Metal Forging Market Research: 2032
The Global Metal Forging Market Size was valued at $83.4 billion in 2022, and is projected to reach $168 billion by 2032, growing at a CAGR of 7.2% from 2023 to 2032.
Metal forging is a process of forming and shaping metal by compressive force. It is commenced at room temperature or at an elevated temperature, known as cold forging or hot forging respectively. Forged metal has a properly aligned grain structure, making the resultant metal component stronger, less brittle, and more durable. Such properties of the forged metal make it suitable for demanding and critical applications in industries such as automotive, aerospace, railways, marine, industrial machinery, and others.
Market Dynamics
The forging of metal has been a standard practice for metal forming and shaping for centuries. It is a suitable method for producing components that are to be used in challenging applications having high pressure, force, and temperature. The market for metal forgings is driven by a rise in the automotive industry, and a rise in energy sectors such as oil & gas refineries, and thermal power plants. Industries in the energy sector utilize various industrial components such as flanges, fittings, valves, studs and nuts, pressure vessels, pipes, and many others which are commonly made using the forging process.
Gulf countries and countries in Latin America are few of the major oil & gas producers, and demand for forged metal components in these regions is anticipated to rise with various planned and ongoing oil & gas projects. For instance, in March 2022, Aramco along with North Huajin Chemical Industries Group Corporation and Panjin Xincheng Industrial Group planned to develop a petroleum refinery with 300,000 bpd capacity. Similarly, Kineticor Resources Corp. is developing and constructing a gas-fired power plant in Edson, Alberta, Canada. The estimated total cost of the project is expected to be $1.5 billion, which is projected to be completed by 2025. These projects are expected to demand forged metal flanges, fittings, valves, studs and nuts, pressure vessels, and others.
Furthermore, the automotive industry is witnessing a rise owing to the rising disposable income of people, and rising urbanization. For instance, in January 2023, the total sales volume of vehicles was 1,065,937 units, which increased to 1,384,676 units in March 2023, an increase of nearly 30%. Moreover, India and China have emerged as major automotive markets in the last decade. According to International Energy Agency, India has approximately 25 vehicles per thousand people as of 2020, and the number is expected to cross 150 vehicles by the year 2040. The automotive industry makes extensive use of forged metal components, such as engine components, transmission components, suspension components, and body sheet. Thus, growth in automotive industry is anticipated to drive metal forging market growth, and is also expected to improve the metal forging market outlook.
However, limitations of the metal forging process are anticipated to restrain the metal forging market growth in the coming years. For example, producing a complicated shaped component, and a component with good surface finish are difficult to achieve with forging process. In addition, metal forging is slow as compared to other methods.
Moreover, technological advancements in the metal forging industry are expected to provide lucrative growth opportunities for players that operate in the metal forging market. Various companies involved in metal forging have adopted latest technologies coming under the umbrella term of ‘Industry 4.0 technology’. Industry 4.0 technology includes utilization of Internet of Things (IoT), Artificial Intelligence (AI), cloud connectivity, automation, improved operator interface, and various other features, that makes the metal forging industry more efficient that before. Bharat Forge, and major player in the forge metal forging market, stated that it achieved an Overall Equipment Effectiveness (OEE) of 15% in 2021.
The demand for metal forgings decreased in 2020, owing to low demand from different industries due to lockdowns imposed by the government of many countries. The COVID-19 pandemic led to the shutdown of the automotive, aerospace, and machinery manufacturing industry across the world, leading to a halt in demand for forged metal components. This hampered the growth of the metal forging market significantly during the pandemic.
The major demand for forged metal components was previously noticed from major manufacturing hubs in the worlds, including China, the U.S., Germany, Brazil, India, Indonesia, Japan, Italy, and Indonesia. These countries were negatively affected by the spread of coronavirus, thereby halting demand for metal forgings. However, owing to the introduction of various vaccines, the severity of the COVID-19 pandemic reduced significantly. This has led to the full-fledged reopening of businesses involved in the metal forging market and led to increased activities in the construction sector.
