According to a recent report by Future Market Insights (FMI), the global automotive die-casting lubricants market is projected to reach US$ 129.18 million in 2023. Growing demand for lightweight automotive vehicles, coupled with increasing research and development initiatives intended at developing eco-friendly automotive die-casting lubricants are identified chief growth factors.
Amid soaring competition, top 5 players comprising Henkel AG & Co. KGaA, Quaker Houghton Inc., Moresco Corp., Condat S.A., and Chemtool Incorporated are estimated to hold 50-60% of the total market share. Die-casting lubricants that are environmentally friendly and sustainable are in greater demand as environmental regulations become stricter. Oils that are biodegradable and water-based are reducing the impact on the environment and improving worker safety. As die-casting technology advances and the demand for high-quality castings increases, high-performance lubricants are increasingly in demand. Lubricants with these properties provide excellent thermal stability and reduced tool wear.
Aluminum is increasingly being used in die-casting processes for automotive applications due to its lightweight characteristics and improved fuel efficiency. Aluminum die-casting presents lubricant manufacturers with the opportunity to make specialized lubricants that reduce porosity, prevent soldering, and promote heat dissipation. The die-casting process is constantly being improved by manufacturers to increase productivity and efficiency. A variety of innovative lubricant formulations are being developed by lubricant suppliers to speed up cycle times, reduce maintenance downtime, and make processes more stable.
A number of lubricant application methods are becoming more popular in automotive die-casting, such as spray systems and microdosing technologies. By using these techniques, lubricant deposition can be controlled more precisely, waste can be reduced, and complex geometries can be precisely lubricated. Asia-Pacific and Latin America are experiencing significant growth in the automotive industry. In these regions, the demand for die-casting lubricants is increasing, which presents opportunities for lubricant manufacturers. Automotive OEMs, die cast equipment providers, and lubricant manufacturers are collaborating more often. In these partnerships, lubricant solutions are developed, die-casting processes are optimized, and evolving automotive needs are met.
2018 to 2022 Automotive Die-casting Lubricants Market Outlook Compared to 2023 to 2033 Forecast
Demand for automotive die-casting lubricants grew at a sluggish pace at a 4.8% CAGR between 2018 and 2022. IoT sensors and data analytics are changing the automotive die-casting industry with Industry 4.0 technologies. Manufacturers of lubricants are experimenting with smart lubrication systems with the purpose of optimizing lubricant usage, predicting maintenance requirements, and improving overall process control.
The rising demand for automobiles is driven by increasing economic developments & purchasing power of the consumers. However, growing fuel prices are compelling consumers to adopt fuel-efficient vehicles. Automotive components produced through die-casting provide a greater strength-to-weight ratio as compared to forged components, which in turn is driving automotive die-casting lubricants sales over the forecast period.
The automotive industry creates a huge demand for highly precise and dimensionally accurate designs. The die-casting method is used to produce components with high precision and dimensional accuracy, which is driving its applications in the automotive industry.
The proper management of thermal energy, however, is essential while production. Proper thermal management in the die-casting method requires lubricants to absorb temperature and prevent the process from overheating. Owing to these factors, demand for die-casting lubricants is expected to soar over the assessment period. Shifting focus toward sustainable and eco-friendly products is spurring demand for automotive die-casting lubricants. Stringent regulations regarding carbon emissions are generating demand for lightweight and fuel-efficient automotive vehicles, translating into increased applications of die-casting process.
Metals such as aluminum, magnesium, zinc, and other non-ferrous metals that can provide a greater strength-to-weight ratio are used in manufacturing lightweight vehicles. These metals require die-casting to be cast in complex shapes used in the production of automobiles. This is expected to drive the demand for automotive die-casting lubricants over the forecast period. Owing to the aforementioned factors, Future Market Insights is anticipates the global automotive die-casting lubricants market is expected to expand at a CAGR of 7% during the assessment period.
What are the Key Opportunities for Automotive Die-casting Lubricants Manufacturers?
Various governmental regulations to promote the production and sales of automobiles in emerging economies like Mexico, Turkey, India, and other South-East Asian countries are anticipated to create ample opportunities for automotive die-casting lubricants manufacturers.
Push towards energy efficiency in vehicles and electric vehicle adoption is propelling demand for lightweight material-based components such as aluminum, resulting in lucrative growth opportunities for the automotive die-casting lubricants market players. Various government-led investments in countries such as India, Turkey, Iran, and Morocco make will create attractive opportunities for players looking for production facility expansions.
Owing to these initiatives and growing foreign investments in the emerging economies, sales of automotive die-casting lubricants is projected to grow in the forthcoming years.
Why is Demand for Automotive Die-casting Lubricants High in the United States?
Increasing Sales of Passenger Vehicles are expected to Grow Demand for Automotive Die-casting Lubricants Market
Die-casting lubricants are expected to grow at a CAGR of 3.9% in the United States through 2033. Across North America, the total sales of automotive die-casting lubricants are expected to reach 4,459 Tons.
North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. The United States is expected to continue its dominance in the North American automotive die-casting lubricants market over the forecast period.
As the United States continues to sell more passenger vehicles, government policies are creating opportunities for expansion. Hence, die-casting lubricants sales are expected to grow. The American Society of Mechanical Engineers and the American National Standards Institute (ANSI) have set the highest quality standards for the die-casting industry in the world. As a result of these factors, the United States offers a promising market for die-casting automotive die-casting lubricants market.
Competitive Landscape
Key market participants in the global automotive die-casting lubricants market are focusing on product development, launching new and innovative products, and expanding their market in emerging economies through strategic acquisitions and mergers. For instance:
In May 2023, Shanghai Yongmaotai Automotive die-casting products met the technical requirements for mass production. Furthermore, the company will be able to meet die-casting performance requirements with its technology, which uses a high percentage of secondary aluminum, thereby conforming to the trend of reducing carbon emissions and protecting the environment. Marketing efforts will be intensified by the company to reach a large-scale production and sales of materials that cannot be heat treated.
