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The foundry service involves producing metal cast components using precision sand casting, die casting, and metal injection molding techniques among others. Foundry services ensure high quality and complex metal parts used across various industries including automotive, aerospace & defense, mining & construction, and industrial machinery. The growing infrastructure development and requirement of heavy machinery have boosted the demand for foundry components.
The global foundry services market is estimated to be valued at US$ 126.27 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for foundry components from the automotive industry is one of the key factors driving the growth of the foundry service market. Automotive manufacturers require high precision metal components and parts for engines, transmissions, chassis, and other components. Foundries offer complex designs and shapes using advanced casting techniques meeting stringent quality standards of the automotive industry. Furthermore, the trend towards lightweight vehicles to improve fuel efficiency has increased the usage of aluminum and magnesium alloy castings instead of conventional cast iron. Foundry service providers adapting innovative techniques like 3D printing for prototype development and manufacturing of complex metal parts will support the increasing demand of the automotive industry.
Key players operating in the foundry service market are Nemak, Waupaca Foundry, Inc., Hitachi Metals, Ltd., Bharat Forge Limited, Alcoa Corporation, Thyssenkrupp AG, General Motors Company, Castings PLC, Metal Technologies, Inc., AAM Casting, Grede Holdings LLC, CIE Automotive, Precision Castparts Corp., Reliance Foundry Co. Ltd., and Grupo Antolin-Irausa S.A. General Motors Company and other automakers are leading consumers of ferrous casting from foundries to manufacture engines and drivetrain components for vehicles. Thyssenkrupp AG and other foundry players have been focusing on expanding their non-ferrous alloy casting capabilities to capitalize on opportunities in the electric vehicles market.
Regional analysis: Asia Pacific region currently dominates the foundry service market with over 45% share and is expected to witness the fastest growth during the forecast period. China, India, and Japan are the major countries contributing to the region’s large market share. The presence of a strong automotive base and machine manufacturing industry has been making Asia Pacific an attractive market for foundry service providers.
Segment Analysis
The foundry service market can be categorized into ferrous and non-ferrous casting. The ferrous casting segment currently dominates the market and accounts for over 60% share. Ferrous casting involves aluminum and cast iron casting for various automotive components and machine parts manufacturing. The consistent growth in the automotive industry is driving the demand for cast aluminum and cast iron parts, making ferrous casting the largest segment.
Key Takeaways
The global foundry services market is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing demand from the automotive industry.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
