India Metal Forging Market Size, Share & COVID-19 Impact Analysis, By Material (Carbon Steel, Alloy Steel, Stainless Steel, and Others (Titanium, Aluminum Alloys, and Nickel)), By Technique (Close Die Forging, Open Die Forging, and Ring Forging), By Installation Capacity (Small (100 MT to 12,500 MT), Medium (12,500 to 30,000 MT), and Heavy (Above 30,000 MT)), By End-user (Automotive, Aerospace and Defense, Railway, Industrial Machinery, Marine, and Others (Agriculture, Power, Mining, and Construction)), and Country Forecast, 2022-2029

The India metal forging market size was valued at USD 3.86 billion in 2021. The market is projected to grow from USD 4.32 billion in 2022 to USD 8.80 billion by 2029, showing a CAGR of 10.69% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with metal forging experiencing higher-than-anticipated demand across India compared to pre-pandemic levels. Based on our analysis, the India metal forging market exhibited a decline of -23.32% in 2020 compared to 2019.

Forging is a metal forming process that was developed in the past and has witnessed the integration of innovative techniques. In the metal forging process, a metal is deformed with the help of compressive forces, including rolling, hammering, and pressing in controlled conditions to give a desired geometric change to the material. The forging process produces high-quality metal parts, consisting of stainless steel, alloy steel, and aluminum alloys with increased material strength. The forging process provides a wide range of products of forging components having different shapes, sizes, materials, and finishes.

In India, forging OEMs provide close die forged products used in the automotive sector; India's market share of automotive forging is higher than other end-users such as aerospace and defense, railway, industrial, machinery, and others. Further, close die forging is a hot forging technique in which two or more dies are brought together to surround a heated raw material such as steel or aluminum either entirely or partially. Similarly, the open die forging technique is a hot forging technique similar to the closed die technique, except it does not enclose the work piece. Moreover, rolled ring forging is a process that starts with a circular form of metal that has already been pierced to make a hollow doughnut shape. The increasing demand for forged products is attributable to its application in mechanical equipment, construction, automotive, oil & gas, and aerospace.

COVID-19 IMPACT

COVID-19 Declined Automotive Production and Sales to Hamper the Market Growth

COVID-19 had a massive impact on the Indian economy. Economic activities had contracted significantly due to the pandemic resulting in a negative demand shock across nearly all the forging products in India. According to primary research, in India, roughly 60% of the demand for forged products is in the domestic automotive industry. Therefore, the COVID-19 induced downturn in the automotive industry due to semiconductor shortage, supply chain disruption, and closed manufacturing facilities hampered the growth of India's domestic automotive and forging industry. For instance, the International Organization of Motor Vehicle Manufacturers (OICA) published that in 2020, the total automotive production volume in India declined by 25% compared to 2019.

LATEST TRENDS

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Rising Adoption of Automation in Manufacturing to Drive Market Growth

Increasing adoption of ‘Industry 4.0’ by leading key players in India’s metal forging industry to improve efficiency is the ongoing trend in the market. Industry 4.0 is the latest phase in manufacturing digitalization that involves multiple innovations that can be utilized through enhanced connectivity, processing power, and data analysis.

The metal forging industry in India is not much developed in terms of advanced technologies. However, Bharat forge, Sansera, and a few other companies have already adopted Industry 4.0 for their forging lines to boost efficiency.

Additionally, collaborative research by collaborating suppliers, end-users, government, institutes, and other forging companies to improve or create significant existing and new technologies is an essential strategy adopted by different OEMs in the forging industry. The rising research and development activities by forging OEMs will aid the India metal forging market growth during the forecast period.

