Metal Forging Market - Forecast(2024 - 2030)

Metal Forging Market Overview

Metal Forging market size is forecast to reach US$122.6 billion by 2026, after growing at a CAGR of 4.8% during 2021-2026. Metal forging is a type of metal forming method that entails applying a compression force to a piece of metal to deform it, then using precipitation hardening and pneumatic riveters to create the desired shape, size, and volume. Because of the rising demand for carbon steel in the automotive sector, the global metal forging market is expected to grow significantly. In addition, increased government support for the production of electric vehicles will encourage the use of metal forging. Furthermore, it is projected that the bolstering building & construction, oil & gas, mining, aerospace industry will also contribute towards metal forging market growth during the forecast period.

COVID-19 Impact

The COVID-19 epidemic negatively impacted the metal forging demand in a variety of end-use industries, including aerospace automotive, oil & gas, mining, and more. Due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs were forced to function at zero or partial capacity, resulting in lower demand for metal forged products. The outbreak had a major effect on the automotive and aerospace industries due to the closure of non-essential businesses. The automotive and aircraft production was disruptively halted as the demand gradually shrank. For instance, according to the International Organization of Motor Vehicle Manufacturers, global automotive production fell by 16% in 2020. According to Toyota Motor Corporation, its global production of vehicles in 2020 was down 12.6 percent year-on-year, owing to the impact of the COVID-19 pandemic. Due to which the demand for metal forged products significantly reduced, which impacted the metal forging market revenue in 2020.

Report Coverage

The report: “Metal Forging Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Metal Forging market.
By Type: Carbon Steel, Alloy Steel, Aluminum, Magnesium, Stainless Steel, Titanium, Brass, Copper, and Others
By Process: Open Die Forging, Closed Die Forging, Impression Die Forging, Extrusion, Upset Forging, Precision Forging, and Others
By Shape: Rings, Discs, Bars, Blanks, and Others
By End-Use Industry: Automotive (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)), Aerospace (Commercial Aircrafts, Military Aircrafts, and Others), Locomotive, Marine (Cargo, Passenger, and Others), Building and Construction (Residential, Commercial, Industrial, and Infrastructural), Agriculture, Industrial (Oil & Gas, Energy, Chemical, Food & Beverages, Mining, and Others), Medical & Healthcare, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• North America dominates the metal forging market owing to the increasing automobile industry in the region. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the production of light commercial vehicles increased from 2,002,284 in 2019 to 2,151,347 in 2020, an increase of 7.4% in China.
• The expanding construction industry coupled with advanced features of forged metal such as higher ductility, cryogenic toughness, high corrosion resistance, and high heat resistance are some of the factors that are boosting the market growth.
• In addition, the forged metals are often used in the energy industry to manufacture components such as pressure vessels, valve bodies, turbine blades, rotors, and more, owing to which the demand for metal forging in the energy sector is on an upsurge.
• Furthermore, increasing investments in the automotive industry are expected to augment the product demand in near future. 

Figure: Asia-Pacific Metal Forging Market Revenue, 2020-2026 (US$ Billion)

Metal Forging Market Segment Analysis – By Type

The carbon steel segment held the largest share in the metal forging market in 2020 and is estimated to grow at a CAGR of 5.3% during 2021-2026. Carbon steel's low cost and widespread availability account for the segment's large market share. Carbon steel forgings have a lower material cost than other types of steel forgings. Carbon steel forging is commonly used for automotive, oilfield, and other applications, especially when compared to stainless steel forging. In addition, it has high strength, ductility, malleability, toughness, temperature resistance, machinability, wear resistance, and corrosion resistance, among other properties. Carbon steel's advantageous properties are the primary reason for its popularity over other metals.

Metal Forging Market Segment Analysis – By Process

The closed die forging segment held the largest share in the metal forging market in 2020. The compatibility of all metals with the process is credited with the technology's growth. It's a clean process with near-net shapes, high strength, tight tolerances, no material limitations, and a better surface finish. The advantages of the closed die forging process have increased its use in the forging of steel and aluminum components. The fastest-growing technology on the market is open-die forging. Less material waste, better fatigue resistance, significant cost savings, reduced chance of error or holes, improved microstructure, continuous grain flow, and finer grain size are all advantages of this forging process.

