Metal Forging Market
Metal Forging Market Share & Trends Analysis, By Raw Material (Carbon Steel Metal Forging, Alloy Steel Metal Forging, Others), By Application (Metal Forging for Automotive, Metal Forging for Aerospace, Others) & By Region Forecast, 2021-2031
Analysis of Metal Forging market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Metal Forging Market Outlook
The global metal forging market is expected to register a CAGR of 7% through 2031, reaching US$ 180 Bn.
The need for strong and durable forged components will rise as the number of electric cars increases, boosting the market's growth throughout the projected period. Revenues in the automotive segment are expected to comprise 51% of the global market.
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Key Points Addressed in Metal Forging Industry Analysis
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Metal Forging and How to Navigate
- Recommendation on Key Winning Strategies
Consumption Analysis of Metal Forging 2016-2020 Vs Future Forecast 2021-2031
The worldwide metal forging market was estimated at nearly US$ 84 Bn, expanding at around 5% CAGR from 2016 to 2020. Burgeoning demand from the aerospace and automotive sectors has sustained growth in the historical period.
As the global economy slumped due to COVID-19, demand for metal forging services dropped significantly, as logistical constraints and cessation of factory operations disrupted supply chains. However, as the curbs eased, prospects are gradually rebounding.
As businesses prepare to brace for the upcoming decade, they are expected to capitalize on the widening prospects of the global automotive industry. Based on projections provided in Fact.MR’s report, the metal forging industry is expected to surge nearly 2x at around 7% CAGR until 2031.
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Why are Titanium Alloys Preferred in the Aerospace Industry?
Titanium alloys outperform all other metallic materials used in the forging process. Titanium alloy forging is most commonly utilised in the aerospace industry. This is due to its high melting point and diminished heat conductivity.
It combines exceptional strength-to-weight ratios, low density, and corrosion resistance in one package. This material is forged particularly for rotating parts in aeroplanes, such as engine discs and shafts, and is used as an aluminium replacement.
Additionally, titanium possesses a low thermal expansion rate, allowing it to maintain its shape with a tight tolerance. As a consequence of these factors, demand for titanium alloys in the aerospace industry has grown, impelling metal forging demand.
How are Different Grades of Steel Making Inroads into the Automotive Sector?
The rising demand for forged steel in the automotive industry will create appealing opportunities for metal forging service providers. Because of its durability, strength, and dependability, forged steel is a preferred choice in automotive components.
Carbon steel, stainless steel, and alloy steel are all used in the automotive industry to produce components such as connecting rods, control arms, rocker arms, crankshafts, camshafts, tie rod ends, and steering knuckles.
Closed dye steel forging is mostly used in the manufacture of vehicle components. Demand for the product will rise over the forecast period due to rising demand for commercial and passenger vehicles, as well as the usage of light-weight forged steel in electric vehicles.
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Key Challenges to Metal Forging Industry Expansion
The forging process is expected to be limited due to growing demand for alternative metal forming techniques such as casting. The molten metal is poured into the mould, which has a chamber with the required shape of the casting, during the casting process.
The molten metal is then allowed to harden, a process known as casting. The casting method is less expensive than the forging method. As a result of its low cost, most manufacturers choose to use casting. The use of alternative metal forming methods is likely to stymie expansion.
How is China Attracting Metal Forging Service Providers?
China accounted for nearly 30% of global metal forging demand in 2020 and is anticipated to rise at above 6% CAGR until 2031. While the COVID-19 decelerated prospects, future forecast is expected to remain largely unaffected.
A host of infrastructure projects aimed at enhancing transportation across the country have been planned. This is expected to provide massive traction to the domestic automotive industry in coming years. Prospects are especially bright for electric vehicles, all of which will impel metal forging demand in coming years.
How will Asia as a Whole Dominate the Metal Forging Industry?
Asia had the greatest revenue share of over 51% in 2020, and this trend is projected to continue throughout the forecast period. Foreign investment in the region's rising economies has increased, contributing to the rise.
For example, in September 2020, India's Mahindra & Mahindra announced collaboration with REE Automotive to develop commercial Electric Vehicles (EVs). Singapore's aviation sector announced in February 2020 that it will receive USD 360 million in investments over the next five years.
How Lucrative is the Market in the U.S for Metal Forging?
In 2020, the U.S accounted over than 20% of global market revenue. The area is a key user of forged components because to high demand from the automobile, oil and gas, aerospace, and construction sectors.
According to the International Organization of Motor Vehicle Manufacturers, North America accounted for more than 18% of global automotive output in 2019.
How Profitable is the Metal Forging Industry in the U.K.?
COVID-19's initial wave had a tremendous influence on European nations, resulting in severe GDP reductions. The European Union's GDP decreased by 11.4 percent between the first and second quarters of 2020. This substantially impacted metal forging demand.
Fortunately, manufacturers anticipate a market recovery that would enhance product demand due to the region's long-established aircraft manufacturing industry as well as the presence of major automakers and automobile component manufacturers. A CAGR of around 5% is projected for this market.
Category Wise Insights
How does the Automotive Application Segment contribute to market growth?
The automotive application segment is expected to account for over 51% percent of total volume, and this trend is projected to continue during the projection period.
Automotive components and parts made via forging are more durable than those made by casting or machining. Furthermore, forged parts require little or no machining, which saves time and money.
In the foreseeable future, rising investments in the automobile sector are projected to boost product demand. Nissan, for example, announced plans to establish two new car assembly factories in China in October 2020.
What Cements Carbon Steel's market dominance?
Carbon steel dominated the worldwide metal forging market in 2020, with a revenue share exceeding 2/5th of the overall demand, and is likely to do continue doing so in the future.
Carbon steel's low cost and widespread availability account for the segment's large market share. In addition, the raw material provides the end products with increased ductility and strong impact strength.
Companies are pursuing strategic initiatives, such as capacity expansions and mergers and acquisitions, to improve their presence and position in the sector, which is extremely competitive.
- For example, American Axle & Manufacturing, Inc. stated in June 2018 that it will open a new manufacturing unit in Barcelona to service European markets
- Likewise, MM Forgings announced a US$ 93.6 Mn investment in March 2018 to expand manufacturing of various grades of steel forgings to fulfil demand from the automobile industry
- In October 2020, Liberty Steel Group made an offer to buy Thyssenkrupp Europe's steel business
Historical Data Available for
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Available upon Request
- Carbon Steel Metal Forging
- Alloy Steel Metal Forging
- Aluminum Metal Forging
- Magnesium Metal Forging
- Stainless Steel Metal Forging
- Titanium Metal Forging
- Other Raw Material Metal Forging
- Metal Forging for Automotive
- Metal Forging for Aerospace
- Metal Forging for Oil & Gas
- Metal Forging for Construction
- Metal Forging for Agriculture
- Metal Forging for Other Applications
- FAQs -
The worldwide metal forging market was worth US$ 84 Bn in 2020, according to Fact.MR
According to Fact.MR, the market for metal forging expanded at nearly 5% CAGR from 2016 to 2020
Demand for metal forging is anticipated to reach a value of US$ 180 Bn by 2031
The need for robust and durable forged components will increase as the number of electric vehicles grows, driving market growth during the forecast period.
The automotive industry is expected to account for 51% of total metal forging demand
Carbon steel is likely to account for over 2 out of 5 metal forging operations
China is expected to grow at above 6% CAGR until 2031, currently accounting for over 30% of the revenue
A CAGR of around 5% has been projected for the market in the U.K until 2031
The U.S market for metal forging accounted for over 20% revenue as of 2020