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Foundry Chemicals Market

Market Study on Foundry Chemicals: East Asia to Remain Leading Regional Market

Foundry Chemicals Market

Foundry Chemicals Market Outlook (2023 to 2033)

The global foundry chemicals market stands at a valuation of US$ 2.19 billion in 2023. The market is forecasted to expand at a CAGR of 4.3% and reach US$ 3.34 billion by the end of 2033, according to a detailed report by analysts at Persistence Market Research.

Foundry chemicals are crucial to the casting process in foundries. These chemicals play diverse roles and are available in various forms. They are typically categorized into binders, coatings, auxiliaries, and more, depending on their specific functions within foundry operations.

The choice of foundry chemicals varies according to the type of foundry involved. For instance, ferrous foundries and non-ferrous foundries require distinct materials and grades of foundry chemicals to accommodate the unique characteristics of the metals they work with.

Attributes Key Insights
Foundry Chemicals Market Size (2023E) US$ 2.19 Billion
Projected Market Value (2033F) US$ 3.34 Billion
Global Market Growth Rate (from 2023 to 2033) 4.3% CAGR
Collective Value Share of Top 3 Countries (2023E) 65% to 70%
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Consumption Analysis of Foundry Chemicals (2018 to 2022) vs. Market Forecasts (2023 to 2033)

From 2018 to 2022, the foundry chemicals market expanded at a sluggish CAGR of 1.4% but is projected to progress at a 4.3% CAGR from 2023 to 2033. The main reason for this slow growth during the historical period was due to the reduced production and demand for foundry chemicals during the COVID-19 pandemic.

According to the report, demand for foundry chemicals has risen significantly since 2022 due to growth in the automotive and aerospace industries in Asian countries. The functional, operational, and economical benefits of foundry chemicals make them an integral part of the casting industry.

Extensive use of foundry chemicals, particularly resins and binders, has necessitated their increased production. This is driven by the advantages these chemicals offer in the production of casted products. Demand for binders is forecasted to increase at a faster rate than other foundry chemicals in the coming years.

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Which Key Factors are Driving the Sales of Foundry Chemicals?

“Growing Need for Enhancing Foundry Productivity”

The global market is driven by the critical role of foundry chemicals in casting process optimization. Foundry chemicals improve molding materials' flowability and compactibility, resulting in speedier and more exact mold creation. Casting errors, rework, and scrap are reduced, resulting in significant time and resource savings.

Foundry chemicals are critical for assuring casting quality by eliminating impurities, minimizing porosity, and improving surface finishes. Precision and reliability are vital in critical industries such as automotive and aerospace, and foundry chemicals play an important role.

Refractory coatings and protective coatings contribute to the increased lifespan of important equipment in foundries, such as furnaces and molds, decreasing downtime and maintenance costs. The persistent drive for increased productivity, cost-efficiency, and high-quality output in modern manufacturing fuels the demand for foundry chemicals.

“Emphasis on Developing Low-cost and Property-boosting Foundry Additives”

Introduction of innovative and cost-effective additives tailored to improve casting qualities has created an intriguing potential in the foundry chemicals sector. These novel additions have the potential to provide major benefits. For example, they can significantly lower foundry production costs by providing more cost-effective alternatives that boost overall competitiveness in a sector where efficiency is critical. These foundry additives can also be customized to improve a variety of casting qualities in addition to cost reduction.

The foundry industry requires cost-effective solutions that improve product quality, particularly in light of the increased emphasis on sustainability. Companies that pioneer these novel additions can gain considerable competitive advantage by addressing cost-efficiency and environmental concerns, establishing themselves as market leaders, and cultivating long-term partnerships with clients who value innovation and sustainability.

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What is Affecting the Demand Growth for Foundry Chemicals?

