06-Jan-2023 | Facts and Factors
According to Facts and Factors, the global automotive parts magnesium die casting market size was worth around USD 12 billion in 2021 and is predicted to grow to around USD 23 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.21% between 2022 and 2030.
In the manufacturing process using the die casting method, molten metal is poured into steel molds. In the automotive industry, different types of metals can be used to produce parts of vehicles including steel, aluminum, or magnesium. However, the most preferred choice amongst vehicle manufacturers is magnesium due to the various advantages offered by its alloys. In die casting, the molds used in the process are also called dies or tools. They are generally made of steel which is designed specifically for every project. Since the molds are specific to the end requirements, the final vehicle part is extremely accurate and the mold itself can be used repeatedly for mass production.
Browse the full “Automotive Parts Magnesium Die Casting Market Size, Share, Growth Analysis Report By Application (Engine Parts, Body Parts, Transmission Parts, and Others), By Production Process (Vacuum Die Casting, Pressure Die Casting, Squeezing Die Casting, and Gravity Die Casting), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2030" report at https://www.fnfresearch.com/automotive-parts-magnesium-die-casting-market
Thus making the entire process operational and monetarily highly effective. Over the years, die casting has shown several benefits and is a major cost-saving activity. The result can be witnessed not only in part-wise expense but the overall production cost. It allows casting a certain complex net-shaped part including internal and external features. With the help of die casting, it is possible to combine different parts into one singular structure thus eliminating the need of higher labor costs and creating a long assembly line.
The global automotive parts magnesium die casting market is projected to grow due to the growing research & development activities in the automobile segment. Although there was a slight revenue lag in 2020 owing to Covid-19, the market has since then managed to emerge as one of the fastest-growing segments driven by innovation. The increasing demand and sales value of electric vehicles (EVs) could help the automobile sector grow further in the coming years. EVs, until a few years ago, were considered futuristic vehicles.
However, in 2021, the market registered a surge in the number of players ranging from luxury variations to more affordable units. In 2021, Tesla, a leading EV automobile brand, sold more than 935,000 units. The company Model 3 managed to cross the 1 million mark by June 2021. Tesla cars fall in the range of premium cars. However, there are a significant number of players operating in the mid-affordable range. As per official reports, private equity investments in the Indian EV segment are projected to cross USD 1 billion by the end of 2022.
The major area of restricted growth is the relatively low adoption of magnesium die casting. Although the process and the metal in combination have proven to show excellent results and do not require a high initial investment, the adoption rate for these two segments is comparatively influenced by a lack of awareness and innovation in enhanced technology for magnesium die casting. The global market is further threatened by the increasing interest in rheocasting but the associated cost is very high which means for some years small size firms may stick to die casting methods.
The growing research & development in new magnesium die casting methods could provide growth opportunities whereas the management of high porosity levels may challenge market growth.
The global automotive parts magnesium die casting market is segmented based on production process, application, and region
Based on production process, the global market is segmented into vacuum die casting, pressure die casting, squeezing die casting, and gravity die casting. The highest CAGR was registered in the pressure die casting process owing to the growing demand for electric vehicles. This has resulted in product and service providers phasing out the use of heavy components with lighter-weight structures which can be achieved with magnesium alloys. As compared to aluminum, it is 35% lighter and has almost similar or better mechanical properties.
Based on application, the global market segments are engine parts, body parts, transmission parts, and others. In 2021, the body parts segment generated the highest revenue due to the growing revenue in the automobile sector. Die casting allows vehicle manufacturers to explore the areas of complex part production since the process becomes easy with die casting. The segmental growth was also driven by the higher use of magnesium die casting to produce body parts of motorcycles. The sales of 2-wheelers registered surging numbers in 2021. For instance, in India, the sales of two-wheelers rose by 9% in terms of year-on-year revenue.
Asia-Pacific is projected to register the highest growth in the global automotive parts magnesium die casting market owing to the increasing investments in the automobile segment of the regional economies. China is projected to account for the largest regional market share with dominance over 65% of the revenue due to the presence of a large number of production facilities using magnesium die casting methods. As per estimates, China produces more than 49 million metric tons of casting. Growth in Europe is anticipated to be led by Germany, its largest automotive market. European CAGR may reach 7.29%.
Market Size in 2021
USD 12 Billion
Projected Market Size in 2030
USD 23 Billion
CAGR Growth Rate
Key Market Players
Georg Fischer Ltd., Meridian Lightweight Technologies, Dynacast International Inc., Shiloh Industries Inc., Morimura Bros. Inc., and others.
By Application, Production Process, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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The global automotive parts magnesium die casting market is led by players like Georg Fischer Ltd., Meridian Lightweight Technologies, Dynacast International Inc., Shiloh Industries Inc., Morimura Bros. Inc., and others.
- In January 2022, Amprod Holdings, LLC. was acquired by Koch Enterprises, Inc. furthering the company’s hold in the automobile segment
- In June 2022, Pace Industries, die casting manufacturer in the North American market changed its organizational structure to improve the company’s yield
The global automotive parts magnesium die casting market is segmented as follows:
- Engine Parts
- Body Parts
- Transmission Parts
- Vacuum Die Casting
- Pressure Die Casting
- Squeezing Die Casting
- Gravity Die Casting
- North America
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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