February 22, 2024

Rapid automation technology adoption to drive the growth of the global Foundry Service Market

Foundry services involve sand casting, die casting and investment casting of metals like iron, steel, aluminium and magnesium alloy. They are used to produce complex parts for various end-use industries such as automotive, industrial machinery, construction, aerospace and defence. Foundry services offer benefits such as customization, high production volumes, intricate detail reproduction and geometric flexibility. With growing automation and manufacturing activities, foundry services play a vital role in metal fabrication.

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 key trends:
Rapid adoption of automation technologies such as 3D printing, robotics and Industrial Internet of Things (IIoT) is a major trend in the foundry services market. Automation helps improve productivity, reduce defects and minimize costs. Collection and analysis of production data through IIoT also allows operators to optimize processes. Another key trend is growing preference for aluminium casting over iron casting owing to aluminium’s lightweight and corrosion resistance properties. Aluminium foundries are increasingly used in automotive and aerospace industries to manufacture components and improve fuel efficiency. Emerging economies are also expanding their domestic foundry sector to fulfil rising manufacturing demands.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate due to the substantial capital investment needed and the presence of well-established players in the market.

Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of many foundry service providers as alternatives.

Bargaining power of suppliers: The bargaining power of suppliers is low due to abundant supply of raw materials available to foundry service providers.

Threat of new substitutes: The threat of new substitutes is low as the properties or use of metal castings is not easily replaceable.

Competitive rivalry: Intense due to the presence of well-established players.

Key Takeaways

The global Foundry Service Market is expected to witness high growth, exhibiting a CAGR of 6.8% over the forecast period, due to increasing automation and digitalization in the foundry service industry.

The Asia Pacific region dominated the foundry service market in 2023, accounting for around 40% of the global market share. This dominance is attributed to the large automotive and manufacturing industries in countries such as China and India. North America is expected to grow at a substantial rate during the forecast period due to recovering automotive industry in the US.

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 dominate the North American market while Hitachi Metals and Bharat Forge are the leaders in the Asia Pacific region.

*Note:

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