Forging is a manufacturing process involving the shaping of metal using localized compressive forces. The global forging market entails processes such as closed-die forging, open-die forging, and precision forging. It mainly serves end-use industries such as automotive, aerospace, oil & gas, construction, agriculture, and power generation. The automotive industry is the primary consumer of forged parts as they are used in manifolds, braking components, axle shafts, connecting rods, and transmission parts among others. Developments in the electric and hybrid vehicles are expected to further boost demand for forged components.
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 Dynamics:
One of the major drivers for the growth of the forging market is the increasing demand for forged components from the automotive industry. According to International Organization of Motor Vehicle Manufacturers, vehicle production grew by 3% year-on-year to reach 93.38 million units in 2021. The long-term outlook for the global automotive industry remains positive with rising disposable incomes in developing nations expected to drive demand. Another key factor fueling market growth is the rising adoption of precision forging techniques to create near-net shapes for complex components. Precision forging allows the production of high strength to weight ratio parts, which improves performance and fuel economy of vehicles. The abovementioned drivers indicate lucrative opportunities for forging manufacturers over the forecast period.
Segment Analysis
Forging market can be segmented based on material type, based on application and based on end use industry. Based on material type, the forging market is dominated by carbon steel segment which holds around 50% market share. Carbon steel is extensively used for forgings due to its properties like high strength, toughness and ductility. Based on application, the automotive segment dominates the forging market with over 35% share as automotive requires high strength forgings for components like crankshafts, gears etc.
PEST Analysis
Political: Trade policies like import duties on forged components impact the forging market. Favorable trade policies boost the market.
Economic: Economic growth influences the demand from end use industries like automotive. Higher GDP increases the demand for forging from these industries.
Social: Factors like increasing vehicle production and ownership positively influence the automotive forging demand.
Technological: Advanced forging technologies like closed-die forging helps produce net shaped complex components with close tolerances reducing machining requirements.
Key Takeaways
The Global Forging Market Growth is expected to witness high on account of rising automotive production. 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.
Regionally, Asia Pacific dominates the global forging market with over 45% share led by China. APAC region is expected to retain its dominance in coming years led by high vehicle output in China and India.
Key players operating in the forging market includes Canfield Scientific, Inc., ILLUCO, HEINE Optotechnik GmbH & Co. KG, Tejco Vision, 3Gen, FotoFinder Systems, Caliber Imaging and Diagnosis, Firefly Global, Bio-Therapeutic and others. Canfield Scientific Inc. is a global leader in photodocumentation systems for dermatology, wound care and aesthetic procedures. ILLUCO specializes in surgical headlights and lighting solutions
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it