Foundry Service Market Analysis & Forecast: 2025-2032

Foundry Service Market Size and Forecast – 2025-2032

Foundry Service Market is estimated to be valued at USD 144.03 Bn in 2025 and is expected to reach USD 228.27 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032. The Foundry Service Market Size boosts the demand for high performance computing (HPC), 5G, and artificial intelligence AI-driven sophisticated semiconductor chips.

Key Takeaways

• Based on Material Type, The Ferrous Metals Segment is expected to contribute 60% share of the Foundry Service market in 2025. This is due to their etensive use in major industries such as automotive, construction, and heavy machinery.
• Based on Process Type, Sand Casting Division is expected to hold major share in the global Foundry Service market in 2025. This is due to its versatility, cost-effectiveness, and ability to handle a broad range of part sizes, shapes, and metals which includes both ferrous and non-ferrous materials.
• Based on End-Use Industry, The Automotive Segment dominates the Foundry Service Market in 2025 as this leadship is driven by the extension demand for metal casting in the production of automotive components such as engine blocks, transmission parts, and structural elements.  
• Based on region, Asia Pacific region dominates the Foundry Service Market, accounting for larger share of the market as of 2025. It is is driven by strong manufacturing growth in countries like China, India, apan, ehich have expensive automotive, aerospace, and industrial sectors fueling demand for foundry services.  
• Based on region, North America holds second largest share accounting for 20% as there is well established surf culture and infrastructure as well as year-round favourable surf conditions.

Market Overview

The increasing need for metal castings across a variety of end use industries such as electronics, automotive, and aerospace, is the main driver of the foundry services market’s expansion. Additionally, the market stands to gain from the growing use of cutting edge technologies in the foundry sector such as additive manufacturing and 3D printing.  

Despite challenges such as rising raw material costs and the complexity of casting designs, the market for foundry services is anticipated to grow in the future years due to the growing demand for metal castings across a varirty of end use industries.  

For instance, in April 2025, Automotive supplier Handtmann has announced the production of further components for vehicle manufacturing using the aluminum die casting process. At the Biberach site in Baden-Württemberg, the so-called megacasting will be expanded after its successful start in the fall of 2024. 

Current Events and Its Impact on the Foundry Service Market

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Segmental Analysis

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Foundry Service Market Insights by Material Type: Strong Demand for Ferrous Metal Castings in Core Industrial Sectors

In terms of Material Type, the leading segment is ferrous metals which is expected to contribute 60% share of the Foundry Service market trends in 2025 because it primarily includes iron and steel which are melted and cast into various shapes for industrial applications. Ferrous metal foundries are companies engaged in pouring molten iron and steel into molds to produce casting used sectors like automotive, construction, machinery, and infratsructure.  

Companies that pour molten iron and steel into molds to create casting for use in industries which are known for ferrous metal foundries. The market is anticipated to continue to grow significantly particularly for applications where iron and steel’s strength durability, and affordability are crucial.   

Foundry Service Market Insights by Process Type: Versatility and Cost-Effectiveness of Sand Casting Process Fuels Growth

In terms of Process Type, the sand casting is a leading segment that is expected to contribute major share than die casting segment of the Foundry Service Market Analysis in 2025 as is a traditional and widely used metal casting process where molten metal is p oured into a sand mold to form complex metal parts. It is valued for its versatility, cost-effectiveness, and ability to produce components of various sizes and geometries, from small automotive parts to large machinery housings.  

For instance, in March 2025, Magellan Aerospace Corporation (Magellan) announced the signing of a memorandum of understanding (MOU) with Aequs Private Limited (Aequs) to explore the development of a business plan for setting up a 50/50 jointly-owned aerospace sand casting facility situated at the Belagavi Aerospace Cluster (BAC) in Karnataka.

More than 55% of sand casting applications worldwide use green sand, a mixture of sand, clay, and water, because it is affordable and recyclable. Since sand casting are used with non-ferrous materials like brass, brozen, and aluminum as well as ferrous materials like steel and cast iron, it is suitable for a variety of industries. Sand casting is still an essential part of the foundry services sector because of its adaptability, affordability, and ability to meet the shifting needs of numerous industries worldwide.

