The global forging market is highly influenced by key market players who have been investing largely in plants manufacturing set-up. Transparency Market Research observes that players having wide operational reach in different regions dominate the market. As this market is capital-intensive, and large funds are required for smooth flow of procedures and operations in which key players take up their pace and lead the market.
Moreover, these players are emphasizing on improving functionality, quality, and features of their products to maintain an upper edge in the market. Entry of new players is limited due to high investments thus, they hold marginal share in the global forging market. Some of the key players covered in the report include Nippon Steel & Sumitomo Metal, Arconic Inc., American Axle & Manufacturing Holdings, and Allegheny Technologies Incorporated.
Based on statistics given in the TMR’s report, the global forging market is likely to earn US$96.43 bn by the end of 2025 progressing from US$ 66.04 bn earned in 2016. To reach this figure, the market is expected to rise at a healthy CAGR of 4.4% between 2017 and 2025.
Based on company type, the demand for custom forging is increasing at a rapid rate. Custom forging is dependent on closed die forging rather than open die forging. This segment held nearly 60% of share in the global forging market. With reference to geographical reach, the Asia Pacific is expected to hold maximum share in this market. Developing automotive and construction industry in this region are contributing in the growth of Asia Pacific forging market. Moreover, presence of key market players in the region has further increased dominance of Asia Pacific in the global forging market.
Significant rise in the global forging market is seen due to its rising application in multiple industries such as ordnance, oil and gas, mining, construction, wind, aerospace, automotive, power generation, agriculture, and others. Of note, developments taking place in the automotive and construction sector where forging process are used extensively also led demand in the global forging market.
Adding further to the growth factors, high demand for ferrous metals, high-strength metal components, along with cost-effective methods of metal forming are also expected to drive demand in this market. Moreover, use of novel and advanced technologies by key market players will provide a significant push and expand the global forging market.
Uncertain Partnership between Material Producers Might Restrict Market Growth
Despite the increasing demand for forging in various industries, few challenges might deter growth of the global forging market. Factors such as volatile nature of several end-us industries and expensive high quality forged steel products are projected to hamper growth in this market. In addition, uncertain partnership between material producers and forging units is also estimated to obstruct growth in this market. In addition, increasing environmental concerns, high demand for plastics as a substitute, and growing usage of stamping and casting process might negatively affect growth in this market. However, rapid swift pace of industrialization that boosted various industries in emerging economies might help in overcoming these challenges.