North America Automative Parts Die Casting Market By Material (Zinc, Magnesium,), Production (Pressure Die Casting, Semi-Solid Die Casting,), & Region for 2024-2031.

North America Automative Parts Die Casting Market Valuation – 2024-2031

The quick shift to electric vehicles and the growing need for lightweight, high-performance automotive components is driving the automotive parts die casting market in North America.The necessity for intricate, integrated components that lower overall vehicle weight while preserving structural integrity, strict fuel efficiency rules, and the drive towards vehicle electrification are the key drivers of this demand. According to the analyst from Verified Market Research, the North America Automative parts die casting market is estimated to reach a valuation of USD 18.5 Billion by 2031, growing from USD 11.2 Billion in 2024, growing at a CAGR of 6.7% from 2024 to 2031.

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North America Automative Parts Die Casting Market: Definition/ Overview

Automative parts die casting in North America is a precision manufacturing technique used to make complicated automobile components with exact dimensions and fine surface finishes. Melted metal, usually alloys of aluminium, is pressed under high pressure into a reusable steel mould known as a die. Usually operating at pressures between 10 and 120 MPa (1500 and 17,400 psi), the process produces complex pieces with thin walls and precise tolerances.

In addition, automotive parts die casting services assist in the production of vehicle components that are cheap and have high accuracy which in turn enhances the efficiency and performance of the vehicle with the help of lightweight designs, provides complex features for conventional as well as electric vehicles and promotes green manufacturing through modern recycling and energy efficient activities.

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Will the Rising Demand for Electric Vehicles Upsurge the North America Automative Parts Die Casting Market?

The North America automative parts die casting market is seeing strong growth driven by the increasing demand for lightweight and fuel-efficient vehicles. According to the U.S. Department of Energy, vehicles that weigh 10% less can improve fuel efficiency by about 6-8%, prompting automakers to focus on lighter materials like die-cast aluminium and magnesium. This trend is pushing the die casting industry to innovate and produce high-strength, lightweight parts. Major players like Magna International have been expanding their capabilities to meet these needs, with Magna investing in advanced die-casting technologies to enhance their production processes.

Another significant driver is the growing adoption of electric vehicles (EVs), which require specialized lightweight components for improved battery performance and range. The U.S. Department of Energy reported that as of 2023, EVs accounted for around 8% of total vehicle sales in the U.S., a number expected to grow rapidly. As automakers transition to electric mobility, there is an increased demand for high-performance die-cast components like battery enclosures, powertrain parts, and structural elements. Leading die-casting companies, such as Ryobi Die Casting, are responding to this demand by providing parts tailored to EVs and hybrid vehicle systems.

Also, the increasing focus on sustainability and the push towards circular economies is driving growth in the die casting market. According to the U.S. Environmental Protection Agency (EPA), aluminum recycling in the automotive industry saves approximately 95% of the energy required to produce new aluminium, further promoting the use of die-cast parts. Companies like Wisconsin Aluminum Foundry are capitalizing on this trend by using recycled aluminum in their casting processes, ensuring that their products are both environmentally friendly and cost-effective

How will Volatility in Raw Materials Prices Hinder the Automative Parts Die Casting Market?

One of the key restraints affecting the North America automative parts die casting market is the high initial investment required for die-casting machinery and infrastructure. The U.S. Census Bureau reports that manufacturing investments in the U.S. automotive sector reached approximately $10.7 billion in 2022, showing a significant capital commitment for new technologies. This high cost can deter smaller manufacturers from entering the market or upgrading their equipment. Companies like ZF Friedrichshafen have made substantial investments in their die-casting facilities to stay competitive, but such capital expenditure can be a barrier for others.

Another challenge is the volatility in raw material prices, particularly for metals like aluminium and magnesium, which are crucial for die casting. According to the U.S. Geological Survey (USGS), the price of aluminium increased by 15% in 2022 due to supply chain disruptions and increased demand. These price fluctuations make it difficult for manufacturers to maintain consistent profit margins. Leading die-casting companies such as Precision Castparts Corp. are exploring cost-reduction strategies, including better material sourcing and process optimization, to mitigate the impact of volatile raw material costs.

Labor shortages and skills gaps in the manufacturing sector represent a significant restraint for the North American automotive die-casting market. The U.S. Bureau of Labor Statistics noted a 3.7% decrease in manufacturing employment in 2023, exacerbating the challenge of finding skilled workers for highly specialized roles in die casting. Companies like General Motors are investing in workforce training and automation technologies to bridge this gap, but the shortage of skilled labour continues to pose a challenge for die-casting operations.

Category-Wise Acumens

What Factors Contribute to the High Growth of Aluminium Material Segment?

According to VMR analysis, the aluminium segment is estimated to grow at the highest CAGR in the material segment during the forecast period. The growing need for vehicles that are lightweight and fuel-efficient, particularly electric vehicles (EVs), is propelling the use of aluminium in automotive components. Superior strength-to-weight ratios are offered by aluminium die casting, which is especially important for structural elements, chassis parts, and EV battery housings. Aluminium is also frequently utilized in automobile lightweighting, a development that is crucial to lowering the total weight of vehicles and increasing fuel economy.

