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The global automotive forging market size was USD 34,576.3 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with automotive forging industries witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the market exhibited a lower growth of -23.5% in 2020 as compared to the average year-on-year growth during 2019-2020. The market is projected to grow from USD 36,614.8 million in 2021 to USD 56,801.7 million in 2030 at a CAGR of 5.0% in the 2021-2030 period. The rise in CAGR is attributable to this market’s growth returning to pre-pandemic levels once the pandemic is over.
Traditionally, forging is regarded as the backbone of manufacturing. It is the main input in industries that support the country’s economic growth, such as industrial machinery, automotive, railways, electricity, construction and mining equipment, and general engineering. In future the automotive forging companies are anticipated to become "virtual enterprises", by using integrated electronic standards to interconnect with designers, suppliers, and customers in real-time to characterize and interchange information about the entire life cycle of forging products.
With automobile manufacturers, for example, Waymo (Google, Alphabet Inc.) and Tesla dispatching driverless vehicles and electric vehicles, leading to substantial technological developments in the automotive manufacturing process. These developments are relied upon to achieve central changes in automobile manufacturing. In this way, it appears to set out open doors for the automotive forging industry hence keeping themselves outdated.
Automotive Forging Market to Show a Momentary Downfall amid COVID-19 Pandemic
As a result of Covid-19, it has also impacted the forging industry adversely. As indicated by the International Labor Organization (ILO), 92% lessening in new vehicle sales has been recorded in the primary portion of February 2020, and vehicle deals are assessed to plunge by 2.9 percent in China in 2020. Moreover, as indicated by the ILO, processing plant closures in North America and Europe due to the pandemic have resulted in lower production of passenger car vehicles.
Most of the foundries are relied upon to use just 50% of the installed machineries owing to the movement of migrant laborers. However, this may lead to the closure of plants considering the current situations of the automotive industry. Moreover, the decreasing demand from the automotive companies in the forthcoming months as per the Association of Indian Forging Industry (AIFI) will have a severe impact on this industry.
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Advent of Smart Manufacturing Technologies in the Automotive Industry
One of the significant patterns for these proficiency gains has been the shift from conventional forging methods to "smart manufacturing" techniques. Smart manufacturing can indicate a variety of methods. Here, it refers to selecting advanced modeling techniques while adjusting the current assembling process at a car manufacturing plant. Each major car maker depends on simulation prior to changing the assembling process.
Changes in the vehicle manufacturing process are carefully spread out in PC programs where they are investigated for each change they make over the current manufacturing process. The single greatest change to the assembling cycle of a vehicle in recent years has been the approach of advanced mechanics and automation. Automation is the absolute most significant change that has happened to the steel industries lately. Thus, the adoption of smart manufacturing technologies by automotive manufacturers is expected to boost the demand for automobiles worldwide, thereby creating more demand for forged products.
Advancement in the Production of Automobiles to Drive the Market
Globally, vehicle production is increasing due to rising urbanization and increasing middle-class people from developing countries. The increasing demand for low emission and reduced fuel economy vehicles is gaining high traction in the market. The automotive forging industry focuses on augmenting its world competitiveness to ensure growth and survival by raising the industry knowledge level to the 21st century.
The major automobile market players are leveraging their limited resources by teaming with the government, suppliers, customers, and other forgers to locate the significant technologies that are being practiced or are under development. Besides, the industry is seeking support from its supplier industry to develop new materials, forming, and processing equipment.
Through cooperation, the industry will participate in developing the automobile forging industry, which will support and implement the vision for the future. Also, industry leaders are stepping up the development, implementation, and promotion of new technologies in industries. This will help to drive the growth of this market.
Increased Demand for Lightweight Vehicles to Drive the Market Growth
Since the past few years, the automotive industry has been observing a significant development in vehicles' designs, functioning, and performance. The changing demands of customers towards high-performance and lightweight vehicles and the rising popularity of fuel-efficient vehicles have given rise to the adoption of electronic components and vehicles.
Likewise, the ever-increasing demand for improved and technologically developed vehicle engine performance has also forced manufacturers to reduce the overall weight and size of all engine components.
Nowadays, aluminum has gained high demand due to its beneficial properties, such as lightweight, high strength, high durability, extreme corrosion resistance, and enriched handling capabilities at high temperatures. Therefore, aluminum alloy of automotive parts can reduce energy loss due to friction and ensure higher operating efficiency. All these factors are expected to drive the growth of the forging market during the forecast period.
Fluctuation in the Cost of Raw Materials May Restrain the Market Growth
Unstable and lopsided worldwide business sectors have an unbalanced impact on the manufacturing sector of industries. From raising energy expenses to staggering changes in raw material expenses, unanticipated hindrances are destabilizing the supply chain network and making it hard for automakers to keep up their occupations. Auto Makers should either bear extra expenses, find better approaches to diminish costs or give cost increments to those who are now hesitant to spend. Makers should move from the present direct economy (mining, assembling, use, and removal) to a more "round economy" in which waste from one industry turns into raw material for another industry. This may help the industry to overcome loss obtained from the cost fluctuation of raw materials.