Foundry Service Market Insights by End-Use Industry: Automotive Industry Demand Accelerates Foundry Service Market Growth

In terms of End-Use Industry, the automotive is considered as leading segment as is expected to occupy high share of the Foundry Service market in 2025 due to the fact that it is a key global end user of foundry services, which significantly increases demand for semiconductor components and metal castings. Essential metal components such as engine blocks, transmission housings chassis parts, and increasingly sophisticated semiconductor chips for automotive electronics, safety systems, and electrification are supplied by foundries. In order to meet the growing demand for foundry services, increase efficiency, and reduce power consumption all of which boost profit margins and production rates where automotive foundries are investing in new technology and equipment.

For instance, in India, rapid growth in automobile manufacturing is a primary factor boosting foundry market expansion. The country produced nearly 26 million vehicles in 2023, with strong year-over-year growth in both production and sales. This surge increases the demand for auto parts and, consequently, metal castings from foundries.

AI in the Foundry Service Market

The market price of foundry services is expected to rise significantly in 2025, mostly as a result of the growing demand for sophisticated semiconductornodes and AI chips. Near-full utilization of cutting-edge foundry capacity is being focused by AI-driven applications like generative AI, massive language models, and edge computing, particularly at market TSMC.    

Price rises for advnaced node foundry services are being driven by the robust demand for AI hardware. Given the limited availability, customers are prepared to pay higher rates in order to assure wafer allocation and have access to stste-of-art technology. The demand for AI is driving significant price for adnaced nodes and packaging in the foundry services market in 2025, while supply demand imbalances and a delayed recovery in traditional sectors continue to put pressure on the pricing of established nodes.   

Global Foundry Service Market Regional Analysis

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North America Foundry Service Market

North America is epected to be the second largest region as it drives major Foundry Service Market Trends. This growth is fueled by strong demand for advanced semiconductor chips in automotive, consumer electronics, telecommunications, and high-performance computing sectors. AI-driven chip development and next generation consumer electronics are growth areas, prompting foundries to secure long term contracts with fabless companies and expand advanced node production.   

For instance, in February 2024, Intel Foundry launches as the world’s first systems foundry for the AI era, delivering leadership in technology, resiliency and sustainability. Intel Foundry unveils new roadmap featuring Intel 14A process technology, specialized node evolutions and new Intel Foundry Advanced System Assembly and Test (ASAT) capabilities to help customers realize their AI ambitions. 

Asia Pacific  Foundry Service Market

Asia Pacific is the dominant region in the global foundry service and semiconductor foundry market which accounts for the largest share worldwide. Taiwan, South Korea, and China are the primary manufacturing hubs, home to industry giants like TSMC, Samsung Foundry, and SMIC. The region is seeing significant new investments like TSMC’s new fabrication plants and expansion projects in Taiwan, Japan, and other countries.  

For instance, in June 2024, HCLTech, a leading global technology company, announced the launch of HCLTech Enterprise AI Foundry to simplify and scale enterprise AI journeys. The integrated suite of assets combines data engineering and AI with cognitive infrastructure to accelerate Generative AI (GenAI)-led transformation across business value chains.

Foundry Service Market In Europe

The market for foundry services in Europe is epanding rapidly because to increased demand from the consumer electronics, automotive, industrial automation, and telecommunications sectors. One of the significant driver is the move to electric and driverless cars, which raises need for sophisticated CPUs, power electronics and battery management systems. The need for mature node semiconductors, which power robots, sensors, and control systems, is being driven by Europe’s well establihsed industrial base’s continued investments in automation.  

Foundry Service Market Dominating Countries

U.S Foundry Service Market

The market for foundry services in the U.S. is expanding rapidly due to the growing need for sophisticated semiconductor chips in the fields of artificial intelligence, automotive, consumer electronics, data centers, and telecommunications. In order to focus on design and innovation while utilizing outside manufacturing knowledge, U.S. corporations are increasingly outsourcing chip fabrication to specialist foundries.     

