Global aluminium die casting to go up by 11.89% in 2016

The Global Aluminium Die Casting market to grow at a CAGR of 11.89% in 2016, reports Research and Markets. One of the key factors contributing to this market growth is the increasing need for superior-quality products. The Global Aluminium Die Casting market has also been witnessing the increase in outsourcing of manufacturing activities to the Asia Pacific Region (APAC). However, the need for high initial investment could pose a challenge to the growth of this market.

Commenting on the report, an analyst from TechNavio’s Engineering team said: ‘Since the recent global economic recession, there has been steady growth in the economies of several Asian countries including China and India. This has paved the way for the emergence of several cost-driven manufacturing companies. Several companies based in the Americas and the EMEA region are increasingly outsourcing their manufacturing and production work to low-cost manufacturing companies in developing countries across the APAC region. In addition, several global companies have started setting up their manufacturing plants in these countries to take advantage of the availability of low-cost skilled personnel and abundant raw materials. Further, because of the threat of natural calamities such as earthquakes and tsunamis in Japan, several production facilities are being shifted from Japan to other countries in Asia, such as India, China, and Singapore. Thus, it is expected that there will be an increase in investment by both domestic and international vendors to increase their market presence in the APAC region and hence their profitability.

According to the report, the increasing need for superior-quality products is one of the major factors driving the growth of the Global Aluminium Die Casting market. Aluminium die casting is very cost effective and offers increased ease toward development of products with complex shapes and specifications. It also allows dimensional stability in complex shapes and thin surfaces, which ensures the development of high-precision products. Further, aluminium is a very lightweight non-ferrous metal which has high corrosion resistance as well as high thermal and electricity-conducting capabilities. Thus, the effective adoption of aluminium die casting enables the development of superior-quality products with increased dimensional accuracy, (with desired geometry) enabling the products to compete in the international market.