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Steel Material to Foster Growth
Based on material type, the market is segmented into steel and aluminum. The steel segment holds the largest share in the global market. The high-strength steel has stringer strength making the vehicle stronger by forged automotive components.
Moreover, the aluminum segment is likely to expect the highest growth due to its lightweight and stronger durability.
Closed Die Segment is expected to hold the Largest Market Share
Based on the technology type, the market is segmented into closed die, open die, and others. The close die segment accounts for the largest share in the global market owing to their operational cost benefits, and also they can be used to forge for almost all metals. However, the open die segment is also gaining traction in this market owing to its advantages such as enhanced microstructure, reduced chance of voids, and better grain flow.
Local Segment is anticipated to hold the Major Market Share
Based on supplier type, the market is further segmented into local and international (import). The local supplier type segment holds the major share in the global market. This dominance is attributed to the high demographic growth rate, especially in the developing countries that comprise a larger raw material production and cheap labor availability. Moreover, the increasing support of the government and their favorable initiatives to promote local production of forged parts in various urban and suburban parts of the country is anticipated to boost the growth of the market. The international (import) segment is also expected to show good growth in the market over the forecast period owing to a lack of raw materials and skilled labor in developed nations.
Axle Segment to Foster Growth
Based on application, the market is segmented into gear, crankshaft, piston, axle, bearing, connecting rods, and others. The axle segment holds the largest share in the global market. Having the major importance in the vehicle's drivetrain, the axle segment along with the piston segment is anticipated to boost the market growth over the forecast period. Gears along with connecting rods are also likely to increase the market size.
Passenger Cars Segment is expected to hold the Largest Market Share
Based on the vehicle type, the market is segmented into passenger cars, light commercial vehicles, medium & heavy commercial vehicles, agricultural machinery, construction equipment, and others. The passenger cars segment accounts for the largest share globally due to their rising sales and production in developing countries. However, the light commercial vehicle segment is also gaining traction in this market owing to its rising popularity of SUVs in North America and Europe. The medium & heavy commercial vehicles segment is likely to show slow growth in the market as the demand for logistics and transportation operations increases. The agricultural machinery and construction equipment segment is also attributed to show good growth in this market owing to increasing mining activities and construction of smart cities worldwide.
Asia Pacific Automotive Forging Market Size, 2020 (USD Million)
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The market size in Asia Pacific stood at USD 24838.3 million in 2019. The region holds dominance globally due to high demographic growth, larger middle, and lower-middle-class income population, and increasing production of forged components in this region.
Europe is expected to show significant growth in the market owing to the rising adoption of smart production methods. The regional market growth is attributable to the growing implementation of alternative production methods in automotive forging manufacturing, which has witnessed a surge in growth for the period. Moreover, government regulations that support the production of locally manufactured forged components are also contributing to the market for components, and are projected to increase the automotive forging market growth in European countries during the forecast period.
North America is expected to show steady growth in the global market. There is an increasing presence of forging industries in North America, owing to the rising demand for the forged components by automotive industries.
Bharat Forge is a Key Player in the Market
Bharat Forge is the biggest exporter of Auto Components from India and one of the main body segment makers in the world. A favored innovation and designing driven improvement accomplice and worldwide pioneer in metal framing, the organization serves a few areas, including Automotive, Marine, Oil and Gas, Railways, Power, Aerospace, Construction, and Mining. The in-house R&D group focuses on dealing with different ventures, including creating advancements to lessen carbon impression and assembling lightweight items and requiring lower energy utilization.
CIE Automotive is a supplier of segments, congregations, and sub-gatherings for the worldwide car market. At present, the organization assembles parts on different advancements like aluminum, cylinder framing, plastic, machining, metal stepping, iron projecting, and forging.
An Infographic Representation of Automotive Forging Market
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The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several key factors contributing to the market's growth in recent years.
Value (USD Million)
Material; Technology; Supplier Type; Vehicle Type; Application; Geography
By Supplier type
By Vehicle Type
Fortune Business Insights says that the global market size was USD 34,576.3 million in 2020 and is projected to reach USD 56,801.7 million by 2030.
In 2019, the Asia Pacific market size stood at USD 24,838.3 million.
The market is projected to grow at a CAGR of 5.0% and will exhibit steady growth in the forecast period (2021-2030).
The passenger car segment is expected to be the leading segment in this market during the forecast period.
Advancements in automobile production are driving the market growth
Bharat Forge is the leading player in the global market.
Asia Pacific dominated the market share in 2019.
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