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.
Foundry services involve manufacturing components and parts by pouring molten metal into molds to attain desired shapes and sizes. This helps produce metal components across various industries including automotive, aerospace, mining and construction equipment. The molten metal used can be cast iron, steel, aluminum, magnesium or zinc and their alloys.
Market key trends:
One of the key trends in the foundry services market is the growing adoption of 3D printing for pattern making. 3D printed patterns and cores are revolutionizing the casting process by reducing lead time, material wastage and prototyping cost. This has made the overall casting production more sustainable and efficient. Another trend is the increasing automation in foundries to enhance productivity, minimize human errors and improve yield rates. Foundries are also focusing on reducing energy consumption through process optimization, material recovery and implementing renewable energy sources to lower production costs and carbon footprint.
The foundry service market has been witnessing increased adoption of 3D printing technology and IoT integration in the manufacturing process. 3D printing allows manufacturers to produce complex components with minimal error and wastage of resources. IoT integration helps foundries gain real-time visibility of the production floor and optimize operations. The use of robotics is another trend gaining traction in the foundry space to improve production efficiency and minimize human errors and accidents at work.
Strength: Precision and complexity of parts that can be produced through sand casting and die casting processes. Foundries have expertise and economies of scale.
Weakness: High initial setup and tooling costs. Market dependent on automotive and manufacturing industries so vulnerable to economic cycles.
Opportunity: Growth in electric vehicles and usage of aluminum alloys instead of iron creates opportunity. Adoption of Industry 4.0 technologies can improve productivity.
Threats: Increased globalization increases competitive pressure. Strict environmental norms increase compliance costs.
The Global Foundry Service Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing vehicle production across the world. Asia Pacific dominates the market currently accounting for over 40% share driven by china, India and other ASEAN countries.
Regional analysis: North America and Europe are other major markets for foundry services driven by manufacturing and automotive industries in countries like US, Germany, and UK. Emerging economies in Asia Pacific and Latin America are expected to grow at over 8% CAGR during the forecast period with growth in industrialization.
Key players operating in the foundry service market include 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. Strategic partnerships and mergers with automotive OEMs are followed by major players to gain higher access and market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it