Forging Market Analysis North America - US, Mexico, Canada - Size and Forecast 2024-2028

North America Forging Market Size 2024-2028

The North America Forging Market size is forecast to increase by USD 3.87 billion at a CAGR of 4.11% between 2023 and 2028. The market is witnessing notable expansion driven by multiple factors. With the rising applications of renewable energy, the demand for superior-quality forged products is escalating. This surge stems from the inherent advantages of forging over casting, including enhanced strength and durability. As industries prioritize sustainability and reliability, forging emerges as a preferred manufacturing method. These trends underscore North America's pivotal role in shaping the global market landscape. This North America forging market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the North America forging market report includes historic market data from 2018 to 2022.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market thrives on advanced metal-forming processes like hammering, rolling, and pressing, harnessing compressive forces to shape stainless steel and a variety of materials like titanium, aluminum, and magnesium. With a wide range of forged products in different shapes and sizes, it serves diverse sectors including construction, oil & gas, and aerospace. Amidst supply chain crises and rising urbanization, forging finds increased relevance in meeting demands for robust mechanical properties like fatigue, ductility, and impact resistance. Moreover, initiatives in the steel industry towards recycling further enhance sustainability and resilience in the market.

Key Market Driver

Rising renewable energy applications are notably driving the market growth. The increasing demand for renewable energy applications, such as wind turbines and hydroelectric installations, has had a significant influence on the market in the region. Renewable energy projects need specialized components that can withstand the rigors of these environments, and forging plays a critical part in constructing durable and reliable parts for these applications. Further, components used in renewable energy applications, particularly wind turbines, are required to withstand high mechanical stresses and loads. It delivers a manufacturing method that can produce parts with essential stability and durability.  

In addition, forging allows for the use of high-performance materials, such as specialized alloys and steels, that are important for assuring the performance and longevity of components in renewable energy applications. Therefore, the growing renewable energy applications and their benefits will fuel the growth of the market during the forecast period.

Significant Market Trends

The application of robotics to enhance forging operations is an emerging trend shaping the market growth.  Forging manufacturing techniques are commonly used in industries like aerospace, automotive, and medical. Automation in forging acts as a differentiator and increases production volume. It enables quick changeover between batches, resulting in better manufacturing tolerances and product quality. The robots in use are equipped with sensors that ensure they don't crash into other moving parts in the production process. Collision resistance not only enhances throughput but also reduces damage to machines and tools. ABB, a global automation provider, has incorporated collision resistance into its robots to improve the throughput of forging manufacturers.

Furthermore, another innovation in robotic technology is software that allows robots to pick and place parts in any direction. This flexibility allows robots to handle a variety of tasks, which in turn enhances the flexibility of the production lines and improves forging operations. This is expected to contribute to the growth of the market during the forecast period

Major Market Challenge

The lack of a skilled workforce is a significant challenge hindering market growth.  The rising demand for commodities has been supporting the revival of many industrial manufacturing units. Numerous conventional factory floor machines are being replaced with computer numerical control (CNC) machines. Such machines guarantee that requirements such as higher efficiency, better quality products, and customer satisfaction are met duly within the prescribed time. There is a shortage of skilled machinists in the workforce although factory floors are upgrading rapidly. An enormous gap exists between the demand and the availability of people who have these skills. 

However, unlike Asian countries that possess a rich pool of skilled people ready to work at lower costs, North America faces a challenge in terms of a lack of skilled workers. Moreover, the existing workforce demands higher pay grades, making it even more difficult for enterprises operating in the region, which will adversely influence the growth of the market in focus during the forecast period.

Customer Landscape

The North America forging market research 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 North America forging market analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Market Segmentation

By End-User

The automotive segment is estimated to witness significant growth during the forecast period. Forging plays a critical role in the automotive industry, where high-strength and durable components are needed to withstand the demands of vehicle operation. The use of forging presses in automotive manufacturing helps create parts that enhance safety, performance, and efficiency. As automakers strive to improve fuel efficiency and reduce emissions, lightweight is a critical goal.

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The automotive segment was the largest segment and was valued at  USD 5.08 billion in 2018. Forged components offer a favorable strength-to-weight ratio, making them ideal for replacing heavier cast or welded parts. Forged components offer greater resistance to wear, corrosion, and extreme temperatures, which is beneficial for vehicle functioning and longevity. Moreover, forging can deliver more efficient supply chains since many components can be produced in-house or by local suppliers, lowering lead times and transportation costs. Forging enables complex geometries and tailored properties, allowing manufacturers to create components that precisely meet the necessities of specific automotive applications, which may have a positive impact on the growth of the market. Therefore, such factors will contribute to the growth of the automotive segment, which will drive the market to focus during the forecast period.

Who are the Major Market Companies?

Companies 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.

Ajax Tocco Magnethermic Corp. - The company offers forging services such as induction forging of metal components for various industries

The market forecast report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Alcoa Corp.
• Allegheny Technologies Inc.
• Aluminum Precision Products
• American Axle and Manufacturing Holdings Inc.
• Asahi Forge Corp.
• Bharat Forge Ltd.
• Bula Forge and Machine Inc.
• ELLWOOD Group Inc.
• FRISA INDUSTRIAS SA de CV
• Patriot Forge Co.
• Precision Castparts Corp.
• Scot Forge Co.
• Sumitomo Corp.
• Sypris Solutions Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments. 

• End-user Outlook 
  • Automotive
  • Aerospace
  • Others

• Type Outlook 
  • Closed die forging
  • Open die forging
  • Seamless rings

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Market Analyst Overview

The market thrives amidst the dynamic landscape of the steel industry and the growing emphasis on sustainability through recycling initiatives. Utilizing the metal-forming process like hammering, rolling, and pressing, forged products are created under compressive forces, ensuring robust metal structure primarily from stainless steel. This market offers a wide range of forged products in various shapes and sizes, utilizing raw materials such as titanium and magnesium, known for their exceptional mechanical properties including fatigue, ductility, and impact resistance. With applications spanning construction, oil & gas, and supply chain crisis management, forging plays a vital role in addressing challenges like the urbanization-driven demand surge and supply chain crises exacerbated by climate change-induced disruptions, fostering innovation and resilience in the industry.

Further, the market operates under controlled conditions to ensure the quality of metal parts through various metal forging processes such as cold, warm, and hot temperatures. These processes yield high-quality metal parts with sturdy structures and impeccable finishes, addressing concerns like cracks and empty spaces. With a focus on aluminum and titanium manufacturing, the market caters to the demand for lightweight yet durable forged steel components used in automotive parts and aircraft components. Amidst global megatrends like urbanization, rising mobility, and climate change, forging plays a vital role in producing fuel-efficient aircraft components with nickel-containing austenitic grades and titanium alloys, contributing to low fuel consumption and enhancing the weight-to-strength ratio, ensuring safe transportation and tourism despite freezing conditions.

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What are the Key Data Covered in this North America Forging Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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