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  • Published In : Dec 2023
  • Code : CMI5953
  • Pages :210
  • Formats :
      Excel and PDF
  • Industry : Semiconductors

The global foundry service market is estimated to witness a valuation of US$ 126.27 billion in 2023 and is anticipated to reach US$ 200.12 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.8% during the period from 2023 to 2030.

The growth of the foundry service market is primarily propelled by the escalating demand for metal castings across diverse end-use sectors, including automotive, aerospace, and electronics. Furthermore, the market is poised to benefit from the increasing adoption of advanced technologies like 3D printing and additive manufacturing within the foundry industry.

Despite encountering challenges such as rising raw material costs and the growing complexity of casting designs, the foundry service market is anticipated to expand in the forthcoming years, driven by the growing demand for metal castings in various end-use industries.

Foundry Service Market Regional Insights

In 2023, the foundry service market is expected to be dominated by the Asia Pacific region, capturing over 40% of the market share. This can be attributed to the presence of major foundry service providers in countries such as China, India, and Japan. China holds the position of the largest foundry service market globally, with a share of over 30%. India follows as the second-largest market, accounting for over 15% of the global market share, while Japan ranks third with a share of over 10%.

North America is projected to be the second-largest foundry service market in 2023, with a share of over 20%. This is primarily due to the presence of significant foundry service providers in the U.S. and Canada. The U.S. stands as the fourth-largest foundry service market globally, holding a share of over 5%. Canada follows as the sixth-largest market, contributing over 3% to the global market share.

Europe is anticipated to hold the position of the third-largest foundry service market in 2023, accounting for over 15% of the market share. This can be attributed to the presence of major foundry service providers in countries like Germany, Italy, and France. Germany ranks as the fifth-largest foundry service market globally, with a share of over 4%. Italy follows as the seventh-largest market, contributing over 3% to the global market share, while France holds the eighth-largest position with a share of over 2%.

Figure 1. Foundry Service Market Share (%), by Region, 2023


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Analyst Viewpoint:

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 Drivers:

  • Increasing Demand for Metal Castings: The growing demand for metal castings across various industries, such as automotive, aerospace, electronics, and construction, is a significant driver of the foundry service market. Metal castings are essential components used in a wide range of applications, driving the need for foundry services.
  • Industrialization and Infrastructure Development: Rapid industrialization, particularly in emerging economies, is driving the demand for foundry services. As countries invest in infrastructure projects, including transportation, energy, and construction, the need for metal castings and related foundry services increases. For Instance, Alcoa Corporation announced an additional power purchase agreement to support the future restart of the San Ciprián aluminum smelter in Spain. The agreement will provide power balancing services for the smelter load from 2024 to 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.
  • 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.

Foundry Service Market Opportunities:

  • Emerging Markets: Emerging economies present significant growth opportunities for the foundry service market. Countries experiencing industrialization, infrastructure development, and increasing manufacturing activities offer a potential customer base for foundry service providers. Expanding into these markets allows companies to tap into new demand and establish a strong presence.
  • Sustainable Practices: Growing environmental concerns and regulations create opportunities for foundry service providers to offer sustainable solutions. Implementing eco-friendly practices, such as using recycled materials, reducing energy consumption, and minimizing waste, can attract environmentally conscious customers and help differentiate companies in the market.
  • 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 Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 126.27 Bn
Historical Data for: 2017 to 2021 Forecast Period: 2023 - 2030
Forecast Period 2023 to 2030 CAGR: 6.8% 2030 Value Projection: US$ 200.12 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel,  South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • By Material Type: Ferrous Metals, Non-Ferrous Metals, Others
  • By Process Type: Sand Casting, Investment Casting, Die Casting, Permanent Mold Casting, Centrifugal Casting, Others
  • By End-Use Industry: Automotive, Aerospace and Defense, Electrical and Electronics, Machinery and Equipment, Construction, Energy and Power, Others
Companies covered:

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.

Growth Drivers:
  • Increasing Demand for Metal Castings
  • Industrialization and Infrastructure Development
  • Growth in Automotive and Aerospace Sectors
  • Globalization and International Trade
Restraints & Challenges:
  • Volatility in Raw Material Prices
  • Environmental Regulations
  • Skills Gap and Labor Shortage

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.
  • 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.
  • 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.

