Metal Forging Market Size, Share and Trends 2024 to 2034

Metal Forging Market Size and Forecast 2024 to 2034

The global metal forging market size is projected to be worth around USD 21.93 billion by 2034 from USD 12.34 billion in 2024, at a CAGR of 5.92% from 2024 to 2034. The increasing demand for metal-forged parts from the aerospace industry is propelling aircraft production and benefiting the metal forging market growth. 

Metal Forging Market Key Takeaways

• Asia Pacific dominated the metal forging market with the largest market share of 52% in 2023.
• By raw material, the carbon steel segment captured the highest market share of 44% in 2023.
• By raw material, the aluminum forgings segment is expected to grow at a significant rate in the market over the forecast period.
• By application, the automotive segment generated the largest market share of 59% in 2023.
• By application, the power generation segment is anticipated to grow at the fastest rate in the market during the forecast period.

Asia Pacific Metal Forging Market Size and Growth 2024 to 2034

The Asia Pacific metal forging market size was exhibited at USD 45.87 billion in 2023 and is projected to be worth around USD 104.84 billion by 2034, poised to grow at a CAGR of 7.8% from 2024 to 2034.

Asia Pacific dominated the metal forging market in 2023. The automotive industry is a significant consumer of forged metal components, including engine parts, axles, and chassis components. Moreover, several countries in the region are experiencing rapid urbanization and infrastructure development, which includes the construction of bridges, buildings, and transportation networks. Forged steel components are important for these infrastructure projects due to their durability and strength. Also, the growing demand from the energy sector is projected to propel market growth in APAC throughout the forecast period.

North America is projected to show the fastest growth in the metal forging market over the studied period. Investment in renewable energy within the region is anticipated to drive up demand for the product. The emphasis on improving infrastructure, combined with rising investments in aerospace and defense, boosts the need for high-quality forged components.

• In December 2023, The Institute for Advanced Composites Manufacturing Innovation, in partnership with the Department of Defense's Industrial Base Analysis and Sustainment (IBAS) Program, announced a national workforce initiative to help meet essential U.S. defense needs in the casting and forging industry.

In North America, stringent regulatory standards related to emissions and safety are pushing the automotive industry towards the use of lightweight and high-strength materials, which benefits the industry significantly. Additionally, the market's growth is supported by the presence of key players in the metal forging market and advancements in forging technologies.

Market Overview

Metal forging involves shaping and forming metal through compressive forces. This process can be done at room temperature, known as cold forging, or at elevated temperatures, called hot forging. Forged metal exhibits a well-aligned grain structure, which enhances its strength, reduces brittleness, and increases durability. These characteristics make forged metal ideal for demanding applications across various industries, including automotive, aerospace, railways, marine, and industrial machinery. Forging has been a traditional method of metal forming and shaping for centuries, effectively producing components capable of withstanding high pressure, force, and temperature.

Metal Forging Market Growth Factors

• A rise in the expansion of the automotive industry can drive the metal forging market.
• Rise in energy sectors such as oil & gas refineries, along with thermal power plants are expected to fuel the metal forging market growth shortly.
• Increasing people's disposable income, coupled with rising urbanization, can boost the metal forging market growth further.

What Are the Benefits of AI in the Metal Manufacturing Industry?

Artificial intelligence is making waves in the metal forging industry in numerous ways. AI-based algorithms are being used to analyze data from metal forming processes to identify defects and opportunities for improvement. AI models are also being trained to map out production processes from input to output to improve optimization and reduce costs. AI-based predictive analytics are also being used to enhance supply chain management by predicting market movements and helping businesses improve inventory management.

• In July 2024, Trumpf and SiMa.ai partnered up to bring together their laser application expertise and software-centric AI systems to develop AI-powered laser systems for improved efficiency and precision. The partnership aims to enhance complex material processing by integrating AI chips directly into Trumpf's systems, enabling real-time monitoring of laser welding.

Market Scope

Market Dynamics

Driver

Surging demand for both passenger as well as commercial vehicles

The growing demand for both passenger and commercial vehicles is driving the increased need for the metal forging market. Passenger vehicles, such as cars, SUVs, and other personal transport options, along with commercial vehicles like trucks, buses, and vans used for logistics and transportation, are seeing a surge in demand. Several factors contribute to this increase. Population growth, urbanization, and rising living standards are leading to greater mobility needs, which results in higher rates of car ownership and a greater number of commercial vehicles for transporting goods. Moreover, rapid economic development in the emerging metal forging market, particularly in Asia and Latin America, is fueling a rise in vehicle demand. The expansion of industrialization and infrastructure projects also boosts the need for commercial vehicles.

2023 Global Vehicle Production Statistics

Restraint

The capital-intensive nature of metal

Forging, establishing, and running metal forging facilities requires substantial capital investments. The considerable expenses related to acquiring forging equipment, machinery, and skilled labor can pose challenges for new entrants or smaller manufacturers, which can potentially hinder market expansion. Additionally, the constraints of the metal forging process are expected to impede the metal forging market growth in the future.

