February 17, 2025
Ict

Foundry Services Market Driving by Surging Usage in the Automotive and Transportation Industries

Foundry services provide design and manufacturing of metal castings for various industrial applications. Foundries produce metal castings using molding processes involving preparing of patterns, cores and molds and pouring of molten metal into the molds before removing extraneous flash, risers and gates in machining processes. Common foundry products include aluminum, stainless steel, carbon steel, brass, bronze and nonferrous metal castings used in industries such as automotive, transportation, mining, construction, agriculture and pipe fittings.

The global foundry services 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:

One of the key trends in the foundry services market is the adoption of 3D printing for pattern making. 3D printing has facilitated complex, near-net shape patterns and cores that were hitherto difficult to produce using traditional sand casting processes. 3D printed patterns help improve casting accuracy and reduce machining requirements post-casting. Another trend is the shift toward aluminum and magnesium casting alloys to reduce vehicle weight and meet stringent emission norms. Lightweighting is a major focal area for automotive OEMs and foundries are developing new customized aluminum alloys with improved strength-to-weight ratios to support this transition.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the foundry service market is moderate. New players need to invest heavily in setting up production facilities, technologically advanced equipment and infrastructure. Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers source from multiple foundries in specific regions to leverage better pricing and delivery. Bargaining power of suppliers: The bargaining power of suppliers is low due to presence of a large number of suppliers for raw materials. Threat of new substitutes: The threat of new substitutes is low. While additive manufacturing pose long term threat, it is yet to match the economies of scale offered by metal casting and production volumes required for many industries. Competitive rivalry: The rivalry among the existing players is intense. Players compete on the basis of product quality, cost efficiencies, technical expertise, timely delivery and market reach.

Key players: 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., and Grupo Antolin-Irausa S.A. The market is fragmented with the presence of global and regional players. Industry players are focusing on digital solutions, mergers and acquisitions for sustained growth.

Regional analysis: North America dominates the market currently due to high demand from automotive and machinery industries. Asia Pacific is expected to grow at the highest CAGR during the forecast period backed by economic growth, increasing investments and rising foundry capacities in China and India.

Key Takeaways
The global foundry services market is expected to witness high growth on account of rising demand from end-use industries.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it
Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →