Rising Adoption of Automated Service Leading to a Growth in the Indian Foundry Market; Reports Technavio
By apacciooutlook | Monday, December 03, 2018
FREMONT, CA: In a report by Technavio, titled ‘Foundry Market in India 2017-2021’ the market study shows that the foundry market in India is expected to grow at a CAGR of more than 10 percent by 2021 due to the increasing focus on technology upgrades.
The report categorizes the foundry market in India into five end-user segments: automotive industry, electrical and construction industry, industrial machinery industry, agriculture industry and other industries.
Increasing investments in the construction sector and developing foreign firms are making huge investments in the electrical and construction industry. The electrical and construction industry is considered to experience the highest CAGR of over 12 percent within the given time period.
The automotive segment is expected to grow at a CAGR of 10 percent by 2021 due to the constant rising production ofcommercial vehicles, three wheelers, passenger vehicles, and two-wheelers across the globe. The steady Indian government framework with enhanced purchasing power, huge domestic market, and increasing development in infrastructure has made the country an ideal destination for investments in the automotive industry. The auto components industry accounts for almost seven percent of India’s gross domestic product (GDP) and employs almost 20 million people, who directly work for automotive manufacturing or other companies supplying parts for it.
With Indian manufacturing plants rapidly adopting automated service, several automobile companies, are setting up their manufacturing facilities within the country. Also the Make-in-India initiative is helping the manufacturing sector grow at a high pace. The leading vendors in the market are Electrosteel Castings, Hinduja Foundries, Nelcast and Rail Wheel Factory.
According to “Some of the factors contributing to this growth include a resilient end-user market, enhanced consumer sentiment, and return of satisfactory liquidity in the financial system,” says Sunil Kumar Singh, Lead Analyst for Semiconductor Equipment Research, Technavio, “The demand for machine tools, which accounts for a 2% share of consumption in the industrial machinery segment, will further drive the demand for castings. The setting up of new manufacturing facilities will also create demand for castings during the forecast period.”