India Foundry Service Market

Major schemes like the Production Linked Incentive PLI), Design Linked Incentive (DLI), and the India Semiconductor Mission (ISM) are fueling investments and local manufacturing. The government has approved five maor semiconductor manufacturing projects, which includes a fabrication facility and four ATMP/OSAT plants which a cumulative investment of around INR 1.52 lakh crore. India is attracting significant FDI with global players like Tower Semiconductor, NXP, and Lam Research committing billions to domestic proects. This is strenghening India’s position in the global supply chain and supporting technologytransfer and R&D.

Foundry Service Market In China

Over 15,700 new chip related businesses were registered in China in early 2024, demonstrating the country’s vigorous attempts to create an independent semiconductor ecosystem. In 2025, the foundry services market in China is expected to grow rapidly, see significant technological advancements and strategically strive for self sufficiency. Despite obstacles from export restriction and overcapacity, the industry is expected to continue to be a maor force in the world because to government backing, quick innovation, and growing demand for sophisticated chips in a variety of sectors. 

Government Regulations

• Model Rules under the Factories Act: These rules provide detailed guidelines on safety protocols which includes the appointment of qualified safety officers, conducting risk assessments, and implementing emergency response plans.
• Occupational Safety, Health and Working Conditions Code, 2020: This code consolidates several labor laws which includes the Factories Act, 1948, and sets standards for workplace safety, health, and welfare. It also mandates provisions for cleanliness, ventilation, waste disposal, and safety measures in hazardous processes.
• Environment Protection Act, 1986: This act empowers the Central Government to establish standards for emissions and effluents, regulate industrial locations, and manage hazardous substances.

Foundry Service Market: Key Developments

• March 2025, Foundry, a bold new creative agency has officially launched, bringing together the talents of industry veterans Gabi Revell and Jarryd Haefele. With a combined experience of over 22 years in the creative and media industries, Foundry is set to redefine branding and design with a fresh, innovative approach.
• February 2025, SkyWater Technology has entered into an agreement with Infineon Technologies AG for SkyWater to purchase Infineon’s 200 mm fab in Austin, Texas (“Fab 25”) and a corresponding long-term supply agreement. SkyWater will operate the fab as a foundry, increasing available capacity in the U.S. for foundational chips on nodes from 130 nanometers down to 65 nanometers that are critical for many industrial, automotive and defense applications.
• October 2024, SK keyfoundry, an 8-inch pure-play foundry in Korea, announced today that it has expanded and enhanced its high-voltage foundry services portfolio with the launch of HVIC (High Voltage Integrated Circuit) process technologies. SK keyfoundry's HVIC process is characterized by implementing 5V logic, 25V high-voltage devices, 650V+ nLDMOS (Lateral Double diffused MOS), and 650V+ Bootstrap diode in one process, enabling customers to reduce external devices and design various high-voltage functions on a single chip, and is expected to contribute to improving customer product competitiveness by securing high current performance in the case of the 25V high-voltage devices and 650V nLDMOS devices included.
• November 2024, HCL Technologies Ltd. has launched its Enterprise AI Foundry on Microsoft Azure to help enterprises combine their data and artificial intelligence assets with Microsoft's Azure Data and AI services and drive generative AI adoption. The AI Foundry aims to streamline operations, enable decision-making, accelerate time-to-value, and drive positive business outcomes, HCLTech said in a press release.

