Metal Forging Market

Surging demand for both passenger as well as commercial vehicles to fuel the Metal Forging market

The surging demand for passenger and commercial vehicles drives the increased need for metal forging. Passenger vehicles include cars, SUVs, and other personal transportation options, while commercial vehicles encompass trucks, buses, and vans used for transportation and logistics.

There are several reasons behind the growing demand for these vehicles. Firstly, population growth, urbanization, and improving living standards have increased mobility needs, resulting in higher car ownership rates and a rising number of commercial vehicles for goods transportation. Additionally, emerging markets, such as those in Asia and Latin America, are experiencing rapid economic development, leading to a rise in vehicle demand. Industrialization and infrastructure projects also contribute to the surge in commercial vehicle requirements.

The automotive industry is witnessing increasing demand for forged steel, creating lucrative growth opportunities. Forged steel is preferred in automotive components due to its durability, strength, and reliability. Automotive parts like connecting rods, control arms, rocker arms, crankshafts, camshafts, tie rod ends, and steering knuckles are manufactured using carbon steel, stainless steel, and alloy steel. Closed-die steel forging technology is primarily employed for producing these automotive parts. The demand for forged steel will surge during the forecast period due to the rising demand for commercial and passenger vehicles.

Additionally, the adoption of lightweight forged steel in electric vehicles further contributes to the increasing demand for the product. Metal forging plays a vital role in meeting this demand. It allows manufacturers to produce critical components with exceptional strength and durability, ensuring the safety and reliability of vehicles. Commonly forged parts include crankshafts, connecting rods, gears, axles, and suspension components. Forged components offer numerous advantages over alternatives like cast or machined parts. Forged parts exhibit superior mechanical properties, including high tensile strength, fatigue resistance, and impact toughness. They also have excellent dimensional accuracy and surface finish.

The automotive industry relies on metal forging because it enables the production of lightweight yet robust components. These components contribute to overall vehicle weight reduction, improving fuel efficiency and reducing emissions.

Moreover, metal forging offers cost-effective production solutions for high-volume manufacturing. The process allows for efficient material utilization and streamlined production cycles, reducing waste and lowering production costs.

June 2019- Allegheny Technologies Incorporated has entered into an agreement to sell two of its non-core forging facilities to Wynnchurch Capital, LLC for a cash amount of $37 million. Wynnchurch Capital, LLC, a reputable private equity investment firm based in Chicago, IL, focuses on investing in middle-market companies in the United States and Canada with significant growth and operational improvement prospects. The transaction is expected to be completed in the second quarter of 2019.

The aerospace industry is a critical driver of the Global Metal Forging Market Industry, as it requires high-performance materials for aircraft manufacturing. Forged components are essential for ensuring the structural integrity and safety of aircraft, which is paramount in this highly regulated sector. With the global aerospace market expanding, the demand for forged parts is likely to rise. This growth is supported by the increasing production rates of commercial aircraft and the development of new models that utilize advanced materials. The aerospace sector's focus on lightweight and durable components aligns with the capabilities of metal forging, positioning the industry for sustained growth.

The Global Metal Forging Market Industry is poised for substantial growth, with projections indicating a market size of 87.5 USD Billion in 2024 and an anticipated increase to 200.9 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 7.85% from 2025 to 2035. The expansion is driven by various factors, including rising demand from automotive and aerospace sectors, infrastructure development, and technological advancements in forging processes. As industries increasingly recognize the advantages of forged components, the market is likely to witness robust growth, reflecting the evolving landscape of manufacturing and material science.

The transition towards renewable energy sources is significantly impacting the Global Metal Forging Market Industry. As countries invest in wind, solar, and hydroelectric power, the demand for forged components used in energy generation equipment is rising. For example, wind turbine manufacturing relies heavily on forged steel for critical components such as shafts and gears. This trend is expected to continue as global energy policies shift towards sustainability. The market's growth is anticipated to be robust, with a projected CAGR of 7.85% from 2025 to 2035, reflecting the increasing reliance on forged materials in the renewable energy sector.

Government-led infrastructure projects worldwide are significantly influencing the Global Metal Forging Market Industry. Investments in transportation, energy, and construction sectors are driving the need for durable forged materials. For instance, the expansion of rail networks and the construction of bridges require high-performance forged steel components. As nations prioritize infrastructure development to stimulate economic growth, the market is expected to benefit. By 2035, the industry could reach 200.9 USD Billion, reflecting the increasing reliance on forged materials for robust infrastructure. This trend indicates a long-term growth trajectory, particularly in emerging economies where infrastructure needs are pressing.

