The New Markets are Outside Automotive

Gigacastings dominated many booths at China Diecasting 2026, but some of the most interesting applications weren’t made yet. I’m talking about drones, low-altitude flying vehicles, humanoid robots, optical modules for data centers, and components for telecom and server cooling.

China is not only trying to work on automotive castings. Chinese foundries actively look for entirely new markets. For an industry that depends heavily on automotive, this move can solve overcapacity.

Drones and Low-Altitude Vehicles need Lightweight Structures

The low-altitude economy appeared repeatedly at the exhibition. It includes drones and other low-altitude flying vehicles. These applications need lightweight structures because every kilogram increases the energy required to stay in the air.

In China, many companies already explore magnesium for these applications. Rene Hordijk from Frech also highlighted the low-altitude economy as an emerging market, although the applications he discussed still use aluminium.

That distinction is important. The customer does not necessarily want an aluminium or magnesium casting. The customer wants a lightweight component that performs well and can be produced economically. The foundry has to offer the best material and process for that requirement.

Humanoid Robots Become a New Casting Market

Humanoid robots were impossible to miss in Shanghai. Several booths had robots walking, dancing, or interacting with visitors. 

The foundry industry will probably buy many of these robots for automation. But robots also need castings themselves. A humanoid robot requires structural components throughout the shoulders, arms, hips, and legs. At the same time, designers want to keep the mass as low as possible because every additional kilogram has to be accelerated, stopped and carried during operation.

In China, many of these applications already use magnesium to reduce weight. Aluminium can offer another route, especially outside of China, for thin-walled structures.

AI Creates Demand for Zinc Die Castings

One of the more surprising applications came from Frech. Rene showed optical transceiver modules used to connect servers and transmit data. The expansion of AI and data centers drives demand for these components in very high volumes. For these optical modules, zinc die casting offers properties such as low porosity, high density, and good surface quality.

This is a useful reminder that the next important market for die casting does not necessarily require another 10,000-ton machine. Millions of small precision components can create an equally attractive business. The key is volume combined with properties that casting can deliver efficiently.

Telecom and Server Cooling Create More Opportunities

Telecom and server cooling also appeared in my conversations at the exhibition. These industries are reaching production volumes where casting increasingly makes economic sense. Many of these products do not start as castings. Companies may machine, fabricate, or extrude the first generations because the production volumes remain low.

As the market grows, the economics change. That is exactly when foundries should enter the discussion. Instead of waiting until an engineer has already designed a casting and sends out an RFQ, a foundry can approach the customer way earlier and show how casting can reduce weight, combine functions, improve thermal performance, or lower production cost.

New Markets require a Different Sales Approach

Automotive foundries usually receive finalized drawings. The OEM defines the component, alloy, and requirements, and several suppliers quote the same part. That approach works when the customer already knows that the component should be cast. Emerging industries work differently.

A robotics company may search for a lightweight structure. A data-center company needs thermal management. A drone manufacturer wants low mass. A telecom supplier needs millions of housings with the right surface and dimensional properties.

These customers are not necessarily looking for a die caster. They are looking for a solution. That means the foundry needs to enter much earlier in the development process.

China is Actively Creating these Markets

This was one of the biggest differences I saw in Shanghai. Chinese companies do not simply wait for customers to tell them what to produce. They have machines, materials, and new processes, and then actively search for applications where those capabilities can create value.

In my conclusion, I described how companies approach industries, show what their technology can do, and start testing ideas instead of waiting for a finished drawing. That mindset helps explain why new applications appear so quickly. If a foundry has available capacity, the question should not only be: Which automotive order can fill this machine? It should also ask: Which other industry has a problem that this machine can solve?

Diversification is a Competitive Advantage

Automotive will remain one of the most important markets for die casting. But depending almost entirely on one industry creates risk. Vehicle architectures change. Volumes move between regions. OEM strategies change. And when automotive slows down, many foundries feel the impact at the same time.

China already appears to take a broader view. I saw opportunities in drones, low-altitude vehicles, humanoid robots, AI infrastructure, telecom, and server cooling. Different materials. Different component sizes. Different customers. The common element is that all of these industries need properties that casting can provide at increasing volumes.

China seems to have understood that foundries need a diversified portfolio of applications and customers, not just more automotive business. The next major casting opportunity may therefore not arrive as an RFQ from an automotive OEM. It might come from a robotics company, a drone manufacturer, or a data-center supplier.

The challenge for foundries is to find those markets early enough to make casting part of the solution before the customer chooses another manufacturing process.