Foundry Service Market Restraints:

  • Volatility in Raw Material Prices: The foundry service industry heavily relies on raw materials such as metals and alloys. Fluctuations in the prices of these raw materials can significantly impact the profitability of foundry service providers. Sudden price increases or supply disruptions can create challenges in cost management and pricing competitiveness. Counterbalance, To manage the risks of raw-material volatility, companies can use an assessment framework to anticipate and prepare for future market disruptions. Companies can compile a set of risk indicators for their most critical raw materials and periodically assess these indicators to prioritize materials for closer monitoring and take appropriate actions to mitigate the risks of supply disruptions.
  • Environmental Regulations: Foundry operations are subject to increasingly stringent environmental regulations aimed at reducing emissions and minimizing environmental impact. Compliance with these regulations often requires investments in pollution control technologies and processes, which can increase costs for foundry service providers. Counterbalance, To solve the problem of environmental regulations in the foundry service market, foundries should employ Best Practice Environmental Management to ensure the long-term sustainability of the industry. They should also comply with the provisions of the Environment Protection Act 1993 and associated legislation.
  • Skills Gap and Labor Shortage: The foundry industry requires skilled labor with expertise in casting processes, mold making, and foundry equipment operation. However, there is a growing skills gap and labor shortage in many regions, making it challenging to find and retain qualified workers. This can lead to increased labor costs and potential productivity limitations. Counterbalance, To address the skills gap and labor shortage in the foundry service market, companies could consider implementing similar measures such as investing in training and development programs, collaborating with educational institutions, and leveraging technology to augment the workforce.

Recent Developments

Key Development

  • Ametek Specialty Metals launched its "3D Printed Metal Castings" service in May 2023. This service offers customers the ability to 3D print metal castings using a variety of materials, including steel, aluminum, and copper. AMETEK Metals is a leading manufacturer of metal powders, precision tubes, strip, foil, wire, shaped components & clad plate for Medical, Energy, Nuclear, Instrumentation and Measurement, Electronics, Aerospace, Defense, Automotive, Oil and gas, Drilling and Mining and Industrial.
  • 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 July 2021. GKN Additive is a digital manufacturer of metal AM parts and materials for prototypes, medium series and the aftermarket.
  • GKN Powder Metallurgy launched its "3D Metal Injection Molding" (3DIM) technology in April 2020. This technology is used to produce metal parts with complex geometries that are not possible to manufacture using traditional casting methods.

Key strategic Initiatives

  • In 2023, Hindustan Aeronautics Limited (HAL),  Saarloha Advanced Materials Pvt Ltd (Saarloha) & Bharat Forge Limited (BFL), signed MOU for collaboration in development and production of aerospace grade steel alloys.
  • In 2022, Primetals Technologies and Tata Steel partnered on green steel transition. Primetals Technologies and the India-based steel producer Tata Steel signed a Memorandum of Understanding (MOU) to intensify their collaboration on projects and technology related to green steel and decarbonization.

Figure 2. Global Foundry Service Market Share (%), By Material Type, 2023


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Top Companies in Foundry Service Market

  • 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.

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.

Frequently Asked Questions

The key factors hampering the growth of the foundry service market include fluctuating raw material prices, stringent environmental regulations, skilled labor shortage, intense competition, capital-intensive nature, technological barriers, economic downturns, volatility in global trade, and slow adoption of sustainable practices.

The major factors driving the growth of the foundry service market include increasing demand for metal castings across various industries, technological advancements in casting processes, growing industrialization and infrastructure development, expansion of automotive and aerospace sectors, and the rising adoption of additive manufacturing and 3D printing technologies.

The leading  segment in the foundry service market is Aerospace and Defense.

Some major players operating in the foundry service market include Nemak, Waupaca Foundry, Hitachi Metals, 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.

Asia Pacific is expected to lead the foundry service market. The region, particularly China and India, has a significant presence in the foundry industry due to the growth of manufacturing sectors and increasing demand for metal castings. However, market dynamics can change over time, and it's important to refer to the latest market reports for the most up-to-date information on regional leadership in the Foundry Service Market.

The CAGR of foundry service market is 6.8%.

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