The trend of automobile lightweight is evident, and the market demand for die-casting machines is further increasing

The development of China's die-casting industry began in the 1980s. Since the 1990s, with the rapid development of domestic industries such as automobiles, motorcycles, household appliances, and 3C industries, especially the rapid development of the automotive industry, it has driven the rapid development of China's die-casting machine and die-casting product industries.

Analysis of market demand for die-casting machines

Die casting products are widely used in industries such as automobiles, household appliances, medical devices, 3C products, and packaging. The demand for automobiles and motorcycles accounts for 65%, the demand for household appliances accounts for 9%, the demand for 3C accounts for 9%, the demand for electromechanical tools accounts for 9%, and the demand for building materials and other fields accounts for 8%.

Prediction of market size for die-casting machines

According to the "Market Outlook and Investment Strategy Planning Analysis Report on Precision Die Casting Machine Processing Industry" released by the Prospective Industry Research Institute, the lightweight of automobiles brings opportunities, and the market size of die casting machines from 2017 to 2020 was CAGR=20%. By 2020, the amount of aluminum used in a single car should reach 190KG, and the amount of aluminum used in a single car should reach 15KG. In 2017, the amount of aluminum used in a single car was 105KG, and the amount of aluminum used in a single car was 8.6KG. The compound growth rate of aluminum used in a single car was 21.86%, and the compound growth rate of magnesium used in a single car was 20.37%. It is expected that the composite growth rate of the die-casting machine market is expected to reach 20% from 2017 to 2020. The domestic die-casting machine market size in 2016 was 8.3 billion yuan, and it is expected to reach 17.2 billion yuan by 2020.

Statistics and Forecast of Aluminum Consumption for Single Cars from 2017 to 2030

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Data source: Public information, organized by the Prospective Industry Research Institute

Statistical Situation and Forecast of the Market Size of Die Casting Machines from 2017 to 2030

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Data source: Public information, organized by the Prospective Industry Research Institute

Stable growth of downstream industries to ensure stable development of the die-casting industry

The downstream industry of die-casting machines is die-casting manufacturers, with a wide range of product applications. Over 60% of China's die-casting parts are used in the automotive and motorcycle industries. In 2016, China's automobile production and sales reached 28.119 million and 28.028 million units respectively, an increase of 14.5% and 13.7% compared to the same period last year. It is expected that China's automobile production will show a stable growth state in the next few years, and the stable development of the automobile industry will provide a good guarantee for the long-term stable development of the automobile die-casting industry.

Distribution of application fields of die-casting machines

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Data source: organized by the Prospective Industry Research Institute

Low industry concentration in the domestic market, with domestic leaders concentrated in the mid to low-end market

The concentration of industries in the domestic market is low, and domestic leaders are concentrated in the mid to low-end market. The world's die-casting machine manufacturing industry is mainly distributed in China, Japan, Switzerland, Italy, Germany, and the United States, with die-casting machine production accounting for over 90% of global production. Japan, Germany, Italy, and Switzerland account for 20% of global production and 50% of output value, occupying a dominant position in developed countries such as Europe and North America. The concentration of the domestic die-casting machine industry is relatively low, with the leading domestic enterprise Lijin Technology accounting for about 16% of the market size, Yizhimi accounting for about 6%, and Suzhou Sanji accounting for about 3%, mainly concentrated in the mid to low end market.

Low concentration of domestic die-casting machine market

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Data source: organized by the Prospective Industry Research Institute

The trend of automobile lightweight is obvious, driving the demand for die-casting machines to further increase

Driven by policies and energy conservation, the demand for weight reduction in automobiles is becoming increasingly strong. The application of lightweight alloys such as aluminum alloy, carbon fiber, and high-strength steel is an important way to achieve lightweight in automobiles. High strength steel and aluminum alloy castings generally require die-casting forming. It is expected that the increase in penetration rate of lightweight components will provide a large-scale incremental demand for die-casting machines.