Aluminum Casting Market Expected to Reach $124.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Aluminum Casting Market," The aluminum casting market was valued at $72.9 billion in 2022, and is estimated to reach $124.9 billion by 2032, growing at a CAGR of 5.6% from 2023 to 2032. 

Aluminum casting is a process that involves pouring molten aluminum into a mold to create a 3D metal part. The mold contains a hollow cavity of a desired geometrical shape, and the molten aluminum is allowed to cool down to form a solidified part. Metals such as cast iron, stainless steel, manganese, aluminum, and others are widely used for aluminum casting process. It is employed in various end use sectors including automotive, electrical and electronics, building and construction, heavy machinery and equipment, aerospace, and others.  

Rise in population coupled with rapid urbanization has surged the growth of the architecture & construction sector in both developed and developing economies such as the U.S., China, India, and others where aluminum castings are used for providing structural supports. For instance, according to a report published by National Investment Promotion and Facilitation Agency, the infrastructure activities accounted for 13% share of the total foreign direct investment (FDI) inflows in 2021. This is expected to boost the demand for aluminum casting in the growing architecture & construction sector.

Furthermore, factors such as surge in disposable income, technological upgrades, and spurring rise in original equipment manufacturers (OEMs) have led the automotive sector to witness a significant growth where aluminum castings are used to produce under hood parts, engine components, interiors, and other automotive parts. For instance, according to a report published by India Brands Equity Foundation, the domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016-20 with 26.36 million vehicles being manufactured in India in 2020.  

However, high investment cost associated with the production of aluminum castings may retrain the manufacturers with less investment potential to enter into the aluminum casting market. This factor may hamper the growth of the aluminum casting market during the forecast period.  

On the contrary, aluminum casting solutions are widely used in electronics sector for producing three-dimensional parts. Furthermore, key electronic manufacturers such as Samsung, LG, Apple, and others are using aluminum casting owing to its advantages such as quick yield of complexes, preciseness, and production of rigid cast parts with smooth surfaces that don't need intense secondary machining. These factors have surged the popularity of aluminum castings in the growing electronics sector; thus, creating remunerative opportunities for the market. 

The aluminum market is segmented on the basis of process, end user, and region. By process, the market is segregated into die casting, sand casting, and permanent mold casting. The die casting segment dominated the global market, in terms of revenue in 2022. Factors such as increasing disposable income and rise in original equipment manufacturers (OEMs) have led the automotive sector to witness a significant growth where die casting is used to produce pistons, engine components, and other automotive parts. This may propel the growth of the aluminum casting market for die casting type.   

By end user, the market is divided into transportation, industrial, building & construction, and others. The building and construction end user segment dominated the global market, in terms of revenue in 2022 with 38.6% share in the global market. The increasing building & construction activities based on modern theme architecture has surged the potential application of various aluminum castings for use in interior and exterior structural support applications. This may further aid the growth of the aluminum casting market during the forecast period. 

Region wise, the aluminum casting market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific aluminum casting market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2022, countries such as India and Australia are witnessing a rapid increase in automotive & transportation sectors where aluminum castings are used to produce various automotive parts and transportation equipment.

For instance, according to a report published by the Indian Ministry of Commerce and Industry, the transportation sector in India is expected to grow at a compound annual rate (CAGR) of 5.9% owing to the development of highways, widespread railway networks, aviation ports, and waterways structure. This may enhance the performance of the aluminum casting market in the Asia-Pacific region.   

Key players operating in the global aluminum market include Alcoa Corporation, Bodine Aluminum, BUVO Castings, Consolidated Metco, Inc., Dynacast, Rio Tinto, RusAL, RYOBI Aluminium Casting (UK) Ltd., Shandong Xinanrui Casting, and Walbro. 

COVID-19 analysis

The novel coronavirus was an incomparable global pandemic that spread to over 180 countries and caused huge losses to lives and the economy around the globe. The major end-users of aluminum casting such automotive & transportation, building & construction, and other sectors have been negatively impacted due to the ongoing pandemic outbreak. The ongoing health crisis has increased the supply–demand gap, hampering the global aluminum casting supply chain. Moreover, several companies have either shut down or shrank their operations due to the risk of infections among the workforce where aluminum casting are widely used for product designing applications. This has temporarily hampered the demand for the aluminum casting market amid the COVID-19 period.

In addition, more than 100 countries have locked their international borders for transportation and non-essential trade activities, which, in turn, has reduced the consumption of aluminum castings among several end-use sectors. Furthermore, the temporary shutdown of construction and infrastructure sector has reduced the demand for aluminum castings used in producing structural supports for interior and exterior of construction sites. For instance, according to a report published by a research journal named as the Journal of Physics, the COVID-19 pandemic has reduced the investment in the construction industry in India by 30%. 

However, the aluminum casting market is expected to recover rapidly post COVID-19 situation due to its increased dependency over automotive, aerospace, marine, and other sectors. For instance, according to an article published by Financial Express, the Indian automotive industry registered a growth of 15% in 2021, and is expected to grow at an average annual growth rate of 18.6% by 2025. This is expected to enhance the performance of the aluminum casting market post- COVID-19 scenario. 

Key findings of the study

• By process, the die casting segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.4% from 2023 to 2032.
• By end user, the building and construction segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.9% from 2023 to 2032.
• By region, Asia-Pacific garnered the highest share of morethan 50% in 2022, in terms of revenue, growing at a CAGR of 5.9%.