GVR Report cover Metal Forging Market Size, Share & Trends Report

Metal Forging Market Size, Share & Trends Analysis Report By Raw Material (Carbon Steel, Aluminum), By Application (Automotive, Aerospace), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Nov, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-3-68038-308-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 129

Report Overview

The global metal forging market size was valued at USD 83.85 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2020 to 2027. The market growth is mainly attributable to the rising demand from the global aerospace and automotive industries. Increasing passenger traffic has propelled the growth of the aerospace sector, thus boosting the production of aerospace forged parts. However, the market was severely affected due to the COVID-19 pandemic as market players had to temporarily suspend their operations, which impacted the entire value chain, from raw material suppliers to manufacturers & end-users. The market is anticipated to stabilize by the end of 2020 as end-use industries, such as automotive, aerospace, and construction, have resumed operations.

China metal forging market size, by raw material, 2016 - 2027 (USD Billion)

China held a revenue share of 27.1% in the global market in 2019 and is projected to advance at a CAGR of 6.5% from 2020 to 2027. The country is the largest consumer and producer of metal forgings. China exports a large number of forged products to American and European markets. However, the low profit margin and high cost of machinery have impacted the small- & medium-sized forging businesses in the recent past.

With the emergence of coronavirus in November 2019, the industrial production of the country was severely impacted. However, China’s manufacturing rebounded when other countries had imposed lockdown. Whereas major economies of the world reported a negative GDP for the second quarter (April to June) of 2020, China’s economy grew at 3.2%.

Major companies are focusing more on their production facilities to cater to the growing product demand. For instance, in September 2020, Fushun Special Steel Co., Ltd. placed an order for a new open-die forging press to Siempelkamp. The new press will enhance the cost efficiency of the plant. Such investments indicate a growing demand for metal forging from end-use industries.

Furthermore, growth in the automotive industry is expected to provide fruitful results for the market. For example, India is witnessing a positive growth rate, in terms of vehicle sales, in the second half of 2020. Passenger vehicle sales increased by 14% in August 2020 from the previous year. Growth in the market is inviting prominent players to invest, which will drive the market further. For example, in September 2020, Toyota Kirloskar Motors announced an investment of around USD 272.81 million for electric components and technology in India.

Raw Material Insights

Carbon steel held the largest revenue share of more than 44.0% in 2019 in the global metal forging market and is expected to continue its dominance over the forecast period. The high share of the segment is attributable to the low cost of carbon steel along with its easy availability. In addition, the raw material offers enhanced ductility and high impact strength to the final products.

Aluminum is expected to register the fastest CAGR over the forecast period. The metal is gaining prominence in the automotive industry owing to safety and reliability. Aluminum forged parts have higher strength as compared to any other metal processed parts including casting. These are used for front and rear axle components, such as knuckles, control arms, and wheels, and for brake systems including hydraulic system components and caliper.

Alloy steel held the second-largest share of the market in 2019, in terms of volume. It is a preferred material in the close die forging process. Its demand is growing on account of its strong mechanical properties, ease of processing, low cost, and easy availability. Alloy steel forged parts have increased strength, hardness, corrosion resistance, and improved weldability and ductility.

Application Insights

The automotive application segment accounted for the largest volume share of more than 51.0% in 2019 and this trend is expected to continue over the forecast period. Automotive components or parts manufactured by forging are stronger than those manufactured by casting or machining. In addition, forged parts require little or no machining, which helps in saving both time and cost. Increasing investments in the automotive industry are expected to augment the product demand in near future. For example, in October 2020, Nissan announced to build two new vehicle-assembly plants in China.

The construction segment is expected to register the fastest growth rate over the forecast period. The growth is attributed to rising product demand in this application as the industry requires different types of machinery and equipment, which consist of forged parts, such as pistons, mold design, and fabrication parts. Although the industry witnessed a slump in the first half of 2020 owing to the COVID-19 pandemic, the companies have resumed their operations by adhering to safety protocols from the second half of 2020. For example, in July 2020, total housing production in the U.S. increased by 22.6% from the previous month.

