In 2018, the GCC metal forging market was valued at USD 1.08 Billion. It is expected to grow at a compound annual growth rate (CAGR of 2.1%) between 2019 and 2025. In the coming years, product consumption will be driven by a growing focus on infrastructure development in Asia Pacific countries.
Market growth is expected to be driven by the GCC's oil and gas industry. Over the forecast period, the demand for forged metal components, such as wellhead equipment, ball valves, electric motors and turbines, is expected to rise at a steady pace.
Saudi Arabia holds 18% of the world's petroleum reserves. Over 50% of the country's GDP is generated by the oil and gas sector. The country exported USD 231.48 billion of revenue in 2017, with USD 159.74 trillion coming from the petroleum sector. For the country to be able to sustain its oil and gas sector, it needs different types of equipment and machinery. This will lead to an increase in demand for forged parts in this equipment and machinery over the forecast period.
Saudi Arabia's 2018 forging demand was dominated by pump and ball valve applications segments. They accounted for 27.1% and 20%, respectively. Pumps are an integral part of oil drilling rigs because they transfer fluids between places.
Pumps such as positive displacement, centrifugal and diaphragm are in high demand within the oil and natural gas sector. Due to the increasing exploration and production activities within the oil and natural gas sector, the demand for forged parts in pumps is expected to rise over the forecast period.
In 2018, the GCC metal forging market saw an increase in volume by more than 51.0%. Open forging is another name for this process. The billet is placed between the "hammer" and "stamp†dies. This process involves a series continuous hammering or stamping movements to alter the material until it reaches the desired dimensions.
Open die forging metal products often requires machining using CNC or other advanced machines in order to reach the desired dimensions. Open die forging can also produce custom shapes. Open die forging is used in the production of primary products in the GCC region, including wellhead equipment, turbines and electric motors, as well as pumps, blowout stoppers, gas compressors and ball valves.
Closed die processes are expected to grow at a CAGR of 2.0% between 2019 and 2025 in terms of revenue. This process uses high pressure to press the metal piece into an enclosed die impression with required shapes. A medium-frequency induction heating furnace heats the metal to press it into the enclosed dies. Precision machined dies are required for this process. Because of its high precision throughout the forging process, forged parts require very little to no machining.
Pumps was the largest segment in 2018 with a revenue share greater than 26.0%. Pumps are used extensively in the oil and gas and chemical industries to transfer fluids. The main types of pumps used in the oil-and-gas industry are: gravity, velocity and steam. Because they provide consistent flow regardless of pressure, positive displacement pumps are the most common of all the pumps.
According to projections, the GCC's booming oil and gas activity will benefit wellhead equipment applications. Stable investments by the regional government oil and natural gas companies have helped to keep the outlook for Middle East oil and gas production positive. Forged wellhead equipment will be more lucrative if there is a significant increase in drilling activity in the region.
Ball valves can be used in a wide range of downstream and upstream applications in the oil and gas, chemical, process and energy industries. Ball valves can be used to regulate the flow of substances between different openings. They can be used to control the flow and pressure of liquids, corrosive fluids and slurries. They are used primarily in the oil and gas industry, but they also have applications in the manufacturing and chemical storage sectors.
Saudi Arabia was the dominant market player and held more than 45% of 2018's revenue share. The growing use of forged parts in construction, oil and gas, and automotive is driving the regional market. Market growth will be driven by factors such as the growing construction and automotive industry aftermarkets and the easy availability of raw materials (aluminum, steel).
The GCC is the global leader in crude oil production. Many major economies of the region are dependent on the oil industry. Forged components are used to build rotary drilling equipment and equipment, as well as field production and drilling rigs. The market is expected to grow because of the high demand for these components in machinery for exploration and production activities.
Due to diversification programs by the governments of countries from the Middle East and Africa, major countries in the region will experience high economic growth over the next few years. This program will provide lucrative opportunities for market vendors by increasing regional production and decreasing import dependence.
The market is dominated by a few players, compared to the rest of Asia, North America, Europe, and Europe. Imports of forged parts are crucial for the end-use industries. This opens up new markets for new players. GCC countries are expected to establish new production facilities in the long-term, as a result of the growth of end-use industries.
The GCC metal forging market is dominated by the following players:
SPSV
Precision Forging Factory
Steel Forgings Gulf
ALKAFAA
FTV Proclad, U.A.E. L.L.C.
Doosan Heavy Industries & Construction
MFc Group
El Nasr Company
Up Market Research published a new report titled “GCC Metal Forging Market research report which is segmented by Process (Open Die, Closed Die), by Application (Wellhead Equipment, Turbine, Ball Valve), By Players/Companies Doosan Heavy Industries & Construction, El Nasr Company, Precision Forging Factory, ALKAFAA, MFc Group, FTV Proclad (UAE) LLC, SPSV, Steel Forgings Gulf”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | GCC Metal Forging Market Research Report |
By Process | Open Die, Closed Die |
By Application | Wellhead Equipment, Turbine, Ball Valve |
By Companies | Doosan Heavy Industries & Construction, El Nasr Company, Precision Forging Factory, ALKAFAA, MFc Group, FTV Proclad (UAE) LLC, SPSV, Steel Forgings Gulf |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 216 |
Number of Tables & Figures | 152 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Process (Open Die, Closed Die), by Application (Wellhead Equipment, Turbine, Ball Valve).
GCC Metal Forging Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the GCC Metal Forging Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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