DRIVING FACTORS

Increasing Export of Forging Products to Drive Market Growth

Globally, India is considered one of the major metal forging production hubs. The increase in domestic manufacturing capacity and competitiveness is helping India’s exports grow rapidly. According to the Engineering Export Promotion Council of India (EEPC), the metal forging sector is one of the key sectors for export growth. Additionally, government initiatives, such as ‘Make in India’, have boosted the manufacturing industry in the region by creating a positive business environment. The prominent players operating in the Indian metal forging industry are bagging export orders from various economies, likely to drive the growth of the Indian metal forging market.

• In January 2022, Ramakrishna Forging bagged an export order of nearly USD 7.73 million to supply spindles over a period of three years from one of the largest TIER-1 manufacturers from North America in the commercial vehicle segment.

Increasing Foreign Direct Investment (FDI) to Boost Market Growth

FDI is one of the critical drivers of economic growth in India. It is a non-debt financial resource for industrial and economic development in India. Foreign companies prefer to invest in the Indian manufacturing sector to take advantage of the well-established manufacturing industry and special investment privileges such as tax exemptions, lower wages, and other benefits. Additionally, government initiatives in recent years, such as relaxing FDI norms across various sectors, are expected to drive the FDI growth in the coming years, influencing the growth of India's manufacturing and forging industries. The DPIIT published FDI equity inflow was USD 572.81 billion between April 2000 – December 2021. India witnessed growth in FDI inflow from USD 74.39 billion in FY 2019-2020 to USD 81.72 in FY 2020-2021, registering an increase of nearly 10%.

RESTRAINING FACTORS

Electrification in Automotive Industry to Slow Down Market Growth

The domestic automotive industry in India is the leading customer for forged products and parts. Approximately, more than 60% of the forging units in India are involved in automotive component manufacturing. Therefore, the market is highly dependent on the domestic automotive industry. Currently, the automotive industry is going through once in a century revolution. Rising environmental concerns, government initiatives to promote green mobility, increasing number of stringent emission regulations, and rising fuel prices are driving electrification in the automotive industry. Nearly all the leading automakers are focused on developing electric vehicles as future mobility solutions. However, electric vehicles have fewer moving parts and forged components compared to conventional vehicles. In India, the domestic automotive industry is likely to hamper the market growth of the market during the forecast period.

• In 2021, electric 4W sales increased by 206.3% to 14,218 in 2021. Moreover, electric bus sales were relatively neutral, and FAME II-backed electric bus deployment will support the strong growth of this segment.

SEGMENTATION

By Material Analysis

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Carbon Steel Segment to holds the Largest Material Owing to its Machinability, Good Strength, and Other Properties

Based on material, the market is break down into carbon steel, alloy steel, stainless steel, and others. Carbon steel is mainly used as raw material in forging manufacturing; it is preferred over materials in the automotive industry for manufacturing control arms, rocker arms, and crankshafts. It provides cost-effectiveness for structural application, balancing strength and ductility, malleability, high strength, toughness, temperature resistance, good machinability, wear resistance, and corrosion resistance in a mild atmosphere. These benefits of carbon steel have created tremendous demand in the automotive sector.

Alloy steel is the second most used raw material in forging. It is a strong and tough material that offers higher wear resistance as compared to carbon steel forging.

By Technique Analysis

Close Die Segment to be Dominant Due to its Accuracy and Better Surface Finish

Based on technique, the market is classified into close die forging, open die forging, and ring forging. The close die forging segment, also called impression die forging, is the key technology used for this type of forging. In the close die forging process, dies move toward each other and cover the workpiece; this process can be used to create different products of almost all metal materials such as steel, aluminum, titanium, and others. These advantages of the close die forging process increase its use in forged components.

Open die forging is the second-largest technique in the market. This process is increasingly preferred owing to less material waste, better fatigue resistance, valuable cost-saving, reduced chance of error or hole, improved microstructure, continuous grain flow, and finer grain size.

