Global Metal Forging Market by Raw Material (Carbon Steel, Aluminum), by Application (Automotive, Aerospace) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global metal forging market was worth USD 83.85 Billion in 2019. It is projected to grow at a compound annual rate (CAGR of 5.0%) between 2020 and 2027. Market growth can be attributed mainly to rising demand from global automotive and aerospace industries. The growth of the aerospace industry has aided in the production of aerospace forged components. The COVID-19 pandemic caused severe disruption to the market. Market players had to suspend operations temporarily, which affected the entire value chain from raw material suppliers to manufacturers and end-users. As end-use industries such as construction, aerospace and automotive resume operations, the market is expected to stabilize by 2020.

China held 27.1% of the global market's revenue in 2019, and this number is expected to rise at 6.5% CAGR between 2020-2027. China is both the largest producer and consumer of metal forgings. China exports large quantities of forged products to the American and European markets. In recent years, however, small and medium-sized forging companies have been affected by the low profit margins and high costs of machinery.

The country's industrial production was greatly affected by the coronavirus, which emerged in November 2019. China's manufacturing recovered after other countries placed lockdown. While major economies around the world reported negative GDP in the second quarter of 2020 (April-June), China's economy grew by 3.2%.

To meet the increasing product demand, major companies are focusing on improving their production capabilities. Fushun Special Steel Co., Ltd. ordered a Siempelkamp open-die forging machine in September 2020. The plant will be more cost-efficient with the new press. These investments are indicative of a growing demand from the end-use industries for metal forging.

The market is also expected to benefit from the growth of the automotive industry. In India, for example, there is a positive rate of growth in vehicle sales in the second half 2020. The August 2020 increase in passenger vehicle sales was 14% over the previous year. The market is growing, and prominent players are now looking to invest. This will further drive the market. In September 2020, Toyota Kirloskar Motors announced a USD 272.81 Million investment in India for electric components.

Raw Material Insights

In 2019, carbon steel accounted for more than 44.0% of the global metal forging industry's revenue. It is expected to maintain its dominance in the future. This segment has a high share due to its low price and easy availability. The raw material has a high degree of ductility and impact strength, which is a plus for the final products.

The fastest expected CAGR for aluminum is predicted to be over the forecast period. Because of its safety and reliability, aluminum is becoming more popular in the automotive industry. The strength of aluminum forged parts is higher than any other metal processing parts, including casting. These parts are used to make front and rear axle components such as control arms, knuckles and wheels. They also serve as brake system components including hydraulic system components and the caliper.

In terms of volume, alloy steel accounted for the second largest market share in 2019. It is used in close die forging. Because of its strength, cost-effective processing, easy availability, and low mechanical properties, it is in high demand. Parts forged from alloy steel have an increased strength, hardness and corrosion resistance as well as improved weldability, ductility, and weldability.

Application Insights

In 2019, the automotive segment was responsible for 51.0% of the total volume. This trend is expected to continue in the future. Forging makes automotive components and parts stronger than casting or machining. Forged parts are also easier to assemble, and require less or no machining. This helps you save both time as well as money. In the near future, there will be an increase in investment in the automotive industry. Nissan, for example, announced in October 2020 that it would build two new Chinese vehicle-assembly facilities.

Construction is predicted to experience the fastest growth over the forecast period. This is due to the increasing product demand in the construction sector. The industry uses different types of machinery and equipment that include forged parts such as mold design and pistons. Despite the fact that the COVID-19 pandemic caused a decline in the housing industry's performance, companies have resumed operations and are now following safety protocols starting in the second half 2020. In July 2020, the total U.S. housing production increased by 22.6% compared to the previous month.

Low interest rates and an increase of buyers in low density areas supported this trend. The segment is expected to grow due to rising construction activity over the forecast period. Because of their strength, aerospace is expected to grow the fastest between 2020 and 2027. Forged parts are required for this application sector. They are made from special alloys. Forging is used to produce components such as engines, landing gear systems, aircraft turbines, and other precision-machined parts.

Regional Insights

Asia Pacific accounted for the highest revenue share at over 51% in 2019, and this trend will likely continue during the forecast period. This is due to increasing foreign investment in the region's developing economies. In September 2020, Mahindra & Mahindra, India, announced their collaboration with REE Automotive to develop commercial Electric Vehicles (EVs). The aerospace industry in Singapore announced that it would receive investments of USD 360 million over five years. JTC, the Singapore government agency, has reached agreements with companies such as GE Aviation and Safran Aircraft Engines for the construction of new or expanded facilities. These investments in end-use markets will increase product demand over the forecast period.

North America accounted for more than 22.0% of global market space's revenue in 2019. Due to high demand from the construction, automotive, and oil & gas sectors, North America is one of the top consumers of forged components. According to the International Organization of Motor Vehicle Manufacturers (IOMVM), North America was responsible for more than 18% of global automotive production's market share in 2019.

The first wave of COVID-19 had a severe impact on European countries, with large GDP contractions. The European Union saw a 11.4% drop in GDP between the first and second quarters of 2020. Manufacturers expect market recovery which will benefit product demand. This is due to the strong aerospace manufacturing sector and presence of major automakers in the region.

Market Share Insights & Key Companies

To increase their market share and strengthen their position, companies are taking strategic steps such as expansion of capacity and mergers and acquisitions. American Axle & Manufacturing, Inc., for example, announced in June 2018 that it would establish a new production plant in Barcelona in order to service the European market. MM Forgings announced a USD 93.6 million investment to increase the production of different grades of steel forgings in order to meet the demands of the automotive industry. Liberty Steel Group offered to purchase Thyssenkrupp Europe's steel activities in October 2020. Some of the most prominent players on the global metal forging marketplace include:

• Arconic Corp.

• ATI

• Bharat Forge Ltd.

• Bruck GmbH

• China First Heavy Industries

• Ellwood Group, Inc.

• Japan Casting & Forging Corp.

• Jiangyin Hengrun Heavy Industries Co., Ltd.

• Nippon Steel Corp.

• Precision Castparts Corp.

• Kovarna Viva

• Larsen & Toubro Ltd.

• Scot Forge

• Thyssenkrupp Business Area Components Technology

Up Market Research published a new report titled “Metal Forging Market research report which is segmented by Raw Material (Carbon Steel, Aluminum), by Application (Automotive, Aerospace), By Players/Companies Arconic Corp, Ellwood Group Inc, Thyssenkrupp Business Area Components Technology, Precision Castparts Corp, Kov¡rna Viva, Bharat Forge Ltd, Scot Forge, China First Heavy Industries, Bruck GmbH, Japan Casting & Forging Corp, Larsen & Toubro Ltd, Jiangyin Hengrun Heavy Industries Co Ltd, ATI, Nippon Steel Corp”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

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.

Global Metal Forging Market Report Segments:

The market is segmented by Raw Material (Carbon Steel, Aluminum), by Application (Automotive, Aerospace).

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:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Metal Forging Market

Overview of the regional outlook of the Metal Forging Market:

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.

Highlights of The Metal Forging Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Metal Forging Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Carbon Steel

                2. Aluminum

                1. Automotive

                2. Aerospace

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the 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.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Metal Forging Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.