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The foundry equipment market is estimated to grow by USD 6,861.21 million at a CAGR of 4.37% between 2022 and 2027. The growth of the market depends on several factors, including rising industrial automation globally, growth of the construction industry, and advances in heat treatment technology.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The advances in heat treatment technology is notably driving the market growth, although factors such as the lack of highly skilled manpower may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The advances in heat treatment technology is notably driving the market growth. There are several visible advantages of using new vacuum heat treatment technology and equipment, including the reduction of the environmental footprint, shortening of production cycles, and lowering of operating costs via the most efficient use of utilities. Technologies such as the low-temperature surface modification process offer the advantage of low distortion and are gaining popularity in the market. Other notable technologies that have high growth potential in the next decade include nitriding, sulfo-nitriding, low-temperature vacuum carburizing, and low-pressure carburizing.
The next step in furnace control development will involve the design of control systems that are capable of automatic and independent reasoning during the heat treatment cycles. These technologies aim to simplify furnace operation while simultaneously improving reliability and efficiency. The developments in furnace technology will impact the market in a significant way.
Significant Market Trend
Simulation-based castings is the primary trend in the market. Simulation-based casting is used for the production of economic, reliable, and high-accuracy components. It is also used to increase the casting yield and decrease the shop floor time. By using simulation-based casting, one can predict the defects and their location easily compared to conventional casting, and the feed ability of the casting process can also be analyzed and optimized.
Global metal casting manufacturers have adopted many advanced technologies based on the needs of end-users, such as automotive and industrial machinery manufacturers. Industries require castings with precise dimensions with respect to shape, size, and weight to be used for their manufacturing purposes. This has made metal casting manufacturers adopt simulation-based castings to create perfect, defect-free castings. The simulation-based models have also helped in reducing wastage while simultaneously reducing operational costs. Precise designing has become a standard in the casting industry, thus benefitting the end-users. These advantages will drive the demand for simulation-based casting.
Major Market Challenge
The lack of highly skilled manpower is the major challenge impeding market growth. Foundry equipment lacks skilled manpower, such as foundry technicians, patternmakers, and maintenance electricians. The technology upgrades require the investment in training facilities to educate the employees on several aspects, such as different molding processes, patterning, method of castings, and several furnace technologies. The creation of organized modern training facilities and skill development programs on a regular basis will be helpful for foundries during the deployment of advanced technologies. Currently, most of the workforce opts for administrative, office, and managerial jobs. More than 90% of the foundries in India are Ministry of Micro, Small, and Medium Enterprises (MSMEs), wherein managers frequently perform functions that larger foundries assign to specialized workers.
To increase capacity utilization, foundries have to invest in specialized technicians specific to the task, such as patternmakers, hand core makers, moulders, machine core makers, primary sand technologists, and metallurgical assistants. Unless this is achieved, the full potential of the market cannot be achieved.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Madison Industries - The company offers foundry equipment such as wedges and pumps. The company offers various products such as medical products, industrial solutions, energy solutions, safety and flow solutions, and other products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the metal casting segment will be significant during the forecast period. Metal casting is one of the most significant applications of foundry equipment. Various end-user industries, namely automotive, aerospace and defense, shipbuilding, construction, and industrial machinery manufacturing sectors, use cast metal parts. Metal casting processes include melting, pouring into molds, and shaping. The market growth in this segment is closely tied to the growth of the automotive and construction industry across the globe. The growth of the automotive industry globally is increasingly being driven by the changing needs of consumers to accommodate the convergence of connectivity, electrification, and safety features.
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The metal casting segment was valued at USD 20,190.15 million in 2017 and continued to grow until 2021. Automakers are striving to develop smart, fuel-efficient vehicles that can adhere to stringent emission regulatory norms. As the automotive sector is a major contributor to the overall demand for cast parts, it is an important revenue-generating sector for the casting industry. The production of vehicles, including new energy vehicles, will continue to drive the demand for cast metals in this industry, which will keep driving the growth of the market in focus in this segment.
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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in focus in APAC is closely tied to the growth of the construction industry. The increasing number of construction activities in emerging economies and rising government spending on the development of infrastructure will drive the growth of the market in APAC during the forecast period. The growth of the construction industry in the region is driven by the need for new residential and commercial infrastructure for the expanding urban population base.
The increasing industrialization and the significant production of automobiles and industrial machinery are demanding foundry equipment, which is driving the growth of the market. In APAC, competitive manufacturing costs and high economic growth rates are the main factors that support the growth of the market in the rapidly growing end-user industries such as automotive, aerospace, and construction. These factors are also encouraging the global market players to expand their business in APAC.
Industrial activity in the region was adversely affected owing to COVID-19. However, with the gradual lifting of the lockdown restrictions and supply chains regaining their lost strength, the recovery of industrial sectors in APAC picked up the pace from 2021. Governments are expected to provide stimulus to manufacturing sub-sectors, which is expected to drive the growth of the regional market in focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of themarket growth and trends opportunities from 2017 to 2027.
The Market caters to the diverse needs of heavy machinery equipment, handling hot and molten metal in various shapes and sizes. Core making, an essential process, involves the use of specialized equipment to create the cores needed for casting. These machines handle substances crucial for operations, ensuring efficiency and safety. With a focus on lightweight vehicles and energy efficiency, the market is adapting to emission regulations, leading to increased demand for electric vehicles. Per capita income and infrastructure development also play significant roles in market dynamics, despite the high price of equipment and strict regulations.
Market players are investing in production analysis and value chain optimization to navigate market regulations and drive strategic growth. Geographical expansions and technological innovations are key strategies in developed economies, where the market serves a large array of countries. Business consulting firms like Goal Oriented Solutions and DBMR provide insights into market trends and upcoming technological changes. Products like die casting machines, centrifugal casting machines, induction furnaces, moulding machines, coremaking machines, and shot blasting machines are essential for power generation and electricity. The market's growth is propelled by a focus on end-user needs and the product lifecycle, navigating disruption with innovative solutions.
Foundry Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.37% |
Market growth 2023-2027 |
USD 6,861.21 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.27 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Apex Tool Group LLC, Artisan Foundry, Buhler AG, Crowder Supply Co. LLC, Dandong Fuding Engineering Machinery Co. Ltd., Freeman Manufacturing and Supply Co., GIBA, Hitachi Ltd., Inductotherm Group, Kelsons Engineers and Fabricators, KueNKEL WAGNER Germany GmbH, Laempe Massner Sinto GmbH, Loramendi S.Coop., Madison Industries, McEnglevan Industrial Furnace Co. Inc., MESH Automation Inc., Morgan Advanced Materials Plc, Nabertherm GmbH, Norican Group, and Oskar Frech GmbH Co. KG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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