The HPDC Market is exploding

The HPDC market size is estimated to be 38.66 billion USD in 2024. According to Mordor Intelligence, it is expected to reach USD 52.14 billion by 2029, growing at a CAGR of 6.16% during the forecast period (2024-2029). Another study found the automotive aluminium HPDC parts market was valued at USD 47.16 billion in 2021 and is expected to surpass a net valuation of USD 62.41 billion by 2027 end, registering a solid CAGR growth of 4.78% over the forecast period.

A recent study commissioned by European Aluminium and conducted by Ducker Carlisle has found that the average amount of aluminium used in European cars has increased by 18% from 174 kg in 2019 to 205 kg in 2022. The study predicts this trend is set to continue, with the average aluminium content projected to increase from 205 kg in 2022 to 237 kg by 2026 (+15.6%) and 256 kg per vehicle by 2030 (+24.9%).

So, everything should be perfect for foundries?!?

It is actually the opposite! The automotive industry is undergoing a significant transformation, driven by the rise of electric vehicles and the implementation of gigacastings. This shift profoundly impacts the foundry industry, particularly regarding part numbers and the implications for small foundries.

The automotive industry’s trend towards lightweighting and electrification is driving a significant increase in aluminium content. Beyond EV-specific components, implementing large and mega castings in the car’s body structure contributes to a higher aluminium intensity.

Megacastings integrate many different parts into a single ultra-large casting. This trend, initiated by Tesla, could not only impact the way cars are manufactured and the utilization of aluminium in general but also affect the content of different product forms (castings, sheets, and extrusions) in light vehicles.

While the overall usage of aluminium is increasing, the number of parts could decrease due to larger and more complex parts, such as megacastings, made from aluminium. Some claim up to a 75% reduction from around 1600 to 400 castings.

For small foundries, this shift presents both challenges and opportunities. On the one hand, the move towards larger and fewer parts leads to a massive decrease in demand for smaller, more traditional castings. On the other hand, it opens up new opportunities for foundries that can adapt and innovate. As most foundries cannot invest in these new technologies and processes to produce gigacastings and similar large parts to benefit from this trend, where do you find the bright future for foundries?

I prefer a blue ocean scenario when every foundry is fighting for the remaining 25% of castings. Rheocasting provides this unfair advantage, going beyond the limits of HPDC. Schedule a Free Consultation Call, and you will get your first ideas on acquiring new profitable castings!