South Korea Automotive Parts Aluminium Die Casting Market

South Korea Automotive Parts Aluminium Die Casting Market Analysis

The South Korea Automotive Parts Aluminium Die Casting Market is expected to register a CAGR of greater than 13% during the forecast period.

• To meet the emissions regulations and policies OEMs are trying to reduce weight of automobiles by employing lightweight non-ferrous metals. Using aluminium die casting parts has been adapted as the main strategy.
• With the increasing pollution levels around the world, carmakers are looking for lightweight components for reducing fuel consumption and curbing the emission of harmful pollutants into the atmosphere. Aluminium provides weight saving up to 50% compared to the traditional mild steel structure. Aluminium has equal or more superior strength and absorbs twice crash-induced energy. Lowering the vehicle weight will allow downsizing engine, transmission, suspension, and wheels. South Korea has highest per capita consumption of aluminium of 46,7 Kg higher than most of the developed countries because of the growing automotive industry in the country.
• The corrosive property of aluminium ensures optimum life for housings even when exposed to bad weather. In recent times autonomous cars have become increasingly popular. These cars have electromagnetic and electrical components which must be protected, and aluminium die casted housing is promising to provide protection against the external environment. Aluminium is a sustainable and resource-efficient material. It can be recycled; the world average remains 45% (as of May 2020). Aluminium pressure parts are later used in recycling process to form aluminium alloys which have very large applications.

South Korea Automotive Parts Aluminium Die Casting Market Trends

Pressure Die Casting Captures the Market

Owing to the advantages offered by the process of pressure die casting over other casting methods, the players in the industry are investing in expanding their operations in the country for fulfilling the demand of aluminium parts for automotive in the country.

Using the pressure die casting technique, high volumes of components can be produced with high accuracy over other processes. Also, the method is cost-effective and less time consuming, and other advantages and the demand in the country is enabling the significant players in the country to invest heavily and expand their operations.

Vacuum die casting has also been profitable to the manufacturers. It has shown to produce high reliable and quality parts for the transmission parts. Transmission parts of the automobile has one of the most complex mechanical combination functions which is prone to difficult conditions.

Aluminium production has been on raise in South Korea increasing year on year. In 2018, South Korea produced 958,090 metric tons of aluminium. OEMs are taking advantage of this high availability of aluminium by using aluminium die casted parts in automobiles. South Korea is also one of the leading exporters of aluminium die casting parts to China. This market is expected to grow during the forecasted period as the rules and regulations are changing across the world which is favouring the use of aluminium die casting parts.

Decline in Passenger Car Production is restraining Growth

South Korea automotive industry has been an indicator for the economic growth of the country. South Korea automotive industry has an export-oriented economy, many cars produced domestically were sold overseas. Approximately 2.4 million passenger cars were exported in 2019 which has significantly fallen from 3 million exports in 2012. Struggling global economy and stagnant demand across the world play a role. The shutting down of American car manufacturer General Motors Korean subsidiary has had negative impact on the exports by hindering production.

South Korea's automotive exports are heavily influenced by global economy and environmental regulations. Recent changes in the regulations across the world has had very huge impact on sales till 2019 and recent COVID-19 economic crisis has further reduced exports.

With technological advancements South Korean manufacturers are expected to see raise in demand for car exports which intern will increase demand for aluminium die casting automotive materials as manufacturers are looking to reduce car weight in order to keep up with emission norms across the world. But the aluminium die casting industry is also facing threat from the newly emerging composites market as composites provide the same physical properties and are much lighter than aluminium castings. However, during the forecasted period automotive parts aluminium die casting market is expected to witness high competition and grow at a slow pace.

South Korea Automotive Parts Aluminium Die Casting Industry Overview

The South Korea automotive parts zinc die casting market is neither consolidated nor fragmented. Few major players in the market are Dynacast, Amtek Group, Pace Industries, Samkee Automotive, and Kemlows Die Casting Products Ltd, among others.

In 2017, Dynacast acquired Singnicast, with moving on with its strategy of global expansion.

Brillcast Manufacturing LLC, in conjunction with local universities, implemented a comprehensive certification program for aluminium die-cast manufacturer operators.

South Korea Automotive Parts Aluminium Die Casting Market Leaders