Aluminum Casting Market Size

Aluminum Casting Market Size

Global Aluminum Casting Market size was valued at over USD 56 Billion in 2020 and will grow at a CAGR of 7.6% from 2021 to 2027 driven by supportive government regulations to minimize carbon emissions and the rapid adoption of electric automotive products across the globe. The growing need for high-performance and durable smart devices & materials will propel the demand for lightweight aluminum components in the coming years.

Increasing disposable incomes coupled with changing lifestyles create a demand for utility products, which offer compact size, features, and can meet customer requirements. Aluminum is a tough and light material suitable for making car body panels, industrial tools & equipment. To maintain the CAFE standards in the U.S., automobile manufacturers are constantly focusing on weight reduction without compromising on product durability.

In recent years, aluminum has been incorporated into automotive engines, doors, hoods, and wheels. Leading manufacturing companies are significantly increasing aluminum percentage in their premium models. For instance, Ford is developing an all-aluminum structure for its lead-selling F-150 pick-up in North America. Furthermore, heavy-duty vehicles need thicker body panels and high load-bearing capacity, which can be rightly addressed by aluminum casting materials.
 

The increasing automobile industry in emerging economies will positively impact the demand for lightweight materials in the near future. The rising adoption of SUVs and sports vehicles will considerably increase the usage of aluminum, thus replacing heavy metal parts with lighter aluminum cast materials. Global car sales is anticipated to witness growth at a double-digit rate in 2021 which will support the aluminum casting market growth over the forecast period due to favorable government policies and customer preferences for EVs.
 

Modern living standards create opportunities for construction & infrastructure development to meet the changing priorities of consumers. Aluminum casting is widely applicable in wall cladding and roofing systems, such as frames, panels, staircases, etc., across the globe. Moreover, aluminum casting machinery and technological advancements in the aluminum casting process will significantly stimulate the aluminum casting market share in the coming years.
 

The COVID-19 pandemic has adversely impacted the industry owing to value chain disruptions, suspension of the workforce, and project cancellations. Governments and local authorities have imposed lockdowns and restrictions to combat this situation. Rapid vaccination policies and more design flexibility to create complex parts will aid in the quick recovery of the aluminum casting market in the coming years.