Being highly-capital intensive, operations and procedures in the global forging market require large funds to set-up manufacturing plants. Thus the market is chiefly dominated by large players having their operations spread across the globe, observes Transparency Market Research in a recent report. The scenario is thus tough for smaller companies, which account for a relatively smaller share in the overall market. Furthermore, the increased focus of large enterprises on improving quality, functionality, and features of their products to remain dominant in the market is intensifying the competition.
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Some of the leading companies in the market are Arconic Inc., Nippon Steel & Sumitomo Metal, Allegheny Technologies Incorporated, American Axle & Manufacturing Holdings, Bharat Forge Limited, and Thyssenkrupp AG.
According to the report, the global forging market will exhibit a healthy 4.4% CAGR over the period between 2017 and 2025, owing to which, the market is expected to rise from a revenue valuation of US$66,049.8 mn in 2016 to a revenue opportunity of US$96,433.7 mn by 2025.
Rapid Industrialization in Asia Pacific to Help Create Promising Growth Opportunities
Of the various forging technologies commonly used across a number of end-use sectors, including open die, closed die, and rolled rings, the segment of closed die forging presently accounts for the dominant share in the global market. The segment benefits from the excellent performance and finish that the technology helps products achieve. The segment is also likely to remain the dominant segment over the report’s forecast period.
Geographically, the market in Asia Pacific accounted for the dominant share in the overall forging market in 2016. The region is also likely to witness a promising pace of expansion in the next few years, thanks to the thriving construction and automotive industries in the region, with China being the key contributor.
Rising Demand across Automotive Sector to Bode Well for Market
One of the key factors driving the global forging market is the rising demand from the flourishing global automotive industry. The automotive industry is capable of consuming as much as 65% of the total forged metals produced every year across the globe. Thus the overall growth of the automotive industry has a direct impact on the overall development of the global forging market. The steady pace of expansion of the automotive sector post the economic depression of 2008 and the increased demand for forged metals and products has had an important impact on the global forging market.
Moreover, the rapid pace of industrialization across several emerging economies has also had a positive impact on the overall pace of development of the global forging market in the recent years. The global industrial sector is expected to witness a positive growth trajectory in the near future, which is anticipated to bode well for the global forging market.
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However, certain factors, such as the high costs of high-quality forged steel products, lack of partnerships between forging units and material producers, and volatile nature of several end-use industries could pose a hindrance to the overall growth potential of the market.