Furthermore, it has been more than two and a half years since the outbreak of this pandemic, and many companies have already shown notable signs of recovery. Contrarily, during the beginning of 2023, the number of COVID-19 cases surged again, especially in China, which had an unfavorable impact on the metal forging market for a short duration. Thus, businesses involved in metal forging market must focus on protecting their workforce, operations, and supply chains to respond to any looming threat of COVID-19. For instance, as of April 2023, COVID-19 cases are rising in India. In addition to COVID-19, another global event; worldwide inflation, driven by the Ukraine-Russia war and quantitative easing done in some parts of the world during COVID-19 has also negatively affected the construction and mining sector.
Segmental Overview
The metal forging market is segmented on the basis of raw material, technique, application, and region. By raw material, the market is categorized into carbon steel, aluminum, stainless steel, and others. Depending on technique, the market is bifurcated into open die forging, closed die forging, and ring forging. On the basis of application, it is divided into automotive, aerospace and defense, railway, industrial machinery, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
By Raw Material:
The metal forging market is divided into carbon steel, aluminum, stainless steel, and others. In 2022, the carbon steel segment dominated the metal forging market, in terms of revenue, and the stainless steel segment is expected to grow with a higher CAGR during the forecast period. Carbon steel is widely used for making parts and components of machinery owing to its high strength and durability. In addition, with the hot forging method, shaping and forming carbon steel is easier. Industries such as automotive, railways, and industrial machinery manufacturers extensively utilize this metal in their products. Owing to such factors, the carbon steel segment accounted for a higher market share in 2022. Moreover, stainless steel has greater appearance, resistance to corrosion, and high strength, making it favorable material in the construction sector, automotive industry, machinery manufacturing, and others.
By Technique:
The metal forging market is divided into open die forging, closed die forging, and ring forging. In 2022, the open die segment dominated the metal forging market, in terms of revenue. Open die forging is suitable for forming components that have a simple shape, such as sleeves, flats, rounds, hexes, discs, shafts, hubs, blocks, cylinders, and other custom shapes. Since it uses an open die, the size and the weight of the work piece is not a limiting factor. Furthermore, the other process; closed die forging, is extensively used for smaller components, as the size of job piece is limited to the size of dies. On the other hand, the ring forging is expected to grow with a higher CAGR during the forecast period. Typically, the parts and components made using ring forging are machines, robotics, valves, bearings, clutches, couplings, drives, flanges, gears, and glass-lined reactors.
By Application:
The metal forging market is divided into automotive, aerospace and defense, railway, industrial machinery, and others. The automotive segment accounted for a higher market share in 2022. Rising disposable income, increasing urban population, and expanding boundaries of cities, are driving the growth of the automotive industry. Components and parts of automobiles are subjected to harsh weather conditions, excessive torque, force, pressure, and temperature. Thus, to make the components, forging is used. On the other hand, the industrial machinery segment is expected to grow with a higher CAGR during the forecast period. Rising industrialization across the world, especially in developing nations is driving the demand for industrial machinery, which majorly incorporate forged metal components.
By Region:
In 2022, Asia-Pacific dominated the metal forging market share in terms of revenue, and is anticipated to secure the leading position during the forecast period. This growth is attributed to the extensive economic growth of the region which is driving the growth of the industrial sector. Moreover, governments in India, China, Vietnam, and Indonesia have introduced various favorable guidelines to help their domestic industries grow. Moreover, the growth of population and urbanization in the region has also provided a favorable boost to the automotive industry, as well as agriculture machinery manufacturing, and railways components manufacturing. In addition, these countries are also witnessing considerable growth in their aerospace and defense industry. For instance, in November 2020, Boeing, a major aircraft manufacturer in the U.S., anticipates that China’s airlines will buy $1.4 trillion worth of 8,600 new aircraft, and will spend about $1.7 trillion for the services over the next 20 years.
