Investment Casting Market Size, Share & Trends Analysis Report By Type (Sodium silicate process, Tetraethyl orthosilicate/ Silica sol process), By Material (Superalloys, Steel, Aluminum, Titanium, Others), By Application (Automotive, Aerospace & Military, Oil and Gas, Energy, Medical, Mechanical Engineering, Food & Beverages And Packaging Industry, Automation, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global investment casting market size was valued at USD 15.29 billion in 2021 and is projected to reach USD 24.73 billion by 2030, registering a CAGR of 5.49% from 2022 to 2030.

The process known as investment casting involves producing a metal component with the use of an investment mold throughout the production stage. The investment casting process is also known as the Lost wax method. This approach is helpful in the process that will follow, which includes reducing the amount of material waste, energy consumption, and machining. The aerospace, gas turbine, industrial, and automotive industries are where their principal applications can be found.

The ability of investment casting to maintain a close dimensional structure while also producing a smooth surface is the primary factor propelling the market's expansion. Its extensive use in the fabrication of components used in aircraft as well as parts of machines used in industries has also been a contributor to the expansion, along with several other variables that have been responsible for the rise. Complex geometries and materials from more advanced forms of engineering are required for the various components that go into the design of aircraft.

Demand has increased for a variety of components, including air ducts, complex curved surfaces, engine chambers, and internal channels. During the manufacturing process of airplanes, the utilization of investment casting permits the development of structures that are not only lightweight but also highly constructed. According to the findings of the surveys, it is anticipated that the aerospace industry will have significant expansion in the years to come, which will lead to advancements in the investment casting business.

Market Dynamics

Market Drivers

• Growing aerospace & military industry

The expanding aerospace and military industries are major drivers of the demand for investment casting. This is because investment casting is used to produce a wide variety of applications and parts for aircraft, helicopters, and jets. Investment casting is also used to produce a variety of other parts and applications. These include flight critical and safety components, components for landing and braking, and components for the hydraulic fluid system; all of these are essential to ensuring the aircraft's continued operational viability.

Aerospace and defense became the most important market sector in the United States in 2021, accounting for a revenue share that was greater than 62.0 percent. Key participants in the aerospace sector are opening new plants to meet the growing demand for satellites as well as commercial and private jets. These new plants will be able to produce more of the goods that are in demand. For example, the Swedish company Saab AB plans to establish a new aircraft plant in West Lafayette, Indiana, in October of 2021.

Market Restraints

• High manufacturing costs & energy consumption

The demand for investment castings is being held back by a few problems, such as the high cost of production and the extensive amount of energy it requires. However, foundries are working together to develop innovative advanced casting technologies through the use of simulations in an effort to overcome these problems. If successful, this will likely decrease the amount of time spent on the shop floor and boost the casting yield.

Market Opportunity

• Various technological advancement

X-ray defect detection, all-in-one 3D printing, casting and forging techniques, and other technological advancements are all contributing to the creation of new opportunities for business expansion. Improvements in casting processes can be achieved through computer simulations and the implementation of metal additive manufacturing practices. These procedures contribute to the manufacture of products that are cost-effective as well as stable and structurally durable. It is projected that other factors, such as speedy industrialization and substantial research and development (R&D) efforts, would generate chances for the market in the future.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

In 2021, the Asia Pacific region was the most important part of the worldwide market. This region accounted for more than 35.0 percent of the revenue share. The demand in the region is primarily driven by the consistently strong expansion of the manufacturing sectors of the automotive, aerospace, and industrial machinery industries. Because there are so many small- and medium-sized factories in the area, investment cast items are produced in greater quantity here than anywhere else in the world.

Over 1,500 foundries in China make components for the automotive and aerospace industries, making the country the leading producer of investment casting components in the Asia Pacific region. Given the availability of foundries for automotive turbochargers, gas turbines, and biomedical applications, Japan is one of the emerging producers of investment cast parts. On the other hand, South Korea demonstrates an increased product demand in the automotive industry.

Over the course of the projected period, it is anticipated that Europe would expand at a compound annual growth rate of 4.4 percent. The region has seen a growth in the use of new generation alloys in aviation components due to the capacity of these alloys to endure high temperatures. This is anticipated to lead to an increase in the usage of these alloys in both commercial and military types of aircraft. The demand for investment casting in Europe's aerospace sector is anticipated to be driven throughout the forecast period by rising technological penetration in the production of high-performance alloy parts.

In 2021, North America was the most dominant region in the market and accounted for the biggest revenue share, which was greater than 36.0 percent. This is because investment casting is so widely utilized in the production of high-value-added components for a wide variety of industries, including the aerospace and defense, oil and gas, and medical industries.

Segmental Analysis

In 2021, aerospace & defense accounted for around 46.0% of the global market's revenue. The aircraft sector relies heavily on investment cast components for a variety of important applications. Investment casting is used to produce highly engineered castings such as cable clamps, ball bearings, fuel valves, gasoline manifold, landing gear, brake systems, pitot probes, and other sensors.

The mechanical engineering business is one of the leading suppliers of capital goods and is in high demand. It is projected that a quick increase in production activities will augment industry expansion, consequently increasing demand for investment castings over the projection period. Using investment casting techniques, agricultural equipment with excellent durability and long-life cycles for tough agricultural applications is created.

During the projected period, the rising need for shale gas is anticipated to increase the demand for investment cast components even further. For land and offshore drilling activities, in addition to hydraulic fracturing applications, highly designed cast items are utilized. In addition, investment castings are used to produce compressor components, impellers, valve components, flanges, electrical equipment & fittings, connections, and housings for the oil & gas industry.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

In October 2021, The Alcoa Corporation recently disclosed its intention to accomplish its goal of achieving net-zero greenhouse gas (GHG) emissions across all of its global activities by the year 2050. This goal aligns with the company's strategic priority to advance in a sustainable manner and complements its existing targets, which include reducing direct and indirect GHG emissions from aluminum smelting and alumina refining operations by 30 percent by 2025 and 50 percent by 2030. The aim to reach net-zero GHG emissions by 2050 for both direct (scope 1) and indirect (scope 2) emissions is aligned with this strategic priority and will be accomplished by 2050.