The global iron and steel casting market was valued at US$ 130 Bn in 2017 and is anticipated to expand at a CAGR of more than 4% from 2018 to 2026, according to a new report published by Transparency Market Research (TMR) titled ‘Iron and Steel Casting Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.’
The iron and steel casting methodology incorporates making of any object of needed shape and size by pouring or injecting fluid iron and steel into a structure. Such things are made on a tremendous scale for a wide extent of parts, for instance, oil and gas, cultivating, vehicle, control age, mechanical units, and gathering equipment.
Market to be driven by growth of heavy industries such as construction, mining, and automotive
Development of overwhelming businesses, for example, car, mining, and development is a significant driver of the iron and steel casting market. Particularly, rising demand from the development business is probably going to move the demand for iron and steel casting items soon.
Development hardware should be durable, solid, and enduring. They have to acquire low expenses for upkeep and withstand fluctuating weights and diverse climatic conditions. This sort of gear likewise requires crude materials with superb properties. Iron and steel are among the most normally utilized crude materials in the production of hardware for overwhelming enterprises, for example, control age, fabricating apparatus, oil and gas, electricals, and modern gear. Customarily, the mining business has been a significant end-client of iron and steel casting items. The business is centered around lessening its operational expenses.
The low-upkeep and dependable nature of iron and steel casting items make them appropriate for use in the mining business. The car business uses iron and steel casting items to offer durability and solidarity to auto segments and parts, so they can withstand differing temperatures and conceivable vehicle mishaps.
Availability of aluminum alloys as substitutes in the automotive industry to hinder market
Automotive manufacturers have shifted their focus toward cast aluminum instead of the conventional iron and steel products. They want to benefit from superior properties of aluminum casting products such as corrosion resistance, lightness, and high performance. These products can also help manufacturers meet the emission limits set by different regulatory bodies.
Furthermore, use of aluminum can reduce the total weight of a vehicle by 10% to 15%. Use of aluminum is preferred in electric vehicles to reduce the vehicle weight. This, in turn, increases the durability of batteries. There are several other factors that drive the use of aluminum in the automotive sector. Increasing adoption of aluminum casting products acts as a restraint of the iron and steel casting market.
Investments in infrastructure development by governments to drive market for iron and steel casting products
Governments of developed countries such as Canada, the U.K., France, and the U.S. are planning to invest in the maintenance of infrastructure projects. On the other hand, governments of developing countries such as Brazil, South Africa, China, and India are planning to develop Greenfield projects.
A few examples of such projects include the proposed bullet train in India; metro railways in several cities of India such as Pune and Nagpur; and the Belt and Road Initiative by China. Other countries such as Pakistan, Sri Lanka, Rwanda, and Tanzania are also planning to take initiative for such projects. Such projects require iron and steel casting products in large quantities, which increases the demand for iron and steel casting products.
Global iron and steel casting market segmented based on material, application, and region
In terms of material, the global iron and steel casting market can be divided into gray iron, ductile iron, steel, and malleable iron. The gray iron segment holds the leading market share and is expected to maintain its dominance during the forecast period, due to low manufacturing cost, high tensile strength, ductility, and impact resistance of gray iron.
Based on application, the market can be segregated into automotive & transport, pipes & fittings, pumps & valves, machinery & equipment, and others. Various properties of iron and steel such as ductility, durability, and impact resistance make them highly suitable for use in the automotive & transport sector. The automotive & transport segment accounts for the leading share of the market.
In terms of region, the global iron and steel casting market can be classified into North America (the U.S. and Canada), Latin America (Brazil, Mexico, and Rest of Latin America), Europe (Germany, the U.K., France, Italy, Spain, Russia & CIS, and Rest of Europe), Asia Pacific (China, India, Japan, ASEAN, and Rest of Asia Pacific) and Middle East & Africa (GCC, South Africa, and Rest of Middle East & Africa).
Medium degree of competition in the market
A large number of iron and steel casting companies operate in the market. These companies range from small and local manufacturers to medium-sized national-level companies and even, multinational companies. While large companies such as ArcelorMittal and Tata Steel account for a considerable share of the global market, the rest of the market is fragmented.
The level of expertise of iron and steel casting companies is a significant factor affecting the competitive ability of market players. In terms of expertise and use of technology, multinational companies are better than small- and medium-sized companies. Some of the important companies in the market include Tata Steel Limited, Kobe Steel, Ltd., ArcelorMittal, Nucor Corporation, and Hitachi Metals Ltd.