Metal Casting Market Size, Share & Trends Analysis Report By Material (Aluminum, Iron, Steel), By Application (Automotive & Transportation, Building & Construction, Industrial), By Region, And Segment Forecasts, 2020 - 2025

Report Overview

The global metal casting market size was valued at USD 128.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% from 2020 to 2025. Increasing demand for casting from the automotive sector is anticipated to drive the market growth over the forecast period.

Metal casting is one of the popular manufacturing processes and involves pouring molten metal into a die or sand mold to get the desired shape. It helps produce complex and large-size parts for various industrial applications. Stringent regulations regarding pollution and energy efficiency requirements in vehicles are triggering the growth of the metal casting industry. Regulations have forced automakers to shift to lightweight vehicles to improve fuel efficiency.

Increasing use of casting on account lightweight properties and aesthetic appeal imparted by it is driving the demand for aluminum casting in construction market. Finished products can be used in construction equipment & machinery, heavy vehicles, curtain walling, door handles, windows, and roofing. The ability to recycle aluminum products is becoming a crucial factor as building owners are increasingly moving toward deconstruction instead of demolishing old or out-of-use buildings. Extracting recyclable materials from buildings also reduces the environmental impact of construction activities.

Cast iron is an alloy containing metals such as silicon, carbon, manganese, sulfur, and phosphorus with wide application range. Increasing demand for pans, pots, utensils, engines, piping, and automotive are the growth factors for the cast iron market. Demand for grey iron metal is projected to increase over the years on account of its applications in housing, engine blocks, cylinder heads, and enclosures. Its properties, such as stiffness, high thermal conductivity, and wear resistance, make it useful in such applications.

Metal Casting Market Trends

The global metal casting market is anticipated to be driven over the forecast period by rising product demand from end-use industries, especially in the Asia Pacific. The use of aluminum and stainless-steel cast products in healthcare and telecom industries is likely to positively influence market growth. Increasing demand from Asia’s building & construction industry is one of the key growth drivers for the metal casting market.

The building and construction sector in the Asia Pacific region is largely driven by the developing countries of the region including China, India, Malaysia, Indonesia, and others. For instance, in 2018, Malaysia’s residential and non-residential sectors observed growth of nearly 4.4% in real terms. Similarly, Indonesia’s building sector registered a healthy growth of around 7-8%. In 2018, total construction projects in the country, excluding the oil & gas sector, were worth USD 32.2 billion.

The construction sector growth in the aforementioned countries is largely attributed to the continuous support schemes offered by the government. For instance, to encourage first-time homebuyers, the Indonesian central bank scrapped the 15% minimum mortgage down payment scheme and relaxed its rule for loan disbursements. Owing to such government incentives, the Asia Pacific region is likely to witness stable growth in its building sector. Thereby, driving the demand for metal cast products over the forecast period.
Furthermore, the rising penetration of aluminum as an efficient, lightweight material in vehicle production is further boosting the market growth. Corporate Average Fuel Economy (CAFE) has doubled its target for average fuel efficiency from 2012 to 2025 owing to the increasing emission of greenhouse gases. Weight reduction in vehicles through the use of aluminum is set to play a crucial role in these conditions in order to meet the regulatory requirements.

Technological developments in the automotive field are propelling the demand for automotive products. China is the largest automobile market in the world in terms of both demand and supply. South Korea, Japan, and India are among the top 10 largest markets for automobiles, which has created a significant demand for aluminum in APAC. Growing demand for automobiles in the U.S. is also expected to drive aluminum casting demand over the forecast period. The average aluminum content in a lightweight vehicle rose by more than 4% from 2017 to 2018.

The metal casting industry requires large machine tools and other heavy equipment for production. The industry also has a huge space requirement. Owing to these reasons, it is known to be capital-intensive. Additionally, skilled labor is required to handle products during transportation, which increases the overall cost of metal cast products. Continuous technological advancements in manufacturing quality products also require a huge investment in R&D. The requirement of skilled professionals for operating advanced machines is another limitation for the metal casting market, especially in the developing and underdeveloped economies.

