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Current Trend & The Future Of Die Casting Industry

Current Trend & The Future Of Die Casting Industry

March 20, 2021 2 min read Industrials
Current Trend & The Future Of Die Casting Industry

Within the dominant aluminum casting segment, die casting accounts for more than 61 %. And aluminum die casting accounts for just less than 54 % of total non-ferrous metal casting in the world.

For years, international vehicle manufacturing, especially passenger car production, has been an increasingly dominant customer segment. In addition, die cast components are also making inroads into commercial vehicles and are therefore capturing new market segments. In the meanwhile, about 80 % of non-ferrous metal castings are being produced for use in vehicle manufacturing. The remaining 20 % are destined for a number of different client segments like electrical engineering and general mechanical engineering. The good demand in recent years has led to a stable investment rate of around 5 % of revenue. In respect of investment budgets, two-thirds of foundries are prepared to invest much more in 2021 than in the previous year. Alongside ongoing investment for rationalization and replacement, investments to expand capacity are playing a defining role, according to an analysis by the Munich-based Ifo Institute for Economic Research. A decisive criterion for investment decisions is the modification of product range, with component structure increasingly shifting towards structural parts.

Nevertheless, die casting foundry operators do have a few concerns at present. Due to the discussions about the future of the internal combustion engine in general and the diesel engine in particular, many die casting foundries need to adjust to structural changes in demand. In this context, an explicit openness to technology in the development of mobility is absolutely imperative. At present, satisfactory answers have not yet been found for all of the issues arising in this conjunction. At the same time, there are strategic decisions that need to be taken that will have a long-term impact on policymakers, OEMs, consumers and also suppliers – like die casting foundries. In this context, policymakers need to develop reliable and robust strategic guidelines, but they should be no more than guidelines!

The areas of application and complexity of die cast products are constantly increasing. The requests being received necessitate new alloy developments and process technologies, for example to meet specifications for chassis and structural components. As well as mechanical properties, castability and a definitively calculable die service life, die casting foundries are also focusing on conformal cooling, additive manufacturing, joining technologies, (bonding, welding), heat treatment, digitalisation and simulation, as well as composite materials and the development of hybrid components. For die-casting foundries, these challenges offer corresponding opportunities to consolidate their global position as a quality leader by increasingly offering consultancy and system expertise in more complex processes. As a result, there will be more discussion about the strategic alignment of the industry towards both a lower and higher degree of vertical integration to improve its competitiveness.


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