Forging is a manufacturing process used to transform metal components into specific shapes through the application of localized compressive forces. Forgings are commonly used in the manufacturing of automotive components, hardware tools, and industrial machinery owing to their ability to withstand high tensile stresses. Some key advantages of forging include superior mechanical properties such as strength and ductility as well as dimensional accuracy of complex geometries. Growing automotive production centered on designing lightweight vehicles with enhanced safety features has created substantial demand for high-quality forged components such as crankshafts, connecting rods, and transmission parts.
The global forging market is estimated to be valued at US$ 81.12 billion in 2024 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:
One of the major trends driving growth of the Global forging market size is increasing vehicle production in emerging economies. Automotive manufacturers are setting up new production facilities in countries such as India, Brazil, Mexico, and China to capitalize on the availability of low cost labor and proximity to growing consumer markets. This is positively impacting demand for forged automotive components from the sector. Additionally, growing usage of aluminum and advanced high strength steels in automotive manufacturing due to their ability to reduce vehicle weight is augmenting consumption of forged aluminum and alloy components. Manufacturers are also developing new forging techniques such as closed-die forging and precision forging to enable production of net-shape parts with enhanced efficiency and tighter tolerances.
Threat of new entrants: The threat of new entrants in the forging market is moderate. New entrants would require substantial capital investment to set up plants and machinery for forging processes. However, growing demand from end-use industries like automotive provides opportunities.
Bargaining power of buyers: The bargaining power of buyers in the forging market is high. Buyers have several suppliers to choose from and can negotiate on price and delivery terms. Switching costs for buyers are also low.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While raw material costs contribute significantly to the overall costs, the availability of substitute materials provides some check on pricing.
Threat of new substitutes: The threat of substitutes is low to moderate. While machined and 3D printed metals can replace certain forgings, they are often more expensive for bulk production applications. Forgings also provide advantages like strength.
Competitive rivalry: The forging market is fragmented with the presence of several small and large players globally. Companies compete based on product range, pricing, and quality.
The global forging market is expected to witness high growth over the forecast period driven by increasing demand from the automotive industry. The automotive sector is the largest end-user of forgings owing to growth in vehicle production and demand for fuel-efficient vehicles. The global forging market is estimated to be valued at US$ 81.12 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific dominates the global market and is projected to grow at a high rate during the forecast period. This can be attributed to the presence of developing economies like China and India with a large automotive manufacturing base. China, in particular, has a sizable forgings production capacity.
Key players: Canfield Scientific, Inc., ILLUCO, HEINE Optotechnik GmbH & Co. KG, Tejco Vision, 3Gen, FotoFinder Systems, Caliber Imaging and Diagnosis are some of the leading players in the forging market. The market is consolidated in nature with top players accounting for a major share. Companies are focusing on developing advanced forging technology and expanding into growing regional markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it