The demand within the global aluminium castings market has been rising on account of advancements in the automotive industry, finds Transparency Market Research (TMR). The global market for aluminium castings hosts a large number of companies that have earned a name for themselves on the global front. The strategic efforts of the leading vendors in the global market for aluminium castings have helped them in fortifying their roots across the world. It is expected that the leading players in the global market for aluminium castings would continually introduce new business hacks and marketing strategies in order to further expand consumer base. Furthermore, the presence of a huge chunk of small vendors makes the global market for aluminium castings extremely fragmented.
The small market players in the global market for aluminium castings are projected to follow the footsteps of the established firms in order to reap profits. The growth of these small and local players could be obstructed by the iconic brand image of the leading vendors. Most of the consumers in the global market for aluminium castings are associated with the industrial sector where quality and durability are the most important standpoints. Hence, the small market players are expected to concentrate on elevating their quality standards in order to earn the trust of the end-users.
A report added by Transparency Market Research (TMR) predicts that the global aluminium castings market would expand at a sluggish CAGR of 5.2% over the period between 2017 and 2025. The global market for aluminium castings had a net value of US$ 25.23 bn in 2016 and is expected to reach a value of US$40.14 bn by the end of 2025. On the basis of application, the demand for aluminium castings has been the highest across the automotive sector. The geographical segmentation of the global aluminium casting market shows that the market in North America has matured at a rapid pace.
Automotive Sector to Boost Market Demand
The demand for high-end cars with strong and resistant bodies has necessitated the use of effective aluminium castings in the automotive sector. Furthermore, the light weight of these castings helps manufacturers during the process of production which has also popularised aluminium casting across the world. Hence, it is safe to prognosticate that advancements in the worldwide automotive sector would also give an impetus to the growth of the global market for aluminium castings.
Apart from the automotive sector, aluminium castings are also used in other industries such as constructions, iron and steel, and metallurgy. This factor has also played a major role in the growth of the global market for aluminium castings in recent times.
Herculean Production Process Could Hamper Growth
Despite the utility of aluminium castings in multiple industries, the process of casting is time-consuming and labour-intensive which often slows down supply. This factor could act as a minor hindrance for the growth of the global market for aluminium castings over the coming years. However, the unavailability of a viable substitute and the low cost of aluminium castings is expected to keep enhancing the prospects of market growth in the years to come.