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The forging market is estimated to grow at a CAGR of 5.82% between 2022 and 2027. The size of the market is forecasted to increase by 17.34 million tons. The growth of the market depends on several factors, including the advantages of forging over other fabrication techniques, the advent of new hybrid forging techniques, and technological innovations.
This report extensively covers market segmentation by end-user (automotive and others), product (closed die forging, open die forging, and seamless rings), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global forging market as a part of the global diversified metals and mining market, which covers companies engaged in the production or extraction of metals and minerals such as non-ferrous metals (except bauxite), salt and borate, phosphate rock, and diversified metal mining operations. Technavio calculates the global diversified metals and mining market size based on the combined revenue generated by companies engaged in the production or extraction of metals and minerals and diversified mining operations. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The advantages of forging over other fabrication techniques are notably driving the market growth, although factors such as instability in variable costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Forging Market Driver
The advantages of forging over other fabrication techniques are notably driving the forging market growth. Forging makes a metal tough, ductile, and capable of withstanding fatigue. It is widely used in end-user industries that require high-strength products. The advantages of forging over casting include the high strength of forged steel, cost-effectiveness, flexibility, and high tensile strength of forged products.
A cast iron part possesses only two-thirds of the yield strength of a forged steel part. Hence, various industries such as automotive, aerospace, mining, and power prefer to use high-strength steel components. Therefore, the advantages of forging over casting will drive the demand for forging in these industries. Such factors will fuel the growth of the market during the forecast period.
Significant Forging Market Trend
Developments in robotics to enhance forging operations are a key trend influencing the forging market growth. Industries such as automotive, aerospace, and medical extensively use forging techniques for manufacturing components and parts. Automation helps in achieving high productivity while ensuring flexibility. It enables quick changeover between batches, enhances production volume, and results in improved manufacturing tolerances and product quality.
Recent advances in robotics have helped designers with high-volume forging lines. Robots use sensors to interact with other machines and ensure collision resistance. They also have a high range of motion. Developers have made robots specifically designed for pick-and-place applications. This results in high-speed and high-volume production in forging lines. Therefore, developments in robotics will support market growth during the forecast period.
Major Forging Market Challenge
The instability in variable costs may impede the forging market growth. The forging industry is dependent on large volumes of ferrous and non-ferrous raw materials such as steel, iron, and other alloys. Fluctuations in raw material prices are a concern for the global forging market, as they have a major impact on the overall revenue. The cost of these materials fluctuates because of scarcity and inflationary pressures and results in uncertainty in the vendors' profitability, thus restricting the market growth.
The forging industry also needs skilled laborers to operate and carry out the forging process efficiently. However, as the wages of skilled have been laborers rising globally, various industries are outsourcing their manufacturing operations to regions with a low-cost workforce. Rising labor costs affect the overall profit margin of vendors. Vendors are compelled to increase the selling price of forged parts to offset this. As a result, they face competition from vendors that employ low-cost labor, especially in developing economies. These factors will hinder the growth of the market during the forecast period.
Key Forging Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Forging Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the automotive segment will be significant during the forecast period. The demand for forging is increasing in the automotive end-user segment. The automotive sector produces high-performance forged components for cars, trucks, and commercial automobiles.
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The automotive segment showed a gradual increase in the market share of 27.67 million t in 2017 and continued to grow by 2021. Forging produces high-quality metal parts to ensure the safety of automobile structures. Automobile components such as suspension, steering, and transmission systems are manufactured using forging. Forged parts are also installed in other automotive applications that are subject to stress and shock. These factors will drive the growth of the automotive segment during the forecast period.
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APAC is estimated to account for 67% of the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
China is the world's largest car manufacturer. In 2021, more than 26 million cars were sold in the country. India has also witnessed robust year-over-year growth rates in recent years in terms of the production of passenger vehicles (PVs), commercial vehicles (CVs), three-wheelers, and two-wheelers. The high growth in the production of automobiles in APAC is expected to drive the demand for forged parts and components during the forecast period. This, in turn, will drive the growth of the market in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. Several industries, such as automotive, manufacturing, oil, and gas, witnessed disruption in production due to the outbreak of COVID-19 in 2020 and 2021. However, by the end of 2021, the market regained momentum. Moreover, countries in the region announced economic stimulus packages to bail out their economies from the negative effects of the pandemic. In addition, the lifting of lockdown restrictions increased the demand for forging from various end-user industries. Government initiatives will also support the growth of various end-user industries, which will drive the growth of the forging market in North America during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Automotive and Others), Product (Closed die forging, Open die forging, and Seamless rings), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
Forging Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.82% |
Market growth 2023-2027 |
17.34 mn t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.26 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 67% |
Key countries |
US, China, India, Germany, and Italy |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aichi Steel Corp., Ajax Tocco Magnethermic Corp., Alicon Castalloy Ltd., All Metals and Forge Group, Allegheny Technologies Inc., Aluminum Precision Products, American Axle and Manufacturing Holdings Inc., Asahi Forge Corp., Bharat Forge Ltd., Bruck GmbH, Consolidated Industries Inc., Farinia SA, Fountaintown Forge Inc., Larsen and Toubro Ltd., Mitsubishi Steel Mfg. Co. Ltd., Pacific Forge Inc., Patriot Forge Co., Scot Forge Co., Sumitomo Heavy Industries Ltd., and thyssenkrupp AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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