“Escalating Raw Material Costs”

The global market for foundry boosters and chemicals faces significant constraints due to the escalating costs of raw materials. Recent developments in specific countries, such as India, vividly illustrate this challenge, with crucial resources such as pig iron, scrap, ferroalloys, chemicals, and minerals experiencing notable price hikes and consequential impacts. In India, approximately 10% of foundry facilities have closed, while others operate at only 50% capacity, highlighting the adverse effects of this global issue on regional businesses.

Escalating raw material costs exert immense pressure on the global foundry chemicals business. Market players grapple with sustaining cost-effective manufacturing and competitiveness amid rising demand for high-quality castings modifiers and efficient solutions. The market’s capacity to adapt, innovate, and navigate the intricate landscape of fluctuating raw material prices is further impeded by a lack of operating capital. These challenges are anticipated to somewhat impede the demand growth for foundry chemicals during the forecast period.

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Region-wise Analysis

Why is Asia Pacific Generating High Demand for Foundry Chemicals?

“Lower Labor and Raw Material Costs Benefitting Foundry Chemical Manufacturers”

Asia Pacific region has emerged as a dominant force in the global market, owing to a convergence of compelling reasons. Rapid industrialization, infrastructural expansion, and urbanization have stimulated the demand for metal casting in the construction, automotive, and manufacturing sectors. This growth in demand inevitably leads to an increase in the need for linked foundry chemicals, reinforcing the region's market position for metal casting chemicals.

The market in Asia Pacific benefits from a significant cost advantage in production, encompassing lower labor and raw material expenses. This cost-effectiveness has positioned the region as an enticing destination for both domestic and international foundry chemical manufacturers, further solidifying its prominence. The region's robust economic growth and the continuous expansion of its foundry sector also create a favorable business ecosystem, attracting established market leaders and new entrants alike.

What’s Drawing Manufacturers of Foundry Chemicals to Europe?

"Collaborative Initiatives in Materials Science and Manufacturing Technology"

Europe has become a driving force for innovation in foundry chemicals, primarily due to its stringent environmental and safety regulations. These regulations compel manufacturers to create eco-friendly and safe solutions, promoting innovation in sustainable foundry chemicals.

The manufacturing sector in the region, known for its demand for high-quality castings, fuels the need for innovative foundry chemicals that enhance processes and product quality. The region's research institutions and collaborative efforts in materials science and manufacturing technology foster an innovation-driven culture, resulting in advanced foundry chemicals.

Europe is the second largest foundry producer in the world with annual production of 16.8 million tons of casting products. With its unwavering focus on sustainable and efficient manufacturing, in the assessment years, Europe is poised to maintain its position in shaping the market for foundry chemicals, setting global standards, and influencing industry practices.

Category-wise Analysis

Why Do Foundry Binders and Resins Find Widespread Application?

“Extensive Use of Foundry Binders for Precise Casting Dimensions and Resource Savings”

Demand for foundry binders and resins is expected to rise at 4.6% CAGR by value from 2023 to 2033. Foundry binders and resins are in high demand across the globe. These binders are available in cold box, hot box, and no bake settings that make them end-use specific. Foundry binders contribute to the achievement of precise casting dimensions, reducing the need for post-casting machining and yielding savings in time and resources. Stronger molds and cores, facilitated by binders, minimize the risk of defects such as cracking or misshaping during casting, ultimately resulting in superior-quality finished products.

Which Foundry Type Accounts for High Demand for Foundry Chemicals?

“Need for Foundry Chemicals in Iron Foundries to Meet Automotive and Aerospace Requirements”

Revenue from the use of foundry chemicals in iron foundries is projected to account for 60% market share in 2033. Utilization of foundry chemicals is categorized according to the types of foundries, including iron foundries, steel and alloy foundries, aluminum foundries, and other non-ferrous foundries.

Iron foundries and steel foundries dominate the market in terms of volume. These foundries play a crucial role in casting vital components for the automotive and aerospace industries, such as wheels, engine parts, and other key components.

