CATEGORY

Forgings

Forging is a process in which metals are shaped in to desired designs by compressive forces. The category involves both hot and cold forging process with open dies, closed dies, precision dies, Closed Die Flash-less Forging, Open rotary dies involved

Beroe LiVE.Ai™

AI-powered self-service platform for all your sourcing decision needs across 1,600+ categories llike Forgings.

Market Data, Sourcing & Supplier Intelligence, and Price & Cost Benchmarking.

Schedule a Demo

Category Alerts


CATEGORY ALERTS

Bharat Forge completes the acquisition of JS Autocast Foundry

July 07, 2022
alert level: Low
CATEGORY ALERTS

Siderforgerossi Group S.p.A acquires Grupo Euskal Forging S.L.

July 12, 2022
alert level: Low

Become a Beroe LiVE.Ai™ Subscriber to receive proactive alerts on Forgings

Forgings Market Monitoring Dashboard


Supply Demand

Understand the correlation between costs, margins, and prices impacting your category on a real time basis on Beroe LiVE.Ai™

Forgings Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Forgings category is 7.30%

Payment Terms

(in days)

The industry average payment terms in Forgings category for the current quarter is 75.0 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

Meet Abi

The World’s first Digital Market Analyst

    Schedule a Demo
    Meet Abi

    The World’s first Digital Market Analyst

    Abi, the AI-powered digital assistant brings together data, insights, and intelligence for faster answers to sourcing questions

    Forgings Suppliers


    33,072 
    Total Suppliers
    2,338
    Diverse Suppliers
    82
    Normalized Supplier Rating
    Forgings Supplier

    Find the right-fit forgings supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    ABB Ltd
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    58

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    59
    Social
    54
    Governance
    62
    6 Domains Performance (/100)
    Business behaviour
    58
    Human rights
    58
    Community Environment
    37
    Corporate governance
    67
    Human resources
    54
    Security Scorecard
    97

    Threat indicators
    A
    100
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    B
    88
    Application Security
    Detecting common website application vulnerbilities
    A
    100
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    100
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    global.abb
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    7
    Human Rights Issues
    0
    Production Supply Chain Issues
    1
    Environmental Non Compliance Flags
    8
    Corruption Issues
    11
    Regulatory Non Compliance Flags
    27
    Fraud Issues
    7
    Labor Health Safety Flags
    8
    Regulatory Issues
    9
    Workforce Disputes
    2
    Sanctions
    0
    esg energy transition
    59
    Discrimination Workforce Rights Issues
    6
    esg controversies critical severity
    No

    Forgings market frequently asked questions


    According to Beroe, the global forging market is fragmented into different suppliers namely, Bharat Forge, FAW Forge (Auto), JSW, and JCFC (Heavy Equipment). All these suppliers constitute less than 10 percent of the total market w.r.t volume.

    Based on insights shared by Beroe, nearly 95 percent of the global forging output is made of steel.

    The forging industry analysis report by Beroe indicates that forging production will likely jump from a valuation of 26.5 MMT to 31.48 MMT with a CAGR of 4.5 percent in three years.

    The primary factor is the fact that the automotive industry holds nearly 50 percent share in the market across different regions and also because the automobiles have multiple structural forged components that require higher wear resistance, high impact, and shear strength.

    As per the forging industry outlook report, the key players of the industry include the following names: ThyssenKrupp AG Alcoa Forgings Bharat Forge Nippon Steel & Sumitomo Metal Corp ATI

    As per Beroe's analysis report, three main parameters that majorly influence the costing factor in the forging industry include: Raw material ' it includes steel and aluminum Electricity Labor

    The global forging market size is primarily dominated by China, as it holds nearly 33 percent of the overall forging market. The next position is taken by the Asia Pacific region, owing to infrastructure development, advancements in the automotive and construction segments. The same global forging market analysis report also indicates the growth of the following regions due to varying reasons like: E.U. ' driven by increasing economic trend in Europe North America ' increasing demand in the automotive segment and since it holds 18% global automotive market Latin America ' due to high demand in the end-use market, and contributing countries like Brazil, Argentina, and Columbia

    The mining machinery industry consumes approximately 4 percent share of the global forgings production.

    According to the latest forging industry news, the primary constraints of the industry include: Slow demand Foreign competition Energy costs Availability of labor and capital (both inclusive) Raw material lead time

    As per the global forging market news, the concept of powder forging will likely escalate in the coming years. Another breakthrough would be seen in terms of costs as the industry is gearing towards leveraging the benefits of synthetic, water-soluble graphite free lubricants and discarding the old traditional graphite-based counterparts. The power forging technology will be most useful for components whose ends are made to experience different levels of stress.

    Forgings market report transcript


    Global Market Outlook on Forgings

    • The demand figures for forgings with end-use industries, such as automotive, oil & gas, construction, machine tool, etc., are high with ferrous material forgings
    • With increasing demand from various end-use industries, the forgings production is expected to reach $84.25 billion by 2022 with a CAGR of 6 percent over 2018–2022
    • China holds the largest share and accounts for ~33 percent of the overall global market size, due to the increasing demand from the automotive and machine tool sector
    • The global forging industry market size is over $74 billion at present. The production size in North America is over 2 MMT while the production size of forgings in China is over 12 MMT.
    • The forging market is expected to grow at a CAGR of 5.5 percent to 6 percent according to forging market experts. 
    • The top forgings manufacturing companies include NSSMC, Alcoa, ThyssenKrupp AG, and Bharat Forge. Alcoa is one of the forging suppliers in the USA.  
    • Forging is categorized according to the temperature at which the activity is performed such as cold forging.
    • Apart from cold forging, the different types of forgings include metal forging, steel forging, impact forging, open die forging, closed die forging, open die forging, closed die forging, powder forging, seamless forging, and drop forging. These are different types of forging methods that will be in higher demand in the forecasted period.
    • The global metal forging market size will be valued at more than $70 billion according to forging industry experts. 
    • China has the biggest metal forging market share and this is expected to continue in the coming years according to Beroe experts. China is the largest consumer and producer of metal forgings. 
    • The global automotive forging market is expected to exceed $50 billion by 2023 according to statistics and reports by experts. 
    • Forging is a part of the fabricated metal product manufacturing industry. 
    • The industrial manufacturing and durables industry is studied in the report too.

