Metal Casting Market Consumer Preferences And Demand Shifts

Metal Casting Industry Overview

The global metal casting market size was valued at USD 136.71 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.5% from 2023 to 2030. Increasing demand for casting from the automotive sector is anticipated to drive 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.

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Increasing use of casting on account lightweight properties and aesthetic appeal imparted by it is driving the demand for aluminum casting in the 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.

The global 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 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 investmen in R&D. The requirement of skilled professionals for operating advanced machines is another limitation for the market, especially in developing and underdeveloped economies.

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• The global wires and cables market size was estimated at USD 211.62 billion in 2023 and is projected to grow at a CAGR of 4.1% from 2024 to 2030. Rising urbanization and growing infrastructure worldwide are some of the major factors driving the market.

• The global advanced carbon materials market size was valued at USD 4.92 billion in 2023 and is projected to grow at a CAGR of 4.5% from 2024 to 2030. The major factors that drive the advanced carbon material market include the demand for lightweight and durable materials in the healthcare, automotive, and other sectors.

Metal Casting Market Segmentation

Grand View Research has segmented the global metal casting market based on material, application, and region:

Metal Casting Material Outlook (Revenue, USD Million; Volume, Kilotons, 2018 – 2030)
• Iron
• Steel
• Aluminum
• Others

Metal Casting Application Outlook (Revenue, USD Million; Volume, Kilotons, 2018 – 2030)
• Automotive & Transportation
• Industrial
• Building & Construction
• Others

Metal Casting Regional Outlook (Revenue in USD Million, Volume, Kilotons, 2018 – 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o UK
o Germany
o France
o Italy
o Spain
o Russia
• Asia Pacific
o Japan
o China
o India
o Australia
o Thailand
o South Korea
o Indonesia
o Malaysia
• Central & South America
o Brazil
• Middle East & Africa (MEA)
o South Africa
o Saudi Arabia
o UAE
o Nigeria

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Key Companies profiled:
• POSCO
• Dynacast
• Arconic
• Ryobi Limited
• Endurance Technologies Limited
• Alcast Technologies
• UNI Abex
• MES, Inc.
• CALMET
• Hitachi, Ltd.

Recent Developments

• In June 2020, Endurance Technologies Limited completed the acquisition of Grimeca Srl, an Italian auto parts manufacturer. In a filing made to the stock exchange, Endurance announced the attainment of a complete ownership stake of 100% in Grimeca for a sum of 2.25 million Euros, equivalent to approximately USD 2.45 million.

• In November 2022, POSCO announced that two of its steel plants, located in Pohang and Gwangyang, have achieved certification for their commendable contributions towards fostering a sustainable future for the steel industry. This remarkable accomplishment underscores the plants’ steadfast commitment and effective management in promoting environmental, social, and corporate governance (ESG) objectives.

• Following a rigorous nine-month evaluation conducted by the Future Strategy Forum based in Memphis, Tennessee, the Pohang and Gwangyang plants were awarded the certification. Notably, these plants hold the distinction of being the first steel facilities in Asia to receive certification from ResponsibleSteel, a renowned non-profit organization acclaimed for its comprehensive ESG standards and certification program.