By Installation Capacity Analysis

Small (100 MT to 12500 MT) Segment to be Dominant Installation Capacity Due to Rising Demand for Small Forging Part

Based on installation capacity, the market is segmented into small (100 MT to 12,500 MT), medium (12,500 to 30,000 MT), and heavy (above 30,000 MT). The small segment comprises forging units with a capacity of 100 MT to 12,500 MT. In small installation capacity, most of the automotive parts are produced; rising demand for EV forged parts boosts the growth of the small installation capacity segment.

The medium (12,500 to 30,000 MT) segment is anticipated to witness the fastest growth rate during the forecast period, with the inclining focus of players to diversify their product portfolio for non-automotive industries such as industrial machinery, aerospace, mining equipment, and others.

By End-user Analysis

Automotive to be Fastest Growing End-user due to Rising Growth of Electric Vehicles

Based on end-user, the market is segmented into automotive, aerospace and defense, railway, industrial machinery, marine, and others (agriculture, power, mining, and construction). Automotive is the dominant segment and the fastest-growing end-user in the market. The automotive segment comprises all the forging applications in the automotive industry, including demand for all the automotive forging parts such as connecting rods, camshafts, crankshafts, and others. The automotive industry is growing considerably, owing to increasing demand for commercial & passenger vehicles and the growing adoption of electric vehicles. Hence, the rising automotive industry will propel the demand for forged parts and increase market growth.

The aerospace and defense segment plays a key role in the forging market. Increasing demand for lightweight aluminum and stainless steel forged parts in the aerospace and defense sectors is driving the segment growth.

KEY INDUSTRY PLAYERS

Key Players Adopt Inorganic Growth Strategies to Sustain their Market Position

The India market is dominated by some key companies due to their diversified product portfolio and key strategic decisions. Metal forging OEMs are majorly focusing on business expansion by different contracts for developing advanced techniques. The OEMs are expanding their business by adopting contracts, joint development, agreements, mergers and acquisitions, and design and engineering strategies.

LIST OF KEY COMPANIES PROFILED:

• Bharat Forge Limited (India)


• Mahindra CIE Automotive Limited (India)


• Ramkrishna Forgings LTD (India)


• MM Forging LTD (India)


• Amtek Group (India)


• CHW Forge PVT. Ltd. (India)


• Bill Forge Private Limited (India)


• Western India Forgings Pvt. Ltd. (India)


• Unique Forging PVT. LTD. (India)


• Chennai Forge Products PVT. LTD (India)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 - Mahindra and Mahindra signed a partnership agreement with Volkswagen to explore equipping its electric cars with motors, battery system components, and cells made by the German automaker. The partnership is aimed to achieve faster growth in the segment.


• April 2022 - Ramkrishna Forgings Limited won an export order with an estimated business value of USD 4.35 million over five years from Europe's leading Tier-1 axle manufacturer for the Front Axle Business.


• February 2022 - Bharat Forge Limited announced it had agreed to acquire JS Autocast Foundry India. The acquisition shall enable Bharat Forge to expand its product portfolio in the industrial sector, customer base, and manufacturing presence in South India. Bharat Forge will acquire JS Auto for an upfront consideration plus a fixed deferred payment at the end of the third year.


• May 2022- Ramkrishna Forgings Limited received a multi-year contract order worth USD 13.5 million per annum from the manufacturer of chassis-related systems and components primarily for trailers and trailers, trucks, and buses in the U.S.


• September 2021 - Ramkrishna Forgings LTD signed a three-year agreement with CIS (Commonwealth of Independent States). CIS comprises nine member countries - Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and Uzbekistan.

REPORT COVERAGE

An Infographic Representation of India Metal Forging Market

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The report provides a detailed analysis of the market. It focuses on key players, materials used, techniques adopted, installation capacity used, and the leading end-users of the process. Moreover, the research report offers insights into India's metal forging market trends, competitive landscape, market competition, product pricing, market status, and key industry developments. In addition to the factors mentioned above, the report encompasses several direct and indirect factors that have contributed to the sizing of the global market in recent years.

Report Scope & Segmentation