Die Casting Machine Market

The growth of the die casting machine market is driven by various factors such as growth of manufacturing sector, growth of the end-use industries, and demand for high-strength and lightweight casting. However, the growth of the market can be hindered due to high capital and operating expenditure.

The growth of manufacturing sector is attributed to the factors such as macroeconomic development, development of effective manufacturing techniques, and the rise in the middle-class population globally. The growth in the manufacturing sector has resulted in an increase in manufacturing capacity and raw material sourcing. The below figure depicts the value added in mining, manufacturing, and utilities in China, which increased by 20.91% between 2015 and 2018.

The die casting industry has been an essential part of the manufacturing industry, which entails the manufacturing of systems, components, and parts. The die casting machines are mainly used for manufacturing large castings and ensure less porosity, sharply defined parts, high tolerance power, and textured & smooth surfaces. Thus, they form an essential part of the manufacturing and die casting industry. The growth of the manufacturing sector is expected to increase the demand for die casting machines during the forecast period.

Despite the growth of manufacturing and resultant demand for die casting machines, factors such as potential trade war, lack of skilled labor, and disruption in supply chains might hamper the market growth. However, the governments and industry players are working on minimizing the effect of such factors on the manufacturing sector. Thus, the impact of the growth of manufacturing on the global die casting machine market is expected to shift from moderate to high over the forecast period.

The sales of electric vehicles are growing rapidly due to the growing awareness regarding environmental protection and government subsidies and schemes. The rising awareness regarding the impact of gasoline vehicles on the environment has created a demand for electric cars globally. Government initiatives such as subsidies, grants, developments regarding charging infrastructure, and increasing vehicle range also help promote the adoption of electric vehicles. For instance, in September 2017, the Indian Ministry of Road Transport and Highways announced several non-fiscal incentives to ensure that electric vehicles account for 15% of the total vehicle sales in the country in the next five years.

In Asia-Pacific, China has been dominating the electric vehicle market due to an increase in sales of electric vehicles. China has sold more than 507,000 electric vehicles and plug-in hybrid electric vehicles in 2016, which was an approximate growth of 53% from the previous year. Also, manufacturers of vehicles are moving toward electrification, with focus on the development of hybrid, battery electric vehicles, and plug-in hybrid vehicles.

There has been significant growth in the sales of electric vehicles, owing to the shifting preference for zero-emission vehicles in the global market.

The rise in the sales and production of electric vehicles worldwide creates ample opportunities for die casting machine manufacturers to invest, expand, and grow their presence in the market. The growing demand for electric vehicles is expected to raise the innovation and developments in customized die casting machines. For instance, Mark Aluminum Die Casting developed new 600-tonne die-casting machine, which manufactures electric vehicle water pumps and oil pumps. The increased sales of electric vehicles would result in the development of lightweight and customized die casting machines for electric vehicles. This increase will also enable manufacturers to develop advanced die casting machines for parts and components in electric vehicles. Thus, the increased sales of electric vehicles are expected to create an opportunity for the players operating in the global die casting machine market during the forecast period.

Several enterprises, including small and medium enterprises (SMEs), are adopting die casting machines to enhance productivity. Die casting machines require high capital expenditure and can cost millions for design, fabrication, and installation, depending on the degree of automation. Die casting machines are comprised of various components, parts, systems, and installation of these systems requires qualified and experienced automation engineers. Moreover, a dedicated technician is required to manage and troubleshoot various systems in case of any technical breakdown during installation.

Business owners or managers need to consider such factors before deciding on the implementation of die casting machines at their manufacturing plants. As costs involved with die casting machines are high, it is anticipated that the implementation of the die casting machines may be hindered due to the need for expensive skilled labor and the reluctance to adopt high-cost systems. The development of cost-effective parts with increased lifespan of die casting machine and components, and various intermediates and solution providers is expected to result in cost-effective solutions and will eventually decrease the cost of initial investment and operating costs. Therefore, the impact of the high capital and operating expenditure on the global die casting machine market is expected to shift from high to moderate over the forecast period.