Iron Casting Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Iron Casting Category Overview

The iron casting category is anticipated to grow at a CAGR of 6.1% from 2023 to 2030. Rapid industrialization has boosted the utilization of the category in various industries such as construction, industrial machinery, and automotive industries, which is driving the growth of the category. Iron casting is utilized in the production of parts such as gearbox cases, suspension parts, engine blocks, brake parts, and others. Additionally, the demand for the category products is rising due to their durability, high strength, and cost-effectiveness which is also anticipated to drive the category growth over the coming years.

Japan which is among the top countries in the automotive industry witnessed a rise of 10.1% in passenger OEM production in August 2023. The rise in the automotive industry in the country is expected to drive the demand for parts used in vehicles. This is indirectly expected to boost the usage of iron casting in the automotive industry in the country.

As the focus on sustainability and environmental issues increases, there is a rising need for eco-friendly production techniques within the industry. Companies embracing environmentally friendly methods and materials are poised to secure a competitive edge in the industry. Shifting to renewable energy sources and improving waste production and management are essential steps for the casting industry to positively impact the environment. Embracing eco-friendly practices, such as green sand casting, is the most reliable method currently.

Companies are also focusing on various corporate strategies to aid global expansion. These players are involved in collaboration, partnerships, and acquisitions to increase their presence, and product portfolio. For instance, in May 2023, MacLean Power System (MPS), a manufacturer of engineered products, acquired Dotson Iron Castings, specializing in ductile iron casting. This acquisition would increase the MPS’s vertical integration strategy, and serve customer’s needs more effectively.

Buyers in the category, such as automobile manufacturers, construction companies, and industrial machinery producers, often purchase in large quantities. If buyers have few options or if the switching costs are high while sourcing for a specific product, their bargaining power can be limited. However, if they can easily switch between suppliers or if the iron casting industry produces standardized products that meets their requirements, the buyers’ power increases.

Raw materials, labor, utilities, machinery & equipment, rent, and others are some of the cost components of the category. The cost of machinery & equipment may vary depending on the size of the operation. Raw materials, labor, machinery & equipment account for a major part of the cost component. The cost of iron casting is cheaper than cast steel due to low material cost, and energy cost to produce a final product. Installation and setup costs for equipment can cost around USD 10,000 to USD 50,000. 

In terms of sourcing iron casting, the hybrid model, widely embraced in this sector, seamlessly integrates in-house processes with full-service outsourcing. Some suppliers prefer a partially outsourced approach by outsourcing specific tasks like raw material procurement and transportation services. For certain operations, such as the entire iron casting process-from pouring material into molds to the final product and transportation-maintaining an in-house team can prove advantageous for companies. Building robust partnerships with raw material suppliers, particularly for iron ore, and ensuring the supply chain's consistency and traceability are crucial elements in effectively sourcing within this category. Buyers of the category such as automotive, construction, and manufacturing industries usually look for casting design offered, type of metal used, product quality, post-casting operations, and production capacity. Maintaining uniform quality across orders and ensuring consistency from the initial to the final casting in each order is important and hence should be considered when selecting a reliable category supplier.

Iron Casting Procurement Intelligence Report Scope