As per the assessment conducted by Market Research Future (MRFR), the Global Foundry Coke Market is predicted to experience a CAGR of 5% while amassing a market value of USD 3608.0 Million by 2026.
Foundry coke is an exclusively used type of coke in iron foundries as a source of fuel in the cupola furnaces to produce molten iron. It also functions as a fuel to melt iron and as a source of carbon for the melted product. Increasing foundry coke uses in various applications, including automobile parts casting, machinery casting, insulation, and others. High carbon content, low ash content, high heating value, high strength, and dense structure are some distinctive features of foundry coke that allow its usage in iron foundries. Besides, it is cost-effective when compared to metallurgical coke since it attains the required furnace temperature and provides better melting at are lesser quantity and lesser time owing to its high heating value. However, extensive research and development have resulted in the introduction of substitutes for foundry coke, which is expected to obstruct the expansion of the foundry coke industry during the projection timeframe.
The outbreak of COVID-19 has brought a negative impact on the market owing to the disruption caused due to the imposition of lockdown in various countries. The market may show steady growth in the coming period.
The application of foundry coke in the cupola furnace is expected to be the primary cause boosting the growth of the foundry coke market. The surging demand for insulation materials across the world is expected to provide growth impetus to the players operating in the foundry coke market during the forecast period. However, the availability of substitutes is expected to restrain the growth of the product market during the forecast period. The challenging factors for the market players are the adverse effects associated with foundry coke production and stringent regulatory standards.
Growing Demand for Foundry Coke in End-User Industries to Grow the Market
The increasing demand for iron cast components in the automotive industry is projected to fuel the growth of the global market. In addition, the expansion of the construction industry is expected to be another salient sector contributing to the development of the market, which can augment the foundry coke market size.
Supportive Initiatives by Government to offer Lucrative Opportunities
The on-going technological progressions, increasing innovations, and favorable initiatives backed by the government are expected to be some of the lucrative opportunities that can grow the market during the review period.
Availability of Substitute to Hinder the Market
The global market for foundry coke is expected to face obstruction owing to the availability of substitutes during the forecast period.
Associated Adverse Impact of Foundry Coke to Pose a Challenge to Market Expansion
The adverse effect of foundry coke and the imposition of stringent rules and regulations are expected to pose a significant challenge to market expansion.
Cumulative Growth Analysis
Foundry Coal to Gain Prominence Owing to the Expansion of End-Use Industries
The market is expected to augment due to the growing adoption of electric vehicles in the coming period. In addition, the rapid expansion of end-use industries, such as chemical, automotive, oil & gas, can further propel the market during the assessment tenure.
Based on type, the global foundry coke market is segmented into ash content < 8%, 8% < ash content < 10%, and ash content >10%. The foundry coke with less than 8% ash content leaves less residue upon combustion, which results in a lower cost of waste management by the manufacturers. Low ash content produces less pollution upon burning. Due to these causes, the segment is likely to experience significant growth owing to its superior properties as compared to the other two segments.
Based on the application, the global market for foundry coke is segmented into automotive parts casting, machinery casting, material treatment, insulation, process industries, and others. The automotive parts casting is projected to register a CAGR of over 4.5% by the end of 2026. The expansion of the automotive industry across the globe owing to the increasing per-capita income, higher purchasing power, and growing economies are expected to be salient causes that can propel the segment. In addition, the adoption of electric vehicles in the coming years is also likely to boost the growth of the product in the review period.
APAC Expected to Dominate the Global Market for Foundry Coke
As per the analysis by MRFR, the global market for foundry coke is anticipated to lead the global market owing to rapid industrialization. The expansion of the end-user industries such as chemical, automotive, oil & gas, healthcare, food & beverages, agriculture, and others, which is expected to fuel the growth of the product market in the region. Among all countries of APAC, China is expected to be a leading producer and consumer of foundry coke. The country is projected to expand at a CAGR of over 5.5% during the assessment tenure.
North America is expected to acquire significant market value while expanding at a CAGR of 3.43% during the forecast period. Among all, the US is expected to register the highest CAGR of over 4.0% during the forecast period.
Europe is projected to procure significant market value while expanding at a considerable CAGR during the forecast period. The regional expansion of the market can be attributed to the growth of end-user industries. The UK and Germany are predicted to make a notable contribution in the review period.
MEA is anticipated to acquire the least market share owing to the sluggish development of the region due to the presence of underdeveloped economies. However, the expansion of the construction industry is expected to produce lucrative opportunities to underpin the regional growth of the market.
Competition to Grow Significantly
The global market for foundry coke market is expected to have strong competition owing to the entrance of new players. In addition, product launches are predicted to strengthen the prevailing competitiveness of players.
SMS group member Paul Wurth announced a contract with the South-Korean steel making group PSCO for the new Coke Oven plant 6 at Pohang steelworks. The start-up of the new Coke Over Plant is expected to begin in 2023.
The global market for foundry coke is predicted to witness significant growth in the review period owing to the expansion of end-use industries. In addition, the adoption of electric vehicles is expected to create lucrative opportunities for market expansion in the projection period.
Frequently Asked Questions (FAQ) :
The foundry coke market would grow with 4.20% CAGR during the forecast period (2014-2026).
The projected foundry coke market valuation would be USD 3608 million by 2026.
Rising number of substitutes to hold back the foundry coke market growth.
The ash content <8% would lead the market.
The automotive parts casting segment has a better opportunity to lead the market.