According to The Aluminium Association, demand for more sustainable transportation will help drive an increase in market share for aluminium content by nearly 100 net pounds per vehicle (PPV) from 2020 to 2030. Also, Proliferation of BEVs will dramatically change the NA light vehicle landscape. BEV share of production nearly doubled from just under 3% in 2020 to approximately 6% in 2022. By 2030, BEVs, which on average are more aluminium-intensive, are expected to exceed 36% share of production.

Which Factors are Contributing Pressure Die Casting Segment Dominance in North America Automative Parts Die Casting Market?

Pressure die casting is dominating the North American automotive parts die casting market due to its ability to produce high-precision components with complex geometries at a faster rate. According to the U.S. Census Bureau, the value of shipments in the U.S. metal casting industry, including pressure die casting, was over $30 billion in 2022, reflecting the growing demand for efficient production techniques. Pressure die casting allows manufacturers to meet the increasing need for lightweight, durable automotive parts. Companies like Buhler, which specialize in pressure die casting machinery, have been enhancing their systems to support the growing demand for high-quality parts in the automotive industry.

The growing use of pressure die casting can also be attributed to its ability to improve production efficiency and reduce waste. The U.S. Department of Energy reports that die casting processes, including pressure die casting, result in up to 90% material utilization, reducing scrap and increasing cost-effectiveness. This efficiency is particularly beneficial for manufacturers of aluminum and magnesium parts, which are heavily used in automotive applications. As automakers push for cost reductions while maintaining part quality, companies like Ford are investing in pressure die casting to streamline their production processes.

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Country/Region-wise Acumens

Will Presence of Strong Automative Manufacturing Base and High Demand for Lightweight Vehicle Components in United States Drive North America automative Parts Die Casting Market?

The United States is dominating the North American automotive parts die casting market, primarily due to its strong automotive manufacturing base and high demand for lightweight vehicle components. According to the U.S. Bureau of Economic Analysis, the automotive industry contributed $82 billion to U.S. GDP in 2022, highlighting the significance of automotive production in the country. This growing market is driving the demand for advanced die-casting technologies, especially in high-performance automotive parts. Major players like Magna International and Aisin USA are expanding their production capacities in the U.S. to meet these rising demands.

Additionally, the U.S. remains the largest consumer of aluminum die-cast components, particularly in the automotive sector, due to the increasing adoption of lightweight materials. The U.S. Geological Survey reported that aluminum consumption in the automotive industry increased by 6% in 2022, driven by the need for fuel-efficient and environmentally friendly vehicles. Companies like Ryobi Die Casting are expanding their U.S. operations to cater to this demand, focusing on high-quality aluminum castings for both internal combustion engine (ICE) vehicles and electric vehicles (EVs).

Will Presence of Strong Supply Chain Network Rising Adoption Pressure Sensors in Mexico?

Mexico is rapidly growing in the North America Automative parts die casting market, driven by its competitive manufacturing costs and proximity to the U.S. According to the U.S. International Trade Commission, Mexico’s automotive sector experienced a 14% growth in 2022, with an increasing share of the production of die-cast components. This growth has attracted many global automakers to establish manufacturing facilities in the country. Companies like Nemak have been expanding their operations in Mexico, leveraging the country’s cost advantages and skilled labor to meet the rising demand for automotive parts.

Mexico’s die casting industry is also benefiting from the country’s strong supply chain network and its role as a key hub for vehicle assembly. The U.S. Census Bureau reports that Mexico’s automotive exports to the U.S. increased by 8% in 2022, with a significant portion of these exports including die-cast parts. This makes Mexico an attractive location for die-casting companies looking to serve both the U.S. and other international markets. Major industry players, like Ryobi Die Casting, are increasingly investing in Mexican facilities to take advantage of trade agreements such as the USMCA.

Competitive Landscape

The North American Automative parts die casting market is dynamic and rapidly evolving, driven by continuous advancements in manufacturing technologies and materials. Companies in the market are increasingly focused on enhancing production efficiency, improving the quality and precision of die-cast components, and meeting the growing demand for lightweight, fuel-efficient, and sustainable automotive solutions. The automotive part die casting market is a dynamic and competitive landscape, with a mix of established players and emerging challengers vying for market share.

Some of the prominent players operating in the automative part die casting market include:

• RYOBI Die Casting
• KSM Casting
• Rheinmetall AG
• Martinrea Hansel
• Nemak
• Bühler Group
• Gibbs Die Casting
• Alcoa Corporation
• Rio Tinto Aluminium
• Linamar Corporation

Latest Developments

• In April 2023, Martinrea Hansel, part of Martinrea International, expanded its North American die-casting capabilities with a new facility focused on producing lightweight components for electric vehicles. The new facility is equipped with advanced die-casting technologies, such as aluminium and magnesium casting systems, to produce critical parts like battery enclosures, motor housings, and structural components for EVs.

Report Scope

North America Automative Parts Die Casting Market, By Category

Material:

• Zinc
• Magnesium
• Aluminium

Production:

• Pressure Die Casting
• Semi-solid Die Casting
• Vacuum Die Casting
• Squeeze Die Casting

Region:

• North America

Research Methodology of Verified Market Research:

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