Forging is a manufacturing process involving the shaping of metal using localized compressive forces. Parts made via forging are known for their superior mechanical properties including strength and durability. Forging is often used to produce components that require high strength-to-weight ratio such as axles, crankshafts, gears, and bearings. The resulting component exhibits uniform mechanical and metallurgical characteristics throughout.
The global forging market is estimated to be valued at US$ 81.12 billion 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.
The global forging market is driven primarily by the increasing demand from the automotive industry. Forging helps reduce weight without compromising strength, thereby improving fuel efficiency of vehicles. As environmental regulations become more stringent, automakers are increasingly adopting forged components to reduce vehicle weight. Furthermore, the growing emphasis on passenger safety is also driving demand as forged parts enhance safety. The aviation and oil & gas industries are other major end-users. In these industries, components made via forging exhibit superior strength and durability needed to withstand high pressures and impact forces.
Market key trends:
Adoption of 3D printing for forging: 3D printing offers advantages over conventional forging such as near-net shape manufacturing and flexibility of design. Players are increasingly leveraging 3D printing to ‘print’ metal components using techniques like binder jetting followed by sintering. This facilitates complex geometries and net shaping, reducing material wastage.
Focus on automation: Labor costs account for a significant portion of total forging costs. Players are automating various forging steps like loading, heating, and finishing using robotics. This reduces costs and improves productivity substantially. Fully automated forging lines are gaining traction.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the global forging market is moderate as it requires high capital investments to set up manufacturing facilities. Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of many established players and availability of substitutes. Bargaining power of suppliers: The bargaining power of suppliers is moderate given the availability of substitutes and access to various suppliers in the market. Threat of new substitutes: The threat of new substitutes is moderate, thanks to established consumer preference for forged components over other processing methods. Competitive rivalry: The rivalry among competitors is high owing to the presence of many domestic and global players in the market.
Key Takeaways
The Global Forging Market Size is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis – North America dominates the global forging market and is expected to maintain its lead over the forecast period. The market is expected to grow at a high single-digit CAGR during the forecast period.
Key players operating in the forging market are Can-Eng Furnaces International Limited, NSM Metallurgical Group, Canada Forgings Inc, SMS group, ERAMET, and CAF Group. Can-Eng Furnaces is a leading global supplier of specialty gas, vacuum and controlled atmosphere furnaces for various applications including forging. NSM Metallurgical Group is a major producer of steel castings and forgings in Europe.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it