The capital-intensive nature of the global forging market features clear dominance of large players that operate in global markets, says a report by Transparency Market Research (TMR). This poses stiff challenges to small players that contend amongst large players with respect to quality, features, functionalities, and services. Further, the use of newer technologies by well-entrenched players that will add qualitative value to existing products and also lead to the development of novel products will intensify the competition.
Some key participants in the global forging market include Arconic Inc., Allegheny Technologies Incorporated, Bharat Forge Limited, Nippon Steel & Sumitomo Metal, American Axle & Manufacturing Holdings, and Thyssenkrupp AG.
As per estimates of a report by Transparency Market Research, the global forging market is expected to be worth US$96,433.7 mn by 2025 expanding at a CAGR of 4.4% between 2017 and 2025. The market stood at a valuation of US$66,049.8 mn in 2016.
Powered by Industrialization in Emerging Economies, Asia Pacific Dominates Market
The segments of the global forging market based upon type are closed die, open die, and rolled rings. Closed die forging holds the leading share in the market on account of the par excellence finish and performance of products obtained using this process. The segment is expected to continue dominance over the forecast period.
Low-carbon & low-alloy steels metals is the leading raw material segment in the forging market. In terms of application, automotive holds dominance amongst other application segments owing to the high usage of automobiles and expansion of the automobile industry.
Asia Pacific held the leading share in the global forging market in 2016. The growth of the region is primarily ascribed to the development of automotive and construction industries, particularly in China.
Revival of Growth of Automotive Sector Favors Market
The increasing demand for forging in the automotive industry is the foremost factor fuelling growth of the forging market. The automotive sector utilizes as much as 65% of forged metals that are produced every year globally. The growth of the automotive industry post the economic slump of 2007 is having a positive impact on the global forging industry.
Globally, the industrial sector is expected to be on a growth trajectory in the upcoming years. This is anticipated to have a positive bearing on the forging market over the same period. Forged metals display a bevy of advantages over casting or any other metalworking process. The high strength and reliability of forged metals, and low cost of forging over other processes account for their widespread applications. Forged metals are extensively used in capital-intensive industries such as automotive, defense, aerospace, industrial equipment, and factory automation.
Along with these factors, investments in large and small forging units and globalization are projected to further drive the market.
Posing a hindrance to the growth of global forging market are a host of factors that include high cost of forging quality steel, fewer partnerships between material manufacturers and forging units, non-profitable economies of scale, and volatile nature of end-use industries.
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