Automotive Die Casting Lubricants Market

Key Points Covered in Automotive Die Casting Lubricants Market Survey

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Global Automotive Die Casting Lubricants Market and How to Navigate
• Recommendation on Key Winning Strategies

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2016-2020 Automotive Die Casting Lubricants Market Outlook Compared to 2021-2031 Forecast

Demand for automotive die casting lubricants grew at a sluggish pace at a 0.8% CAGR between 2016 and 2020. Due to restrictions in movement, disrupted supple chains and halted production caused by the unprecedented COVID-19 outbreak, sales of automotive die casting lubricants witnesses a massive downturn.

However, as per FMI’s analysis, the global automotive die casting lubricant market is projected to experience year-over-year growth of 3.8%, reaching 28,138 Tons in volume.  The water-based lubricant segment is anticipated to grow at 3.9%, reaching 25,288 Tons, while the solvent-based lubricant segment is expected to be up 3.2% to total 4,000 Tons.

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 provides greater strength to weight ratio as compared to forged components, which in turn is driving automotive die casting lubricants sales over the forecast period.

In addition, 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.

However, proper thermal management 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.

Furthermore, shifting focus towards sustainable and eco-friendly products is spurring demand for automotive die casting lubricants. Stringent regulations regarding carbon emissions is generating demand for lightweight and fuel-efficient automotive vehicles, translating into increased applications of die casting process.  

Metals such as aluminium, magnesium, zinc, and other non-ferrous metals that can provide greater strength to weight ratio are used in manufacturing light weight 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 4.1% 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.  

What Is the Impact of COVID-19 Crisis on Automotive Die Casting Lubricants Market?

The pandemic crisis is anticipated to have a significant impact on the global economic growth for the period of 2021-2031. The global automotive die casting lubricants market witnessed negative impact in 2020 and its effects are expected to continue into the next year.

However, with expedited vaccine drives, and the resumption of industrial activities, FMI projects steady recovery of the global automotive die casting lubricants market.  With increasing demand from the automotive industry, stringency in emission regulations and growing preference towards sustainable materials, the market is anticipated to attain its pre-pandemic status over the forecast period.

Country-wise Insights

Why is Demand for Automotive Die Casting Lubricants High in the U.S.?

As per FMI, the automotive die casting lubricants market in the U.S. is anticipated to exoerience year-over-year growth by 2.9% between 2020 and 2021, bucking initial scepticism about how the market would perform during a global pandemic. Across North America, the total sales of automotive die casting lubricants is 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 U.S. is expected to continue its dominance in North American automotive die casting lubricants market over the forecast period.

How Will the Automotive Die Casting Lubricants Market Expand Across China?

China is one of the most attractive markets for automotive die casting lubricants. The Chinese automotive die casting lubricants market is expected to witness a year-over-year (Y-o-Y) growth rate of 4.7% in 2021, totalling US$ 31.5 Mn.

Rapid urbanization and population growth in China is boosting demand for automotive vehicles in the country, which is boosting demand for automotive die casting lubricants.

Moreover, China is one of the leading producers of automobiles across the globe. The country produced almost 22 Mn vehicles in 2021. The presence of a well-established automotive industry and ancillary components, China is anticipated to emerge as a highly attractive automotive die casting lubricants market.

Why is Germany Considered a Lucrative Automotive Die Casting Lubricants Market?

Germany currently holds dominance in the European Automotive Die Casting Lubricants market, accounting for approximately 28% of the European market share. A strong presence of numerous automotive component manufacturers in the country is consistently attracting manufacturers to expand their production facilities in Germany.

Intensive research and development activities, along with  access to cutting-edge technology and resources in the country are anticipated to bode well for the automotive die casting lubricants market.

Besides this, increasing sales of electronic vehicles (EV) will continue fostering sales of automotive die casting lubricants.  EVs require lighter weight automotive components to reduce the load on motors and increase Km run per charge capacity of the vehicles. This factor is expected to boost demand for automotive die casting lubricants over the forecast period, opines FMI.

