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Inside Automotive Die Casting Market Sphere: A 2023 Strategy Update

Updated: Aug 13, 2023


1. Automotive Die Casting in Focus

A remarkable period of acceleration and tech-driven innovation is unfolding in the automotive die casting industry. This document serves as an in-depth examination of the market reality, offering insights into its present valuation, future expansion possibilities, evolving trends, consumer behaviour, and technological advancements. It aims to guide investors, budding entrepreneurs, incumbent industry participants, consultants, and business strategists as they traverse the multifaceted landscape of automotive die casting.



2. Zooming Out: Automotive Die Casting Market Overview

A Look at the Big Picture The worldwide die casting market is projected to ascend to an impressive USD 105.55 billion by 2030, with a robust compound annual growth rate (CAGR) of 6.40% within the predicted timeline. Despite temporary impediments due to the global setbacks, the market rebounded swiftly post-restriction-lifting. Characterized by the injection of molten metal into a mould cavity under extreme pressure, die casting is predominantly applied in the automotive sector to manufacture intricate, durable, and lightweight components.

Automotive Diecasting Market Overview

2.1 Engines of Growth: The Driving Factors

2.1.1 Supply Chain Intricacies:

The convoluted nature of the die casting supply chain opens doors for businesses to augment operations and boost efficiency.


2.1.2 Surging Demand for Aluminum Die-Casting Parts:

Aluminum die-casting parts are finding increased use in the electronics and electrical sector due to their lightweight properties, fuel efficiency improvements, and flexible application in the production of crucial automotive parts.


2.1.3 Asia-Pacific's Thriving Automobile Sector:

Countries like India and China in the Asia-Pacific region are observing a significant uptick in the die casting market, propelled by a flourishing automobile industry, increased usage in windmills and telecommunications, and reduced labor and manufacturing costs.


2.2 Evolution in Motion: Emerging Market Trends

2.2.1 High-Pressure Die Casting Revolutionizing Auto Parts Manufacturing:

The adoption of high-pressure die casting, especially for large automotive parts, is transforming the industry, simplifying car body construction, cutting costs, enhancing quality, and supporting more sustainable manufacturing.


2.2.2 Automakers Embracing HPDC:

Renowned automakers like Tesla are harnessing high-pressure die casting technology, replacing several parts with a single casting, thereby reducing production complexity and cost.


2.2.3 Mega-Casting Machines Integration:

Die casting firms are integrating mega-casting machines like Bühler's Carat 840, capable of injecting massive quantities of liquid aluminum into a die within milliseconds. This breakthrough facilitates simplified manufacturing processes, cost reductions, and sustainability.


2.2.4 Shift Toward Lightweight Materials:

With an increasing focus on fuel economy standards, the automotive industry is leaning towards lightweight materials. Die casting plays a pivotal role in the creation of lightweight components using materials such as zinc, aluminum, and magnesium.



3. Competitive Battleground: The Fight for Market Dominance

3.1 Overview

The automotive die casting industry is fiercely competitive, with entities vying to broaden their reach through strategic alliances, mergers, acquisitions, and partnerships. Leading the charge are entities like Innovative Mechatronic, Linamar Corporation, Endurance Technologies, Wencan Group, Sundaram-Clayton Limited, JFE Holdings Inc., Hongtu Technology Holdings, and Ramkrishna Forgings. They have carved a niche for themselves through strategic collaborations with top-tier automakers and building enduring customer relationships.

Automotive Die Casting Market Impact

3.2 Key Market Developments

The rise of High-Pressure Die Casting (HPDC) in the automotive industry

HPDC is emerging as a potential gamechanger in the automotive industry for the production of large auto parts. Automakers like Tesla are already leveraging this technology to construct entire body-in-white sections using just a few large, highly complex aluminum alloy castings. This reduces cost savings by up to 40 percent and eliminates the need for numerous welding and process robots, further improving efficiency.

Impact Score: 8.5/10


China's Wencan Group secured contracts for precision car parts manufacturing

Wencan Group has secured two contracts worth a total of $570 million from a leading Chinese electric vehicle (EV) manufacturer and a battery maker. This development bolsters Wencan’s position as a leading producer of aluminum alloy precision components for the automotive industry, thereby positively impacting the market growth of aluminum die-casting parts.

Impact Score: 9/10


Great Rock Capital's loan facility for Madison-Kipp Corporation

Commercial finance company Great Rock Capital has closed a $23.8 million senior secured term loan facility with Madison-Kipp Corporation, a leading producer of high-pressure aluminum die castings. This financial support offers Madison-Kipp the ability to strengthen its liquidity and capital structure, positioning it for sustained success in the market.

Impact Score: 7.5/10


Guangdong Hongtu Technology Holdings' launch of a die-casting gear for new energy vehicles

The launch of the world’s largest die-casting gear for new energy vehicles indicates a significant market shift towards cost reduction by integrating structural parts. This development is expected to attract more orders and bolster the use of die-casting technology in manufacturing processes. As a result, firms like Hongtu could realize increased market growth.

Impact Score: 9/10


Sundaram-Clayton Limited's acquisition of additional stake in Emerald Haven Realty Limited

While this acquisition marks an important move for Sundaram-Clayton Limited in the real estate sector, its direct impact on the die casting market is unclear. Sundaram-Clayton specializes in manufacturing and distribution of auto components, including aluminum pressure die castings. Although the acquisition could potentially open avenues for diversification and expansion, the immediate effect on the die casting market remains indeterminate.

Impact Score: 6/10


Introduction of Bühler's new Megacasting machine, Carat 840

This novel megacasting machine can inject over 200 kg of liquid aluminum into a die within milliseconds and is also environmentally friendly. With its capabilities to reduce costs and improve integration in the automotive industry, Carat 840 is expected to revolutionize the die casting industry with positive effects on the market growth.

Impact Score: 9.5/10


Ramkrishna Forgings acquisition of Multitech Auto and Mal Metalliks.

This move allows Ramkrishna Forgings to expand its product portfolio and strengthen its position in the automotive industry by tapping into the expertise of two well-established companies. This acquisition aligns with the company's growth strategy and would likely boost the Indian die casting market growth.

Impact Score: 8/10



4. Automotive Die Casting Market MUCAS™ Matrix

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