Forging Billets Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Forging Billets Market is Segmented By Type (Round Billets, Square Billets), By Product (Axes, Flanges, Discs, Forged Parts, Rings, Valves, Others), By Material (Carbon Steel, Alloy Steel, Stainless Steel, Aluminum, Others), By Process (Open Die, Closed Die, Others), By End-User (Automotive, Aerospace, Oil & Gas, Power Generation, Construction, Railways, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Forging Billets Market Size

Global Forging Billets Market reached USD 1.6 billion in 2022 and is expected to reach USD 2.1 illion by 2031, growing with a CAGR of 9.2% during the forecast period 2023-2030. Forging technology advancements like computer-aided design (CAD), simulation software and automated forging processes have enhanced the efficiency and quality of forging billet production. As the forging billets market is expanded globally, it involves international trade and export-import activities. 

Trade rules, tariffs and shipping limitations all have an impact on the worldwide supply and demand dynamics of forging billets. During the forecast period 2023-2030, Europe is expected to account for less than 1/4th of the global forging billets market. Automotive represents a major sector in the region, accounting for a sizable portion of European exports, which is expected to increase the demand for forging billets in the region.

Forging Billets Market Scope

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Forging Billets Market Dynamics

Rising Demand from Aerospace Industry

The increase in the number of fliers around the world is accelerating aircraft production and benefiting market expansion, which is driving demand for forging billets for parts in the aerospace industry. Boeing delivered 302 aircraft in 2021, nearly double the amount shipped the previous year. Furthermore, Boeing stated in March 2022 that they want to double 737 Max production. 

The increase was credited to increased consumer spending and capital expenditure spending, which boosted U.S. economy to its fastest growth since 1984. In 2021, the country's unemployment rate reached a 37-year high of 5.7%. The rebound signals a return to industrial activity, which is expected to increase demand for forging billets during the forecast period.

Rising Demand & Investment for Lightweight and Fuel-efficient Components 

The increased focus on fuel efficiency, emissions reduction and lightweighting in industries like automotive and aerospace drives demand for forged billets components. Forging billets offer required strength and weight benefits for lightweight designs, allowing for enhanced fuel efficiency and performance. Transportation investments are expected to remain a major development driver for the market. 

For example, under the 14th five-year action plan (2021-25), the Chinese government committed USD 154 billion in investments to extend the railway network in the Yangtze River Delta region in September 2021. It is expected to increase the region's railway network from 4,200 km to 17,000 km. In addition, the high-speed rail network is anticipated to expand from 3,500 km to 9,500 km.

High Costs and Volatility in Raw Material Prices

Significant capital investment is required to establish and operate a forging billets production operation. The expenses of equipment, machinery and infrastructure might be too expensive for new entrants or smaller businesses, limiting market entrance and expansion. The forging process is energy-intensive, which adds to high energy prices. 

Energy price fluctuations, including electricity and fuel, can have an impact on the entire cost of production for forging billets, affecting profitability and competitiveness. The market for forging billets is susceptible to changes in raw material prices, especially the cost of steel. Changes in raw material prices, such as iron ore and scrap metal, can have a substantial impact on the profitability and pricing of forging billets.

Forging Billets Market Segment Analysis

The global forging billets market is segmented based on type, product, material, process, end-user and region.

The Need for Safe and Lightweight Metal Drives Aluminum Segment

During the forecast period, Aluminum is expected to hold around 1/4th of the global forging billets market. Aluminum forged components are appropriate for environments where safety is paramount and a lighter metal is required for energy economy or speed. Forged aluminum parts can be found in tractors, airplanes, automobiles, energy missiles, drilling tools and ships. Corrosion-resistant aluminum engine mounts, running boards, tailboard frames and roof consoles are more robust in situations of a vehicle crash. 

