GCC Metal Forging Market Size, Share & Trends Report

GCC Metal Forging Market Size, Share & Trends Analysis Report By Process (Open Die, Closed Die), By Application (Ball Valve, Wellhead Equipment, Turbine), And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2020
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-857-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 77

Report Overview

The GCC metal forging market size was estimated at USD 1.08 billion in 2018 and is anticipated to expand at a compounded annual growth rate (CAGR) of 2.1% from 2019 to 2025. Increasing focus on infrastructure development particularly in Asia Pacific countries is projected to drive the product consumption in the forthcoming years.

Saudi Arabia metal forging market size

Increasing activities in the GCC oil and gas industry is estimated to be the key driver for the market growth. The demand for forged metal components such as ball valves, wellhead equipment, electric motors, turbines, and pumps from the oil and gas industry are predicted to grow at a stable pace over the forecast period.

Saudi Arabia has 18% of global petroleum reserves. Oil and gas sector in the country contributes to over 50% of the GDP. In 2017, the country generated around USD 231.48 billion in revenue through exports; out of which USD 159.74 billion came from petroleum sector alone. The country requires different types of oil and gas machinery and equipment for the sustainability of the sector. As a result, the demand for forged parts in these equipment and machinery is expected to grow over the forecast period.

Pumps and ball valves application segments were the major contributors to the Saudi Arabia forging demand in 2018 and accounted for volume shares of 27.1% and 20.0%, respectively. Pumps are integral components in oil drilling rigs as they help transfer fluids from one place to another.

Various pumps such as centrifugal, positive displacement, and diaphragm have witnessed high demand in oil and gas sector. The demand for forged components in pumps on account of increasing exploration and production activities in oil and gas sector is expected to increase over the forecast period.

Process Insights

Open die process accounted for volume share of more than 51.0% in 2018 in GCC metal forging market. This process is also called as open forging. In this process, the billet is placed between “hammer” or “stamp” dies. The material is altered through a series of continuous hammering and stamping movements until the desired dimensions are obtained.

Metal products manufactured using open die forging often need machining with the help of CNC or other advanced machines to achieve desired dimensions. Custom shapes can also be manufactured using open die forging. Primary products manufactured using open die forging process in the GCC region include wellhead equipment, electric motors, turbines, ball valves, pumps, blowout preventers, and gas compressors.

In terms of revenue, closed die process is projected to expand at CAGR of 2.0% from 2019 to 2025. This process utilizes high pressure to compress the piece of metal into an enclosed die impression of required shapes. In this process, a medium-frequency induction heating furnace is utilized to heat the metal for pressing it into the enclosed dies. This process requires precision machined dies. As a result, forged components require little or no machining due to its high accuracy throughout the forging process.

Application Insights

Pumps was the largest application segment with revenue share of more than 26.0% in 2018. Pumps are extensively used in oil and gas and chemical industries to transmit fluids. Impulse, positive displacement, gravity, velocity, steam, and valve-less are the major types of pumps that are currently used in the oil and gas industry. Out of the aforementioned pumps, positive displacement pumps are commonly used in oil and gas industry as they offer consistent flow irrespective of the pressure.

GCC metal forging market share

The surging oil and gas activities in the GCC region are projected to benefit the demand in wellhead equipment applications. The outlook for oil and gas production in the Middle East remains optimistic owing to stable investments by the government oil and gas companies in the region. A significant boost in drilling activities in the region is predicted to provide a lucrative platform for forged wellhead equipment.

Ball valves are used for a variety of upstream and downstream applications in oil and gas, petrochemical, chemical, process, and energy industries. Ball valves are used to control the flow of substances from one opening to the next. They are used for pressure and flow control of slurries, corrosive fluids, normal gases, and liquids. They are predominantly used in oil and gas industry but also find applications in manufacturing as well as chemical storage sectors respectively.

Regional Insights

Saudi Arabia dominated the market and accounted for over 45% revenue share in 2018. The regional market is driven by the increasing use of forged components in automotive, industrial machinery, oil and gas, and construction applications. Factors such as growing construction and automotive aftermarket industries and easy availability of raw materials (aluminum and steel) are expected to drive the market growth.

The GCC region is the world leader in crude oil production. Several major economies in the region depend on oil industry. Forged components are used in the assemblies of rotary drilling machinery and equipment, field production, and drilling rigs. Further, the demand for such components in machinery is high in the region for carrying out exploration and production activities, which is expected to drive the market over the forecast period.

Major countries in the region are expected to witness high economic growth in the forthcoming years owing to the diversification program for other sectors by most of the governments in the countries from Middle East and Africa. Under this program, the government support for domestic manufacturing is anticipated to boost regional production levels and reduce the reliance on imports, which is expected to offer lucrative opportunities for vendors in the market.

Key Companies & Market Share Insights

There are a small number of players present in the market compared to other regions such as Asia, North America, and Europe. End-use industries depend on imports of forged components. This provides opportunity for new entrants in the market. Thus, with development of end-use industries, establishment of new production facilities is expected over the long term in GCC countries.

Some of the prominent players in the GCC metal forging market include:

  • SPSV

  • Precision Forging Factory

  • Steel Forgings Gulf

  • ALKAFAA

  • FTV Proclad (U.A.E.) L.L.C.

  • Doosan Heavy Industries & Construction

  • MFc Group

  • El Nasr Company

GCC Metal Forging Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 1.11 Billion

Revenue forecast in 2025

USD 1.26 Billion

Growth Rate

CAGR of 2.1% from 2019 to 2025

Base year for estimation

2018

Actual estimates/Historic data

2014 - 2017

Forecast period

2019 - 2025

Quantitative Units

Volume in kilotons, revenue in USD million & CAGR from 2019 to 2025

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Process, application, region

Country scope

Saudi Arabia; UAE; Qatar; Oman; Kuwait; Bahrain; Egypt; Iraq

Key companies profiled

SPSV; Precision Forging Factory; Steel Forgings Gulf; ALKAFAA; FTV Proclad (U.A.E.) L.L.C.; Doosan Heavy Industries & Construction; MFc Group; El Nasr Company

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts volume and revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the GCC metal forging market report based on process, application and region:

  • Process Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Open Die

    • Closed Die

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Ball Valves

    • Wellhead Equipment

    • Electric Motor

    • Turbine

    • Pump

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • GCC

      • Saudi Arabia

      • UAE

      • Qatar

      • Oman

      • Kuwait

      • Bahrain

      • Egypt

      • Iraq

Pricing & Purchase Options

Buy Chapters or Sections

Avail customized purchase options to meet your exact research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities

Why Choose Us

  • Research support

    24/5 Research support

    Get your queries resolved from an industry expert.

  • Custom research service

    Custom research service

    Design an exclusive study to serve your research needs.

  • Quality assurance

    Quality assurance

    A testimonial for service in the form of BBB "A" Accreditation.

  • BBB Rating dandb
  • Information security

    Information security

    Your personal and confidential information is safe and secure.

  • grand view research PCI DSS complaint grand view research paypal verified