Category-wise Insights

Which is the Highest Selling Lubricant Type of Automotive Die Casting Lubricants?  

Based on lubricant type, automotive die casting lubricants is segmented into two types: die-casting lubricants and plunger lubricants. As per FMI’s analysis, sales of die-casting lubricants is projected to increase at a healthy pace over the forecast period, capturing 94% of the overall revenue generated. Future Market Insights projects the dominance of die-casting lubricants, as the segment will add 30 more BPS points over the forecast period.

Sales of Water-Based Lubricants to Remain High

Owing to shifting consumer preference towards eco-friendly products due to stringent government regulations regarding decarbonization is anticipated to spur demand for water-based lubricants. The segment is projected to grow at a steady 4.3% CAGR through 2031.  

Aluminum to Remain Highly-Sought After Material Type

Aluminum is abundantly present in the earth’s crust which makes the metal cheaper than its counterparts. The excellent strength-to-weight ratio of aluminum is driving its adoption in casting components.

As a result, aluminum is projected to emerge as the most-preferred material type during the assessment period, holding 75% of the total market share.

Competitive Landscape

Key market participants in the global automotive die casting lubricants market are focusing on product development, launching of new and innovative products, and expanding their market in emerging economies by strategic acquisitions and mergers. For instance:

• In 2017, Chem-Trend L.P. acquired the business of Rubio Trading & Consulting SRL (Arad, Romania), its long-time distribution partner in Romania. This was in line with the company’s strategy of expansion in Eastern Europe

• In 2016, Chem-Trend L.P. acquired Huron Technologies, a customized mold release, and related products manufacturing company, to extend its customized offerings in the die casting lubricants market
• In December 2020, Quaker Houghton Inc. completed its acquisition of Coral Chemical Company (“Coral”), a privately held, U.S.-based provider of metal finishing fluid solutions.

Similarly, recent developments related to companies manufacturing automotive die casting lubricants have been tracked by the team at Future Market Insights, which are available in the full report.

Scope of Report

Key Questions Answered in the Report

• What is the current automotive die casting lubricants market value?

  The automotive die casting lubricants market is anticipated to reach US$ 118.4 Mn in 2021.

• At what rate did the automotive die casting lubricants market grew between 2016 and 2020?

  The automotive die casting lubricants market experienced sluggish growth at a 0.8% CAGR between 2016 and 2020.

• What are the key trends driving sales of automotive die casting lubricants?

  Increasing preference for lightweight vehicles, coupled with stringent government regulations regarding carbon emissions is driving sales of automotive die casting lubricants.

• Who are the leading players in the automotive die casting lubricants market?

  Henkel AG & Co. KGaA, Quaker Houghton Inc., Moresco Corp., Condat SA, and Chemtool Incorporated are the leading players operating in the automotive die casting lubricants market.

• What will be the demand outlook for North American automotive die casting lubricants market?

  North American automotive die casting lubricants market is projected to grow at a 3.5% CAGR during the assessment period.

• What is the market share of leading players in the automotive die casting lubricants market?

  Leading players in the automotive die casting lubricants market are estimated to hold 50-60% of the total market share.

• What will be the automotive die casting lubricants market share in Europe?

  The automotive die casting lubricants market in Europe is anticipated to expand at a 2.7% CAGR over the forecast period.

• What is the current market share of Japan and South Korea in the automotive die casting lubricants market?

  Japan and South Korea will collectively account for 13.5% of the global automotive die casting lubricants market.

Automotive Die Casting Lubricants Market by Category

By Lubricant Type:

• Die-Casting Lubricant
• Plunger Lubricant

By Type:

• Water-based
• Solvent Based
• Other

By Die-Casting Material:

• Aluminum
• Magnesium
• Zinc
• Other

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa (MEA)