The Foundry Service Market Is Estimated To Witness High Growth Owing To Increasing Automotive Production
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 service refers to the process of melting and pouring molten metal into molds or casts to manufacture metal components. It involves designing and preparing molds and casts, melting metal scrap and alloying elements, pouring and solidifying liquid metal into molds, shakeout and knockout of castings, cleaning casting surfaces, inspection and shipping. Major products include engine parts, transmission components, steering components, suspension components amongst others. Foundries provide customized solutions and precision casting.
Market Dynamics:
Increasing automotive production globally is a major driver for foundry service market. Automotive industry relies heavily on casting components due to its durability, design flexibility and lower production cost compared to other metal forming processes. Some key engine and drivetrain components manufactured through casting include engine blocks, cylinder heads, transmission casings, crankcases etc. Moreover, foundry service providers are focusing on development of lightweight casting solutions through adoption of aluminum and magnesium alloys to enhance fuel-efficiency and comply with stricter emission regulations. In addition, growing infrastructure development activities are also fueling demand for construction equipment and machinery components provided through foundry services. However, volatility in raw material prices pose a challenge.
SWOT Analysis
Strength: The foundry service market provides opportunities for automation and digitization which enhances productivity and quality. The market players have vast experience and technical expertise to cater complex needs of various industries. Increased R&D further helps foundries to deliver innovative and customized solutions.
Weakness: High initial investments and maintenance costs associated with foundry equipment poses major challenges. Volatile raw material prices and shortage of skilled labor further increases operational challenges.
Opportunity: Growing application of metal castings across automotive, industrial machinery and construction sectors boost the demand for foundry services. Expanding metal fabrication industry also offers new growth prospects.
Threats: Substitution threat from other material like plastics and composites poses challenges. stringent government regulations regarding emission control and environment protection increases compliance costs.
Key Takeaways:
The Global Foundry Service Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand from automotive industry. Growing automotive production supported by recovery in vehicle sales across the regions is driving the growth of the market.
The Asia Pacific region dominated the Foundry Service Market in 2021 with a share of over 40%, owing to strong presence of foundry industries in China and India. China is the largest consumer of foundry services, accounting for over 30% of global demand. North America and Europe are other major markets for foundry services supported by strong presence of automotive and machinery manufacturers.
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 market is highly competitive with major players focusing on technical expertise, automated production and expanding presence across regions.
Read More - https://www.insightprobing.com/foundry-service-market-share-size-and-growth-analysis-demand-forecast/