Iron Casting Market Growth & Trends
The global iron casting market size is expected to reach USD 136.55 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.1% over the forecast period. The recent outbreak of COVID-19 has hada significant impact on the iron casting demand, which has hindered market growth.
The decline in growth and production of the European automotive industry owing to the COVID-19 pandemic has affected the demand for iron casting and its raw materials. To recover from their losses, European countries have allocated stimulus packages to revive the economy and several industries, such as automotive. For instance, in September 2020, the France government announced around USD 118.3 billion to reduce the economic impact of the pandemic.
The automotive industry is anticipated to benefit the overall market in the long term, but its growth was majorly affected in the first half of 2020 in North America. The auto plants resumed their operations in the U.S. and Canada in mid-May 2020, however, most players in Mexico did not resume operations even by the end of May 2020. Auto plants in Mexico operated at minimal capacity, which impacted the trade supply among the North American countries.
Asia Pacific was also majorly impacted due to the pandemic. However, the countries are reporting quick recovery, especially China. The rapid growth in the construction & infrastructural projects in the region is expected to spur the product demand for applications in pipes & fittings. In addition, the growth of the automotive industry from the second quarter of 2020 onwards is expected to boost the product demand.
Automotive and machinery & tools were the largest application segments in 2020. Other applications, such as pipes & fittings, pots & utensils, shipbuilding, electronic equipment, wind turbine, tractors, heavy-duty vehicles, agriculture, textile, and paper, are also projected to witness significant growth over the coming years.
Iron Casting Market Report Highlights
- The gray iron product segment led the market in 2020 and will expand at the fastest CAGR from 2021 to 2028
- Properties of gray iron, such as good resistance, machin ability, and high compressive strength, are projected to boost its demand
- The railways application segment is projected to register the fastest CAGR over the forecast period
- The growth is likely to be driven by the focus of various governments to improve their country’s transportation infrastructure
- Asia Pacific was the largest regional market in 2020. The region is characterized by rising industrial production and the presence of some of the fastest-growing economies, such as China and India
- Key companies are focusing on maintaining and improving their market share with various organic and inorganic strategies
- Companies are likely to observe growing sales over the next few years owing to the rising prices of raw materials