increasing demand for automobiles in the country as well as globally as the country is a major exporter of automobiles to several parts of the world. the major players in the region are investing in expanding their production capacities to meet the demand.
For instance, in January 2020, Mitsui Kinzoku Die-Casting Technology America, Inc., will build a USD 20 million manufacturing facility in Georgia.
