Steel Casting Market Expected to Reach $55.6 Billion by 2034

According to a new report published by Allied Market Research, titled, “Steel Casting Market," The steel casting market size 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.

Introduction

Steel casting is a manufacturing process used to create steel components by pouring molten steel into a mold to solidify into a desired shape. This process is a type of metal casting, where the material is melted to a liquid form and then poured into a mold to produce objects of various sizes and complexities. The steel casting process can be broken down into several phases, including mold preparation, melting and pouring the steel, cooling and solidifying the metal, and post-processing. Steel casting allows the production of intricate and complex shapes that would be difficult or impossible to achieve with other manufacturing methods. The molds used in steel casting industry are typically made of sand, metal, or ceramics, depending on the process and the intended application of the casting.

Investment casting is known for its ability to produce highly detailed and precise components with excellent surface finishes. This makes it particularly useful in industries that require complex geometries and high levels of accuracy. The aerospace, medical, and defense industries are key areas where investment casting is widely applied. Sand casting is one of the oldest and most widely used methods of metal casting. In this process, a mold is created by compacting a mixture of sand, binder, and other materials around a pattern, which is typically made of metal or another material that can be easily removed. Once the sand mixture has been compacted, it forms a mold cavity that replicates the shape of the desired component.

Market Dynamics

Advancements in alloy steel is expected to drive the growth of steel casting market. Advancements in alloy steel have played a pivotal role in boosting the demand for steel castings across various industries. Alloy steel, which is created by adding elements such as chromium, nickel, molybdenum, and vanadium to carbon steel, offers significantly enhanced properties compared to standard carbon steel. These alloys provide superior performance, greater strength, and increased resistance to wear, corrosion, & temperature extremes, making them ideal for high-demand applications in industries such as aerospace, automotive, energy, and heavy machinery. In April 2025, the UK government intervened to prevent the closure of British Steel’s Scunthorpe plant, facilitating a shift from traditional blast furnaces to Electric Arc Furnaces (EAFs). This transition aims to reduce carbon emissions by utilizing scrap steel and electricity instead of coal.

However, competition from alternative materials is expected to hamper the growth of steel casting market. The growing competition from alternative materials such as aluminum, composites, and polymers is increasingly influencing the demand for steel casting market forecast, particularly in sectors where weight reduction and cost efficiency are prioritized. These materials, which offer distinct advantages in specific applications, have begun to challenge the dominance of steel casting market trend, in industries such as automotive manufacturing, aerospace, and consumer goods production. In the automotive sector, weight reduction is a critical factor for improving fuel efficiency and meeting stringent emissions standards. Aluminum, for example, is significantly lighter than steel, making it an attractive option for parts such as engine blocks, transmission components, and body panels. Automotive manufacturers are increasingly turning to aluminum castings to achieve the necessary weight reductions for better fuel economy, particularly with the rise of electric vehicles (EVs), which benefit from lighter weight to extend battery range. Aluminum also offers good corrosion resistance, which further enhances its appeal in automotive applications.

Segments Overview

The steel casting market share is segmented into type, process, application, and region. On the basis of type, the market is divided into carbon steel, low-alloy steel, high-alloy steel, and others. On the basis of process, the steel casting market is categorized into sand casting, investment casting, die casting, and others. On the basis of application, the steel casting market is classified into power generation, rail & transit, mining, construction machinery, oil & gas, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of type, the carbon steel segment is expected to be the fastest growing segment in the market during the forecast period, with a CAGR of 5.7%. The versatility of steel casting in carbon steel makes it ideal for industries such as automotive, construction, power generation, and machinery manufacturing. Components such as engine blocks, gears, turbine blades, valves, and structural supports are often made from cast carbon steel due to its ability to withstand high levels of stress, heat, and wear. Carbon steel castings offer excellent mechanical properties such as high tensile strength, toughness, and durability, making them suitable for parts that need to resist corrosion and perform under extreme conditions. Furthermore, the carbon content in steel affects its hardness, machinability, and overall strength, which can be tailored through casting processes to meet specific requirements for different applications.

On the basis of process, die casting is anticipated to be the fastest-growing segment in the steel casting market during the forecast period, representing a CAGR of 6.0%. Steel casting is a critical component in die casting, particularly when high-strength, wear-resistant parts are required. Die casting involves injecting molten metal under high pressure into a mold cavity, and while traditional materials such as aluminum and zinc are commonly used, steel casting offers several advantages in specific applications. Steel casting is primarily used in die casting for industries that demand robust parts, such as automotive, aerospace, and heavy machinery.

On the basis of application, the construction machinery segment is the projected to be the fastest growing segment in the market during the forecast period with a CAGR of 6.2%. One of the main advantages of steel casting in construction machinery is its ability to form complex shapes that would be difficult or costly to produce through other manufacturing processes, such as forging or machining. The casting process allows for the creation of intricate designs that contribute to the machinery's efficiency and performance. For instance, parts such as crane hooks, bucket teeth, and slewing rings, which are subjected to high mechanical stresses, are often made from steel castings to ensure reliability and safety during operation. In 2022, ThyssenKrupp Uhde and POSCO signed a contract for the construction of a new steel casting plant in South Korea. Such collaborations are indicative of the global efforts to enhance steel casting capabilities to support various industries, including construction machinery.

Regional Analysis

By region, Asia-Pacific is expected to be the fastest-growing region in the steel casting market during the forecast period, with a CAGR of 5.7%. Steel casting plays a critical role in the industrial and manufacturing sectors across Asia-Pacific countries. In this region, the demand for steel castings is driven by the rapid industrialization, the expansion of infrastructure, and the growing automotive, energy, and machinery sectors. In China, the largest consumer and producer of steel castings in the Asia-Pacific region, the demand is particularly influenced by the booming automotive industry, as well as large-scale infrastructure projects. China's role as a global manufacturing hub necessitates a consistent supply of steel castings for everything from construction equipment to engines. In 2024, China's steel production faced a significant downturn, with July's output at 82.94 million metric tons, the lowest since December 2022. The first seven months of 2024 saw a 2.2% decrease in production compared to the same period in 2023. Factors contributing to this decline include weak steel demand due to sluggish property investment and declining profits among steel producers.

Competitive Analysis

The major prominent players operating in the steel casting market include ArcelorMittal, Nippon Steel Corporation, Eagle Alloy, Jindal Steel & Power Ltd, Harrison Steel Castings Company, Ferralloy Inc, Goodwin Steel Castings., Barron Industries, WHEMCO Steel Castings, William Cook Group.

Key Market Insights

• On the basis of type, carbon steel segment is the fastest growing segment in the steel casting market growing with the CAGR of 5.7% during the forecast period.
• On the basis of process, sand casting was the most lucrative segment representing the CAGR of 4.9% during the forecast period.
• On the basis of application, power generation dominated the steel casting market in 2024.
• Region wise, Asia-Pacific dominated the market accounting for more than one third of the market share in 2024.