Foundry Market to Grow by $23.70 Billion (2024-2028), with AI-Driven Insights on Technology Upgrades Boosting Growth

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Report on how AI is redefining market landscape - The Global Foundry Market size is estimated to grow by USD 23.70 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 13.89% during the forecast period. Focus on technology upgrades is driving market growth, with a trend towards institute of indian foundrymen (IIF) in-plant training program. However, environmental issues leading to increasing environmental cost poses a challenge - Key market players include A Cast Foundry, Aditya Birla Management Corp. Pvt. Ltd., Ashok Iron Works P Ltd., Brakes India Pvt. Ltd., CALMET, Cooper Corp., DCM Ltd., Electrosteel Castings Ltd., Fortune Foundries Pvt. Ltd., Gujarat Metal Cast Industries Pvt. Ltd., Hackforth Holding GmbH and Co. KG, Jayaswal Neco Industries Ltd., JSW Group, Kalyani Group, Kirloskar Ferrous Industries Ltd., Larsen and Toubro Ltd., Menon and Menod Ltd., Nelcast Ltd., Tata Sons Pvt. Ltd., and The Sanmar Group.

Market Driver

The Indian Institute of Foundry (IIF) is dedicated to enhancing skills in the foundry industry through education and training. In Kolkata, IIF operates a center for skill development, offering a modular training program equivalent to a foundry technology degree, recognized by the Ministry of Human Resource Development (HRD). IIF conducts technical seminars with the help of its 26 chapters across India, providing exposure to industry best practices and latest technology. The Kolhapur chapter collaborates with the local government and polytechnic institute to offer skill development programs. IIF's in-plant training program, Yogyata Vikas, provides doorstep training for workmen in eight languages, with trainers from the industry. Ten modules cover basic topics, and training is flexible and convenient for foundries. IIF members pay USD150 per day plus service tax, while non-members pay USD225 per day plus service tax. Foundries provide facilities and bear expenses for trainers and accommodations. A maximum of 25 workmen can participate per program. Such initiatives are essential for the growth of the foundry market in India.

Foundry Market Trends: Energy Efficiency and Sustainability Lead the Way The foundry industry is witnessing significant trends that are shaping its future. Energy efficiency and sustainable practices are at the forefront, with lightweight materials like aluminum gaining popularity in sectors such as electric vehicles and aerospace. Advanced manufacturing techniques, including casting processes and metal castings, are being adopted for precision and customization. OEMs in industries like electronics, construction, and industrial machinery are demanding green foundry practices, leading to the implementation of pollution control technologies. Sustainability is also driving the adoption of 3D printing and AI in casting designs. Aluminum, non-ferrous, ductile iron, gray iron, and steel castings are in high demand due to their strength and durability. The aerospace and automotive sectors are major consumers, with direct and indirect employment opportunities increasing. Environmental regulations are pushing the industry towards outsourcing to foundries with advanced technologies and expertise. Precision casting and electrical foundries are also gaining traction, with the Internet of Things and customization driving innovation.

Market Challenges

The Indian foundry market is facing challenges due to increasing government regulations on waste disposal from foundries. Most Indian foundries are MSMEs with limited market capitalization, making it difficult for them to invest in waste recycling technologies and comply with new regulations. Foundries produce harmful gases and solid waste, primarily from non-ferrous and steel metals, which contain cadmium, lead, zinc, and other hazardous elements. Cupola furnaces contribute significantly to air pollution. To mitigate environmental concerns, the government and industry associations have established rules and guidelines. These include safe handling of pollutants, proper disposal of hazardous waste, and water recycling. Foundries are upgrading to efficient induction furnaces and gas-fired furnaces to minimize pollution. Additionally, the development of waste reduction products, minimizing negative environmental impact, and enhancing process efficiency through right-first-time production are encouraged. However, upgrading to these efficient processes and technologies involves substantial costs, making it challenging for small foundries to compete in the market due to low profit margins and increased capital investment. These factors may hinder the growth of the Indian foundry market during the forecast period.

Foundry Market Overview: The foundry industry faces various challenges in today's business landscape. Sustainability is a major concern with the need for green foundry practices and pollution control technologies. Customization is essential for meeting diverse client needs, leading to an increase in customized casting solutions like Gray Iron Casting, NonFerrous Casting, Ductile Iron Casting, Steel Casting, Malleable Casting, Die casting, and Sand casting. Outsourcing and automation through industrial machinery, including electrical and construction equipment, are vital for cost savings and efficiency. Large foundries are adopting automation, robotics, and digitalization to stay competitive. Environmental regulations impact Ferrous Foundries and Non-Ferrous Foundries alike, driving the adoption of advanced pollution control technologies. The construction sector is a significant consumer of casting products, from Metal alloys to Foundry chemicals. Trade shows and investment casting provide opportunities for businesses to showcase their innovative casting solutions and expand their network. Staying updated on the latest trends, such as precision casting and direct/indirect employment, is crucial for success in the foundry market.