Market Report Scope

Foundry Service Market: Growth Drivers

• Increasing Demand for Metal Castings: The market for foundry services is mostly driven by the rising need for metal castings in a variety of industries, which includes construction, electronics, automotive, and aerospace. The demand for foundry services is driven by the necessity of metal castings which are crucial parts utilized in many different applications.
  • For instance, in April 2025, Casting Source is proud to announce the winners of the 2025 Casting Source Casting of the Year competition, honoring exceptional innovation, creativity, and craftsmanship in the metalcasting industry. This annual celebration recognizes the art and science of metalcasting, showcasing castings that exemplify advanced engineering, design, and manufacturing expertise.
• Industrialization and Infrastructure Development: Foundry services are becoming more and more in demand due to rapid industrialization, especially in emerging economies. The need for metal castings and associated foundry services rises as nations make investments in infrastructure projects such as those involving energy, transportation, and building.
  • For instance, Alcoa Corporatio, for example, announced a new power purchase deal to help restart the aluminum smelter at San Ciprian Spain. Power balancing services for smelter load will be provided under the agreement from 2024 until at least 2030.
• Growth in Automotive and Aerospace Sectors: The automotive and aerospace industries are major consumers of metal castings. The increasing production of automobiles, aircraft, and related components fuels the demand for foundry services.
  • For instance, in February 2025, Honeywell and ForwardEdge ASIC LLC, a Lockheed Martin Corporation subsidiary, announced the launch of a strategic collaboration to develop high-reliability space microelectronics. As the semiconductor foundry of choice, Honeywell will support ForwardEdge ASIC’s pursuit of developing innovative solutions for space applications, such as satellites.
• Globalization and International Trade: The globalization of industries and international trade have contributed to the expansion of the foundry service market. The need for metal castings and foundry services in different regions drives cross-border collaborations and market growth.
  • For instance, in October 2024, The foundry industry, essential in the production of critical components for various sectors such as automotive, construction, energy, and many others, is undergoing a crucial phase of growth and transformation. Fundiexpo, as the largest foundry trade fair in Latin America, has witnessed the changes and has evolved to stay at the forefront. In 2024, Fundiexpo is partnering with GIFA, the leading international fair for foundry technology, to create a global benchmark event that promises to mark a turning point in the industry.

Foundry Service Market: Opportunities

• Emerging Markets:The market for foundry services has a lot of room to grow in emerging markets. A prospective client base for foundry service providers is provided by nations that are industrializaing, developing their infrastruture, and seeing an increase in manufacturing activity. By entering these sectors businesses can create a strong presence and meet new demand.
• Sustainable Practices: As environmental rules and concerns grow, foundry service providers have the chance to deliver sustainable solutions. Employing eco-friendly strategies which includes using recycled materials, cutting back on energy use, and limiting waste can help businesses stand out in the marketplace and draw in eco-aware clients.
• Diversification of Product Portfolio:Expanding the range of services and products offered can help foundry service providers cater to diverse customer needs. This can include offering additional value-added services such as machining, surface treatment, and assembly. Diversifying the product portfolio allows companies to capture a larger share of the market and serve as a one-stop solution provider.
  • For Instance, AMETEK Specialty Metal Products (SMP) will exhibit its range of medical-grade materials at MD&M Minneapolis from 2-3 November 2022.Experts from AMETEK SMP   present a range of specialized custom metal products for critical medical device and orthopedic applications including Small diameter tubes, Precision strip and ultra-thin, Shaped wire and Sintered porous filter powders.
• Research and Development:Investing in research and development activities enables foundry service providers to innovate and develop new processes, materials, and technologies. Developing advanced casting techniques, exploring new alloys, and optimizing production methods can lead to improved product quality, reduced costs, and increased market competitiveness.

Foundry Service Market: Trends

• Adoption of Digitalization and Industry 4.0:The foundry service industry is increasingly embracing digitalization and Industry 4.0 technologies. This includes the use of advanced simulation software, digital twin technology, IoT (Internet of Things) connectivity, and data analytics. These technologies improve process efficiency, enable predictive maintenance, optimize production planning, and enhance overall operational performance.
  • For instance, in January 2024, Sumitomo Precision Products Co., Ltd. (SPP), a leading manufacturer of high-precision industrial products, has broadened its role in the microelectromechanical systems (MEMS) manufacturing ecosystem with the launch of MEMS Infinity, a 150mm and 200mm wafer foundry that meets growing customer demand for concept design and evaluation all the way through prototyping and mass production.
• Sustainable and Green Foundry Practices: There is a growing emphasis on sustainable and environmentally friendly foundry practices. Foundry service providers are adopting cleaner production methods, reducing emissions, optimizing energy consumption, and implementing recycling and waste reduction initiatives. Green foundries that prioritize sustainability are gaining recognition and attracting environmentally conscious customers.
  • For instance, in February 2024, Finance Minister of India has announced a groundbreaking scheme aimed at advancing eco-friendly alternatives through bio-manufacturing and bio-foundry. By fostering bio-manufacturing and bio-foundry practices, the government aims to contribute to a more sustainable and ecologically responsible industrial landscape.
• Additive Manufacturing and 3D Printing: Additive manufacturing, including 3D printing, is transforming the foundry service market. It offers new design possibilities, faster prototyping, and the ability to create complex geometries with fewer material constraints. Foundry service providers are incorporating additive manufacturing techniques to produce prototypes, tooling, and even end-use metal components.
  • For Instance, Gkn additive develops 3d printing process for low alloy dual-phase steels developed metal powder materials (dpla) and (Free Sintering Low Alloy) fsla for automotive and industrial applications on 1 July 2021
• Customization and On-Demand Manufacturing:There is an increasing demand for customized products and on-demand manufacturing in various industries. Foundry service providers are adapting to this trend by offering flexible production capabilities and shorter lead times. The ability to provide tailored solutions to individual customer requirements is becoming a competitive advantage.  

