July 17, 2024
Foundry Service Market

The Increase In Electric Vehicles To Open New Avenues For The Foundry Service Market

The Foundry Service 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 Overview:

Foundry services involve the industrial process of casting metals or plastics to produce parts. These foundry services are widely utilized in many industries such as automotive, industrial machinery, aerospace, mining and construction equipment to produce components. The key products produced using foundry services include engine blocks, brake rotor & drums, gearboxes, cylinder heads, engine beds and other structural parts. Foundries offer a wide range of materials that can be cast including aluminum, cast iron, magnesium, zinc and bronze.

Market Dynamics:

The increasing demand for electric vehicles is one of the major drivers for the Foundry Service Market. Electric vehicles require more sophisticated engine components compared to conventional vehicles which is driving the demand for high-quality complex components produced using foundry services. The strict emission regulations to curb pollution is also accelerating the adoption of electric vehicles. Furthermore, growth in the construction and infrastructure sector is boosting the demand for construction machinery, mining equipment and heavy trucks which utilize foundry components extensively is another factor supporting the market growth. High engineering complexities in the aerospace components also necessitate the application of foundry casting technologies to manufacture parts.

Segment Analysis

The global Foundry Service market is dominated by the iron and steel foundry segment, which accounts for nearly 60% of the market share. Iron and steel foundries are involved in casting iron and steel parts in variety of shapes and sizes as per customer specifications which are then used across various end use industries like automotive, construction, aerospace, agriculture and other machinery manufacturing. The iron and steel casting segment is dominating due to the widespread application of cast iron and steel components across different industries.

PEST Analysis

Political: The government support for infrastructure development and smart city projects across major economies is driving the demand for casted components from foundries. Economic: The growing industrialization and urbanization is positively impacting the growth of end use industries like automotive, construction and machinery manufacturing which in turn is fuelling the global foundry service market. Social: Rising disposable incomes and expanding middle class population is increasing sales of automobiles and consumer goods thereby augmenting the market. Technological: Foundries are investing in automatic casting machines, 3D printing innovations and robotics to improve production efficiency and quality of casted components.

Key Takeaways

The Global Foundry Service Market Growth is expected to witness high, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand from the automotive industry. The automotive sector is the largest end user of casted iron and steel components used in engines, transmission systems, steering and other structural parts.

Regional analysis: Asia Pacific dominates the global foundry market and is estimated to grow at the fastest rate during the forecast period. The presence of countries like China, India and Japan which are emerging as global automotive hubs is driving the APAC foundry industry.

Key players analysis: 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., Grupo Antolin-Irausa S.A. The prominent players are focusing on capacity expansion and mergers & acquisitions to consolidate their position.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it