San Francisco, 28 January 2030: The Report Aluminum Casting Market Size, Share & Trends Analysis Report By Process (Die Casting, Permanent Mold Casting), By End Use (Transportation, Industrial, Building & Construction), By Region, And Segment Forecasts, 2030 - 2030

The global aluminum casting market size is expected to reach USD 135.20 billion by 2030, registering a CAGR of 4.9% from 2030 to 2030, according to a new report by Grand View Research, Inc. Rising demand for lightweight vehicles is anticipated to propel market growth as the product is used in manufacturing various auto components.

According to the Center for Automotive Research, the global sales of lightweight vehicles are expected to reach nearly 110 million units by 2026. The growth is attributed to stringent regulations on reducing fuel emissions, thus driving the need for lightweight materials such as aluminum. Vehicles made of aluminum offer better acceleration and better braking systems, thereby improving fuel economy.

However, despite steady demand from the automotive sector, the shift toward electrical drive is expected to negatively impact the market. A combustion engine requires 220 cast products and an electrical drive requires only 25 of them. Nonetheless, the growing demand for structural components and sensor casings of a vehicle is likely to continue as the electric engine or motor requires to die casting components to produce battery housings and casings. This, in turn, is anticipated to help keep product demand steady over the coming years.

In Asia Pacific, the market is dominated by China due to numerous economic benefits offered in the country when it comes to green energy. The country is the largest producer of primary aluminum in the world as well as one of the biggest consumers of aluminum globally. China has taken advantage of the availability of high-tech manufacturing facilities as well as a highly-skilled workforce, which is essential for the manufacturing sector.

The growing manufacturing sector in the country is anticipated to augment market growth over the coming years. India is also a major market in the region. The Automotive Mission Plan (AMP) 2006-2016 introduced by the government of India was launched to support the growth of the automotive industry in the country, which, in turn, is likely to drive the demand for aluminum casting over the coming years.

Key product manufacturers include Alcoa Corporation; Dynacast; Aluminum Corporation of China Limited; Gibbs Die Casting Corp.; Bodine Aluminum, Inc.; and Endurance Technologies Limited. These companies are focusing on capacity expansion to meet the growing product demand, majorly from the automotive industry. For instance, in March 2016, Gibbs Die Casting Corp. invested USD 10 million in its Henderson facility in Texas, U.S.

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The increasing use of aluminum in automobiles, owing to its characteristics, such as high strength and lightweight features that are likely to drive the market over the coming years. Nearly 30-40% of aluminum is being used per lightweight vehicle every year and is likely to reach 70% over the coming years owing to stringent regulations on reducing fuel emissions across the globe. According to the Federal Reserve Bank of St. Louis, the global sales of lightweight vehicles reached 15.502 million units in 2023. Thus, increasing demand for lightweight vehicles due to soaring environmental pollution, rising disposable incomes, and changing lifestyles of consumers is anticipated to boost the demand for aluminum casting.

Aluminum Casting Market Report Highlights

• The permanent mold casting process segment is anticipated to register a lucrative growth rate in terms of volume from 2030 to 2030 owing to the increasing demand for motorsport and recreational vehicles, especially in the U.S.
• The industrial segment is projected to register a CAGR of 4.4% in terms of revenue over the forecast period owing to the increasing demand for agricultural and construction equipment in emerging economies such as India and Brazil
• Asia Pacific held the largest volume share of over 51.6% in 2024 owing to the presence of a large industrial sector and the growth of the automobile sector in the region
• North America is anticipated to expand at a CAGR of 2.9% in terms of volume over the forecast period owing to the increasing demand for lightweight materials in the automotive industry to reduce fuel emissions

The defense industry is expected to be a key driver for the aluminum casting market due to the increasing demand for lightweight, durable, and high-performance materials in military applications. Aluminum castings are likely to see growing adoption in the production of defense components such as aircraft parts, armored vehicles, and naval vessels, where strength and weight reduction are critical. The anticipated rise in defense budgets globally, coupled with the need for advanced, cost-efficient materials, is expected to boost the demand for aluminum castings.

Aluminum Casting Market Report Scope

 However, challenges such as the elevated costs of aluminum casting equipment and significant investments required for technological innovations in the casting process are anticipated to restrict market growth. Additionally, stringent environmental regulations set by organizations such as the European Environment Agency and U.S. Environmental Protection Agency (EPA) aimed at controlling harmful emissions during casting operations, are expected to pose barriers to market expansion in the near future.