The capital-intensive nature of the global forging market features clear dominance of large players that operate in global markets, says a report by Transparency Market Research (TMR). This poses stiff challenges to small players that contend amongst large players with respect to quality, features, functionalities, and services. Further, the use of newer technologies by well-entrenched players that will add qualitative value to existing products and also lead to the development of novel products will intensify the competition.
Some key participants in the global forging market include Arconic Inc., Allegheny Technologies Incorporated, Bharat Forge Limited, Nippon Steel & Sumitomo Metal, American Axle & Manufacturing Holdings, and Thyssenkrupp AG.
As per estimates of a report by Transparency Market Research, the global forging market is expected to be worth US$96,433.7 mn by 2025 expanding at a CAGR of 4.4% between 2017 and 2025. The market stood at a valuation of US$66,049.8 mn in 2016.
Powered by Industrialization in Emerging Economies, Asia Pacific Dominates Market
The segments of the global forging market based upon type are closed die, open die, and rolled rings. Closed die forging holds the leading share in the market on account of the par excellence finish and performance of products obtained using this process. The segment is expected to continue dominance over the forecast period.
Low-carbon & low-alloy steels metals is the leading raw material segment in the forging market. In terms of application, automotive holds dominance amongst other application segments owing to the high usage of automobiles and expansion of the automobile industry.
Asia Pacific held the leading share in the global forging market in 2016. The growth of the region is primarily ascribed to the development of automotive and construction industries, particularly in China.
Revival of Growth of Automotive Sector Favors Market
The increasing demand for forging in the automotive industry is the foremost factor fuelling growth of the forging market. The automotive sector utilizes as much as 65% of forged metals that are produced every year globally. The growth of the automotive industry post the economic slump of 2007 is having a positive impact on the global forging industry.
Globally, the industrial sector is expected to be on a growth trajectory in the upcoming years. This is anticipated to have a positive bearing on the forging market over the same period. Forged metals display a bevy of advantages over casting or any other metalworking process. The high strength and reliability of forged metals, and low cost of forging over other processes account for their widespread applications. Forged metals are extensively used in capital-intensive industries such as automotive, defense, aerospace, industrial equipment, and factory automation.
Along with these factors, investments in large and small forging units and globalization are projected to further drive the market.
Posing a hindrance to the growth of global forging market are a host of factors that include high cost of forging quality steel, fewer partnerships between material manufacturers and forging units, non-profitable economies of scale, and volatile nature of end-use industries.
The review presented here is based on the findings of a report by Transparency Market Research, titled “Forging Market (Type – Closed Die, Open Die, and Rolled Rings; Company Type - Custom Forging, Captive Forging, and Catalog Forging; Raw Material - Aluminum, Magnesium, Copper/Brass/Bronze, Low-Carbon and Low-Alloy Steels, Microalloy/HSLA Steels, Special Alloy Steels, Stainless Steel, Nickel-Base Superalloy, Titanium, Refractory Metal, Beryllium, and Zirconium; End-user - Automotive, Wind, Oil & Gas, Power Generation, Agriculture, Ordnance, Mining, Construction, and Aerospace) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017 - 2025.”
The global forging market is segmented as follows:
Forging Market: Type Analysis
- Closed Die
- Open Die
- Rolled Rings
Forging Market: Company Type Analysis
- Custom Forging
- Captive Forging
- Catalog Forging
Forging Market: Metals / Raw Materials Analysis
- Copper / Brass / Bronze
- Low-Carbon & Low-Alloy Steels
- Microalloy / HSLA Steels
- Special Alloy Steels
- Stainless Steel
- Nickel-Base Superalloy
- Refractory Metal
Forging Market: Application Type Analysis
- Oil & Gas
- Power Generation
- Others (Hand Tools)
Forging Market: Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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