The compacted graphite iron (CGI) market is set to grow exponentially by 2027 owing to increasing demand for sturdy raw materials in the production of automotive engines. Moreover, prevalent utilization in construction activities is expected to further propel market growth over the forecast timeline.
Due to its structural composition, compacted graphite iron offers numerous qualities, such as strength, ductility, and thermal conductivity, among others. These features have substantially boosted the customer appeal of CGI in recent years.
Additionally, companies around the world have devised several ways of casting CGI products with the goal of identifying the optimal method for achieving exact control over the final microstructure. As a result, driven by its beneficial properties, compacted graphite iron has gained prominence in the manufacturing of automotive engines, machine parts, construction materials, and a variety of other applications.
Furthermore, industry participants are developing profitable strategies to establish a strong foothold in the compacted graphite iron market. For instance, in June 2021, SinterCast, a casting process specialist, announced that it had been listed as a Tier-II supplier of CGI technology by a leading cast iron foundry group, Grainger and Worrall. With the agreement, Grainger and Worrall purposed to install the SinterCast process control technology to enable independent compacted graphite iron (CGI) product development.
In another instance, in December 2019, Tupy S.A., a cast iron components manufacturer, announced the share purchase agreement acquisition of 100% of Italian component manufacturer Teksid’s iron casting business with automobile giant Fiat Chrysler Automobiles. The strategic acquisition was intended to provide Tupy with a renewed pool of resources to carry out extensive R&D and to gain a competitive edge in the iron casting sector. As a result, positive industry developments have bolstered industry adoption in key regions.
The compacted graphite iron market has been categorized based on product, grade, application, and region. With respect to grade, the market has further been bifurcated into 300MPa, 350 MPa, 400 MPa, 450 MPa, and 500 MPa.
In 2020, the 300 MPa grade segment acquired a substantial volume share of around 20% in the market. Meanwhile, the compacted graphite iron market from the 450 MPa grade segment is expected to amass profitable gains by 2027, expanding at a CAGR of about 3.5% over the forecast period.
In terms of application, the compacted graphite iron market has been differentiated into construction, power generation, marine, automotive, and others (metallurgy, manufacturing, etc.). The power generation application segment is slated to see considerable growth at a CAGR of over 3.5% through the assessment time period. The others application segment garnered over 10% revenue share in the market in 2020 and is anticipated to expand at a robust pace over 2021-2027.
From the regional point of view, the Latin America compacted graphite iron market held approximately 10% volume share in the industry in 2020 and is projected to observe notable growth through the study timeframe.