Automotive Parts Zinc Die Casting Market - Growth, Trends, and Forecasts (2022 - 2027)

The automotive parts zinc die casting market was valued at USD 3.66 Billion in 2021 and is expected to grow to USD 4.37 Billion by 2027, by registering a CAGR of 3%, during the forecast period.

The COVID-19 pandemic hampered the market in focus for the year 2020, primarily attributed to declined sales and production of vehicles across the world. The global vehicle sale declined by 16% in 2020 as compared to the 2019 vehicle sales. All main vehicle-producing countries had major declines, ranging from 11% to almost 40%. Europe represented an almost 22% share of global production. However, since the second half of the year 2020, the market started witnessing growth due to the start of vehicle manufacturing. for the year 2021, global vehicle sales witnessed a considerable increase when compared to the year 2020.

Over the long term, Lightweight vehicles are gaining popularity among vehicle manufacturers owing to an enhanced fuel economy of automobiles with the adoption of lightweight automotive materials manufacturing crucial parts. Growing consumer trend toward safety products in the vehicle is likely to witness major growth for the market. As, zinc die casting is used to manufacture the vehicle safety component including seat belts and other parts such as brakes, sunroofs, and many others.

In order to reduce automobile emissions and increase fuel efficiency, CAFE standards and EPA policies are driving the automakers to reduce the weight of the automobile, by employing lightweight non-ferrous metals. Employing die-cast parts as a weight reduction strategy is a major driver for the automotive segment of the market. Although heavier than aluminum, the lower cost of these parts and higher intricacy allowance make them more suitable in certain applications.

Several vehicle manufacturers focusing on the zinc parts as zinc casted products go directly into the assembly process, as zinc casted products already have better finish which reduce the special finishing process. Zinc die casting parts are usually equipped with better mechanical properties, like toughness, and have better thermal and electrical conductivity as compared to other die casting parts, which is likely to enhance the demand for zinc die casting parts in vehicle.

Key Market Trends

Vacuum Die Casting dominating the market

Vacuum die casting is dominating the automotive parts zinc die casting market in terms of revenue during the forecast period. Reliability and quality are essential parameters of an automotive design, especially for transmission parts, as they are required to perform complex mechanical movements at high speeds. Hence, vacuum die casting is used to design and manufacture valve bodies, stators, and several other transmission components due to the process's inherent capability to produce high-quality weldable automotive components.

Currently, apart from transmission products, the ultra-high-vacuum die casting process is also applied for producing large and thin parts, such as pillars which are usually welded to automobile chassis.

The growing automotive industry and OEMs focus on deploying these machines across the manufacturing units for the production of several automotive components from major vacuum die casting machinery manufacturers anticipated to drive the market.

Several manufacturers are entering into collaborations, and strategic agreements with key OEMs and are planning to improve the performance of their products by adopting different strategies like the adoption of new technologies, launching new models, etc. For instance,

• In January 2022, LK Technology Group, and Guangdong Hongtu Technology Co., Ltd. announced that they have adhered to the cooperation concept of mutual support, and this time, the 6800T chassis integrated structural parts were successfully rolled off the production line and the 12000T die-casting unit was signed, which is a brand-new starting point.

Asia-Pacific - Leading the Market Growth

The automotive parts zinc die casting market is dominated by Asia-Pacific, followed by Europe and North America. With the growth in vehicle light-weight as well as the expanding industrial and manufacturing sectors, the automotive parts zinc die casting market has grown substantially in the Asia-Pacific region. India is consolidating its position, with strong domestic and external demand for high-quality zinc die-cast components at lower prices. The rapid expansion of small and medium-scale manufacturing industries across the region is likely to witness major growth in the market.

The government of China pushing automobile manufacturers and encouraging customers to adopt the electric vehicle by providing subsidies as the country is planning to completely ban diesel and petrol vehicles by 2040. An increase in the production of electric vehicles, such as passenger cars and commercial vehicles, is going to boost the sales of the automotive parts developed through die casting products.

The European automotive industry is technically the most advanced and innovative, globally. Due to the economic crisis and political pressures, the reduction of fuel consumption and CO2 emission has become a major agenda for automobile manufacturers in the region. This has been achieved through a reduction in the weight of the automobile, as well as better design and construction, which seems to be the most favorable solution at present.

Non-ferrous castings in Europe registered an average performance of 20 metric tons per employee, with a range of up to 58 metric tons. Moreover, over 80% of the castings produced in Europe are delivered within the European region.

Competitive Landscape

The automotive parts zinc die casting market is majorly dominated by a few players Dynacast, Pace Industries, Minda Corporation Limited, PHB Corp., Bruschi S.p.A., and many others.

The companies are focusing on providing the best quality products to the customers, by investing in R&D projects and expanding their product portfolios. For instance,

• In November 2021, Pace Industries acquired Jackson Die Cast. Through this acquisition, Pace Industries has expanded its manufacturing facilities across the United States and Mexico.
• In August 2021, Linamar Corporation announced the partnership with Netherlands-based Innovative Mechatronic Systems B.V. The partnership focuses on bringing the Archimedes Drive transmission system to market.
• In June 2021, Pace Industries has relocated its headquarters from Fayetteville, Arkansas to Novi, Michigan. This move helped in the expansion of product portfolios across the Detroit, United States.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support