Competitive Landscape

The market is slightly consolidated with key players accounting for a considerable market share. These players compete with each other to innovate and launch new products that are specific and customized according to the foundry type and processing material. However, there are several tier-2 and tier-3 players present in the market who operate in local regions and provide general- and common-purpose foundry chemicals, which are low-cost and easy to manufacture.

The market is witnessing market consolidation through mergers, acquisitions, and partnerships. This trend reshapes competition dynamics, affecting market share and pricing strategies. Smaller companies may face increased competition from larger, consolidated entities. Market participants need to adapt to the changing competitive landscape by innovating, improving efficiency, and offering unique value propositions.

  • For instance, in 2021, ASK Chemicals acquired the resins business of SI Group to consolidate its position in the market. This acquisition allows ASK Chemicals to significantly expand its presence and product offerings.

Similarly, more developments related to companies manufacturing foundry chemicals have been tracked by the team at Persistence Market Research, which are available in the full report.

Foundry Chemicals Market Report Scope

Attribute Details
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis
  • US$ Million for Value
  • Kilo Tons for Volume
Key Countries Covered
  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Italy
  • France
  • United Kingdom
  • Spain
  • Benelux
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Association of South East Asian Nations
  • Australia and New Zealand
  • Gulf Cooperation Council Countries
  • Türkiye
  • South Africa
Key Market Segments Covered
  • Product Type
  • Foundry Type
  • Region
Key Companies Profiled
  • Vesuvius
  • SQ Group
  • Ask Chemicals
  • Asahi Yukizai Corporation
  • KAO Chemicals
  • IVP Limited
  • Hüttenes-Albertus International
  • Mancuso Chemicals Limited
  • Mazzon SpA
  • Fincast Foundry Flux Co.
  • Ceraflux India Pvt. Ltd.
  • Hindusthan Adhesive & Chemicals
  • Çukurova Kimya
Report Coverage
  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Driver
  • Restraint
  • Opportunity and Trend Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives
Customization & Pricing Available upon Request

Foundry Chemicals Market Research Segmentation

By Product Type:

  • Coatings
    • Solvent-based Coatings
    • Water-based Coatings
    • Others
  • Auxiliaries
  • Resins & Binders
    • Cold Box Systems
      • Alkaline Phenolic Resins
      • CO2 Cured Resins
      • Others
    • No-bake Systems
      • Furan Resins
      • Phenolic Urethane Resins
      • Others
    • Hot Box / Shell Systems
  • Others

By Foundry Type:

  • Iron Foundries
  • Steel and Alloy Steel Foundries
  • Aluminum Foundries
  • Other Non-ferrous Foundries

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • ASK Chemicals
  • Vesuvius
  • SQ Group
  • Mazzon SpA
  • ASAHI YUKIZAI CORPORATION
  • KAO Chemicals
  • IVP Limited
  • Hüttenes-Albertus International
  • Forace Polymers Pvt Ltd.
  • Fincast Foundry Flux co.
  • Ceraflux India Pvt. Ltd.
  • Hindusthan Adhesive & Chemicals
  • Çukurova Kimya
  • Mancuso Chemicals Limited

- Frequently Asked Questions -

The global foundry chemicals market reached a value of US$ 2.1 billion in 2022.

Demand for foundry chemicals advanced at a CAGR of 1.4% from 2018 to 2022.

Sales of foundry chemicals are estimated at US$ 2.19 billion in 2023.

Resins and binders are projected to hold 48% value share of the global foundry chemicals market in 2023.

The market for foundry chemicals is forecasted to climb to US$ 3.34 billion by 2033-end.

From 2023 to 2033, the global foundry chemicals market is projected to advance at a CAGR of 4.3%.

Vesuvius, SQ Group, Ask Chemicals, Asahi Yukizai Corporation, and KAO Chemicals collectively account for over 50% market share.

China, India, and the U.S. lead as far as the consumption of foundry chemicals is concerned.

The market in South Asia & Pacific is forecasted to expand at 6.1% CAGR through 2033.

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