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North America & Asia Aluminum Die Casting Markets 2020-2027 - ResearchAndMarkets.com

DUBLIN, October 16, 2020 (BUSINESS WIRE) --

The "North America & Asia Aluminum Die Casting Market Size, Share & Trends Analysis Report by Production Process (Pressure Die Casting, Others), by End-use, by Region, and Segment Forecasts, 2020 - 2027" report has been added to ResearchAndMarkets.com's offering.

The North America and Asia aluminum die casting market size is anticipated to reach USD 33.49 billion by 2027, expanding at a CAGR of 7.1% from 2020 to 2027. Increasing demand from the transportation industry for lightweight elements is anticipated to propel market growth.

The market growth is propelling owing to the benefits of both aluminum alloy and die casting process. Aluminum is alloyed with copper or silicon in die casting as it is prone to cracking or shrinking at high temperatures. Characteristics of aluminum, such as lightweight and high corrosion resistance, make it applicable in producing components with thin walls and complex shapes and those that will face exposure to electrical or thermal energy. Benefits of die casting include enhanced quality, delivering a long service life, high reliability as there is uniformity of mass-produced parts, quick production, the requirement of minimal maintenance, versatile design, and minimal assembly.

The transportation industry emerged as the largest end-use segment in 2019 as the product finds various applications in vehicles, such as in electronic connectors, housings die, thin walls, engine blocks, cylinders, transmission, chassis, and other body components. However, owing to the spread of covid-19, the sales of passenger cars fell drastically in the world, thus impacting the demand for aluminum die castings.

In the U.S, the sales for passenger cars and light trucks fell by nearly 23%. The decline was around 20% in Japan for the passenger car market. Major economies witnessed a decline in sales of motorcycles as well. For instance, in India, Royal Enfield generates maximum sales from its motorcycles with engine capacity below 350 cc. The company's sales had already declined by 13% in January 2020 in the country owing to BS6 norms. The sales were further affected due to the covid-19 pandemic in March 2020.

The product demand persists in the construction industry as well, which was on the rise until the covid-19 disrupted majority of the operations at a worldwide level. However, with slight ease in restrictions in most countries, the construction activities have begun to resume slowly. However, the overall revenue of the construction industry is anticipated to be negative as owing to the recession, the sales in the residential sector have been affected severely. For example, house sales and launches declined by 26% and 51% in the fourth quarter of the financial year 2020 in India.

The U.S, a prominent market in the industry, is one of the hardest-hit countries in the world owing to covid-19 and all of its major end-use industries are witnessing a decline in demand and production. For instance, the energy sector of the country has been massively impacted. The sector already witnessed cancellation and delays in its installation projects amidst the global health crisis and in addition, has received a large number of retroactive rent bills. This move represents a multi-million-dollar hit to the industry.

For example, Avangrid Inc, which owns a power plant in the U.S, received a bill for more than USD 3 million for 2 years of rent on its 131 MW Tule wind project on federal land. The energy sector of the U.S. aluminum die castings market is expected to witness a significant drop in demand in the nearby future.

The competitive scenario of the market is extremely intense as the market players are facing losses in the current fiscal year. The players are withdrawing their future plans, which have been disrupted due to the pandemic. For example, in May 2020, Shiloh Industries Inc. withdrew its fiscal year 2020 guidance provided in December 2019, considering the economic uncertainty caused by covid-19. The company pulled back its production and focused on preserving its liquidity across the entire organization.

North America & Asia Aluminum Die Casting Market Report Highlights

Asia is expected to register the fastest growth rate, in terms of revenue, over the forecast period owing to fast pace resumption in the manufacturing activities of China North America is anticipated to witness a sluggish growth rate of 2.7% in terms of volume over the forecast period on account of a slump in manufacturing operations and increasing covid-19 cases across the countries in the region The U.S. is anticipated to register a CAGR of 3.1% in terms of volume over the forecast period. The product demand is expected to uplift in the country with resuming construction activities Consumer durables is another hard-hit sector of the market that has faced a heavy blow. A large portion of the industry has not been accounted for under essentials, which has made a deep impact on its production and sales. For example, the ?2,000 crore sports industry of Jalandhar, India is witnessing an extremely negative situation as the manufacturing operations have been compelled to be halted under government restrictions South Korea is expected to regain stability soon as the country has been able to control the virus quite successfully, which is a positive sign for the market as the manufacturing operations are expected to resume and function soon at a higher capacity.

Company Profiles

Bocar Shiloh Industries Inc. Madison-Kipp Corporation Accurcast Inc. Port City Spartan Light Metal Products George Fischer Ltd. Ryobi Limited Martinrea Honsel PGI Far East Precision Products Co. Ltd Chongqing Yujiang Die Casting Co., Ltd GuangDong HongTeo Accurate Technology Co Ltd. Zouping Tiansheng Metal Technology Co., Ltd. General Aluminum Manufacturing Co.

For more information about this report visit https://www.researchandmarkets.com/r/pgiglx

View source version on businesswire.com: https://www.businesswire.com/news/home/20201016005412/en/

SOURCE: Research and Markets

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