Competition Analysis
Competitive analysis and profiles of the major players in the metal forging market are provided in the report. Major companies in the report include ATI Inc., American Axle & Manufacturing Holdings, Inc., Bruck GmbH, ELLWOOD Group, Inc., Berkshire Hathaway Inc. (Precision Castparts Corp.), ASAHI FORGE CORPORATION, Trenton Forging, NIPPON STEEL CORPORATION, Bharat Forge Limited, and Canada Forgings Inc. Major players to remain competitive adopt development strategies such as acquisition. For instance, in June 2021, Bharat Forge Industrial Solutions (BFISL), acquired Sanghvi Forging & Engineering. Sanghvi Forging & Engineering is a manufacturer of open and dies forging products utilized by a variety of industries, such as oil & gas, defense, shipbuilding, energy, and others.
Key Benefits for Stakeholders
- The report provides an extensive analysis of the current and emerging metal forging market trends and dynamics.
- In-depth metal forging market analysis is conducted by constructing market estimations for key market segments between 2022 and 2032.
- Extensive analysis of the metal forging market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The metal forging market forecast analysis from 2023 to 2032 is included in the report.
- The key players within the metal forging market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the metal forging industry.
Metal Forging Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 168 billion |
 Growth Rate | CAGR of 7.2% |
 Forecast period | 2022 - 2032 |
 Report Pages | 240 |
 By Raw Material |
|
 By Technique |
|
 By Application |
|
 By Region |
|
 Key Market Players | American Axle & Manufacturing Holdings, Inc., Bruck GmbH, Trenton Forging, Bharat Forge Limited, Berkshire Hathaway Inc. (Precision Castparts Corp.), NIPPON STEEL CORPORATION, ATI Inc., ASAHI FORGE CORPORATION, ELLWOOD Group, Inc., Canada Forgings Inc. |
Analyst Review
The metal forging industry has grown significantly as a result of surge in demand for forged metal components from sectors such as automotive, aerospace, and defense industries. Furthermore, rise in industrialization drives demand for industrial machinery, which has a positive impact on the metal forging market.
The forging industry is an integral part of the manufacturing industry. Thus, countries across the globe such as India, China, Germany, the U.S., Italy, Japan, and South Korea, that have large manufacturing industries are witnessing tremendous growth in the metal forging market. The metal forging industry primarily consists of small and medium-sized enterprises (SMEs).
Moreover, forging industries are highly polluting, and are therefore strictly regulated by the environmental protection agencies in their respective countries. Thus, the demand for more eco-friendly forging machines is higher. In addition to this, demand for technologically advanced forging machines is also high, as they offer high productivity. In addition, demand for technically sophisticated forging machines has resulted in decreased material consumption, higher production flexibility, cheaper overall production costs, and improved the quality of produced material.
The workers’ safety during the forging operation is one of the core factors driving the adoption of technologically advanced metal forging machines that can perform automatically at a lower operating cost. Contrarily, limitations of the forging process in the production of complex shaped and superior appearance are anticipated to restrain the market growth to a certain extent.
Rise in automotive industry, and growth of energy generation sector are among the upcoming trends of the market.
The automotive segment is the leading segment under the applications of metal forging.
Asia-Pacific was the largest regional market for Metal Forging in 2022.
The global metal forging market was valued at $83,433.0 million in 2022.
Major companies in the report include ATI Inc., American Axle & Manufacturing Holdings, Inc., Bruck GmbH, ELLWOOD Group, Inc., Berkshire Hathaway Inc. (Precision Castparts Corp.), ASAHI FORGE CORPORATION, Trenton Forging, NIPPON STEEL CORPORATION, Bharat Forge Limited, and Canada Forgings Inc.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
The global metal forging market is projected to reach $1,67,998.9 million by 2032, registering a CAGR of 7.2% from 2023 to 2032.
Ther ring forging segment is anticipated to grow with a higher CAGR during the forecast period.
Loading Table Of Content...
Loading Research Methodology...
