The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Aerospace Forging Market Growth & Trends
The global aerospace forging market size is expected to reach USD 49.25 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 7.3% from 2020 to 2027. Increasing defense spending by various governments is projected to remain a key factor for the market growth.
In 2019, U.S. was the leading country for defense spending, followed by China. U.S. investments in R&D and weapons were greater than China’s overall defense budget. In 2019, U.S., China, Saudi Arabia, Russia, and India were the leading defense spenders. As per the U.S. budget, nearly 57 billion are allocated to the Air Force in 2020, including USD 11 billion for Joint Strike Fighters.
Emerging economies such as India and China are also likely to procure various military planes to strengthen their defense. For instance, India received its first Rafale fighter jet in 2019. For this, India signed a deal with France to procure 36 Rafale fighter jets. Forged components are widely used in military planes owing to its combination of size, geometry, and mechanical properties.
Increasing investment by aircraft manufacturing companies in order to supply more aircraft is likely to contribute to the demand for forging parts. For instance, Airbus recently invested nearly USD 40 million in its production facility Mobile, Alabama. This investment was done in order to manufacture A320 family aircraft in 2021. This strategic investment of the company is likely to assist in boosting the production rate and improving the company’s industrial footprint in U.S.
Inorganic growth strategies through mergers & acquisitions by manufacturing companies are likely to play a key role in the market. For instance, in December 2019, Arlington Capital Partners acquired Rixson Forging Ltd. from Arconic. Rixson is one of the leading suppliers of closed die forging components to Tier I and OEM for aerospace and defense engine companies.
Adoption of lightweight design and materials is another promising area for market vendors. Materials such as aluminum and titanium are projected to witness rapid demand in aerospace component manufacturing. In 2018, Weber Metals Inc. revealed 60,000-ton press at a manufacturing facility worth USD 180 million. This press is projected to assist in the manufacturing of aluminum and titanium forged parts, such as fuselage and wing fittings, cockpit window frames, and various bulkheads.
The market is likely to witness sluggish growth in 2020 on account of the spread of COVID-19 disease around the world. This outbreak has resulted in the reduction of production and in some cases, closure of non-essential businesses, such as automotive and aerospace companies. Giant manufacturers such as Boeing and Airbus have recently announced a temporary shutdown of their various production facilities.
Aerospace Forging Market Report Highlights
- In terms of volume, aluminum was the largest material segment and accounted for a share of 55.7% in 2019. The growth of the segment is attributed to improved focus on lightweight design and development of advanced aluminum alloys
- In terms of revenue, titanium is projected to expand at a CAGR of 7.1% from 2020 to 2027 on account of its ability to withstand high temperatures and high corrosion resistance
- The military aircraft segment was valued at USD 9.09 billion in 2019. Growing defense budget across various countries is likely to remain a key factor for the growth of the segment
- The commercial aircraft segment accounted for the largest volume share of 51.1% in 2019 and is likely to witness considerable growth on the account of increasing passenger traffic across various countries
- Asia Pacific was valued at USD 9.02 billion in 2019. The growth of the segment is attributed to presence of numerous forging companies and exporters of forged components