Forging Market Growth Accelerated by the Development of Specialized...

Forging Market Growth Accelerated by the Development of Specialized Applications for Automotive and Aerospace Industries

Posted 2024-01-18 11:51:54

Forging is a manufacturing process involving the shaping of metal using localized compressive forces. It is used to produce components with complex geometries for a variety of industrial applications such as automotive, aerospace, construction, oil & gas, and agriculture among others. Forging provides advantages like higher strength, durability, and reliability compared to other metal-shaping techniques. There is growing need for forged components in the automotive industry for manufacturing critical parts including crankshafts, connecting rods, gears, and die castings.

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 Opportunity:
Rising demand for forged components from automotive sector presents significant growth opportunity for forging market players. Factors like increasing vehicle production and sales globally are propelling automotive component demand. Additionally, trend of lightweighting vehicles to improve fuel efficiency is further augmenting forged parts incorporation as they helps accomplish weight reduction. Forging manufacturers can capitalize on this opportunity by developing advanced alloys and customized solutions to meet evolving specifications of auto makers. They can also focus on expanding capabilities and capacities to cater consistently rising volumes. This will help them strengthen position and gain greater shares in lucrative automotive forging market.

Porter's Analysis
Threat of new entrants: The threat of new entrants in the forging market is medium. High capital requirements for setting up forging facilities create barriers for new players. However, emerging technologies are lowering entry barriers.

Bargaining power of buyers: The bargaining power of buyers in the forging market is high. The presence of many forging players globally increases competition, allowing buyers to demand better prices and services.

Bargaining power of suppliers: The bargaining power of suppliers is medium. Raw material prices fluctuate frequently, impacting supplier margins. However, forging is a fragmented industry with no single supplier dominance.

Threat of new substitutes: The threat of new substitutes is low. Though new materials like composites are emerging, forging enables fabrication of components with high strength-to-weight ratios at lower costs.

Competitive rivalry: Competition within the forging industry is intense. Players compete based on product quality, technology, delivery timelines and services. Globalization has increased competitive pressure.

SWOT Analysis
Strengths: Forging enables robust, complex geometries and close dimensional tolerances. It allows joining of dissimilar metals.

Weaknesses: Forging requires heavy pressing equipment and molds, involving large capital costs. The forging process produces significant material wastage.

Opportunities: Growth of end-use industries like automotive and machinery provides increased demand avenues. Emerging technologies enable net-shape forging and near-net forging.

Threats: Volatility in raw material prices impacts project costs and margins. Substitute forming processes threaten established forging applications.

Key Takeaways
The Global Forging Market Size is expected to witness high growth over the forecast period of 2023 to 2030 driven by growth in the automotive industry globally. The market size is projected to reach US$ 81.12 Bn by 2023.

Regional analysis shows Asia Pacific dominates the global forging market currently due to large manufacturing capacities in China and India. Growth will be fastest in Southeast Asian countries as they emerge as manufacturing hubs. North America and Europe will see steady demand from automotive industries.

Key players operating in the forging market are Can-Eng Furnaces International Limited, All Metals & Forge Group, Ellwood Group Inc., Scot Forge. These companies have significant presence across major regions and capability to produce components within tight quality and delivery parameters.