Metal Forging Market Segment Analysis – By End-Use Industry

The automotive segment held the largest share in the metal forging market in 2020 and is forecasted to grow at a CAGR of 6.7% during 2021-2026. Automotive components and parts made by forging are more durable than those made by casting or machining. Furthermore, forged parts require little or no machining, which saves time and money. Forged steel has many advantages, including high durability, high tensile strength, and reliability. These characteristics are one of the main reasons why forged steel is preferred in the automotive industry over its alternatives. Components such as the control arm, crankshaft, connecting rods, and steering knuckles, among others, are made of carbon steel, alloy steel, and stainless steel. Furthermore, the automotive industry's increasing adoption of closed die forging technology is driving demand for metal forged products.

Metal Forging Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the metal forging market in 2020 up to 42%. The automotive industry is flourishing in the region, which is accelerating the demand for metal forging in the region. For instance, according to the International Trade Administration (ITA), China is the world's largest vehicle market, with the Chinese government expecting 35 million automobiles to be produced by 2025. The Indian automobile industry is expected to grow to US$300 billion by 2026, according to Invest India. In 2019, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), due to rising per capita income, automotive production in Malaysia and Vietnam increased to 571632 and 250000 units, respectively, up 1.2 percent and 5.5 percent from the previous year. This growth in the Asia-Pacific automobile sector is set to accelerate the demand for forged metals in the region, thereby driving market growth.

Metal Forging Market Drivers

Increasing Automobile Production in Various Regions

Due to the extreme nature of their structure and production, forged aluminum components have several advantages over castings. Forged components have higher relative strength and the strength-to-weight ratios of aluminum, a forged aluminum component can be made with smaller volumes of material overall and in stronger geometries, lowering the final component's weight. Without sacrificing performance, this can have compounding effects on the final weight of an assembled vehicle. The production and adoption of electric vehicles are anticipated to increase globally. For instance, according to Invest India, Between 2020 and 2027, the Indian EV market is expected to grow at a CAGR of 44 percent, with annual sales reaching 6.34 million units by 2027. By 2030, the electric vehicle industry will have created five crore direct and indirect jobs. California has mandated that all new passenger vehicles sold in the state should be 100% electric by 2035. The American Jobs Plan, which was recently unveiled, proposes $174 billion in incentives, rebates, and investments to encourage the production and adoption of electric vehicles. GM has also proposed that by 2035, all diesel and gasoline-powered cars are phased out and the company's entire fleet be converted to electric vehicles. It is anticipated that a gradual shift towards electric vehicles will strengthen the demand for forged metals to manufacture various electric vehicle components, which as a result will drive the market.

Flourishing Aerospace Sector

In the aerospace industry, large aluminum alloy forging is desired for its lightweight, strength, and high reliability. Frames for aircraft fuselages and rings for rocket walls are made using high-temperature, high-pressure metal forging. Metal forgings are also used in aircraft in components such as engine discs, fuselage, undercarriage components, primary mounting elements in the wing box, components for wings and pylons, and more. The demand for aircraft is on an upsurge in various regions. For instance, in November 2020, Boeing projected that China's airlines will buy US$1.4 trillion worth of 8,600 new aircraft and US$1.7 trillion worth of commercial aviation services over the next 20 years. According to Boeing's current business forecast, the Middle East would need 2,520 new aircraft by 2030. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Considering the benefits associated with forged metals is expected to have great potential applications in aerospace. Hence, the increasing aerospace industry will act as a driver for the metal forging market.

Metal Forging Market Challenges

Availability of Alternative Processes

The use of the forging process is expected to be limited as the demand for alternative metal forming processes such as casting and powder metallurgy grows. The molten metal is poured into the mold, which contains a cavity with the desired shape of the casting, during the casting process. The molten metal is then allowed to solidify, a process known as casting. Because the casting process is less expensive than this type of forging process, most manufacturers prefer to use the casting process. Therefore, metal forging market growth is expected to be hampered by the use of alternative metal forming processes such as casting and powder metallurgy.

Metal Forging Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the metal forging market. Metal forging market top companies are:

• Arconic
• All Metals & Forge Group
• Aichi Steel Corporation
• Nippon Steel Corp
• Allegheny Technologies Inc.
• American Axle & Manufacturing Inc.
• Schuler AG
• China First Heavy Industries, Bharat Forge Ltd.
• Bruck GmbH
• ThyssenKrupp AG
• L&T Special Steel and Heavy Forgings
• The Japan Steel Works, Ltd.
• Hilton Metal Forging Ltd.
• Blue Point Capital

Acquisitions/Technology/Product Launches

In January 2020, Mattco Forge Inc., a manufacturer of metal forging products for the aerospace and defense industries, was acquired by Blue Point Capital. The company bought this company to improve its supply chain management, business infrastructure, and production capabilities.

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