Market Trends of North America Automotive Parts Zinc Die Casting Industry
This section covers the major market trends shaping the North America Automotive Parts Zinc Die Casting Market according to our research experts:
Increasing Demand from Electric Vehicles
Owing to a confluence of factors, such as emission norms, consumer preference, transition from conventional ICE vehicles to electric vehicles, etc., the electric vehicle industry has been rapidly developing internationally. Demand for electric and hybrid vehicles is increasing as a result of the growing environmental concerns regarding CO2 emissions and efforts by government authorities (EC) and programs (such as Europe NCAP) to make vehicles more fuel-efficient.
Electric or hybrid vehicles also benefit significantly, where drive and powertrain elements, like electric motors comprise of structural components made of die cast zinc.
With the recovery of the economy in many countries, real income of the people is expected to grow up, along with the shift in consumer preference to environment- friendly vehicles. The aforementioned factors are expected to further increase the adoption of electric vehicles in the forecast period.
The European Green Cars program is one such initiative generated to promote sustainable mode of transport across all transport stakeholders. It provides financial support to research in the green technologies (like that of pure electric and hybrid electric engines) that would be applicable to propel cars, trucks, and buses in the near future. These are expected to take the form of grants from European Commission's scientific research budget and loans from the European Investment Bank.
With increased focus on the electrical vehicle sector, component manufacturers are further increasing their focus to produce lightweight electrical vehicle components, which would help to reduce the energy consumption required for vehicle propulsion. This is expected to invite more zinc die casting components into the vehicle manufacture process, thereby opening new latitudes for the automotive parts zinc die casting in the global scenario.
United States of America Continues to Lead the Market
North America is a matured market for automotive die-casting. The maturity of the market studied in the region is mainly due to large-scale domestic production, government initiative, and availability of resources.
Within North America, the United States is the major market, accounting to approximately 75% of the regional market share. Canada accounted for around 10% of the market, as of 2018, and is expected to grow considerably, boosted by the presence of global players, such as Dynacast, which operates from the country.
The American automotive industry has seen a slowdown in production, with over 10,880,019 vehicles being produced in 2019 against 11,314,705. COVID-19 is also effecting the vehicle production however, this number is expected to increase gradually over the forecasted period, opening new opportunities for the automotive parts zinc die casting market in the country. Vehicles and engines designed, built, and certified for sale in the United States are eligible for import/ sale in Canada. Increasing stringency of regulations in countries like United States and rising consumer preference for luxury cars are expected to drive the market for automotive parts zinc die-casting in the country.
Minimal growth in the automotive and manufacture industries, sourcing of products from the United States and Mexico, and the lack of high capital investment are some of the factors causing the slow growth of the market in countries like Puerto Rico, Panama, Costa Rica, Guatemala, and Honduras.
