Metal Forging Market Size Worth $151.1 Billion By 2027 | CAGR 7.6%

The global metal forging market size is expected to reach USD 151.1 billion by 2027, according to a new report by Grand View Research, Inc., registering a CAGR of 7.6% over the forecast period. Advancements in technologies in the automotive industry are anticipated to boost the vehicle production in the near future, which is expected to positively influence market growth.

Growing preference for lightweight parts in automotive and aerospace industries owing to environmental concerns and stringent government regulations drive the demand for metal forging, especially for titanium and aluminum materials. Various countries have tightened their laws pertaining to harmful emissions. For instance, the European Parliament and the Council have established strict carbon dioxide emission performance standards by adopting the Regulation (EU) 2019/631. The new standards are applicable for new passenger cars and new light commercial vehicles from January 1, 2020 onward.

Emphasis on reducing carbon dioxide emissions from vehicles are compelling automakers to opt for lightweight components, especially for combustion engine and transmission applications. Similar initiatives are witnessed in China, U.S., Brazil, India, and Japan. This, in turn, is anticipated to boost the demand for the forging process over the forecast period, considering its ability to manufacture lightweight parts.

The demand for metal forging was highest in Asia Pacific in 2019 and this trend is expected to continue over the forecast period. The development of the construction, aerospace, oil and gas, and automotive industries in emerging economies such as India is expected to drive the market growth. Moreover, initiatives such as Automotive Mission Plan 2016–2026 (AMP 2026) by the Government of India is expected to boost the automotive industry in the country.

The objective of AMP 2026 is to increase the market size of the Indian automotive sector to about USD 22–26 million by 2026. The plan shall prove useful for multiple stakeholders including automotive manufacturers and component manufacturers and it is anticipated to scale up the exports of the sector by 35–40% by 2026. This initiative is expected to drive the consumption of metal forging over the forecast period.

Growing investments in the defense sector of various countries is further expected to drive the demand for metal forging. For example, a spending package worth USD 1.3 trillion was passed by the United States House in March 2018, wherein a sum of around USD 695 billion has been dedicated for defense funding. Such initiatives are likely to fuel the demand for forged components in the military aircraft sector.

To request a sample copy or view summary of this report, click the link below:
www.grandviewresearch.com/industry-analysis/metal-forging-market

Further key findings from the report suggest:

• The automotive segment is expected to reach USD 69.7 billion by 2027, on account of the growing demand for metal forging in powertrain and combustion engines, especially in countries such as India and China
• Carbon steel held the largest revenue share of 44.5% in 2019 owing to factors such as low cost and easy availability compared to other materials
• Titanium is anticipated to register the highest CAGR of 9.1% over the forecast period in terms of revenue, considering the increase in research and development activities for new titanium alloys and their growing preference in the aerospace sector
• Asia Pacific held the largest market share in terms of both volume and revenue in 2019. Government initiatives supporting the manufacturing sector in developing economies are driving the consumption of forged products in various end-use industries
• Europe is expected to register a substantial CAGR of 6.6% over the forecast period in terms of revenue. The steady growth of the automotive sector in the country is likely to boost the product demand
• Some of the global companies present in the metal forging market are Arconic, Scot Forge, Bharat Forge Ltd., Nippon Steel Corp, and Larsen & Toubro Limited. Numerous market players focus on new product developments and capacity expansions for strengthening their market position.