Global Investment Casting Market Size, Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Global Investment Casting Market


The global investment casting market size was estimated at USD 14.35 Billion in 2018 and is expected to grow at a CAGR of 4.6% over the forecast period. Increasing penetration of investment casting in automotive industry for the development of advanced components such as compressor, engine parts, gearbox components, and others is likely to boost market demand.

The investment casting process is also termed as a lost wax process on account of its use in structuring wax patterns that are used to form a rigid structure to obtain the desired product. The cavities are exactly created using wax patterns and refractory coatings that metal casting can take place easily in each corner of the cavity, thus forming an exact dimensional component. Wax patterns are more popular on account of their ability to get melt out easily from the structure.

In the U.S., aerospace industry emerged as a dominant segment in 2018 and accounted for over 63.0% of the revenue share. The aerospace industry in the U.S. is one of the largest in the world with presence of several well-established players such as Schweizer Aircraft, Lockheed Martin Corporation, and Luminati Aerospace LLC.
The aerospace sector in the U.S. is anticipated to grow moderately over the coming years owing to the new contracts awarded by NASA. Lockheed Martin and NASA finalized the contract to produce six spacecrafts. The total project cost to produce these spacecrafts is estimated to be USD 4.5 billion.

Despite the moderate demand from the end-use sectors, the industry facing hurdles related to efficiency, lead time, and capacity utilization. To over come such challenges, vendors of the industry are moving towards advanced technologies such as automation, machine to machine interaction using internet of things (IoT), simulation techniques, and others.

Technological advancements such as the introduction of automation in the investment casting process is likely to aid the industrys vendors to reduce the lead time and optimize efficiency. Large scale manufacturers are using multiple robotic arms to perform activities such as wax model designing, shell building, wax removal, etc. The move towards automation is anticipated to assist vendors of the industry to attain greater efficiency and enhance capacity utilization.

Application Insights of Global Investment Casting Market

The aerospace segment accounted for over 59.1% of the global revenue share in 2018 and is expected to continue its dominance over the forecast period. The segment is expected to gain momentum owing to rising number of space exploratory missions. For instance, in 2019, Indian Space Research Organization (ISRO) launched mission to explore south polar region of the Moon. Thus, rising number of space exploratory missions is projected to positively influence the industry of investment casting over the forecast period.

The automotive industry accounted for a revenue share of over 8.8% in 2018 and is expected to witness steady growth over the forecast period. Increasing automotive vehicle production specially in the developing countries like Brazil, India, Indonesia, Malaysia, Thailand, and others is projected to augment the industry growth.

For instance, as per the stats released by International Organization of Motor Vehicle Manufacturers (OICA) in 2018, automotive production in Indonesia and Malaysia observed a yearly growth of 10.3% and 12.2% respectively in 2018.
Energy technology segment is expected to observe the fastest growth. The segment comprises of energy solutions such as turbine blades, fuel nozzles, combustion hardware, seal hardware, air boxes, and tabulation tubes. Increasing wind power capacity installations around the globe is likely to positively influence the demand for turbine blades, which in-turn is projected to influence the market. For instance, as per the stats released by the World Wind Energy Association (WWEA) in 2019, total wind power installed capacity observed a yearly growth of nearly 9.1% in 2018.
Investment casting process is observing an increased penetration in various end-use industries owing to the advantages over conventional methods. For instance, transmission forks are now manufactured using investment casting instead of forging and complex machining. It offers weight reduction, less machining, improved delivery time and in inventory carrying costs.

Regional Insights of Global Investment Casting Market

North America emerged as a dominant region in 2018 and accounted for over 42.2% of the revenue share. The factors attributable to high industry growth include rising demand for aerospace & defense applications and the presence of significant defense aircraft and component manufacturers in the region including Lockheed Martin, Raytheon, and Northrop Grumman.

Asia Pacific is anticipated to remain fastest growing region over the forecast period. The growth of Asia Pacific is attributed to high industrial output in China, India and South East Asian countries. For instance, as per Chinas Minister of Industry and Information Technology, annual industrial output exceeded USD 4.4 million in 2018 with stable foreign investment inflows and profit growth.

Europe continues to be a key region for the development of investment casting market. It was valued at USD 3,473.9 million in 2018. The investment casting process contributes toward a circular economy in the European region by utilizing scrap metal from various sources and processing it by melting and re-molding to form casts. This, in turn, is likely create a positive impact on the regional market.
Investment Casting Market Share Insights

The industry witnesses a presence of large and small scale vendors across the globe thereby resulting in a moderate level of concentration. The competition is intense, and the industry is categorized by the need for reliable and precise investment cast parts. The manufacturers always strive to use the most suitable and innovative investment casting process so as to offer products that are rigid and durable.

New entrants in the industry are developing application specific products and are selling them at a competitive price to enhance their market position. Utilization of other casting processes and introduction of robotic arms in investment casting are the factors positively impacting the competitive environment of the market.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Investment Casting Market Research Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the investment casting market report on the basis of application and region:

Application Outlook (Revenue, USD Million; 2014 - 2025)

  
Aerospace
  
Automotive
  
Oil & Gas
  
Medical
  
Mechanical Engineering
  
Automation

Food & Beverage Processing and Packaging Industry

  
Energy Technology
  
Transportation