The forging market was valued at US$ 72,890.07 million in 2019 and it is projected to reach US$ 100,404.83 million by 2027; it is expected to grow at a CAGR of 5.1% from 2020 to 2027.
The global forging market is witnessing moderate growth owing to the significant demand from automotive and aerospace industries. The high growth of air passenger traffic has resulted in growth of the aerospace sector, which is boosting the manufacturing of forged aerospace parts. Also, rising focus of various governments on wind energy power generation has significantly increased the investments in wind energy projects. It has resulted in increased demand for wind energy forged components. However, high prices and availability of cheap substitutes are hindering the forging market to a certain extent. The forging market is segmented into techniques, materials, and industries. In terms of techniques, the closed die forging is estimated to hold over 70% of the global forging market share. Closed die forging is used for applications requiring high degree of precision, including automotive parts and forged fittings. Based on materials, the steel alloys segment held the largest market share in 2019. The dominance of the steel alloys segment can be attributed to low prices and easy availability of carbon steel. Additionally, high impact strength and improved ductility are boosting the segment growth. Based on industries, the automotive industry held the largest share. The forged automotive parts or components are stronger as compared to parts manufactured through casting or machining. Also, forged parts used in automotive require little or no machining, which helps automotive manufacturers in saving cost and time. The wind power segment is anticipated to witness the highest CAGR owing to increasing investments in wind power energy across the globe.
Impact of COVID-19 Pandemic on North America Forging Market
The emergence and rapid spread of the novel coronavirus has adversely affected numerous developed and developing countries across the world. The continuous surge in the count of COVID-19 patients is threatening several industries worldwide. It is becoming apparent with the COVID-19 pandemic spreading across the US that few can escape its scope, presenting significant challenges to all industries. This had temporarily closed down all production plants across all industries and has affected the supply chain and logistics industry of the country adversely. Owing to nationwide lockdown across major economies, such as the US and Canada, the supply chain of major techniques of forging was adversely affected, thereby impacted the manufacturing of the same.
Lucrative Regional Markets for Forging Providers
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Forging Market Insights
Innovations in Forging Equipment & Process and Improving Economic Conditions Fuels Growth of Forging Market
In the fast-developing end-user segment, there has been an increase in demand for complex and innovative products. With an automated closed die forging process, the attention of equipment suppliers has shifted toward the development of new equipment and processes. In commercial aerospace applications, these new machines are capable of forging extra-large nickel- and titanium-based alloy parts. Currently, automation has a moderate positive impact on growth of the closed-die forging market; however, it is expected to increase during the forecast period.
Economic and market conditions across the world are also associated with the growth of this market and they are anticipated to provide growth opportunities during the forecast period. To sustain the completion in the metal forming market, forging businesses are focusing on providing lean, resilient, flexible, and adaptable forging processes. End-user industries, such as oil & gas, shipbuilding, aerospace, and construction equipment, are experiencing substantial growth. This has generated high demand among low-cost manufacturing countries, such as India and China, for closed die forged components. In developed countries, the impact of this factor is high, which is expected to continue in the near future.
Techniques-Based Market Insights
Based on techniques, the forging market is further segmented into closed die forging, open die forging, and seamless forging. In 2019, the closed die forging segment accounted for a significant share in the global forging market.
Forging Market, by Techniques – 2019 and 2027
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Materials-Based Market Insights
Based on materials, the forging market is further segmented into nickel-based alloys, titanium alloys, aluminum alloys, steel alloys, and others. In 2019, the steel alloys segment accounted for a significant share in the global forging market.
Industries-Based Market Insights
Based on industries, the forging market is further segmented into automotive, aerospace, railway, heavy equipment, and wind power. In 2019, the automotive segment accounted for a significant share in the global forging market.
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Forging Market: Strategic Insights
Market Size Value in US$ 72,890.07 Million in 2019 Market Size Value by US$ 100,404.83 Million by 2027 Growth rate CAGR of 5.1% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Forging Market: Strategic Insights
| Market Size Value in | US$ 72,890.07 Million in 2019 |
| Market Size Value by | US$ 100,404.83 Million by 2027 |
| Growth rate | CAGR of 5.1% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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The players operating in the forging market focus on strategies, such as mergers, acquisitions, and market initiatives, to maintain their positions in the market. A few developments by key players are listed below:
In February 2020, Setforge (a business division of Farinia Group) implemented an innovative waste heat recovery system due to the production of unwanted residual heat in the air. During forging operations, heating of billets, or heat treatment, Setforge facilities produce residual heat that is not used directly for the production of parts. Therefore, Setforge had decided to collaborate with the company EcoGreenEnergy in order to develop solutions for the recovery of waste heat.
By Techniques
- Closed Die Forging
- Open Die Forging
- Seamless Forging
By Materials
- Nickel-Based Alloys
- Titanium Alloys
- Aluminum Alloys
- Steel Alloys
- Others
By Industries
- Automotive
- Aerospace
- Railway
- Heavy Equipment
- Wind Power
By Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Company Profiles
- Alcoa Corporation
- All Metals & Forge Group
- CFS Machinery Co., Ltd
- Consolidated Industries, Inc.
- Farinia Group
- Fountaintown Forge, Inc.
- Pacific Forge Incorporated
- Patriot Forge Co.
- Precision Castparts Corp.
- Scot Forge
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Techniques , Materials , and Industries
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
APAC dominated the forging market with a share of 44.5% in 2019; it would continue to lead the market during the forecast period and account for 47.5% share by 2027. Europe is the second-largest contributor to the global forging market, followed by North America. China is the largest consumer and manufacturer of metal forgings in Asia Pacific. A large number of forged products are being exported by China to American and European countries. However, in the recent past, small-and medium-sized forging company’s experienced low profit margin and high machinery cost.
Benefit of the forging process over other fabrication techniques fuel the forging market growth. The forging process results in the structural modification of metals. The heated metals change mechanically to make the desired products under controlled conditions, which have uniform grain size and flow characteristics. This results in the refinement of forged metals and reduces the porosity. As a consequence, the obtained final product has superior metallurgical and mechanical characteristics as well as improved directional strength. Further, forging techniques also enhance structural integrity, which ensures optimum performance under field conditions per part or component. The forging process makes the metal ductile and tough, and imparts it a capability to withstand fatigue, while providing the grain flow with uniformity.
Automotive segment led the forging market with a share of 55.4% in 2019. In the automotive industry, forging is used in the manufacturing of chassis components, powertrain components, and transmission parts, among other application areas. For example, in June 2018, Bharat Forge Ltd. put a strategic stake of USD 13.94 million in Tevva Motors (Jersey) Limited, registered and incorporated under the Companies (Jersey) Law 1991, to carry out its Chelmsford (UK) operations for providing commercial vehicles and bus electric powertrain solutions. To address the requirements of OEMs, Bharat Forge also aims to produce a variety of goods, which is enabling it to raise its revenue per vehicle.
The List of Companies - Forging Market
- Alcoa Corporation
- All Metals & Forge Group
- CFS Machinery Co., Ltd
- Consolidated Industries, Inc.
- Farinia Group
- Fountaintown Forge, Inc.
- Pacific Forge Incorporated
- Patriot Forge Co.
- Precision Castparts Corp.
- Scot Forge
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- Data Collection and Secondary Research:
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
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- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
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- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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