In-depth analysis and data-driven insights on the impact of COVID-19 included in this global investment casting market report.
The global investment casting market size is expected to grow at a CAGR of over 3% during the period 2019−2025.
Key Highlights Offered in the Report:
- The market for investment casting is currently under high duress due to COVID-19. The demand slowdown across most end-users has significantly impacted the industry. The growth rates which were hovering around 5% to 6%, has declined significantly post COVID-19 outbreak.
- The growth estimates for automotive, aerospace & defense, and power generation are the most impacted. As of 2020, on the demand side, volumes are declining while prices of the casting products have not been allowed to fluctuate drastically due to high competition.
- Globally, the sales of automobiles, such as passenger cars and medium and large trucks, have fallen. China, the world’s largest automaker, is struggling to revamp this drop. Auto makers in China faced an average decline of around 9.5% in the sales volume in 2019.
- The industry is expected to witness higher number of transactions with respect to M&A to overcome COVID-19 related economic and consequent demand slowdown. The diversification of the product portfolio is recommended to the keep the production lines operating.
- The demand in the industrial machinery sector is expected to increase as the factories plan on increasing the automation and reduce the dependence on labor to avoid the spread of COVID-19, which can lead to a factory shutdown.
- From a demand perspective, the aerospace and automotive industry hold over 50% of the share in the investment casting market on account of higher volume and high-quality critical investment casting products used in the industries.
- APAC although highly impacted in the initial period of 2020, has managed to restart its industrial activities. The industries production and demand for the same as reached some level of normalcy. However, this is expected to be short term, as many customers seek to reduce their dependence on foundries of China.
- Market Size & Forecast by Revenue | 2019−2025
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by end-users and geography
- Competitive Landscape – 18 key vendors are profiled
Investment Casting Market – Segmentation
- The investment casting demand from the automatic and defense industry is expected to be low in 2020 and will take a minimum of two years to reach the pre-pandemic levels. The aerospace casting industry will be in the red for a long duration than the defense industry (as the defense spending is not dependent on consumer spending).
- The demand for investment casting from the medical industry is expected to be volatile during 2020, as there exists low demand for non-critical non-COVID-19 medical devices. On account of the COVID-19 pandemic, the demand for medical devices reduced in H1 2020, and the same is expected to be lower for H2 2020.
- The demand for investment casting in the commercial vehicle sector is expected to be low than the passenger vehicle sector. This is mainly attributed to logistics firms holding on to cash for longer sustenance of business and also acquiring used vehicles in place of newer vehicles for any business scale up.
Investment Casting Market by End-user
- Aerospace & Defense
- Industrial Machinery & Heavy Equipment
Investment Casting Market – Dynamics
The investment with respect to electric cars and trucks is highest in the US, and China and many other countries are watching the developments closely to make EVs go mainstream. The COVID-19 related downturn in the automotive industry, no doubt, has put a huge speed breaker to the industry, be it electric or otherwise. The initial investment is higher with respect to EVs and is a major restraining factor apart from the lack of charging stations. However, governmental push in many countries is expected to keep the industry growing post-COVID-19 related economic issues subside.
Key Drivers and Trends fueling Market Growth:
- Use of Rapid Prototype Process
- Automation in Investment Casting
- Healthcare Industry
- New Materials Usage
Investment Casting Market – Geography
APAC is expected to continue leading the industry during the forecast period. The market faces some uncertainty as the end-use customers experience different challenges, and there exists no uniformity in the challenges faced by different end-users. The financial constraints on the vendors are high, as the industry is highly capital and labor-intensive. The non-availability of labor in the first half of 2020 impacted the production. The year 2019 was also a challenging year, as some of the sectors faced slow demand. The automotive sector, in particular, has been on the downward slope for a few years. The fiscal measure by countries was positively impacting the automotive sector, and 2020 was projected to be the recovery year for the automotive sector.
Investment Casting Market by Geography
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Dongying Giayoung Precision Metal
- Precision Castparts Corp (PCC)
- Investment & Precision Castings
- Hitachi Metals
- Consolidated Precision Products
- RLM Industries
- Milwaukee Precision Castings
- Aristo Cast
- George Fischer
- Thompson Investment Casting
- Ningbo Wanguan
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