Steel casting market to reach US$55.6B

Allied Market Research published a report, titled, "Steel Casting Market by Type (Carbon Steel, Low-Alloy Steel, High-Alloy Steel, and Others), Process (Sand Casting, Investment Casting, Die Casting, and Others), and Application (Power Generation, Rail and Transit, Mining, Construction Machinery, Oil & Gas, and Others): Global Opportunity Analysis and Industry Forecast, 2025-2034". According to the report, the "steel casting market" was valued at $33.1 billion in 2024, and is estimated to reach $55.6 billion by 2034, growing at a CAGR of 5.4% from 2025 to 2034.

Expansion of Manufacturing and Infrastructure Projects

Surge in number of manufacturing and infrastructure projects is a pivotal driver for the steel casting industry. In the U.S., the Infrastructure Investment and Jobs Act (IIJA), enacted in November 2021, allocated $1.2 trillion to modernize the nation's infrastructure. Notably, in March 2022, an additional $166.5 million was invested in 108 infrastructure projects, encompassing energy infrastructure, roads, bridges, and highways, all of which require substantial steel components. Similarly, the National Investment and Infrastructure Fund (NIIF) in India committed $365.5 million (Rs 3,036 crore) to the J&K tunnel road project in July 2022, highlighting the country's focus on enhancing its infrastructure. Asia-Pacific countries have experienced rapid industrialization. India, for instance, is set to establish 12 new steel plants by 2030, aiming for a combined production capacity of 60 million tons per year. This expansion is driven by increase in demand for steel casting in sectors such as automotive, construction, and energy. Government initiatives, including the development of National Investment Manufacturing Zones such as Kalinganagar in Odisha, further bolster this growth by providing infrastructure and policy support.

The growth of the automotive and transportation sectors

The automotive and transportation sectors have experienced significant expansion, driven by technological advancements, regulatory pressures, and evolving consumer preferences. This growth has notably increased the demand for lightweight, high-strength steel castings essential for various vehicle components. The global shift toward electric vehicles has been particularly pronounced in China, the world's largest EV market. In 2024, China sold 12.87 million passenger electric vehicles, with 60% being battery electric vehicles (BEVs) and 40% plug-in hybrid electric vehicles (PHEVs), accounting for 47.9% of total automotive sales in the country. This rapid adoption has spurred the need for specialized steel castings in EV components such as battery housing, electric motor casings, and structural frames.

Advancements in casting technologies have played a crucial role in meeting the evolving demands of the automotive industry. Innovations such as lost-foam casting and vacuum die casting have improved casting quality and reduced production costs. In addition, the trend toward vehicle light-weighting, driven by emission regulations and fuel efficiency norms, has led to a shift from traditional materials to high-strength steel (HSS) and aluminum in casting applications

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Rising Investments in Green Building Materials

The steel industry has made significant strides toward reducing its carbon footprint, aligning with the broader goals of sustainable construction. In 2024, Salzgitter Flachstahl GmbH, a subsidiary of Salzgitter AG, signed a long-term Power Purchase Agreement (PPA) to enable the future production of green steel. In addition, ArcelorMittal launched the XCarb Program, focusing on achieving carbon-neutral steel production by leveraging innovative technologies and increasing the use of renewable energy sources. The adoption of eco-friendly steel castings is becoming increasingly integral to green building projects. Steel castings produced using sustainable methods offer enhanced durability, recyclability, and energy efficiency, aligning with the principles of green building standards. For instance, the use of recycled steel and low-carbon production techniques in casting processes contributes to the overall sustainability of construction projects.