Albany, NY -- (SBWIRE) -- 11/09/2018 -- A copious number of players – regional and international – are trying to surge ahead one another using multi-pronged strategies in the fragmented aluminum castings market. They are seen banking upon their diversified product portfolios and also product development to stay ahead of the curve in the market. Another area of focus for keen players have been cost-effective products that would help them pull in greater sales and thus improve profit margins.
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The market for aluminum castings is being primarily bolstered by the flourishing automotive sector which is increasingly supplanting steel with aluminum on account of its light weight and high strength. A prominent trend in the market is the uptake of recycled aluminum on the back of stringent regulations over waste reduction and the major cost reduction they bring about.
According to a research study by Transparency Market Research, the aluminum castings market will likely rise at a steady 5.2% CAGR during the period between 2017 and 2025. At this rate, the market which was valued at US$ 25.23 bn in 2016, is projected to reach US$40.14 bn by 2025.
Secondary Aluminum Sees Massive Adoption Owing to Their Cost Benefits
Depending upon the source of aluminum castings, their market can be broadly split into primary and secondary. Between the two, the secondary source comprised of recycled aluminum is projected to hold a dominant share – both vis-à-vis volume and value – in the market in the next couple of years. The segment is expected to register a CAGR of 4.5% during the forecast period. Recycled aluminum is preferred since is results in savings of up to 90.0%, without compromising on the quality of the product.
There are various casting processes used in the market, namely permanent mold casting, die casting, and sand casting. Of them, the segment of die segment is seeing widespread uptake. This is because of a flourishing automotive industry that uses aluminum castings made by the process. Die process helps to create accurate dimensions in products and can be used in mass production as well. Going forward, the segment is expected to retain its dominant position by clocking a 5.0% CAGR over the course of the forecast period.
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Application-wise, the global aluminum casting market can be broadly bifurcated into automotive and non-automotive segment. Of the two, the automotive segment can be further segmented into commercial vehicles, passenger cars and LCV, and motorbikes. The non-automotive segment can be further divided into industrial, infrastructure, etc. Automotive industry, decidedly, is at the forefront of driving the demand for aluminum castings since it is lightweight compared to steel and thus helps to bring down the weight of the entire vehicle making it fuel efficient.
Asia Pacific, Driven by China, Leads Market
From a geographic perspective, Asia Pacific accounts over the half the share in the global market for aluminum castings. In the years ahead, the region is expected to further increase its share by pulling in the maximum CAGR of 5.3% during forecast period between 2017 and 2025. China is said to be mainly powering the growth in Asia Pacific. Overall, the market in the region is expected to become US$22.67 bn by 2025.