High demand for automobiles in the period between 2014-2018 proved to be a driver for the forged and stamped goods market. In 2017, the double digit increase in the consumer demand for automobiles in emerging economies such as Russia, Thailand and Argentina, when compared to the number in 2016, increased the sales of automobiles by 2.4%, despite offset declines in significant markets such as the USA, the UK, Mexico and South Korea. The automotive industry is the major end-user industry of the forged and stamped goods market as major components in automobiles such as rods, transmission shafts and gears, differential gears, drive shafts, clutch hubs, and universal joints are forged from metals such as steel, iron and aluminum. The rise in the demand for automobiles in developing countries within the Asia-Pacific, Eastern Europe and Latin American regions drove the market for forged and stamped goods from $205.1 billion in 2014 to $255.4 billion in 2018 at an annual growth rate of more than 5.5%.
Changes in consumer preferences and lifestyles led to the increase in demand for passenger vehicles. According to a survey in India, the production of passenger vehicles grew from 20,23,063 units in April-October 2015 to 21,70,180 units in April-October 2016. The domestic sales of passenger vehicles grew from 15,98504 units in April-October 2015 to 17,74,716 units in April-October 2016, a growth of 11.0% from the previous year. Another survey in the UK in 2016 showed that in the car market, 44 automotive brands were offering nearly 400 different model types to the UK’s consumers dependent upon consumer preferences.
By end use industry, the global forged and stamped goods market is segmented into automotive, construction, food and beverage packaging, machinery, metal products, and others. The largest end use industry, automotive, held more than 35% of the total share in 2018. The automotive segment grew from around $69 billion in 2014 to $90.8 billion in 2018, at an annual growth rate of roughly 7%. It is expected to grow to more than $133 billion in 2022 at an annual growth rate of about 10%. Forged and stamped goods manufacturers supply crankshafts, gear shafts, gear wheels, axle shafts and other forged products to the automotive manufacturing industry.
The construction industry was the second largest end use segment of the forged and stamped goods market. This is due to the increase in demand for residential and non-residential buildings, driven by growth in population and urbanization.