Forging Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global forging market reached a value of USD 72.65 billion in 2021. The industry is projected to grow at a CAGR of around 5.5% in the forecast period of 2022-2027 to reach a value of USD 100.17 billion by 2027.

The forging industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The international forging market is observing constant growth due to its considerable demand from the automotive and aerospace industries with the automotive section holding the maximum share in the market. China is the highest category spender by region which is driving the demand for the forging industry.

Industry Definition and Segmentation

The treating or processing methodology, which is conventionally used for metals, in which these are hammered, pressed, or rolled, most commonly with a hammer or die is called forging. A few of the usual metals that go through the forging process are carbon steel, stainless steel, aluminium, copper, and brass. This mechanical procedure has been popularly adopted in the manufacturing industries, owing to the increase in the demand for metals with elevated dependability and mechanical and guiding force, usually in applications that need exhaustion endurance. Throughout the past years, alloys have also been considered useful materials after they undergo the forging process. Innovations introduced in metalworking technology, with their rising cost-effectiveness are further driving the market. The global forging industry report comprises segments based on end-user (automotive and aerospace, machine tool industry, construction, energy (oil and gas) agricultural and construction machinery, railway, mining machinery, and medical) and region (the United States, Germany, China, Japan, and India).

China is Driving the Growth of the Industry

China has been the major market for the forging industry and is estimated to grow swiftly in the upcoming years. The nation is the biggest consumer and manufacturer of forged metals. Furthermore, China exports a huge volume of forged commodities to American and European markets. Leading organisations in the country are aiming more at their output capabilities to fulfil the increasing demand for forged products. These kinds of investments suggest a rising necessity for metal forging from end-use industries. Moreover, development in the market is encouraging key players to invest, hence propelling further growth of the market.

There has been a moderate development of the global forging market because of the substantial demand from the automotive and aerospace industries. The heavy growth of air passenger traffic has led to the rise of the aerospace sector, which is improving the production of aerospace forged components. A lesser rate of fuel and interest are the main reasons propelling the growth of the automotive industry segment of the forging market. Likewise, custom forging is the major segment among the order types due to its vast utilisation in submarines, refineries, space crafts, missiles, pressure vessels, offshore rigs, and scientist research equipment, among others. In addition, the increasing emphasis of several governments on wind energy power production has notably increased the investments in wind energy ventures. This has in turn expanded the demand for wind energy forged products.

Nevertheless, owing to elevated prices and the accessibility of low-cost alternatives are hampering the forging market at a certain level.

Best Procurement Practices

The global forging oil industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by forging oil providing and utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers, among others.

Category Management Studies

The mechanical procedure of smoothing and defining the material by utilising compressive force, physically, by using forging machines, or with hammering is called forging. Additionally, the forging methodology can be performed on materials in both cold and hot conditions. These forged components consist of bolts, connecting rods, turbine shafts, crane hooks, hand tools, gears, and other parts that are utilised in the production of machines. Moreover, these forged commodities provide strength, power, weight, and dependability in the end-use industries including automotive, mining, aerospace, and numerous other functions. Furthermore, there are four major methods to forge a component comprising die forging, cold forging, open die forgings, and seamless rolled ring forging.

Advances in Forging Equipment and Process and Developing Economic Environments are Anticipated to Further Drive the Forging Market

Owing to the rapidly developing end-user section, there has been a rise in the demand for intricate and innovative commodities. With the introduction of the automated closed die forging mechanism, the interest of equipment suppliers has moved toward the creation of new and innovative equipment and methodology. Moreover, these newly introduced machines efficiently forge extra-large size nickel and titanium-based alloy parts. In addition, both economic and market environments around the globe are also related to the progress of the forging market and they are projected to offer developmental prospects in the future ahead. Oil and gas, shipbuilding, and construction equipment among other end-user industries are witnessing considerable growth. This has created a massive demand for low-cost producing countries like India and China, for closed die forged products. The effect of this driver is higher in advanced countries, and this is likely to continue in the upcoming years.

The key zones in the industry are the United States, Germany, China, Japan, and India.

Key Industry Players Mentioned in the Forging Industry Report

• Alcoa Corporation 
• Bharat Forge Limited 
• Nippon Steel Corporation 
• ATI Company 
• ThyssenKrupp AG

Market Landscape

The forging market is very competitive, and organisations are involved in implementing tactical projects and initiatives, such as capability expansions and collaborations, and acquisitions, to consolidate their existence and place in the industry. For example, Liberty Steel group approached to procure the steel activities of Thyssenkrupp Europe in October 2020. To support and maintain the accomplishment in the metal producing market, forging companies are aiming to offer lean, resilient, flexible, and adaptable forging mechanisms.

Key Initiatives by Companies

• In September 2019, Bharat Forge America Inc. made an investment of USD 56 million to build a new forging and machining set-up based in North Carolina, US. This was new facility was built with the aim to focus on funding lightweight materials that would help the organisation to create a worldwide production footprint spread over Europe, Asia, and the United States.
• In Sep 2019, there was an announcement by American axle manufacturing Inc. that it would sell off its iron casting company to a private equity firm based in New York for a sum of USD 245 million. Additionally, there was another declaration by the organisation that it would keep and maintain its forging business in Mexico.