LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global steel casting market to grow at a CAGR of more than 6% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global steel casting market for 2016-2020. The report also lists automobiles and transportation, construction and infrastructure, valves and pumps, mining, and others as the five major segments in the steel casting market based on application.
The global steel casting market for valves and pumps is expected to grow at the fastest rate with a CAGR of close to 4% during the forecast period. This growth is attributed to the demand coming from industries such as fracking, chemical, nuclear, desalination, and waste.
In terms of geography, APAC is the largest and the fastest growing steel casting market with China being the dominant player. The market is driven by the automotive and construction sectors. For instance, the construction market in China is expected to rise to USD 2.5 trillion by 2020.
Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the global steel casting market:
- Industrialization and development in APAC
- Increased simulation-based castings
- Growth in automotive and construction industries
Industrialization and development in APAC
According to Chandrakumar Badala Jaganathan, a lead analyst at Technavio for metals and minerals research, “APAC is the largest and strongest growing market for steel casting worldwide. The rapid increase in industrialization and development in China, India, and South Korea is the primary demand driver for industrial castings in this region.”
Steel castings give flexibility for design and improve the safety and reliability in construction. Steel casting products are widely used in applications such as bridges and columns. Growth in the construction market will translate into the demand for steel casting. For instance, the construction market in China is expected to grow at a CAGR of over 12% during the forecast period.
In addition, ongoing rapid urbanization in India will drive the steel-intensive market in India. The Indian government is investing heavily in infrastructure, and this will boost the demand of steel casting in India. Indian steel companies have been investing massively over the last seven years to increase steel capacity. The growth rate of steel consumption in India is expected to be 7%-9%.
Increased simulation-based castings
Simulation allows visualization of the virtual casting processes such as mold filling, cooling, and solidification with respect to direction and time for the manufacturers. It also helps in predicting the location of internal defects and optimizing the method and design of the casting process. “Simulation-based casting technique is highly suitable for the production of reliable, economical, and high accuracy cast components,” says Chandrakumar.
The steel casting manufacturers adopt many advanced technologies based on the needs of the end-users. The requirement for castings with specific dimension, size, and weight compels the steel casting manufacturers to adopt simulation-based castings. Simulation-based models also help in reducing operation costs and decreasing wastage.
Growth in automotive and construction industries
The automotive and construction industries are the primary end-users of steel casting and have been driving the demand for steel castings for many years. The infrastructure and construction sector, which accounts for more than one-fourth of the world's steel consumption is expected to grow at a CAGR of 4% until 2020.
Similarly, the automobile sector and the transportation industry, which together accounted for roughly 45% of the global steel consumption in 2014, are poised to grow at a high rate during the forecast period. This will lead to a constant increase in the demand for steel casting over the next few years, thereby, fueling market growth.
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