Global metal forging market share, by application, 2019 (%)

This was supported by the low interest rates and an increase in the number of buyers in low-density areas. Thus, rising construction activities are expected to drive the segment over the forecast period. Aerospace is estimated to be the fastest-growing segment from 2020 to 2027 due to the increasing demand for forged parts as a result of their high strength. This application sector requires a large number of forged parts, which are manufactured from special alloys. Components, such as aerospace turbines, landing gear systems, engines, and precision machined parts are manufactured using the forging process.

Regional Insights

Asia Pacific held the largest revenue share of over 51% in 2019 and this trend is anticipated to continue over the forecast period. The growth is attributable to the increasing foreign investments in the developing economies of the region. For instance, in September 2020, India’s Mahindra & Mahindra announced its collaboration with REE Automotive for the development of commercial Electric Vehicles (EVs). In February 2020, the aerospace industry of Singapore announced about receiving investments worth USD 360 million over a period of five years. The Singapore government agency JTC has signed agreements with companies, such as GE Aviation, Safran Aircraft Engines, and Rolls-Royce, for new or expanded facilities. Such investments in the end-use markets are expected to boost the product demand in the regional market over the forecast period.

North America held a revenue share of more than 22.0% in 2019 of the global market space. The region is amongst the largest consumers of forged parts on account of high demand from the automotive, oil & gas, aerospace, and construction sectors. As per the International Organization of Motor Vehicle Manufacturers, North America accounted for over 18% of the global market share of automotive production in 2019.

European countries were severely affected by the first wave of COVID-19 as they witnessed large GDP contraction. The European Union reported a decline of 11.4% in its GDP from the first quarter to the second quarter of 2020. However, manufacturers expect market recovery, which is anticipated to benefit the product demand due to the well-established aerospace manufacturing sector and the presence of major automakers and auto component manufacturers in the region.

Key Companies & Market Share Insights

The market is highly competitive and companies are engaged in adopting strategic initiatives, such as capacity expansions and mergers & acquisitions, to strengthen their presence and position in the industry. For instance, in June 2018, American Axle & Manufacturing, Inc. announced to establish a new manufacturing plant in Barcelona to serve the European markets. In March 2018, MM Forgings announced an investment of USD 93.6 million to expand the production of various grades of steel forgings to meet the demand from the automotive sector. In October 2020, Liberty Steel Group made an offer to acquire the steel activities of Thyssenkrupp Europe. Some prominent players in the global metal forging market include:

  • Arconic Corp.

  • ATI

  • Bharat Forge Ltd.

  • Bruck GmbH

  • China First Heavy Industries

  • Ellwood Group, Inc.

  • Japan Casting & Forging Corp.

  • Jiangyin Hengrun Heavy Industries Co., Ltd.

  • Nippon Steel Corp.

  • Precision Castparts Corp.

  • Kovárna Viva

  • Larsen & Toubro Ltd.

  • Scot Forge

  • Thyssenkrupp Business Area Components Technology

Metal Forging Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 72.9 billion

Market size in volume 2020

54,043.2 kilotons

Revenue forecast in 2027

USD 124.1 billion

Volume forecast in 2027

81,201.7 kilotons

Growth rate

CAGR of 5.0% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, company market positioning, competitive landscape, growth factors, and trends

Segments covered

Raw material, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; China; India; Brazil

Key companies profiled

Arconic Corp.; ATI; Bharat Forge Ltd.; Bruck GmbH; China First Heavy Industries; Ellwood Group, Inc.; Japan Casting & Forging Corp.; Jiangyin Hengrun Heavy Industries Co., Ltd.; Nippon Steel Corp.; Precision Castparts Corp.; Kovárna Viva; Larsen & Toubro Ltd.; Scot Forge; Thyssenkrupp Business Area Components Technology

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global metal forging market report on the basis of raw material, application, and region:

  • Raw Material Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Carbon Steel

    • Alloy Steel

    • Aluminum

    • Magnesium

    • Stainless Steel

    • Titanium

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Automotive

    • Aerospace

    • Oil & Gas

    • Construction

    • Agriculture

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

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