Material Insights

In terms of volume, iron casting segment accounted for the highest market share of 69.4% in 2018. Major portion of the demand in this segment is projected to come from emerging markets, especially from the automotive, construction, and oil & gas sectors. Finished casting products are likely to remain a key area for investors. As per the World Foundry Organization, the production volume of iron casting increased by 0.8% in 2017 compared to the previous year. It was 156.58 kilotons in 2017. The production of ductile iron and grey iron metal products observed a growth rate of 1.1% and 1.3%, respectively, in 2017 compared to 2016.

The demand for lightweight metals including magnesium and aluminum is anticipated to create many opportunities for market vendors. Stricter emission regulations and increasing requirements for energy efficiency are projected to boost the production of lightweight materials in the market over the forecast period. These materials assist in reducing the consumption of fuel owing to the light weight of auto components. Aluminum casting segment is projected to grow at a CAGR of 9.3%, in terms of revenue, over the forecast period.

Application Insights

Automotive & transportation was the largest metal casting application segment in 2018 and is projected to grow at a CAGR of 5.4% from 2019 to 2025. The global automotive production has been observing a slow but positive trend since last few years. As per the International Organization of Motor Vehicle Manufacturers, global automotive production rose by 2.3% in 2017. The use of aluminum for weight reduction will remain an important factor to be considered by automakers and market vendors.

In terms of volume, the industrial segment accounted for a market share of 28.4% in 2018. Industrial products such as metal valves and gaskets, decanters, air injection tubes, flanges, radiation protection tubes, coal throw pipes, air injection tubes, rollers, collectors, elbows, and bends are manufactured using iron & steel materials. The expansion of manufacturing industries in China and other emerging countries is anticipated to drive the growth of industrial segment.

Building & construction industry is one of the leading consumers of different type of casting products. Increasing focus on infrastructure and investments is triggering the growth of the industry. Governments of different countries are investing in various infrastructure projects including transportation, water supply, telecommunications, and energy networks. Building & construction application segment accounted for a revenue share of 6.3% in 2018.

Regional Insights

Asia Pacific was the leading regional metal casting market with a volume share in 2018. Asia Pacific is characterized by the presence of skilled labor at low cost, which makes it the most lucrative region for manufacturers to set up production facilities. A shift in the global production landscape toward emerging economies, especially China and India, is expected to positively influence the market growth over the forecast period. The rapidly expanding automobile sector in the region is expected to further boost the market growth over the forecast period.

China is viewed as a highly cost-effective region for manufacturing activities owing to favorable government regulations. The market for metal casting in China has witnessed significant growth in recent years due to the economic benefits offered in the country. China has taken advantage of the availability of high-tech manufacturing facilities as well as a skilled workforce, which are essential for the manufacturing sector.

Europe metal casting market is anticipated to grow at a moderate pace with a CAGR of 4.7%, in terms of revenue, from 2019 to 2025. Europe has a presence of 4,500 metal casting firms, a major share of which are small businesses with less than 50 employees. In addition, the presence of a strong automotive sector in countries like Germany, Italy, and France is expected to lead to a massive demand for aluminum-based casting solutions over the forecast period.

The metal casting industry of Germany is expected to observe steady growth over the forecast period. Vehicle registrations in Germany observed growth of nearly 4% in the first seven months of 2018 as per the data published by Germany Foundry Association in 2018. Despite steady growth in terms of the sale of new vehicles, the production observed a decline of nearly 1.2% from 2017 to 2018. Therefore, mildly affecting the dynamics of metal casting in the country.

Key Companies & Market Share Insights

The market for metal casting is fragmented in nature due to the presence of a large number of small & medium enterprises (SMEs) and unorganized industry structure. Several leading players are focusing on improving their production capacities across countries and strengthen their presence. Players engaged in manufacturing metal casting are facing various challenges including underutilization of capacity, optimization of resources, high energy consumption, and complying with stringent norms.

The growing use of aluminum in vehicles is anticipated to create many opportunities for market vendors; hence, well-established players are concentrating on the development of new alloys and materials. POSCO; Arconic; Alcast Technologies; Dynacast; Ryobi Ltd.; Endurance Technologies Limited; Uniabex; MES, Inc.; CALMET; and Hitachi Metals are among the key market participants.

Metal Casting Market Report Scope 

Global Metal Casting Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global metal casting market report based on material, application, and region:

• Material Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Iron

  • Steel

  • Aluminum

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Automotive & transportation

  • Industrial

  • Building & construction

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa