According to a new research report by Global Market Insights Inc., the Compacted Graphite Iron Market size will reach USD 9.5 million by 2027 owing to the growing development of high tensile strength & lightweight materials in various end-use sectors.
The evolution and expansion of high tensile and lightweight components in the automobile sector are key factors for integration with conventional materials. Also, the demand for sturdier materials, reducing the weight of automotive engines, and materials with better cooling properties and eco-friendly behavior is fueling the demand for compacted graphite iron.
CGI’s compliance with government and automotive regulatory guidelines to provide certain requirements including chemical resistance, heat, and elongation to the components will support the product demand. Environmental and climate change concerns with the focus on manufacturing fuel-efficient and lightweight vehicles are boosting compacted graphite iron market growth.
Rising demand from the marine and power generation industry due to rapid infrastructure initiatives undertaken by governments in the developing countries is anticipated to aid in compacted graphite iron market growth. Emerging economies, such as China, Brazil, India, and Russia, have witnessed rapid construction and automotive demand due to rapid urbanization, increase in population, and rising disposable income. Also, the better performance of the vermicular graphite iron is becoming a key factor for the adoption of the product over the forecast period.
The worldwide economic slowdown has resulted in reducing infrastructure spending by government and public sectors. Metal parts prices dominate the automobile industry, significantly challenging CIG manufacturers and automotive OEM companies. Also, insufficiency of automated equipment and repeatable procedures are intercepting CGI from being used in mass production. It is expected that the economic scenario will turnaround in the near future. End-use industries, such as automobile, are anticipated to take some time to reach pre-covid pandemic demand.
Browse key industry insights spread across 200 pages with 210 market data tables & 19 figures & charts from the report, “Compacted Graphite Iron Market, By Grade (300 MPa, 350 MPa, 400 MPa, 450 MPa, 500 MPa), By Product (Spheroid, Nodules), By Application (Automotive, Construction, Marine, Power Generation), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2027” in detail along with the table of contents:
Increasing demand for 350MPa grade CGI will heavily drive the product demand
The 350MPa segment dominated the CGI industry and is projected to witness a CAGR of 4.5% through 2027. The grade’s high penetration in luxury cars and SUV engines is observed globally due to its exceptional properties such as lightness, superior electrical properties, high tensile strength, moisture resistance, and enhanced shelf life.
The compacted graphite iron grade of 350 MPa is primarily used in automobile production for lowering weight and enhancing the capability of vehicle handling. The grade’s capability to provide extra efficiency to premium vehicles including outstanding fuel-efficient features to enhance usage in diesel engines and sustainable design improvement for engine applications will increase the compacted graphite iron market sales in the coming years.
Increasing advancements in the construction sector will boost the demand for compacted graphite iron in the coming years
The construction segment dominates the global compacted graphite iron market and is anticipated to exceed USD 1 million by 2027. A significant growth in consumer awareness pertaining to energy conservation and rising carbon footprint across the globe will enhance the product penetration in the market. Compacted graphite iron is an intermediate material between ductile iron and gray iron, which is used in various applications that require strength, cast ability, thermal conductivity, and extensive machining; also the mechanical properties of gray iron are insufficient. It is often used in simple housing and bracket applications. The growing demand for the usage of energy-efficient materials in manufacturing automated construction equipment will surge the product consumption in building and construction activities.
Increasing product usage in North America will surge the product demand in super car production
North America is expected to witness around 5% CAGR by 2027 due to the rising adoption of lightweight materials in the automobile sector during the forecast period. The U.S. ranks among the top countries for the usage of premium and luxury cars such as Ferrari, Lamborghini, Maserati, Mercedes, BMW, etc.
The growth in sales of luxury cars due to higher spending capability of HNI and wealthy class families will propel the product usage. Stringent compliances made by the United Nations to install lightweight materials in automotive vehicles to minimize the emission of carbon dioxide will fuel the compacted graphite iron market share.
The key industry players in compacted graphite iron industry comprise Sintercast AB, Tupy SA, Silbitz Group GmbH, Waupaca Foundry, Teksid Iron, Hebei Jing County Jinli Casting, Durham Foundry, Inc., Atlas Foundry Company, Saguenay Foundry, Eisengiesserei Baumgarte GmbH, and ASI International Ltd.