Figure 7

energy, and as a consequence OEMs have been focusing on stock reduction and developing design solutions to improve efficiency, to cut the cost of gas-fired power The drop forecasted for 2020 is about 8.5% representing a continuation in the trend from previous year of the Gas Turbine Electrical Power Generation market; The Market is operating at “make to order”. Service or spare parts represent significant share of the demand. The world is switching to renewable energy. Gas might be needed as a backup fuel for generating electricity on renewables turndown, growth will depend in part on climate policies, and the ability of renewables to cope with the additional demand of electricity and in this sense prospects for recovery are positive. According to sectorial Market studies, the European gas turbine market is expected to register a CAGR of more than 2.57% during the forecast period 2021-2025. So, a steady recovery might be expected into this submarket segment within the High Added value market.

Automotive The Automotive Market segment already experimented a trend shift at the end of 2019 then as a consequence of the diesel restrictive policies and the subsequent 2020 mobility restrictions implied a deeper fall, affecting severely to IC industries operating into this field.

Automotive Passenger Cars Registrations New passenger car registrations in the European Union are reduced by more than 3 million from 12.8 million units in 2019 to some 9.6 million units this year. 2020 forecast for passenger car registrations down to about -25%

Automotive Commercial Vehicle Registrations Nine months into the year, the EU market for new commercial vehicles had contracted by 24.5% Production has followed the path of registrations with the subsequent additional effect on stock reduction.

Automotive Passenger Cars Production January 2021 ❘ 19 ®

Figure 8

The EU continues to be second World producer. The drop fall experimented in the period Jan-Sep vs the same period in 2019 is about -30 %.

Automotive Commercial Vehicle Production The forecast for the complete European (EU + other European countries) Commercial Vehicle (Vans, Buses & Trucks) is a reduction of -24%.

Other Applications Within this Market segment, it is included a series of different Market subsegments which have experimented uneven behavior, some of them have experimented growth as the food industry or in the defence sector firearms segment, some others like oil & gas have followed the trend of the served Markets. All in all, the segment has been the less affected.

Outlook for 2021 The composition of the IC industry in Europe is mostly associated with the High added value and with the Automotive Market segments, totalizing an 87 % of the Overall European Market. The Market regression levels experimented in those segments in 2020 are between 8 to 10 years depending on the segment. Clearly 2021 is bound to be a year of readjustment of production capacity for most of the industry in conjunction with Strategy redefinition. Recovery to the levels of 2019 will take a longer period of some years, in line with the normalization of the served Markets. In addition, electrification in Automotive and with a different path but also present in Aerospace represents new challenges to reposition the investment casting application products. At the same time the strong implementation of digitalization in the design and manufacturing processes of the Investment Casting, makes the industry more flexible, competitive and adaptable to provide the future solutions needed. There is no doubt that this Market shift is bound to represent an application technology shift. The European Industry is ready to work it out the reposition of its leadership within this new scenario.

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