Albany, NY -- (SBWIRE) -- 06/19/2018 -- The market for aluminum castings is choc-o-bloc with regional and international companies who compete against one another on the basis of a well-diversified product portfolio. In order to grow their market share further, the players are also seen coming up with cost-effective products. They are banking upon latest technologies to create more efficient products.
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A recently added research study by Transparency Market Research expects the aluminum castings market to rise at a steady 5.2% CAGR in the forecast period starting from 2017 and ending in 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.
The two sources of aluminum castings are primary and secondary. The secondary source, which consists of recycled aluminum, will likely account for a dominant share – both vis-à-vis volume and value – in the market in the next couple of years owing to mammoth savings they bring about. Secondary aluminum segment held around 55.0% share of the aluminum casting market in 2016.
Geographically, the prominent segments of the global market for aluminum castings are Latin America, North America, Asia Pacific, Europe, and the Middle East and Africa. Asia Pacific currently holds 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 a maximum CAGR of 5.3% during forecast period between 2017 and 2025. China is said to be mainly powering the growth in the region.
Automotive Industry Lapping Up Aluminum Castings Due to their Ability to Reduce Carbon Emissions
Automotive, machinery and equipment, building and construction, and telecom, among others, are some of the key end-use segments of aluminum castings market. At the forefront of driving demand in the market is the automotive sector. This is because aluminum has many advantages over traditionally used steel. For starters, aluminum has high strength. Second, it has a far lower weight. Elaborates the TMR analyst who prepared the report, "With aluminum supplanting steel, the overall weight of automobiles has been brought down by almost half. This results in almost 17.0% reduction in emission of carbon, thus making the vehicles fuel efficient."
Third, they are corrosion resistant and are highly conductive. Apart from that, they can be easily customized through heat treatment. In fact, because of so many unique perceived benefits, over half the automobile in the world are currently made from aluminum castings. Further, automotive manufacturers are moving from cast iron engine blocks to aluminum engine blocks.
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Environmental Regulations Lead to Surging Uptake of Recycled Aluminum
A noticeable trend in the market is the rising manufacture of aluminum castings from recycled aluminum, particularly in developed nations of Europe and North America. This is because of strict rules pertaining to protection of environment and promoting recycling of materials to reduce waste. France, Austria, Germany, and Italy are some of the European nations that are major recyclers of aluminum.
This review is based on the findings of a TMR report, titled, "Aluminum Castings Market (Source - Primary and Secondary; Process - Die Casting, Permanent Mold Casting, and Sand Castings; Application - Automotive (Passenger Cars & LCV, Commercial Vehicles, and Motor Bikes) and Non-Automotive (Infrastructure and Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025