04 October, 2019
RALEIGH, North Carolina, October 4, 2019 - The global market size for iron castings is expected to reach 82.97 MMT by 2020, growing at a CAGR of 2.5-3 percent, according to Beroe Inc., a procurement intelligence firm. Automobile and industrial machinery are the two major end-use industries driving the growth of the iron castings production market.
The US, China, India, Japan, and Germany are ranked as the top five iron castings producing countries with China contributing to 45–47 percent of the global production of iron castings and almost more than three times production of the US. The developed nations, such as the US, Germany have stringent environmental regulations, and hence, the foundries are likely to invest more on environment-friendly practices like recycling of sand, usage of silicate binder, etc.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Demand for agricultural machinery, transport equipment, and machine tools are expected to be a key growth driver for the iron castings market. Favorable government policies toward the auto industry in major production hubs have been instrumental in pushing the growth of this segment. Meanwhile, construction and mining equipment demand is expected to remain subdued. Key supply chain risks are price risk, quality risk, lead time and availability risk.
Emerging technologies such as 3D printing, sand binders, and material handling robots are making a significant impact on the iron castings mark. Identifying suppliers with high levels of automation will enable high quality and consistency and can offset the labor cost. Most of the OEMs are now procuring the raw materials on behalf of their suppliers so that savings can be redeemed on while purchasing finished components.
The research methodology adopted for the report included:
Generally, two types of contracts are followed in the iron castings industry. The contract structure varies from one-time-order to yearly contract or long-term contracts based on client requirements. The price revision happens monthly based on the price rise or drop by more than 5 percent in the case of long-term contracts. In a one-time-order, the price remains constant from the date of order to the date of delivery.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com