July 23, 2024

Rising Infrastructure Development Projects To Boost Growth Of The Forging Market

The global Forging Market is estimated to be valued at US$ 81.12 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Forging is a manufacturing process involving the shaping of metal using localized compressive forces. Parts made through forging are stronger than those made through other manufacturing techniques, as the metal fibres are elongated and compacted along the grain structure. Forging is commonly used to produce components for the automotive, construction, oil & gas, aerospace and other heavy industries. Forging allows the manufacture of intricate and high precision parts without welding or additional machining. It has advantages such as high strength, consistency in chemical composition and mechanical properties.

Market key trends:

One of the key trends in the forging market is the growing demand from the construction sector. Rapid infrastructure development projects around the world are propelling the growth of the construction industry. Forging finds wide application in the production of bolts, screws, joints, beams and other structural components used in buildings, bridges, roads and railways. Additionally, the rising penetration of electric vehicles is augmenting the demand for forged components. Many critical auto parts including connecting rods, transmission parts, axles and crankshafts are forged for their strength and durability.

Porter’s Analysis

Threat of new entrants: Low capital requirements and availability of second-hand equipment have lowered the barriers to entry in the forging market. However, established players have significant economies of scale and customer loyalty that new entrants will find difficult to overcome.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and competitve supplier market. However, the importance of forging components in many industries keeps buyer’s options limited.

Bargaining power of suppliers: Large forging producers have significant bargaining power over raw material suppliers due to their size and buying power. However, availability of alternative materials and supplier market fragmentation balances this power.

Threat of new substitutes: Substitutes like casting and machining pose a medium threat as forging offers strength and cost benefits for specific component needs. However, forging’s customizability and consistency keeps its demand stable.

Competitive rivalry: Intense competition exists among existing forging producers globally. Players compete based on technology, quality, delivery time and price.

Key Takeaways

The global forging market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period 2023 to 2030, driven by increasing demand from automotive and aerospace industries.

The automotive industry is the largest end-use sector for forged components accounting for over 30% share of the global forging market in 2023. Rising vehicle production across the world especially in Asia is driving the demand. Additionally, focus on fuel efficiency and emission reduction is increasing the use of high-strength forged auto parts.

Regionally, Asia Pacific dominated the forging market with over 35% share in 2023 led by China, India and Japan. Strong growth in automotive, machinery and construction industries is propelling the demand. China, being the largest automotive producer globally, is projected to maintain its lead. Meanwhile, Central and Eastern Europe is emerging as a high growth market with forging companies expanding their footprint.

Key players operating in the forging market include Alcoa Corporation, All Metals & Forge Group, CFS Machinery Co. Ltd, Consolidated Industries Inc., Farinia Group, Fountaintown Forge Inc., Pacific Forge Incorporated, Patriot Forge Co., Precision Castparts Corp., Scot Forge, and others. Major players are focusing on technological advancements and expanding production capacities worldwide to strengthen their market position.