May 21, 2024

Foundry Services Market Propelled by Surging Demand from the Automotive Industry

Foundry services involve creating metal components by melting and pouring molten metal into molds to produce complex shapes that are otherwise difficult or impossible to achieve via other manufacturing processes. Foundry services are widely utilized across industries like automotive, industrial machinery, aerospace and defense, mining, transportation, construction, and oil and gas equipment due to advantages such as design flexibility, material versatility, and economic mass production.

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 foundry service market is expected to witness substantial growth over the forecast period owing to the surging demand from the global automotive industry. Modern vehicles utilize complex metal components produced via foundry processes across engine parts, transmission components, tools, gears, and other parts. Growing automotive production worldwide driven by factors such as rising disposable incomes and availability of financing options is thus fueling the need for foundry services. It is estimated that over 80 million vehicles will be produced annually by 2030, propelling the demand for metal casting and foundry services from automotive OEMs and part manufacturers globally.

SWOT Analysis
Strength: The foundry service market has a wide customer base across various industries like automotive, industrial machinery, and construction. This gives stability to the market.
Weakness: Foundry operation involves high initial and maintenance costs. It requires large investment in equipment and infrastructure. This limits the entry of new players.
Opportunity: Increasing demand for electric and hybrid vehicles is creating opportunities for aluminum and magnesium casting production. This will boost revenue generation.
Threats: Global economicuncertainties and trade war tensions pose threats in terms of volatility in demand and pricing pressure. Emergence of 3D printing also threatens the demand for metal casting.

Key players: 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. The market is consolidated in nature with the top players accounting for over 45% of the global revenue. Capacity expansion and new product development are some key strategies adopted by major companies to gain market share.

Regional analysis: Asia Pacific dominates the global market currently, driven by the large automotive manufacturing base in China, India, Japan, and South Korea. The region is estimated to continue its dominance, expanding at a CAGR of over 5% till 2030 on the back of rapid urbanization and economic development.

Key Takeaways
The global foundry services market is expected to witness high growth over the forecast period due to growing automotive production and investments in infrastructure projects worldwide. The automotive industry accounts for a major share currently, supported by the rising vehicle ownership in developing countries.

*Note:

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