Report : Forging Market Forecast to 2027 - COVID-19 Impact and Global Analysis By Techniques (Closed Die Forging, Open Die Forging, and Seamless Forging), Materials (Nickel-Based Alloys, Titanium Alloys, Aluminum Alloys, Steel Alloys, and Others), and Industries (Automotive, Aerospace, Railway, Heavy Equipment, and Wind Power)
According to the new research report, titled “Forging Market Forecast to 2027 – COVID-19 Impact and Global Analysis – by Techniques (Closed Die Forging, Open Die Forging, and Seamless Forging), Materials (Nickel-Based Alloys, Titanium Alloys, Aluminum Alloys, Steel Alloys, and Others), and Industries (Automotive, Aerospace, Railway, Heavy Equipment, and Wind Power),” published by The Insight Partners, the market is expected to reach US$ 100,404.83 million by 2027, registering a CAGR of 5.1% from 2020 to 2027.
Forging Market in APAC to Grow at Highest CAGR During 2020–2027
The Asia Pacific forging market growth is mainly attributed to increasing foreign investment in the region's developing economies. For example, in September 2020, Mahindra & Mahindra (India) announced its collaboration with REE Automotive for developing commercial electric vehicles. Similarly, in February 2020, the aerospace industry in Singapore announced that it would receive investments worth US$ 360 million over a five-year period. JTC, the Singapore government agency, has signed agreements for new or expanded installations with companies, such as GE Aviation, Safran Aircraft Engines, and Rolls-Royce. China is the largest consumer and manufacturer of metal forgings in Asia Pacific. A large number of forged products are being exported by China to American and European countries. However, in the recent past, small-and medium-sized forging companies have experienced low profit margin and high machinery cost.
Industrial production in Asia Pacific has been severely impacted since November 2019 due to the COVID-19 outbreak. Nevertheless, production activities bounced back in China when other countries were still suffering the impact of lockdowns. The world's major economies reported negative GDP in the second quarter of 2020, while the economy of China grew by 3.2% in that quarter. In addition, major companies are focusing more on their manufacturing facilities to cater the growing demand for products. For example, in September 2020, Siempelkamp received an order for a new open die forging press from Fushun Special Steel Co., Ltd. The new press would improve the plant's cost-effectiveness. Such investments indicate a growing demand for forging components in various end-user industries in Asia Pacific.
Key Findings of Study
In the fast-developing end-user segment, there has been an increase in demand for complex and innovative products. With an automated closed die forging process, the attention of equipment suppliers has shifted toward the development of new equipment and processes. In commercial aerospace applications, these new machines are capable of forging extra-large nickel- and titanium-based alloy parts. Currently, automation has a moderate positive impact on growth of the closed-die forging market; however, it is expected to increase during the forecast period.
Economic and market conditions across the world are also associated with the growth of this market and they are anticipated to provide growth opportunities during the forecast period. To sustain the completion in the metal forming market, forging businesses are focusing on providing lean, resilient, flexible, and adaptable forging processes. End-user industries, such as oil & gas, shipbuilding, aerospace, and construction equipment, are experiencing substantial growth. This has generated high demand among low-cost manufacturing countries, such as India and China, for closed die forged components. In developed countries, the impact of this factor is high, which is expected to continue in the near future.