Casting, Forging and Stamping Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Casting, Forging and Stamping Category Overview

The casting, forging, and stamping category is anticipated to grow at a CAGR of 5.1% from 2023 to 2030. APAC holds the largest category share of over 45%. The rapid growth in the manufacturing business, increased emphasis on lightweight & fuel-efficient vehicles, the surge in infrastructure construction projects, and an expanding aircraft industry are some of the factors driving this category's growth. One of the key trends is the implementation of software in casting, forging, and stamping. ACTouch's Forge Software and Manufacturing ERP helps manufacturers to control cost, production, planning, and invoicing.

To provide real-time feedback and control during stamping operations, advanced die designs with embedded sensors and actuators are being developed. These intelligent dies can monitor and modify factors like pressure, temperature, and lubrication, leading to better process control, higher component quality, and lower scrap rates. Smart dies also allow for condition monitoring and predictive maintenance, which increases die life and decreases unnecessary downtime. In July 2021, ATI Ladish Forging stated that it will begin producing a new range of forged materials with high strength and durability for usage in the aerospace and defense industries.

Metal stamping is the segment leader because it provides a cost-effective alternative for creating vast volumes of components with consistent quality. It is a highly automated operation that results in increased efficiency and faster production rates. Steel's dominance in the segment for materials can be attributed to its extensive application in the automotive, aerospace, and construction sectors. Forged or stamped components can sustain severe loads. Steel comes in a variety of alloy compositions and can have great corrosion resistance depending on the alloy composition and surface treatment. This adaptability allows for the fabrication of a wide range of stamped, forged, and cast components.

This category is dominated by global, local, and regional players, but is trending towards a consolidated structure to improve product quality and efficiency. Major players are investing in technical breakthroughs, environmentally friendly products, and expanding their product offerings to meet evolving environmental legislation and client requests. They are also increasing their worldwide reach through acquisitions, partnerships, and collaborations while expanding their product offering to boost their consumer base. For example:

• Bharat Forge Limited and state-owned HAL signed an agreement in 2023 that focuses on the development and production of aerospace-grade steel alloys to cast, forge or stamp stronger components

• Alcoa revealed in 2023 that it is extending its EcoSource brand of low-carbon alumina. This includes emissions from bauxite mining, alumina refinement, casting, and aluminum smelting

Steel, copper, iron, and other composite alloys, are the primary raw materials used in production in this category. Raw materials and conversion costs are the primary cost drivers for components. These constitute roughly 80% of the overall costs. The quality of raw materials utilized is critical and can have a considerable impact on cost structure. Using a lower/higher quality, for example, might result in a raw material proportion change ranging from 45 to 60% of the total cost.

Any price increases by raw material suppliers have a direct impact on total component costs, and hence pricing. In 2022, due to the wake of the 15% export levy imposed by the Indian government, steel prices followed an upward trend and grew by 40% to reach USD 960 in the Indian markets. Russia and Ukraine being the major producer of base metals, 112 countries rely on metal imports from them. More than 77% of the global GDP depend on metal import from these countries. Due to supply chain disruption, the price of the base metal increased as follows - copper (12-15%), zinc (30-42%), and nickel (57-64%), increase in raw materials of these metals has significantly affected the prices of the category.

China, India, the USA, and Germany are some of the preferred sourcing destinations for this category. China has a robust manufacturing industry and offers a wide range of suppliers with diverse capabilities and cost-effective production options. Many Chinese manufacturers have experience in serving global markets and can handle both small and large-scale production requirements. India is a popular destination for metalworking processes due to its established manufacturing sector. Suppliers offer competitive pricing, and skilled craftsmanship, and can accommodate various project sizes. India is known for its expertise in casting and forging. Germany is renowned for its precision manufacturing, offering high-quality products and advanced technology. Its suppliers are known for their precision, reliability, and strict quality control processes.

Casting, Forging, and Stamping Procurement Intelligence Report Scope