Analyst Opinion

• The foundry service market is expected to witness steady growth over the next five years. Increased outsourcing of metal casting by Original equipment manufacturer (OEMs) to specialized foundry players is a key driver as it allows OEMs to focus on design and assembly. The adoption of 3D printing for pattern-making and specialized alloys is expected to boost demand. However, stringent environmental regulations around emissions and disposal of hazardous waste pose a challenge.
• North America currently dominates the market owing to the presence of major automobile manufacturers. However, Asia Pacific is likely to be the fastest-growing region supported by rising automotive production in China and India along with expanding industrial infrastructure. Foundries catering to precision casting for aerospace components and medical devices can benefit from increased outsourcing from those industries.
• The adoption of Industry 4.0 technologies such as Internet of Things (IoT), Artificial intelligence (AI) and additive manufacturing provides opportunities for foundries to improve productivity and quality and deliver just-in-time services. Partnering with technology companies allows foundries to offer value-added services such as customization, design optimization, and reduced prototyping cycles. Consolidation among foundries is expected to continue as large players look to enhance capabilities and footprint.

Foundry Service Market: Key Companies

Major 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., Grupo Antolin-Irausa S.A.

Market Segmentation:

• Foundry Service Market, By Material Type :
  • Ferrous Metals (e.g., iron, steel)
  • Non-Ferrous Metals (e.g., aluminum, copper, brass)
• Foundry Service Market, By Process Type::
  • Sand Casting
  • Investment Casting
  • Die Casting
  • Permanent Mold Casting
  • Centrifugal Casting
  • Others (e.g., Shell Molding, Lost Foam Casting)
• Foundry Service Market, By End-Use Industry :
  • Automotive
  • Aerospace and Defense
  • Electrical and Electronics
  • Machinery and Equipment
  • Construction
  • Energy and Power
  • Others
• Foundry Service Market, By Region:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa
• Company Profiles:
  • 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.

Sources

Primary Research interviews:

• Foundry Executive, Fables Semiconductor Companies, Equipment and Material Suppliers, Government and Regulatory Bodies, Industry Analysts and consultants.

Databases:

• IDC Semiconductors Research

Magazines:

• Foundry-Planet, Foundry Management & Technology, Metalworking World Magazine, Semiconductor Digest, Yole Group.

Journals:

• The Institute of Indian Foundrymen, Foundry Trade Journal, PAS Journals.

Newspapers:

• TrendForce, Counterpoint Research.

Associations:

• European Semiconductor Industry Association (ESIA), Korea Semiconductor Industry Association (KSIA), Taiwan Semiconductor Industry Association (TSIA), Indi Electronics and Semiconductor Association (IESA).

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years

*Definition: Foundry service refers to the provision of manufacturing services for metal castings. It involves the process of creating complex metal parts by pouring molten metal into molds and allowing it to solidify. Foundry service providers offer expertise in various casting processes, such as sand casting, investment casting, and die casting, to produce components according to customer specifications. Foundry services encompass activities like mold design and production, material selection, casting production, quality control, and finishing operations. The foundry service industry plays a crucial role in supplying metal components for a wide range of applications across industries such as automotive, aerospace, machinery, and construction.