Impact of COVID-19 on the Global Aluminum Die Casting Machine Market
Aluminum die casting is a process that produces defined, smooth, accurate, and textured metal parts. Aluminum die-casting alloys are lightweight and have high dimensional steadiness for thin walls and complicated part geometries. The key driver for the growth of the market is the increasing applications of aluminum in industries such as construction, automotive, power, and aerospace across the globe. However, the COVID-19 pandemic has drastically impacted all these industries and slowed down economic growth, which has led to the revenue losses for most of the organizations. Companies are focused on reducing operational costs, minimizing risks, and maximizing profits to survive in the market. The rapid spread of COVID-19 from China to all other parts of the world has impacted some industries positively, while most others have been negatively affected. The increasing cases of the COVID-19 across the world have resulted in lockdowns, halting business operations, which, in turn, has hindered the growth of the market. The primary factor hampering the growth of the market during the current pandemic crisis is the decreasing demand for aluminum from various industries.
Before the outbreak of COVID-19, the high adoption of lightweight, high-strength castings, especially by the automotive sector, was fueling the demand for finished products. The manufacturers operating in the automotive industry were focused on such products due to the various compliance norms for fuel efficiency as per the directives of the European and the U.S. regulatory authorities. However, the COVID-19 pandemic has negatively impacted the automotive industry by decreasing vehicle sales, which, in turn, has lowered the adoption of casting, thus impacting the growth of the market adversely. According to MRFR analysis, automobile manufacturers prefer aluminum over iron or steel to produce parts. However, the halted production of auto parts owing to the closure of manufacturing plants has drastically impacted the growth of the market.
Primary Aluminum Production from 2015 to 2019 (Thousand Metric Tons)