    Forgings Production by Material

    •  More than 95 percent of the forging output globally are made from Steel

    • Other materials used include titanium and aluminum. The type of materials to be used depend on the application.

    Global Forging Industry: Major End-use Industry (2019 E)

    • Automotive industry is the top end-use market (50 percent) for forging across regions
    •  Automobiles have a number of structural forged components, requiring higher wear resistance, high impact, and sheer strength

    • The automotive forging market has gained momentum since technological use began. Moreover, the expansion and increase in automotive production has increased over the years all over the world thereby boosting this industry to expand further.

    • The automotive forging industry is expected to see a steady increase in demand as companies are looking for automating forging methods. Additionally, companies are showing increased interest in advanced technologies that can act as a catalyst for this market too.

    • There is expected to be a decrease in the automotive components forging which will again push the growth of the automotive forging market in the many years to come. 

    Global Market Overview: Forgings

    • China continues to dominate the market share by holding around 33% of the overall forgings market. Consequently, Asia pacific holds the largest share due to development in infrastructure, advancements in automotive and construction segments.
    • The E.U. is expected to have a slight increase in production share, which is driven by the increasing economic trend in Europe.
    • North America is expected to witness a significant growth due to demand in the automotive segment and holds around 18% of the global automotive market.
    • India continued to ramp up production at a higher rate, relative to global growth, based on sustained internal demand and automobile-related exports.
    • Russia is currently buoyed by increased government spending and government demand for forgings, which was predicted to slow down due to relative demand satiation by 2018.
    • Latin America is expected to witness significant growth between 2018 and 2022 due to the high demand in the end-use market and the contributing countries are Brazil, Argentina and Columbia.
    • Automotive industry is the top end-use market (50 percent) for forging across regions. Automobiles have a number of structural forged components requiring higher wear resistance, high impact, and shear strength.
    • Other major end-use sectors include machine tool, construction, energy, machinery, etc. Mining machinery industry consumes about 4 percent of global forgings production.
    • With regards to capacity utilization, 40–45 percent of forging units are currently observed to be running at less than 75 percent capacity. Constraints for the forging industry currently include slow demand, foreign competition, energy costs, availability of labor, availability of capital, and raw material lead time.
    • The outlook for drilling in the oil & gas industry seems to be positive as the capital spend continues to increase in the upstream industry. This might have a slighter impact in the oil & gas forgings market, since the oil & gas end-use market is only around 8-12 percent.
    • The outlook for the oil & gas downstream industry is stable and is likely to increase.
    • The agricultural end-use market is likely to be around 8–10 percent. Increasing demand for food and supplies drives the need for farming equipment, which has a direct impact on the forging industry outlook.
    • The global market for medical device technologies is likely to be around $500 billion and is growing with a CAGR of 5–6 percent.

    Emerging Technologies

    Process: Powder Forging

    A forging technique for products requiring variable material composition. At present, in different stages of development across the world could emerge as key technology in the upcoming years

    • While powder forging is rapidly growing in developed nations, it is still in its nascent stages across developing countries
    • This technology allows different material compositions across different parts of the same component
    • This is useful for components, like connecting rods, whose ends are subjected to different levels of stress
    • In this process, custom blended powders of various alloys are placed along a die and compacted into a rough shape and sintered. This is then placed in the final component die and hot forged
    • These components require very little secondary machining and have very high precision
    • In India, Mahindra Forgings is currently carrying out research on powder forgings

    Consumables: Forging Lubricants

    Graphite Free Lubricants

    • Lubricants are important cost saving levers in die forgings. This is because a good lubricant can help improve ease of operation as well as increase die-life
    • In closed die forgings, die costs account for ~15 percent of total cost. Therefore, any improvements in die-life would lead to significant cost savings
    • Over the past decade, there has been a move to replace graphite lubricants, due to economic as well as environmental considerations
    • Synthetic, water soluble graphite free lubricants have the following advantages over their traditional graphite based counterparts
    • While synthetic lubricants have the above advantages, these have mainly been proven with respect to small – medium components (up to 12kg). More work in this area is expected in the future for large components as well

    Insights: Procurement Practices & Contract Structure

    • While auto contracts are long term with repeat orders, non-auto sectors, like power generation, construction & mining, involve large, one-time orders
    • Chinese suppliers, in general, prefer advance payment through bank transfer, typically 30 percent on order placement and remaining before shipping
    • Relevant duties and taxes are added to complete the quote
    • In case of exports, export subsidies by respective governments play an important role in deciding the final price

    Cost Structure

    • The main cost drivers for forged components are raw material (steel and aluminum) and energy (heating). These account for nearly 80 percent of the total costs
    • The grade of raw material used is important and can cause significant changes to cost structure. For example, using a lower/higher grade could result in variation of raw material proportion from 45 to 60 percent of the total cost. The number of pieces produced also affects the cost structure and total costs
    • Any price hikes by raw material suppliers directly affect the total component costs, and in turn, prices
    • A 10 percent rise in material cost leads to a 6 percent hike in total costs. In order to combat price rises, suppliers build price escalation clauses in contracts
    • Prices could be revised quarterly/bi-annually/annually, depending on the end-use segment and relationship with customers