According to a new research report by Global Market Insights Inc., the Iron & Steel Castings Market size will exceed USD 210 billion by 2027. Rising adoption of casting processes with higher efficiency will boost the product demand during the forecast period.
Positive outlook for the automotive industry to propel product consumption
Rising product demand for automotive applications will be the major factor propelling the global iron & steel casting market growth. Asia Pacific recorded more than 50% share in the global automotive production in 2019. China, the largest automotive manufacturer in the world, recorded over half of the regional automotive production and over one-fourth of global automotive production. Development in the Asia Pacific automotive industry can be attributed to robust economic development, increasing urbanization, rising disposable income, public & private investments, and supportive government policies & initiatives.
In the automotive sector, iron and steel casting is used in the production of suspension, engine, and braking & driveline components. Major automotive manufacturers are shifting their manufacturing bases to this region owing to cost-effective labor, availability of raw materials, favorable policies, etc. These trends will boost regional product consumption in the near future. However, rapid technological advancements coupled with fluctuating raw material prices may negatively impact the iron & steel casting market demand.
Browse key industry insights spread across 180 pages with 238 market data tables & 20 figures & charts from the report, “Iron & Steel Casting Market By Material (Iron [White Iron, Ductile Iron, Gray Iron], Steel), By Process (Sand Casting, Die Casting), By Application (Automotive; Industrial Machinery; Pipe, Fittings & Valves; Power & Electrical; Sanitary), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Ductile cast iron will witness around 5% CAGR in iron & steel casting market size by 2027. It is also known as nodular cast iron or spheroidal graphite cast iron. The composition of ductile iron includes around 94% iron, 3.2% - 3.6% carbon, 2.2% - 2.8% silicon, 0.1 – 0.2% manganese, 0.03% - 0.04% magnesium, 0.005% - 0.04% phosphorus, 0.005% - 0.02% sulfur, and the rest is copper (less than or equal to 0.4%). Some compositions also include additional tin or copper to improve strength.
Ductile cast iron has high tensile strength, generally ranging from 60,000 - 120,000 psi. Its yield strength is approximately 40,000 – 90,000 psi. It has superior castability & machinability and an excellent strength-to-weight ratio. It is utilized for axles, pipe & pipe fittings, crankshafts, cylinders, disc brake calipers, gears & gearboxes, large machines, machine tooling, truck axles, suspension system parts, wheel hubs, connecting rods, and valves.
The die casting process involves a forceful injection of liquid or molten metal into the die under a high-pressure environment. Generally, a die is a steel mold formed to provide shape to the product that has to be manufactured. After pouring, molten metal solidifies and is removed from the mold. After cooling, the gating material is removed. The benefits of the die casting process consist of quick production cycle times, material scrap reduction, and high accuracy. It is used for producing various parts & components for the aerospace, automotive, electronics, machinery, power tools, and domestic appliances industries.
Expanding power generation industry to drive power & electrical segment penetration
Power & electrical segment will witness over 5.5% CAGR in Iron & steel cast market share by 2027. Iron & steel casting finds applications in various electrical fittings, generators, engines, electric motors, solenoids, relays, and electromagnetic devices. Moreover, they are also used in electrical power distribution systems. The product is widely used in the electrical sector is due to its low tendency to contract or expand in magnetic fields, superior capacity to support magnetic fields, high electrical resistivity, and low hysteresis loss.
In the power generation sector, iron and steel castings are used in various applications including auxiliary systems, gas turbines, steam turbines, and generators. According to the Middle East Economic Digest (MEED), the installed electricity generation capacity in the Middle East & North Africa will increase by approximately 40% by 2025. Such trends will trigger the demand for electrical equipment, thereby bolstering the iron & steel casting market growth over the next few years.
Europe will hold over 20% share in the global iron & steel casting market, which can be attributed to the development in the major end-use sectors in the region. The rising demand for luxury cars & sports cars in the region coupled with an increasing number of construction & infrastructure projects will boost the regional product demand. Moreover, the rising demand for industrial machinery, power generation, and electrical tools in the region will also drive the regional product consumption.
Industry participants to upgrade production capacity to strengthen market position
The major iron & steel casting industry manufacturers in the market include POSCO, ArcelorMittal, Hitachi Metals Co., Ltd., thyssenkrupp AG, TATA Steel, Baosteel Group Corporation, Voestalpine Group, Nucor Corporation, HBIS Group Co., Ltd., CALMET, Nippon Steel Corporation, Nelcast Limited, Uniabex, and Waupaca Foundry, Inc. The key product manufacturers are mainly focusing on upgrading their production facilities, geographical expansion, and investment in research & development to strengthen their competitive advantage in the global market.