Metal Casting Market Trends

Growth Drivers

• Government incentives and support programs: Governments around the world are enacting initiatives to incentivize organizations to pursue the use of green chemicals. For instance, the U.S. Renewable Chemicals Act of 2021 gives manufacturers producing biobased chemicals with at least 95% biobased content a federal tax credit of 15% per pound. The Department of Agriculture also has a program, the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program, which provides loan guarantees to support the financing of the establishment of commercial manufacturing facilities producing renewable chemicals. The government initiatives and tools to support such renewable chemical production facilities are leading to investments in sustainable chemical production. For example, EPA and DOE have allocated USD 9.4 million to develop biofuels technologies in 2024, demonstrating the implication of the federal interest in sustainable industrial innovation.
• Growth in green chemicals market: The global green chemicals market is expected to grow exponentially as demand increases for environmentally friendly products, as well as government regulations that require low environmental impact products. The global green chemicals market was valued at approximately USD 146.88 billion in 2024 and is expected to reach approximately USD 387.98 billion by 2034, growing at a CAGR of 10.21% and expedited by the emergence of bioprocessing, fermentation, and more efficient enzymatic processes, which will reduce uncertainty in their efficiency, as well as their potential reduction in production cost. Additionally, the industrial sector, including chemical manufacturing, comprises approximately 20% of the overall U.S. greenhouse gas emissions. Energy-related CO2 emissions at the manufacturing level will be decreased by 58% by 2040 and by 87% by 2050 with the help of current and emerging technologies, which is a strong indication of the federal determination to speed up sustainable and green chemical manufacturing through the introduction and implementation of low-carbon solutions.
• Expansion in automotive and aerospace usage: Automotive and aerospace industries are also the major end users of casting chemicals. Automotive Lightweight alloys and enhanced composites are being adapted to enhance efficiency and minimize emissions, and, therefore, the need to utilize high-performance binders, resins, and coatings in foundries is becoming more common. According to the DOE metal-casting report, nearly a third of the total metal castings in the U.S. are intended to serve the car and truck market, highlighting the importance of automotive demand to casting applications. Specialty chemicals are also demanded in aerospace: coatings that resist heat, accurate molds, high-temperature turbine engine alloys, and alloys that withstand heat in the airframe.

Import/Export Trends

United States Casting Machines Used in Metallurgy or Metal Fo Exports by Country, 2023

Source: WITS

United States Casting Machines Used in Metallurgy or Metal Fo Imports by country, 2023

Source: WITS

U.S. Automotive Metal Casting Market 2017–2025 (Thousand Metric Tons)

Source: science.osti.gov

Challenges

• Costs of Environmental Compliance and Regulatory Pressure: The U.S. Environmental Protection Agency (EPA) has introduced strict regulations of air quality, which affect the metal casting industry. To achieve air pollution reduction and safeguard the health of the population, the EPA reduced the maximum ambient air quality standard of the fine particulate matter (PM2.5) to 9 micrograms per cubic meter in March 2024. This regulatory reform is extremely problematic for metal casting producers (particularly SMEs), which might not have the means to invest in advanced pollution control technologies. The higher compliance costs may exert pressure on their financial position and thus limit their competitiveness in the metal casting market. For example, research conducted by the American Foundry Society noted that adoption of strict environmental rules might cause more costs of operations in the foundries, and this may affect their competitiveness.
• Pricing Pressures because of the tariffs and market volatility: The metal casting industry is not an exception, as it is facing the pricing pressures that are the result of international trade policy and market fluctuations. For example, tariffs on steel imposed by the U.S. government have created higher prices on raw materials, hence influencing the pricing policy of metal caster producers. In addition, changes in the price of raw materials, including iron ore and scrap metal, are even more problematic in pricing models. In addition, a report by the Associated General Contractors of America shows that the producer price index of materials and services that are utilized in non-residential construction increased 2.6% in July 2024, and it is the biggest 12-month percentage increase since February 2023. The challenges associated with these prices require strategic plans and cost controls to ensure that profit is generated and remains competitive in the global metal casting market.