As the global manufacturing industry faces a major turning point, the aluminum market—particularly the demand for die casting and foundry products in Asia—is being swept by an unprecedented wave of transformation. Requirements for “lightweighting” to achieve decarbonization, along with structural component changes driven by the shift to electric vehicles (EVs), are fundamentally overturning traditional procurement logic.
This article provides a thorough analysis of the Asian aluminum market over the next decade, from 2026 to 2035. Based on the latest statistical data, we clarify the transition of market scale, the rise of Southeast Asia—led by Vietnam—and the risks and opportunities facing Japanese manufacturers. For executives and procurement managers aiming to optimize overseas sourcing, this information serves as a compass for determining your next strategic move.
Explosive Growth of the Asian Aluminum Market Toward 2035
The Asia-Pacific region is already a dominant force, holding a share of approximately 49% to over 50% of the global aluminum casting market. Valued at approximately USD 95.93 billion (approx. 14 trillion JPY) in 2025, the global aluminum casting market is projected to reach USD 167.33 billion (approx. 25 trillion JPY) by 2035. The engines of this growth are China, India, and the ASEAN nations, centered around Vietnam.
The Impact of “Megacasting” Driven by the EV Shift
The automotive sector is particularly noteworthy. As of 2024, aluminum has come to account for approximately 25% of vehicle weight. Toward 2035, its share in body structures is expected to increase by 30%, and in engine (motor-related) components by 20%. Compared to conventional gasoline vehicles, EVs use approximately 30% more aluminum parts for battery housings and thermal management systems. Against this backdrop of demand, the Asian die-casting machinery market is also expected to expand to USD 14.07 billion by 2035, accelerating automation and the trend toward larger-scale manufacturing facilities.
The “China Plus One” Strategy and the Importance of Vietnam
Driven by the need to mitigate geopolitical risks and optimize costs, the relocation of manufacturing bases to Vietnam is accelerating. In fiscal year 2024, Vietnam’s manufacturing sector recorded a remarkable growth rate of 9.83%, serving as the primary driver of the overall economy. The concentration of electronics and automotive industries in the north is especially prominent. With the entry of global companies such as Samsung and LG, the need for local procurement of high-quality aluminum components is surging.
Key Data: Aluminum Market Statistics for Asia and Vietnam
- Global Aluminum Casting Market Size (2035 Projection): USD 167.33 Billion (Source: Precedence Research)
- Asia-Pacific Market Share (2025): Approx. 46%–50% (Source: Towards Chemical and Materials)
- Vietnam Aluminum Market CAGR (2026-2031): 10.96% (Source: GII / Mordor Intelligence)
- Vietnam’s Bauxite Reserves: Approx. 5.8 Billion Tons (One of the world’s largest) (Source: GII)
- Aluminum Scrap Reduction Rate via AI Utilization: 15%–20% (Source: Business Research Insights) Source: Aluminum Casting Market Size to Hit USD 167.33 Bn By 2035
Strengths of the “Vietnam Value Chain” for Procurement Managers
Vietnam has evolved from a mere “low-cost production base” into a “strategic value chain” that covers everything from upstream resource supply to downstream precision processing.
Overwhelming Resources and Government Support
Vietnam holds approximately 5.8 billion tons of bauxite (the raw material for aluminum), ranking among the highest in the world. Under “Decision No. 866,” the Vietnamese government has set a policy to approve 8 processing facilities and 19 exploration projects by 2030. This highlights Vietnam’s strength in having a stable raw material supply base, in stark contrast to Japan, where domestic smelting has ceased due to soaring energy prices.
Balancing Quality and Cost: Proliferation of IATF 16949
There are 858 suppliers in Vietnam that have obtained IATF 16949 certification, the quality management standard for the automotive industry. This is a very encouraging figure for procurement officers who demand Japan’s rigorous quality standards. Furthermore, Vietnam’s aluminum market size is expected to double from USD 4.67 billion in 2025 to USD 8.71 billion by 2031, promising further improvements in cost competitiveness through economies of scale.
Three Strategic Actions for Japanese Manufacturers
Over the next decade, Japanese management will be required to pursue “hybrid optimization” of domestic production and overseas procurement.
- Multi-sourcing of Procurement Japan’s secondary aluminum alloy market is projected to reach USD 24.1 billion by 2035, but energy cost constraints force a structure reliant on 100% imports for primary ingots. Shifting procurement to countries like Vietnam, which have relatively stable energy costs and a resource-rich background, serves as a medium-to-long-term risk hedge.
- Implementation of Quality Control via Digital Twins and AI Advanced factories in Asia have succeeded in reducing scrap rates by 15%–20% through AI-driven defect detection systems. In overseas procurement, selecting partners with such state-of-the-art equipment directly links to stable yields and cost reductions.
- Visualization of Environmental Impact (Carbon Footprint) In response to environmental regulations centered in Europe, the Asian aluminum industry is also rushing to adapt to “green building” and “circular packaging.” Increasing the utilization ratio of recycled aluminum (secondary alloys) will become a mandatory requirement for global trade in the 2030s.
Conclusion
Looking toward 2035, the Asian aluminum market will continue to expand at a Compound Annual Growth Rate (CAGR) of approximately 5%–7%, with Vietnam becoming a central hub with a growth rate exceeding 10%. Demand for lightweighting due to the EV shift and the stability of resource supply are factors that cannot be ignored in future procurement strategies. For Japanese manufacturers to maintain sustainable competitiveness, a transition from the traditional “domestic-complete” model to “globally optimized sourcing” that incorporates the dynamism of Asia is essential.
Daiwa Aluminum Vietnam anticipates these market changes and provides solutions that fuse Japanese quality standards with Vietnam’s cost and resource advantages. To build your supply chain for the next 10 years, why not start with a “health check” of your current procurement routes? We are here to support your company’s next stage of growth.