Foundry Binders Market

Foundry Binders Market: Overview

• Foundry binders are utilized in metal casting factories. Binders retain casting materials in place to avoid deformity in final metal products. Foundry binders are employed in casting of different metals such as aluminum, cast iron, bronze, and steel.
• Usually, sand casting is used for casting of metals, as sand is inexpensive, readily available, and green. Sand casting is compatible with all types of binder systems.

Rise in Demand for Casting Products from End-use industries to Drive Foundry Binders Market

• Foundry binders are widely used in various sectors across the globe such as automotive, aerospace, power generation, railways, petrochemical, medical, defense, and marine. Almost all key components of these industries, such as brake disks, medical implants, marine engines, and aircraft turbine blades are dependent on castings.
• Cast components are used in engines, chassis, and vehicle bodies. Foundries are increasingly witnessing technological advancements and high demand for fuel efficiency through lightweight construction and optimization of cast components.
• Cast components used in the building & construction industry are pressure and drainage pipes, surface boxes, castings for radiators and boilers, cooker and stove castings, and sanitary castings. Castings are also employed in power generation equipment such as transformers and generators, and electric motors.
• Casting components are widely used in the medical sector. They are an integral part of computerized tomography and scanners. Casting components are used for cast prostheses such as knee joints and hip joints. Castings are also employed in the infrastructure of hospitals (nodes in hospital beds). Castings are used in several aspects of the energy industry such as pumps and valves used in the oil & gas sector; cast nodes for offshore and on-shore structures; hubs for wind energy turbines; and wind and wave power applications.
• Economic growth in developing regions such as Asia Pacific, Latin America, and the Middle East is driving the need for urbanization. More than 50% of the global population was living in urban areas in 2018. This percentage is projected to increase to 66% by 2050. Asia and Africa are urbanizing more rapidly than other regions. Urban population in Asia and Africa is anticipated to rise to around 65% and 62%, respectively, during the forecast period. These factors are projected to fuel building & construction, automotive, and industrial sectors, which rely highly on casting products. Growth of building & construction, automotive, and industrial sectors is anticipated to drive the foundry industry across the globe over the next few years, thereby boosting the demand for foundry binders during the forecast period.

Slowdown of Global Foundry Industry Due to Newer Technologies to Hamper Foundry Binders Market

• Foundry is an energy-intensive industry. Major consumption of electric energy occurs in the melting division of a foundry. Melting and pouring processes are key factors influencing energy consumption. This affects the quality of casting. Studies on energy consumption pattern of induction furnaces reveal that the specific energy consumption is about 18% higher than the standard norms specified by regulatory bodies.
• Foundry is inherently hazardous. Its primary activity is melting metals, which frequently requires temperatures higher than 2,600°F (1,425°C). These high temperatures call for foundry safety procedures that are equally intense.
• Casting products usually come with minor defects such as gas porosity, shrinkage defects, mold material defects, pouring metal defects, and metallurgical defects. It is difficult to achieve precision and complex geometries with the casting process.
• The global foundry industry is likely to contract during the forecast period, owing to the emergence of high-precision technologies such as 3D printing and other competitive technologies. Environment-related concerns and high-energy consumption are key factors anticipated to make foundry processes less popular than other manufacturing processes over the next few years.
• Metals such as steel and iron are largely being replaced by lighter metals, plastics, and composites, as they are lighter, inexpensive, and more durable. Cast iron and steel foundries are key consumers of foundry binders. Decline in usage of cast iron and steel components is estimated to hamper the global foundry industry. This, in turn, is projected to adversely affect the global foundry binders market during the forecast period.

Increase in Demand for Green Foundry Binders to Offer Lucrative Opportunities for Global Market

• The foundry industry provides various cast components for different end-use industries such as automotive, shipbuilding, and construction. However, conventional core binders emit up to 70% of a foundry’s volatile organic compound (VOC) emissions during the casting process. Thus, most of the foundry operators are focusing on replacing these conventional core binders with low-emission core binders.
• Convectional core binders can be replaced by green foundry binders. Green foundry binders would help lower emissions, improve indoor air quality, and support the circular economy through reuse of foundry sand that is usually landfilled. The use of green foundry binders would help lower 80% of hazardous airborne emissions. Thus, the usage of green foundry binders is likely to create lucrative opportunities for the foundry binders market during the forecast period.

Recent Developments, Expansions, Acquisitions, and New Contracts

• In January 2020, BASF SE completed the acquisition of Solvay’s polyamide business. The transaction would increase BASF SE’s polyamide capabilities with innovative and well-known products such as Technyl. This is expected to enable BASF SE to support its customers with even better engineering plastics solutions for autonomous driving and e-mobility.
• In August 2018, Kao Corporation completed the acquisition of Washing Systems, LLC. This acquisition expanded Kao Corporation’s chemical solution business for commercial laundry.

Asia Pacific to Dominate Foundry Binders Market

• Asia Pacific dominated the global foundry binders market in 2019. The region is expected to remain highly lucrative during the forecast period. Demand for foundry binders is high in Asia Pacific, due to rapid industrialization, and rise in demand for foundry products in automotive and aerospace industries in the region.  
• Europe is estimated to be a highly attractive region of the global foundry binders market during the forecast period. Its share is estimated to rise significantly in the global foundry binders market during the forecast period. This can be primarily ascribed to increase in demand for foundry binders in the automobile industry in the region.
• The foundry binders market in North America is estimated to expand steadily during the forecast period, due to increase in demand for cast products in various industries such as automobile, aerospace, and manufacturing during the forecast period

Highly Competitive Foundry Binders Market

• The global foundry binders market is highly fragmented with the presence of large number of players operating at local, regional, and international levels
• Key players operating in the global foundry binders market include
  • ASK Chemicals
  • Vesuvius
  • HÜTTENES-ALBERTUS Chemische Werke GmbH
  • Imerys
  • United Erie
  • Mancuso Chemicals Limited
  • Eurotek Foundry Products Ltd
  • Kao Corporation
  • RPMinerals
  • John Winter
  • IVP Limited, and REFCOTEC