The automotive parts magnesium die casting market is expected to register a CAGR of 9. 65% during the forecast period. The market studied is primarily driven by the expanding automotive market, increasing penetration of magnesium die casting parts in industrial machinery, growing electric mobility, and the employment of magnesium cast for powertrain and housing parts of automobiles.
New York, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Parts Magnesium Die Casting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06028466/?utm_source=GNW
The implementation of stringent emission norms by several countries and regions is propelling the growth of the market. Reducing the vehicle weight is an important step to cut the emissions and, in turn, drives the original equipment manufacturers to opt for lightweight materials, such as magnesium and carbon fiber reinforced plastic, to manufacture vehicle components.
The increasing investment in innovation and automation, etc., is propelling the growth of the market studied. The ongoing research and development activities are leading to the discovery of new magnesium alloys and efficient manufacturing techniques. For instance, the Indian Institute of Technology, Madras, the US Army Research Laboratory, and the University of North Texas developed a new magnesium alloy that can replace aluminum and steel alloys in the automotive industry and increase the fuel efficiency of vehicles.
However, the growth of the market can be impacted by the high cost of magnesium and associated manufacturing processes and the ongoing impact of the Covid-19 outbreak.
Key Market Trends
Favorable Properties of Magnesium Finding Increased its Adoption in Automobiles
Magnesium has been used in structural, body, and engine parts of automobiles since the 1930s. However, in the later period, vehicles contained less magnesium (of the total vehicle weight) on an average. This trend is changing in recent times. The automotive industry is one of the largest consumers of magnesium die-casting market.
The Corporate Average Fuel Economy (CAFE) standard was introduced in Europe in 1978, to decrease pollution and increase fuel economy. These standards have been revised steadily over time, pushing automobile manufacturers to improve vehicles’ fuel efficiency by employing new and innovative techniques. In 2016, the CAFE standard was 35.5 mpg (miles per gallon), and it is set at 54.5 mpg for 2025. Similarly, other standards and metrics for fuel efficiency and pollution control have been introduced by governments worldwide.
Hence, globally, automobile manufacturers are using lightweight magnesium and magnesium alloys to reduce the overall vehicle weight and improve the fuel economy. Magnesium is a viable alternative to steel, aluminum, and other structural materials, and it has specific attractive properties. It is 36% lighter per unit volume than aluminum and 78% lighter than steel. When alloyed, magnesium has the highest strength-to-weight ratio among all structural metals.
Asia-Pacific Projected to Dominate the Market During the Forecast Period
The large-scale demand, domestic production, government initiatives, and availability of resources are the main drivers for the growth of the Automotive Parts Magnesium Die Casting Market in the Asia-Pacific region.
China is one of the major producers of die casting parts and accounts for more than 60% of the regional (Asia-Pacific) die casting market share. The metal casting industry in China has more than 26,000 facilities, out of which 8,000 facilities produce non-ferrous castings. The country produces over 49.3 million metric tons of castings. The advanced and efficient automatic die casting machines supported the demand for metal die castings in the country. The Chinese magnesium die casting market experiences high demand from the automotive industry, which is rapidly growing at the international level. This is expected to drive the Chinese market’s growth over the forecast period.
India has the world’s second-largest foundry industry. Foundries in India can produce die casting products that serve a wide range of applications conforming to international standards. The Government’s focus on Make in India, developing the automotive industry, and the stringent emission norms are driving the market for automotive parts magnesium die casting in the country. The castings consumed by the automotive sector accounted for 35% of the country’s production. India witnessed a declining trend in passenger vehicle sales, owing to numerous reasons, such as economic slowdown, rise in fuel, and insurance costs. However, despite numerous pressures, such as revised axel norms and NBFC crisis, the overall commercial vehicle sales increased and showcased a robust 27.28% growth. Additionally, the increasing focus of central and state government on the usage of electric buses as a mode of urban transit, along with the drive to make transportation more sustainable, the demand for electric buses in the country is expected to accelerate, in turn, propelling the demand for magnesium die casted automotive parts in the country.
On the other hand, the growing automobile industry, stabilizing industrial sector, consumer popularity for fuel-efficient vehicles, and latest advancements in die casting techniques are expected to drive the growth of the Japanese automotive part magnesium die casting market.
All these factors are expected to drive the automotive part magnesium die casting market’s growth in the Asia-Pacific region.
The global automotive parts magnesium die casting market is highly fragmented with many regional small- and medium-scale players across both developing and developed countries around the world.
Major recognized players, such as Georg Fischer Automotive, Ryobi Die Casting, Shiloh Industries, and Pace Industries, accounted for over 28% of the overall global market share.
These key players have focused their revenues on R&D to develop better production processes and alloys. This strategy may assist in the production of premium quality die-cast parts for the automotive industry. Key players have also expanded their reign globally by various mergers, expansions, partnerships, joint-ventures, and acquisitions. For instance, in December 2019, Bharat Forge announced that it would break ground for its upcoming plant in North America. It is expected to be ready for production by about June 2021.
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