The global foundry market is projected to witness a compound annual growth rate of 0.54% to grow to US$209.533 billion by 2026, from US$201.716 billion in 2019. The market is expected to surge in the coming years, due to the rising production of lightweight vehicles, intending to increase energy efficiency and tough emission regulations. According to the data given by the Census of World Casting Production report, global casting production was around 109.059 million metric tonnes in the year 2019. Countries, such as China, India, and the United States have been making a significant impact in the market. The report had also stated that China had produced around 48.75 million metric tons in the year 2019. India and the United States have produced 11.49 and 11.30 million metric tonnes in the same year. There had been around 45,377 foundries, worldwide, in the year 2019. The demand for materials produced in the foundries is likely to surge in the coming years, especially in the automotive and construction sector, worldwide.
The growth in the construction sector is also expected to play a major role in the market growth in the coming years. Countries, such as the United States, China, and India are expected to play a major role in the market growth. According to the Associated General Contractors of America, the construction industry creates around US$1.4 trillion worth of structures in the United States, per annum. Large and imperative construction equipment is produced in foundries. With the growth of mechanized operations in the foundry, the demand for high-quality construction equipment is expected to surge. Cast iron is one of the materials that is widely used in the construction sector, especially in buildings, and others. It is also used in the construction of fences, balconies, and others.
Significant demand by the automotive sector is expected to fuel the market of foundry during the forecasted period.
By application, the global foundry market is segmented into electronics, automotive, construction, and industrial machinery. The automotive sector is expected to hold a significant share of the market during the forecasted period. The market is expected to surge in the coming years, due to the rising demand for products and metals produced in the foundry in the automotive sector. With the rise in urban population and disposable income, the demand in the automotive sector is expected to surge. According to the data given by the International Organization of Motor Vehicle Manufacturers, around 91.7 million vehicles were produced in the year 2019.
The rising demand for electric vehicles is also expected to play a major role in the market growth. According to the International Energy Agency, around 2.1 million electric cars were sold in the year 2019. The demand for copper and aluminum in cars is expected to surge at an exponential rate in the coming years. According to the Aluminium Association, one of the major advantages of aluminum in cars is its high recycling rate. Around 90% of the aluminum is recycled after the vehicle’s battery life. Copper is also widely used in the automotive sector. The material has been providing high-thermal conductivity, excellent corrosion resistance, and good bearing properties. Major automotive players, such as Aston Martin, Porsche, and Audi have been using copper material for good corrosion resistance. The World Foundry Organization had stated that around 17.20 and 1.89 million metric tonnes of aluminum and copper were produced in the year 2019. Major companies have been making significant developments in the market. For instance, Tesla Inc. had developed and published a patent detailing the applications of aluminum alloys produced by the company for its novel electric cars. The company had stated that their novel alloy has been ductile and tough, and doesn’t require further processing, which would allow them to save and enhance its production costs.
The COVID-19 pandemic impacted the foundry market negatively as the demand from the end-use industries declined in 2020. The lockdown and strict COVID-19 measures led to the shutting down of the manufacturing facilities of automobiles and other end-use industries. Also, a halt in the construction activities further led to a decreased demand. To spread the curb of the coronavirus, a limited number of people were allowed to gather at a particular place, which led to a shortage of laborers even after the lifting of the lockdown.
Moreover, the travel restrictions around the world led to supply chain disruptions in electronics, automobiles, construction, among other industries, which further broke the back of the market amid the pandemic situation. Thus, the projection for the foundry market in the COVID-19 scenario is significantly revised downwards. Major players such as Hitachi Metals witnessed a decline in their revenues in the year 2020. For instance, the revenue of the company totaled 881,402 JPY million in the financial year 2019-20, while the revenue for the financial year 2020-21 totaled 761,615 JPY million, witnessing a market decline of 13.59%. Overall, the largest factor for the decline of the foundry market was the decreased demand for metals in automobiles and the building & construction industry due to the halt of construction activities during the pandemic.
|Market size value in 2019||US$201.716 billion|
|Market size value in 2026||US$209.533 billion|
|Growth Rate||CAGR of 0.54% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Georg Fischer, Alcoa, Hitachi Metals, Bharat Forge, Precision Castparts, Crescent Foundry Pvt Ltd., Seco Industries s.r.o., Grand Foundry Ltd., Liaoning Borui Machinery Co., Ltd (Dandong Foundry), Nelcast Ltd.|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the foundry market size by 2026?
A1. The global foundry market is projected to reach a market size of US$209.533 billion in 2026.
Q2. What is the size of the global foundry market?
A2. Foundry Market was valued at US$201.716 billion in 2019.
Q3. What are the growth prospects for the foundry market?
A3. The foundry market is projected to grow at a CAGR of 0.54% over the forecast period.
Q4. How is the global foundry market segmented?
A4. The global foundry market has been segmented by product, application, and geography.
Q5. What factors are anticipated to drive the foundry market growth?
A5. The foundry market is expected to surge in the coming years, due to the rising production of lightweight vehicles, intending to increase energy efficiency and tough emission regulations.