The usage of aluminum in the vehicle sector reduces CO2 emissions significantly. Rising automotive manufacturer demand is expected to drive demand for aluminum forging billets. For example, Sansera Engineering, a maker of high precision components, received a USD 0.3 million contract from BMW AG for the supply of aluminum forged components in March 2021.

Global Forging Billets Market Geographical Share

The Increasing Requirement of Forging Billets in Asia-Pacific

Asia-Pacific forging billets market has witnessed significant growth covering more than 1/3rd of the global market share in 2022. China, India, Japan and South Korea are key vehicle production centers. Several big steel companies, especially China, the world's largest steel producer, are located in the region. The performance of the steel industry, including factors such as capacity utilization, output levels and price, has an impact on the regional forging billets market.

Owing to their strength, durability and weight-saving qualities, forged components are commonly employed in automotive applications. The rising need for forging billets in the railway, automobile, energy and aerospace industries is expected to drive demand during the forecast period. For example, South Korea declared in April 2021 that it will invest USD 102.7 billion to improve its railway network across the country by 2030. 

Forging Billets Market Companies

The major global players include Alleima, Ellwood City Forge, UBE STEEL, Deutsche Nickel, Alcoa, AMETEK, Emirates Global Aluminium, Hindalco, Matalco and Vista Metals.

COVID-19 Impact on Forging Billets Market

Due to lockdown measures, travel restrictions and plant shutdowns, the pandemic caused disruptions in global supply networks. The delays impacted raw material availability and shipping, especially steel, which is a main material for forging billets. The pandemic's global economic recession reduced demand for forged items in industries like as automotive, aircraft, construction and oil and gas. 

Furthermore, the organizations' financial recovery is entirely dependent on their cash reserves. Major billets manufacturing companies were expected to be able to afford a full lockdown for only a few months until the need to change their investment plans. For example, numerous market participants suspended their service activity for several weeks in order to cut costs. While a few players used workforce layoffs to survive the COVID-19 health crisis.

Russia- Ukraine War Impact 

Trade restrictions, sanctions or export/import prohibitions on particular goods, especially steel and associated products, may come from geopolitical tensions between Russia and Ukraine. Trade barriers can have an impact on the international flow of forging billets and the dynamics of the global market. Ninety percent of Ukraine's steel facilities have ceased operations and many have been damaged or destroyed. Azovstal and Illich Steel in Mariupol are both heavily damaged and account for major share of Ukrainian steel production. 

Even if the issue is resolved, these plants may not return to normality. Due to port destruction or Russian Navy blockades, Ukrainian entry into seaborne markets has been limited or impeded. Shipments by sea have largely ceased. Western sanctions have had an impact on Russian shipments. Rail services for Ukrainian and Russian producers are disrupted and sanctions have halted or significantly restricted Russian shipments to Western Europe.

Key Developments

• In June 2022, Vista Metals Georgia, an independent manufacturer of Specialty Aluminum Products, started construction on a new USD 30 million casthouse expansion project at its Adairsville production location in Georgia. The initiative will help the company's ability to serve the aerospace extrusion, forging and rolling markets.
• In April 2022, Alcoa, a Pittsburgh-based industrial corporation, improves in a sustainable manner by employing recycled aluminum produced with renewable energy. Alcoa finished the installation of a new furnace that recycles scrap aluminum using renewable energy, saving energy and unleashing the metal's limitless recyclability.
• In May 2021, Rae Bareli the plant of RINL, a state-owned steel business, began the commercial manufacture of forged wheels in Uttar Pradesh. Rashtriya Ispat Nigam Ltd (RINL), based in Visakhapatnam, has established a plant in Rae Bareli at a cost of approximately Rs 1,680 crore, with an annual manufacturing capacity of one lakh pieces of forged wheels.

Why Purchase the Report?

• To visualize the global forging billets market segmentation based on type, product, material, process, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of forging billets market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global forging billets market report would provide approximately 77 tables, 86 figures and 207 Pages.

Target Audience 2024

•  Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies