15 October, 2019
RALEIGH, North Carolina, October 15, 2019 - The global market production of forgings is currently estimated to be 30.19 million MT, growing at a CAGR of 5 percent till 2022, according to Beroe Inc., a procurement intelligence firm. Approximately 40–45 percent of forging units are currently observed to be running at less than 90 percent capacity. The market is primarily driven by demands from the automobile end-user segment.
At a global level, China dominates the forgings market with a 33 percent share of overall production, followed by Europe with a 21 percent share, and India with 11 percent. China’s share is expected to reach 38 percent by 2020, with Europe reaching 25 percent, and India reducing to 8 percent. Latin America is expected to witness significant growth by 2022 due to the high demand in the end-use market with the contributing countries consisting of Brazil, Argentina, and Columbia.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The automotive and aerospace industry is the top end-use market (50 percent) for forgings across regions, accounting for 50 percent of the demand and driving the growth of the market. Other major end-use sectors include the machine tools industry (9 percent), agricultural and construction machinery (9 percent), construction (8 percent), and energy (8 percent). 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 process of powder forging, a forging technique for products requiring variable material composition, is rapidly expanding in developed nations and could emerge as key technology in the upcoming years, despite being in nascent stages across developing countries. The development of graphite free lubricants is emerging as a popular trend since lubricants are important cost-saving levers in die forgings that can help improve ease of operation as well as increase die-life, significantly improving cost savings.
The research methodology adopted for the report included:
The main cost drivers for forged components are raw material, such as steel and aluminum, and energy, as 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 with variations of 45 to 60 percent of the total cost. The number of pieces produced also affects the cost structure and total costs. Typically, a 10 percent rise in material costs leads to a 6 percent hike in total costs.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com