Outlook Global Foundry: Chances and challenges in 2024

High energy costs, especially in Europe, and the need for significant investment to achieve climate neutrality are major burdens for the foundry industry. Technological challenges posed by advancing digitalization and artificial intelligence (AI) as well as the relocation of customer industries to other regions require adaptation strategies. In addition, securing qualified labour in the long term remains a critical issue. However, there are also opportunities for the global foundry industry, according to a report on the state of the global foundry industry in 2024.

Significant differences by region and industry

The production of light vehicles is recovering, but it will not reach the production level of 2017 again until 2028 – and will mainly take place in Asia. The recovery process is slower in Europe and North America.

Mechanical engineering, on the other hand, is growing strongly worldwide and is benefiting from digitalization and the use of AI. The experts estimate that turnover in the global mechanical engineering sector will almost double by 2030.

Technological and geopolitical influences

Technological trends such as e-mobility and lightweight construction are decisive factors for the future demand for cast products. The introduction of new drive technologies and the increased use of aluminum in the automotive and mechanical engineering industries are leading to increased demand for light metal castings.

Geopolitical developments, such as the Russia-Ukraine conflict, also have a significant impact. An end to the conflict would lead to increased demand for infrastructure investments and thus for foundry products. Similar effects are expected for the Middle East after a possible calming of the current conflicts.