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, 2023-2030

The India metal forging market size was valued at USD 4.43 billion in 2022 and is expected to grow from USD 5.08 billion in 2023 to USD 9.75 billion by 2030, exhibiting a CAGR of 9.8% during the forecast period. Moreover, the metal forging market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 2.66 billion by 2032, driven by higher consumption of forged metals by automotive and construction industry.

Developed in the past, forging is a process of metal forming that has evolved through the integration of innovative techniques. In the process, a metal is deformed with the use of compressive forces such as hammering, rolling, and pressing in controlled conditions for giving the material a desired geometric change. The process produces high-quality metal parts consisting of alloy steel, stainless steel, and aluminum alloys with enhanced material strength. The forging process offers a wide range of forging components having different materials, shapes, finishes, and sizes.

In India, forging OEMs offer closed-die forged solutions that are used in the automotive

industry. India's market share in automotive forging is higher than other industries such as industrial machinery, railway, aerospace and defence, and others. The rising demand for the product is due to its application in construction, mechanical equipment, oil & gas, automotive, and aerospace, driving the market growth during the forecast period.

COVID-19 IMPACT

Declined Automotive Production and Sales Hampered the Market Growth

The COVID-19 pandemic had a massive impact on the Indian economy. The 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 the primary research, in India, roughly 60% of the demand for forged metal products comes from the domestic automotive industry. Therefore, the pandemic induced downturn in the automotive industry due to semiconductor chip shortage, supply chain disruption, and closed manufacturing facilities which hampered the growth of India's domestic automotive and forging industry. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, the total automotive production volume in India declined by 25% compared to 2019.

India Metal Forging Market Trends

Rising Adoption of Automation in Manufacturing to Drive Market Growth

Increasing adoption of the ‘Industry 4.0’ by key players in India 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, companies such as Bharat Forge, Sansera, and a few others have already adopted Industry 4.0 for their forging lines to boost efficiency.

In addition, collaborative research by partnering suppliers, end users, government, institutes, and other forging companies to enhance or develop 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.

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India Metal Forging Market Growth Factors

Increasing Demand for Forged Products in Power, Agriculture, Aerospace, and Defense to Drive Industry Expansion

Indian metal forging industry majorly caters to the high demand for forged products in the automotive sector. However, the recent slowdown in the automotive sector has diverted the focus of the leading metal forging key players on expanding their product portfolio for other non-automotive industries where the demand for forged products is increasing. These non-automotive industries include agriculture, power, and aerospace and defense. Hence, increasing investment and expansion of these sectors is positively influencing the market. The aerospace industry require various high-quality and lightweight metal forged parts. Therefore, increasing demand for critical forged products in the aerospace & defense industry is likely to drive the market growth.

Increasing Export of Forging Products to Drive Market Growth

Globally, India is considered one of the major 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 forging sector is one of the key sectors for export growth. In addition, government initiatives such as ‘Make in India’ has boosted the manufacturing industry in the region by creating a positive business environment. The key players operating in the Indian metal forging industry are bagging export orders from various economies, which is likely to drive the market growth in India.

• In January 2022, Ramakrishna Forging bagged an export order of nearly INR 57.5 crore (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.

RESTRAINING FACTORS

Electrification in Automotive Industry to Slow Down the 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 Indian metal forging 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, an 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. Thus, the developments in the domestic automotive industry are likely to hamper the growth of the India metal forging market during the forecast period.

India Metal Forging Market Segmentation Analysis

By Material Analysis

Carbon Steel Segment Holds the Largest Market Share Owing to its Machinability, Good Strength, and Other Properties

Based on material, the India metal forging market is classified into carbon steel, alloy steel, stainless steel, aluminum, magnesium, titanium, and others.

The carbon steel segment holds the largest India metal forging market share owing to its machinability, good strength, and other properties. 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.

The alloy steel segment holds the second-largest market share. The segmental growth is attributed to its high strength and durability. These properties make it suitable for applications where robustness and resistance to wear are crucial, such as in automotive, aerospace, and industrial equipment.

By Technique Analysis

Close Die Segment Dominants Due to its High Precision and Consistency

Based on technique, the India metal forging market is classified into closed die, open die, and ring forging.

The closed die segment holds the maximum market share; it is also called impression die forging. The segmental growth is attributed to its high precision and consistency. Closed die forging allows for high precision and consistency in the production of complex shapes and intricate details. This makes it suitable for manufacturing components that require tight tolerances.

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 gain flow, and finer gain size.

By Installation Capacity Analysis

Small (100 MT to 12,500 MT) Segment Leads Installation Capacity Due to Rising Demand for Small Forging Parts

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 (100 MT to 12,500 MT) segment holds the largest market share. The small installation capacity segment comprises forging units with a capacity of 100 MT to 12,500 MT. Most of the automotive parts are produced with the help of small installation capacity-based solutions. The rising demand for small forged parts such as connecting rods, yoke ends, rocker arms, control arms, and others boost the growth of the small installation capacity segment.

The medium (12,500 to 30,000 MT) installation segment is anticipated to witness the fastest growth rate during the forecast period. This is due to 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 categorized into automotive, aerospace and defense, railway, industrial machinery, marine, and others (agriculture, power, mining, and construction).

The automotive segment is the dominant segment and 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 industry is growing considerably owing to the increasing demand for commercial and passenger vehicles and the growing adoption of electric vehicles. Hence, the rising automotive industry will propel the demand for forged parts and boost market growth.

The aerospace and defence segment holds the second-largest market share. Increasing demand for lightweight aluminum and stainless steel forged parts in the aerospace and defense sector is driving the segment growth.

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List of Key India Metal Forging Market Companies

Companies Focus on a Wide Range of Product Offerings to Gain Competitive Edge

Major market players include Bharat Forge Limited, CIE AUTOMOTIVE LIMITED, and Ramkrishna Forgings LTD. Manufacturers of metal forging focus on providing forged products for various applications worldwide, such as aerospace, automotive, and other sectors. The companies have a significant presence in various industries, including steel production and forging for automotive and industrial applications.

Bharat Forge Limited is one of the leading metal forging organizations. The company supplies services including automotive, railways, aerospace, marine, oil & gas, power, construction, and mining. The company has a transcontinental presence across ten manufacturing locations spread across India, Germany, Sweden, France and North America. Bharat Forge Limited has the largest repository of metallurgical knowledge in the region and delivers full-service supply capacity to its geographically spread marquee customers from concept to product design, engineering, manufacturing, testing and validation

List of Key Companies Profiled:

• Bharat Forge Limited (India)


• CIE Automotive India (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)


• RAMKRISHNA FORGINGS LIMITED (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 was aimed on achieving faster growth in the segment.


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


• 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.


• April 2022 - Ramkrishna Forgings Limited and Euroasian OEM signed a contract with a valuation of USD 17.8 million or the Heavy Duty Commercial Vehicle Crank Shafts Business to be executed in the next five years.


• February 2022 - Bharat Forge Limited announced that it had agreed to acquire JS Autocast Foundry India. The acquisition would enable Bharat Forge to expand its product portfolio in the industrial sector, customer base, and manufacturing presence in South India. Bharat Forge would acquire JS Auto for an upfront consideration plus a fixed deferred payment at the end of 3rd year.

REPORT COVERAGE

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The report provides a detailed metal forging market analysis and focuses on key aspects such as leading market players, competitive landscape, and vehicle type. It also includes insights into market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

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