Opportunity

High demand for advanced materials and alloys

The rising demand for high-performance materials with enhanced strength, durability, and corrosion resistance is driving the development and use of advanced alloys. These materials enable metal forging companies to produce components with improved properties created to meet specific industry requirements. Furthermore, advanced materials and alloys offer superior attributes compared to traditional ones, which makes them highly sought after for various applications across different sectors. Industries such as aerospace, automotive, and energy require components capable of withstanding extreme conditions, including exceptional strength and durability. As a result, these factors positively influence the metal forging market by leading to anticipated growth during the forecast period.

• In March 2023, the Relativity Space Terran 1 rocket launched from Cape Canaveral Space Force Station in Florida. This was the first launch of a test rocket made entirely from 3D-printed parts, measuring 100 feet tall and 7.5 feet wide. A form of additive manufacturing, 3D printing is a key technology for enhancing capabilities and reducing costs. Terran 1 included nine additively manufactured engines made of an innovative copper alloy, which experienced temperatures approaching 6,000 degrees Fahrenheit.

Raw Material Insights

The carbon steel segment dominated the metal forging market in 2023. Carbon steel is divided into three grades based on carbon content: low, medium, and high. Due to its lower material cost compared to stainless steel, carbon steel forgings are frequently used in the oilfield and automotive industries. These carbon-forged parts are used in various products, including automobiles, tractors, aircraft, energy missiles, drilling equipment, and ships.

•  In June 2024, Fastmarkets, one of the industry's leading cross-commodity price-reporting agencies (PRA), announces the launch of a new European reduced carbon emissions flat steel price. This new price, which is for domestically produced steel, forms part of Fastmarkets' growing suite of prices that cater to steel decarbonization and is a testament to their commitment to providing accurate and timely market information.

The aluminum forgings segment is expected to grow at a significant rate in the metal forging market over the forecast period. The growth of the segment is driven by the increasing need for lightweight materials in the automotive sector. Car manufacturers have long sought to reduce vehicle weight to enhance fuel efficiency, boost performance, and cut carbon emissions. As the new, stricter regulations come into play, automotive companies will likely be compelled to incorporate more lightweight materials, which creates new opportunities for the product throughout the forecast period. Additionally, the rising demand for new defense aircraft is anticipated to further stimulate the market expansion.

Application Insights

The automotive segment led the global metal forging market in 2023. This can be attributed to the increasing disposable income, a growing urban population, and the expanding boundaries of cities. Automotive components and parts must endure severe weather conditions, high torque, force, pressure, and temperature, which requires the use of forging in their production. Also, the segment is witnessing notable growth driven by rising demand for both commercial and passenger vehicles, as well as the growing adoption of electric vehicles (EVs). This surge in the automotive industry is expected to drive up the need for forged metal parts by contributing to market expansion.

• In June 2024, Hilton Metal Forging Ltd, a manufacturer of forged products for various industries, launched a new product line: wagon axles for railway wagons. This comes at a time when India relies on imports to meet its wagon axle needs. Hilton Metal's entry into this market aligns with the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives, aiming to reduce reliance on imports and boost domestic manufacturing.

The power generation segment is anticipated to grow at the fastest rate in the metal forging market during the forecast period. In wind and hydroelectric power plants, a range of forging components, including turbine blades, sleeves, motor ends, flanges, rings, seals, locks, stators, diaphragms, impellers, covers, spacers, casings, and rotors, are utilized. As investments in the power generation sector continue to rise, this is expected to boost the growth of the segment in the coming years.

Metal Forging Market Companies

• Ironic
• ATI
• Bharat Forge Ltd.
• Bruck GmbH
• China First Heavy Machinery Co., Ltd.
• ELLWOOD Group, Inc.
• Jiangyin Hengrun Heavy Industries Co., Ltd.
• Nippon Steel Corp.
• Precision Castparts Corp.
• Larsen & Toubro Ltd.

Recent Developments

• In March 2024, ATI Inc. celebrated the commissioning of its state-of-the-art 12,500-ton billet forging press critical to the production of titanium for aerospace and defense.
• In February 2024, Ramkrishna Forgings announced a significant milestone as it penetrated further into the North American market by successfully securing a contract worth USD220 million. This contract will span over a decade and marks the company's foray into a new vertical within the forging sector, focusing on supplying Tier 1 customers in the Light Vehicle segment across North America.
• In August 2023, Arconic Corporation and Apollo announced today that Apollo Funds had completed the previously announced acquisition of the Company, which included a minority investment from funds managed by affiliates of Irenic Capital Management (“Irenic”). The Company will continue to operate under the Arconic name and brand.

Segment Covered in the Report

By Raw Material

• Carbon Steel
• Alloy Steel
• Aluminum
• Magnesium
• Stainless Steel
• Titanium
• Others

By Application

• Automotive
• Transportation
• Aerospace
• Oil & Gas
• Construction
• Agriculture
• Power Generation
• Marine
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa