by The 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.
The Forging Market Overview:
Forging is a manufacturing process where load application is employed to form shapes by localized compressive forces. Parts produced using forging are stronger, precision formed, and economical as compared to casting and machining processes. Demand for forged components in the automotive, construction, and industrial equipment industries is driving growth of the forging market.
The Forging Market key trends:
Adoption of Industry 4.0 technologies in forging process such as implementation of internet of things (IoT), augmented reality (AR), artificial intelligence (AI), and additive manufacturing is estimated to boost productivity and quality control in forging operations. Industry 4.0 enables forging manufacturers to gain real-time data insights for process optimization, predictive maintenance of equipment, quality inspection, and remote monitoring of production. Adoption of these advanced technologies allows forging companies to reduce manufacturing costs and meet the growing demand for forged components from various end-use industries.
Porter’s Analysis
Threat of new entrants: Forging requires substantial capital investment for equipment and facilities and significant technical expertise. These high entry barriers protect existing players from competition.
Bargaining power of buyers: Buyers in forging industry have moderate bargaining power as there are a large number of players and customized products. Switching costs are also moderate.
Bargaining power of suppliers: Presence of numerous raw material suppliers like steel producers limits their bargaining power. Cost of changing suppliers is also low.
Threat of new substitutes: Substitutes like plastic molding and casting are limited especially for components requiring high strength. Forging offers advantages in terms of strength, rigidity and dimensional stability.
Competitive rivalry: Strong as major players compete on the basis of product quality, delivery timelines and prices. Companies focus on expanding their product portfolios and global footprint through mergers and acquisitions.
SWOT Analysis
Strengths: Forging offers high precision and tolerance benefits to produce complex and lightweight parts. It enables shaping of metals at high temperatures without melting.
Weaknesses: Forging is a labor-intensive process requiring skilled workforce. It also produces more scrap material during production compared to other processes.
Opportunities: Growing demand from automotive and aerospace industries driven by technological advancements and need for stronger lightweight components provides major opportunities.
Threats: Volatility in raw material prices especially steel and economic slowdowns affect forging industry adversely. Substitutes also pose threats.
Key Takeaways
The global Forging Market Size was valued at US$ 81.12 Bn in 2023 and is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing demand from automotive and aerospace industries. These industries adopt forged components extensively to manufacture vehicles and aircrafts with superior performance, safety and fuel efficiency.
Regional analysis: Asia Pacific dominated the global forging market in 2023 with a share of over 35%, led by China and India. China is the largest consumer and producer globally, driven by strong manufacturing sector growth. Presence of large automotive hubs and production bases of major OEMs will contribute to Asia Pacific continuing its dominance over the forecast period.
Key players: Key players operating in the forging market are 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. These companies focus on expanding their manufacturing footprint and acquisition strategies to gain leadership positions and benefit from evolving industry trends.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
