Foundry services produce metal castings by pouring molten metal into molds to create metal components. The foundry industry serves various industries including automotive, transportation, industrial machinery and construction equipment where metal castings are an essential part. Foundry services help manufacturers reduce costs by outsourcing the complex metal casting processes.
The global 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 produce precision metal castings using techniques like sand casting, die casting and investment casting. Producing metal castings through foundry services is more cost effective compared to fabricating metal parts through other metal forming processes like machining or forging.
Market key trends:
The growing demand for metal core in automotive, aerospace and defense industries is a major trend fueling the growth of the foundry service market. Metal core technology enables casting extremely complex geometries with high mechanical strength. It involves embedding a light metal or non metallic core inside a mold which is later melted out, leaving sophisticated internal cavities in the metal casting. This emerging technology is helping foundries cater to the complex needs of OEMs in aerospace, defense and heavy machinery sectors.
Segment Analysis
The global foundry service market is dominated by the iron castings sub-segment. It accounts for over 40% share of the overall market. This is due to the wide applications of iron castings in various end use industries such as automotive, construction, aerospace, railways, agriculture, and industrial machinery. Iron castings are used to manufacture manifolds, brake parts, cylinder heads, engine blocks, brake disks, transmission housing, and other components.
Key Takeaways
The global foundry service market is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand from the automotive industry.
Regional analysis: Asia Pacific dominates the global foundry service market with over 35% share, due to robust presence of foundries and automotive OEMs in China and India. These countries are the fastest growing market in the region.
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., Grupo Antolin-Irausa S.A. Nemak and Waupaca Foundry are the prominent players due to their wide service portfolio and global footprint.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it