The Global Metal Forging Market Industry is experiencing a surge in demand driven by the automotive sector. As vehicle production increases, the need for high-strength, lightweight components becomes paramount. Forged parts are favored for their superior mechanical properties, which enhance vehicle performance and safety. In 2024, the market is projected to reach 87.5 USD Billion, with automotive applications accounting for a substantial share. This trend is likely to continue as manufacturers seek to improve fuel efficiency and reduce emissions, aligning with global sustainability goals. The automotive industry's shift towards electric vehicles further amplifies the demand for advanced forged components.

Innovations in forging technology are reshaping the Global Metal Forging Market Industry. Advanced techniques such as precision forging and computer numerical control (CNC) machining enhance the efficiency and accuracy of forging processes. These advancements not only improve product quality but also reduce waste and energy consumption, aligning with global sustainability efforts. As manufacturers adopt these technologies, they can produce complex geometries and tighter tolerances, meeting the evolving demands of various industries. The integration of automation and robotics further streamlines operations, potentially increasing productivity and profitability in the sector.

Region-wise Metal Forging Market has been divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia Pacific accounted for the largest market share of 38.26% in 2022, with a market value of USD 33,913.66 million; the region is expected to register a CAGR of 6.92% during the forecast period. Europe was the second-largest market in 2022, valued at USD 26,242.75 million; the market is projected to exhibit the highest CAGR of 6.29%.

In 2022, the Asia Pacific region was the dominant force in the Metal Forging Market due to the growing demand for metal forgings in key industries such as railways, automobiles, energy, and aerospace. The region's position is expected to strengthen further during the forecast period. One notable example of this demand is South Korea's plans announced in April 2021. The country intends to invest approximately KRW 114.7 trillion (equivalent to USD 102.7 billion) to expand its railway network nationwide by 2030. Such initiatives contribute to the increasing need for metal forgings.

Within the Asia Pacific, China and India have emerged as the leading countries in the metal forging market due to the increasing usage of forged metal in the automotive and mechanical industries. China, being the largest economy in the region, plays a significant role in the Asia-Pacific metal forging market. It has a strong manufacturing base and is a major exporter of forged products. India is also a prominent market, with a growing automotive industry and a focus on infrastructure development.

Additionally, the supportive government regulations promoting the development and use of electric vehicles have fueled the demand for lightweight forged steel parts in the automotive sector.

April 2021- Nippon Steel Corporation launched ZAM-EX, highly corrosion- resistant coated steel sheets for overseas markets. Nippon Steel and the former Nippon Steel Nisshin Co., Ltd. (NSN) have been selling highly corrosion resistant coated steel sheets, SuperDyma (SD) and ZAM, in overseas markets since 2000. Even after the merger of the two companies in April 2020, the new company has continued selling SD as well as ZAM. Starting with new orders, the company will sell its highly corrosion resistant coated steel sheets for overseas markets under the new brand name, ZAM-EX.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Metal Forging Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Metal Forging Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Metal Forging industry to benefit clients and expand the Metal Forging market sector is to manufacture locally to reduce operating costs. The market for Metal Forging is recognized as being extremely competitive and fragmented. The market for Metal Forging offers considerable potential opportunities for domestic and unorganised companies. Some of the key players operating in the Metal Forging Market are Arconic, China First Heavy Industries, Ati, Forgiatura Marcora, Bharat Forge, Japan Casting & Forging Corp, Brück Gmbh, Omz-Special Steels Llc, Larsen & Toubro Limited, Nippon Steel Corporation.

To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

ATI Inc.: is an integrated specialty materials and components company. The Company operates through two segments: High-Performance Materials & Components (HPMC) segment and Advanced Alloys & Solutions (AA&S) segment. Its HPMC segment produces a range of high-performance materials, including titanium and titanium-based alloys, nickel- and cobalt-based and other specialty materials, in long product forms such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, components, and machined parts. Its HPMC segment products are used in aerospace and defense, medical, and energy markets.

The Company’s AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms including plate, sheet, and flat products. Its AA&S products are used in energy, aerospace and defense, automotive, and electronics markets.

Bharat Forge Limited: is an India-based company, which is engaged in manufacturing and selling of forged and machined components including aluminum castings for auto and industrial sectors. Its segments include Forgings and Others. It is also involved in the manufacturing and assembly of electric vehicle related components. It offers full-service supply capability, which includes from concept to product design, engineering, manufacturing, testing, and validation. It manufactures critical components for thermal, wind, hydro, and nuclear applications. It offers automotive products, which include engines, chassis and transmission and driveline.

It also manufactures a variety of railway components, such as engine components, turbochargers, bogie components, and power electronics. It supplies components to the aviation sector, such as fan blades, compressors and turbines, aero structures, and gear components. It caters to both domestic and international markets.