India’s metal forging industry stands as a cornerstone of innovation and resilience, delivering high-quality solutions for critical sectors like automotive, aerospace, and defence. With a legacy of precision and a focus on technological advancement, the industry continues to play a vital role in shaping the nation’s manufacturing prowess.

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

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

The COVID-19 pandemic 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 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.

Rising adoption of automation 

Increasing adoption of the ‘Industry 4.0’ by key players to improve efficiency is the ongoing trend in the market. Industry 4.0 is the latest phase in manufacturing digitalisation that involves multiple innovations that can be utilised 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.

The 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. These include agriculture, power, and aerospace and defence. Hence, increasing investment and expansion of these sectors is positively influencing the market. The aerospace industry requires various high-quality and lightweight metal forged parts. Therefore, increasing demand for critical forged products in the aerospace & defence industry is likely to drive the market growth.

Increasing exports

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’ have 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 ? 575 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.

Source: Fortune Business Insights

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