April 18, 2024
Forging Market

The Global Forging Market Is Driven By Increasing Demand From Automotive Industry

Forging involves shaping metals under force into components with desired dimensions and properties using dies. Forging provides precision and quality in applications where high strength is required such as in automobiles and construction. Forging has many advantages over traditional machining as it generates less wasted material and produces a denser metal part with enhanced mechanical properties. The global forging market has been witnessing rising demand from automotive industry as forged components can withstand high pressure and complex forces experienced during operations. Rising automotive production worldwide is fueling the need for forged auto parts like connecting rods, gears, crankshafts and casings.

The global Forging Market is estimated to be valued at US$ 81.12 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Increasing demand for light weight forged parts in automotive industry is one of the major trends being witnessed in the global forging market. With stringent emission norms and fuel efficiency standards, automobile manufacturers are focusing on reducing vehicle weight to enhance performance and comply with regulations. Forging helps in production of lightweight metal components that are stronger and durable. Besides, development of new aluminum alloys has further encouraged forging of auto parts using aluminum which provides around 30% weight reduction compared to steel. Additionally, emerging technologies like 3D printing and additive manufacturing are allowing forging of complex shapes and forms which was previously not possible through traditional forging processes. These advancements are expanding applications of forging across diverse industries. Growing demand for forged parts and components from renewable energy industry especially in wind turbines is another key trend shaping the forging market.

Porter’s Analysis

Threat of new entrants: The forging industry requires high capital investment for machineries and equipment, restricting new players to enter the market easily.

Bargaining power of buyers: The forging market has numerous buyers from various industries such as automotive, aerospace, construction, metal fabrication, and agriculture industries leading to higher bargaining power of buyers.

Bargaining power of suppliers: The forging industry has a fragmented supplier base with the presence of both small and large suppliers providing raw materials such as aluminum, steel, titanium, and plastic. This limits the bargaining power of suppliers.

Threat of new substitutes: There exist few alternatives for forging services as other shaping processes are often costlier. However, 3D printing and additive manufacturing pose a potential threat as substitutes.

Competitive rivalry: The forging market is highly competitive with the presence of numerous global and regional players leading to intense competition based on product quality, pricing, and innovation.

Key Takeaways

The Global Forging Market Demand is expected to witness high growth over the forecast period driven by increasing demand from the automotive industry. The global Forging Market is estimated to be valued at US$ 81.12 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

North America leads the regional forging market backed by the strong presence of the automotive industry and major forging companies in the US and Canada. Asia Pacific exhibits the fastest growth in the forging market owing to rapid industrialization, growing automotive sales, and favorable government policies supporting manufacturing sector expansion in countries like China and India.

Key players operating in the forging market are Canfield Scientific, Inc., ILLUCO, HEINE Optotechnik GmbH & Co. KG, Tejco Vision, 3Gen, FotoFinder Systems, Caliber Imaging and Diagnosis, Firefly Global, Bio-Therapeutic, AMD Global Telemedicine, Rudolf Riester GmbH, and Barco. Companies are investing in advanced equipment and integrating digital technologies to improve production efficiency and meet the customized demands of customers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it