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

Europe Automotive Parts Die Casting market is valued at USD 11.2 billion in 2021 and is expected to reach USD 15.9 Billion by 2027 registering a CAGR of 7.28%, during the forecast period, 2022-2027.

The COVID-19 pandemic has severely impacted the automotive industry across the world. The disruptions in supply chain activities, the interruption in large-scale manufacturing, restrictions on travel, and the declining sales of vehicles during 2020, are responsible for the declining growth of the market. The surge in manufacturing volume of passenger cars and hybrid electric vehicles is observed in the country after the pandemic due to the easing of restrictions, the automotive parts die casting market in Europe will cope with all the losses that happen during the period and will grow at a certain pace.

Over the long-term, the market studied is largely driven by supply chain complexities in the die casting industry, expanding automotive market, increasing penetration of die casting parts in industrial machinery, growing commercial vehicle sector, and employing aluminum casts in electrical and electronics.

The European industry, as a whole, has more than doubled the average amount of die-cast parts that are being used in passenger cars for the past 20 years. From just 50kg of aluminum parts per passenger vehicle in 1990 to over 500kg of it in the AUDI A8 model, the market for automotive parts die casting is evolving in the region and is expected to maintain moderate growth for the coming five years.

Non-ferrous castings in Europe registered an average performance of 37 metric tons per employee in 2021, according to the latest statistics from the European Foundry Association. Over 80% of the castings produced in Europe are consumed by the automotive industry.

CAFE standards and EPA policies, to cut down automobile emissions and increase fuel efficiency, are driving the automakers to reduce the weight of the automobile by employing lightweight non-ferrous metals. Demand from the commercial vehicle segment is one other factor that is driving the market. On the flip side, the shift toward electric vehicles is expected to act as a major restraint on the casting industry. A combustion engine contains approximately 220 casted parts, but only about 25 are needed for an electrical drive. Also, the number of people employed in the European non-ferrous casting foundries has been volatile for the past five years.

Key Market Trends

Increasing Demand from the Commercial Vehicle Segment

The underlying factor driving the growth of the light commercial vehicle market in Europe is the increased preference for pickup trucks and small vans over heavy-duty trucks and railways for logistics. The demand for lightweight vehicle components to integrate into light commercial vehicles is expected to significantly increase during the forecast period.

The market is recovering from its period of slump during the economic recession of 2010 and is expected to improve further over the forecast period because of the cost-effective benefits associated with using LCVs over other modes of transport, especially in countries like Italy. In Italy, most of the farms are organic and family-owned. These family-owned businesses lease commercial vehicles to transport their produce to nearby retail outlets, thus, driving the market.

Also, with new regulations mandating the LCVs to stay within the stipulated weight limit, it has become critical for OEMs to focus on making LCVs with lighter materials. The fast-growing e-commerce market in the region is also creating a huge demand for commercial vehicles to transport goods to different nations.

Germany, Italy, and Russia Expected to be the Three Largest Markets in Europe

The European automotive industry is known to be the most technically advanced and innovative industry in the world. Due to economic crises and political pressures, the reduction of fuel consumption and CO2 emission has become a major agenda for automobile manufacturers, and reducing the weight of the automobile, through better design and construction, seemed to be the most favorable solution. Solutions based on the intensive use of non-ferrous metals as modified or new alloys are being developed specifically for the automotive industry's needs.

Country-wise, Germany and United Kingdom, are expected to occupy the top spots, accounting for nearly 60% of the total market. Although France is the second-largest ferrous casting country within the European region, when it comes to non-ferrous castings and die casting in particular, the country lags behind Germany and Italy. The Czech Republic and Poland are the other important markets in the European region.

Owing to the high demand of vehicles in the country, Germany is one of the largest markets for automobiles in the world. the presence of leading automobile manufacturers as well as the component manufacturers is driving the growth in the region.

In 2021, over 2.62 million brand-new passenger cars were registered in Germany, a decrease of 10.1% from the previous year.The decrease is caused by industry-wide production constraints, which have been particularly challenging in recent months. 1.65 million brand-new passenger cars were registered in the United Kingdom in 2021.This was a gradual increase of almost 1% year-over-year.Even though the coronavirus pandemic is widely acknowledged to be the primary cause of the decline between 2019 and 2020, buying a new car has always been more expensive.

Germany is one of the world's leading car producers and is well-known for its excellence in the automotive industry. Today, Germany's automotive industry is one of the most innovative and competitive industries, having the third-highest car production in the world and fourth-highest vehicle production. Germany ranks 1st in car production in Europe, with a 52% market share among the western European countries and 31% in the European Union.

Germany invests in R&D growth in the automotive sector. Over the last few years, the country accounted for 60% of the R&D growth in Europe. Germany invested over EUR 20 billion in R&D in the automotive industry, which is the highest among other sectors.There are several premium car manufacturers like Mercedes, Audi, BMW etc. in the country which are spending heavily in enhancing their product line. Hence, many die-casting companies are investing to expand theoir production capabilities in the country. For instance,

• In September 2022, DGS Druckguss Systeme s.r.o., announced that it has begun operations at the Frdlant plant and produces die castings made of aluminum and magnesium alloy for the automotive industry.

• In 2020, Rheinmetall announced that KS HUAYU AluTech GmbH has recently consistently expanded its core business to include structural components and e-mobility products. For a German OEM project for a battery-powered vehicle in the C-segment of the market, it produced cast housing for the additional batteries which allow battery capacity and thus vehicle range to be increased as desired - a key criterion for electric vehicles.

Owing to above factors , the market is expected to grow in the coming years.

Competitive Landscape

The European market for the automotive parts die-casting industry is fairly fragmented. Major players, such as Rheinmetall AG, GF Automotive, Martinrea, Nemak, DGS Druckguss Systeme Handtmann Group, and others have together accounted for a major share of the market in the region. These companies have focused their investments on R&D to come up with better production processes and alloys. This strategy will assist in the production of premium quality die-cast parts for the European automotive and industrial sectors. For instance,

• In June 2022, A Carat 610 extended die-casting solution has been purchased by Handtmann, a German manufacturer of light metal components, for its production in Biberach a. d. Riss, Germany. The solution is intended to increase the production of body-in-white and structural parts.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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