The foundry service market involves casting of metals into desired shapes and sizes as per client requirements. This leads to mass production of components such as engine blocks, cylinder heads, transmission cases etc. for automotive and industrial applications. The foundry process helps reduce production costs and lead times significantly. With growing automotive sales globally, the demand for metal cast components is surging rapidly. This acts as a major growth driver for the foundry service industry.
The Global foundry service market is estimated to be valued at US$ 126.27 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the foundry service 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., Grupo Antolin-Irausa S.A.
Key opportunities in the market include developing innovative casting techniques and lightweighting of components for fuel efficiency. There is also a scope to expand into new application areas like renewable energy, construction and aerospace sectors.
With global automotive production on the rise, foundry players are looking to establish facilities overseas through acquisitions and joint ventures. This will help them gain proximity to client production bases and balance regional supply chains.
Market drivers
The major market driver is the growing demand from the automotive industry. Automakers are continuously ramping up vehicle production to meet consumer demand globally. This leads to increased outsourcing of casting needs to specialized foundry service providers. An estimated 87 million vehicles were produced in 2023, driving significant metal casting requirements. Other industrial sectors such as construction machinery, mining and agricultural equipment are also contributing to market growth. Stringent fuel efficiency norms are further pushing adoption of lightweight cast components.
PEST Analysis
Political: The foundry service market is influenced by government regulations on emissions from smelting and casting processes. Stringent laws to curb environmental pollution may impact operations of foundries.
Economic: Economic growth and automobile production drive demand for metal casting components. A slowdown in automotive and manufacturing sectors hampers the market. On the other hand, growth in machinery and equipment manufacturing supports foundry services.
Social: Rising living standards increase disposability income and drive automobile ownership. Growth in vehicle parc accelerates the demand for metal cast components from foundries. Additionally, changing lifestyles and consumer preference for durable and precision cast metal parts benefit the market.
Technological: Automation, digitization, and robotics in foundry processes have enhanced productivity and quality of castings. Advanced sand casting, die casting and 3D printing technologies allow complex designs and lighter weight components. Adoption of such technologies improve competencies and competitiveness of foundries.
North America is currently the largest foundry services market in terms of value. Abundant natural resources, advanced manufacturing capacities, and major automotive production hubs in the US and Canada drive high demand for metal casting services.
The Asia Pacific region is poised to be the fastest growing market for foundry services during the forecast period. Rapid industrialization and urbanization, coupled with expanding automobile production centers in China, India, Vietnam and other ASEAN countries are creating sustained opportunities. Growth in machinery, equipment manufacturing and infrastructure development projects throughout the region also support the metal casting industry.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
