The global stainless steel forgings market size was valued at USD 7.51 billion in 2015. The stainless steel forgings demand is majorly driven by growing manufacturing activities around the world. The ability of stainless steel to withstand chemical, physical, and electrical wear and tear is the major factor responsible for the growth of the market.
High recyclability offered by stainless steel is driving the demand for stainless steel forgings. The growing application of these products in industrial and aviation application segments is serving as a growth opportunity for the market. Forgings manufactured from aluminum and plastic composites are expected to pose a major threat to the growth of the market over the forecast period.
There is an upswing in the construction industry from emerging economies owing to increased government expenditure on infrastructure, which is expected to increase the demand for these products. The fluctuating prices of raw materials such as nickel and iron ore are expected to impact the industry growth.
Energy sector globally has been growing rapidly on account of rising demand from domestic and industrial purposes. The demand for forgings is expected to increase in this sector due to their operational benefits during the installation of wind or tidal energy plants. The rising number of grid installations in developing countries is expected to boost the demand for stainless steel forgings in the energy sector.
The availability of substitute materials such as aluminum is expected to act as a restraint for the industry. The growing preference toward non-ferrous forged products due to their advantages that include lightweight, high conductivity, non-magnetic properties, and corrosion resistance is expected to hinder the market growth.
Based on product, market is classified into three main categories: cold/hot forged parts, castings and sintered parts. Cold/Hot forged parts held the largest share of 88.0% in 2015, in terms of volume. The manufacturing process of cold forged products helps in saving materials by obtaining precise shapes, which results in reduced machining costs.
Casting is the fastest growing product segment, which is expected to register a CAGR of 4.5% from 2016 to 2024. The increasing demand for stainless steel casting has led the manufacturers to expand their production capacities. For example, in April 2015, HUA XING MFY CO., LTD collaborated with Da Ding Industry Co., Ltd to establish a new investment casting plant in ZhongShan City in order to expand its capacity for stainless steel casting and have a specialized production line for casting parts for ship building industry.
Sintered parts are the niche product segment in the market. Sintered products possess properties such as electrical conductivity, translucency, and thermal conductivity. The enhanced property provided by these products is driving the demand for industrial applications. The research and development efforts concerning the development of sintered products with enhanced strength are expected to drive demand for these products.
The global market has been segmented on the basis of application as building & construction, industrial, automotive, aerospace, consumer goods, and other applications including food & dairy and paper mills. Industrial was the largest application segment in 2015 with a share of 33%, in terms of volume. The favorable properties of stainless steel forgings such as strength and resistance to wear and tear are driving the demand for these products in this application segment.
The stainless steel forgings application in automotive is expected to grow rapidly at a CAGR of 4.5% from 2016 to 2024. The rising demand for lightweight forged products with enhanced wear and tear resistance is driving the growth.
Automotive segment is anticipated to register a growth rate of 7.1% during the forecast period, in terms of revenue. The product’s versatility of size, shape, and properties make it an ideal component for the manufacture of bulkheads, wing roots and spars, hinges, engine mounts, brackets, beams, shafts, landing gear cylinders and struts, wheels, brake carriers and discs and arresting hooks.
Building & construction segment is expected to grow at fastest CAGR of 7.4% in terms of revenue, during the forecast period. The segment is further segregated based on application into hubs, flanges, gear components, joints, fasteners, and others. In 2015, joints held the largest volume share in the demand for stainless steel forgings from building & construction industry. Rising infrastructural developments, especially across the emerging economies is anticipated to boost the product consumption over the forecast period.
North America stainless steel forgings market is estimated to grow at a CAGR of 5.5% over the forecast period. The market demand is attributable to high product consumption in industrial and aerospace applications. Increasing investments in the aerospace industry is anticipated to propel product demand in the region.
During 2012-2013, the U.S. received 28 manufacturing investments, which are anticipated to propel stainless steel forgings consumption. In September 2015, Airbus inaugurated operations at is first U.S. manufacturing plant in Alabama.
In terms of volume, Europe stainless steel forgings market held the second largest share of 20.45% in 2015. The rising number of manufacturing industries in Eastern Europe is driving the demand for forgings. The major countries leading forgings consumption are Germany, UK, and France due to the presence of major manufacturers in these countries.
Asia Pacific dominated the global market in 2015, accounting for a share of 65.3%, in terms of volume. The rise in manufacturing activities in countries such as Japan, China, and India is expected to drive the demand in Asia Pacific. The rise in foreign investment and favorable government policies in these countries is driving the demand for these products.
Infrastructural development in Latin America and Africa is fueling demand for stainless steel forgings. The government initiative aimed at increasing the manufacturing activity in the region can boost the demand for stainless steel forgings over the forecast period.
Companies in the market are moderately competitive with presence across all the key regions worldwide. PCC Forged Products and ISGEC Heavy Engineering are the major players. The other notable market players are Harihar Alloys, Sintex A/S, Investacast, Forge Products Corporation, Scot Forge and Canada Forgings Inc.
The presence of a large number of local players is also increasing competition in the market. The macro economic factors such as oil & gas prices and political scenario have a profound effect on the competitive environment of the stainless steel forgings industry.
|
Attribute |
Details |
|
Base year for estimation |
2015 |
|
Actual estimates/Historical data |
2013 - 2014 |
|
Forecast period |
2016 - 2024 |
|
Market representation |
Revenue in USD Million, Volume in Kilotons & CAGR from 2016 to 2024 |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
|
Country Scope |
U.S., Germany, UK, France, China, India, Japan, Brazil |
|
Report coverage |
Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
|
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."
