Industry Forecast by Carlos Olabe, Executive Director, EICF T
his study represents the volume of sales produced by European foundries and addresses the different market segments analyzed, independently from the location of those market and end users. Market segments established are as per end user application. • High Added Value • Aerospace • Industrial Gas Turbine (IGT)
• Automotive • Other applications
The European Union [EU] economy forecast 1.4% growth year-on-year for 2019 (average figure). European Investment casting growth is estimated at 2.1%, surpassing average GDP for the same period. This has resulted in an estimated total sales value of US $3.557 Billion. Overall European investment casting sales show a slowdown in growth trend from previous years.
The High Added Value market segment experienced 4.2% growth in 2019, driven by aerospace sales. The Automotive market segment experienced a significant down downturn, yielding a 5.8% decline for the same period, while the Other Applications market segment experienced a light decay of 1.5%.
High Added Value - Aerospace The commercial aircraft environment continued to be very strong in 2019 with Airbus increasing new orders and market share over Boeing. As of August 2019, Airbus’ backlog of orders was 7,172 aircraft, representing eight years of production at targeted output. Boeing and Airbus are driving programmes to increase production output, representing a challenge for the supply chain.
Looking forward to 2020, the market
for Aerospace components will remain strong with increasing demands placed on the supply chain to cope with Airbus
16 ❘ January 2020 ®
High Added Value - Industrial Gas Turbine Sales of Industrial Gas Turbines have
Europe European Investment Casting Market Review
and Boeing production requirements. The existing backlog of orders and its sustained growth provides confidence that the high demand for castings in this sector will continue.
fallen since the last quarter of 2017, under pressure from low-cost renewable energy and an OEM focus on stock reduction. In 2019 this sector has seen some isolated signs of demand recovery as industry procurement is operating in a “make to order” fashion.
Service parts represent significant
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