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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Forging is a manufacturing process in which metal is heated and then shaped by pressing or hammering. Forging enhances the properties of metals such as strength and durability. Key applications of forging include automotive components, fasteners, industrial equipment, and hardware. Forging is widely used in the automotive industry to produce engine parts, transmission components, axles, and other structural parts.
The growing automotive industry is expected to be a key driver for the forging market over the forecast period. According to ACEA, around 15.8 million cars were produced in Europe in 2021, a 4.6% rise year over year. Forging components such as crankshafts, connecting rods, and gears find extensive usage in automobile engines and powertrains. Additionally, the rising demand for stronger and durable hardware from construction and infrastructure development projects will also contribute to the market growth. However, fluctuating prices of raw materials such as steel and aluminum may hamper the market growth.
Strength: Forging provides greater strength, enables complex shapes and is cost-effective for high-volume production. It can withstand high stresses and temperatures. Forged parts are more durable than other processes.
Weakness: Changing designs frequently increase costs. Forged parts require more material than other processes resulting in higher raw material costs. The forging process is labour-intensive.
Opportunity: Growing demand from the automotive and aerospace industries due to stringent safety and quality standards. Development of new alloys expands application areas.
Threats: Substitutes like machined or cast parts threaten some applications. Economic slowdowns negatively impact the automotive industry affecting demand.
The global forging market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing demand from the automotive industry. The automotive sector accounts for over 50% of global forging demand. Growing vehicle production and stricter safety regulations are driving the need for high-strength forgings.
Regional analysis North America dominates the global market, accounting for over 30% share due to large automotive and aerospace manufacturing base. Asia Pacific exhibits fastest growth owing to rapidly expanding automotive manufacturing in China and India. China is the largest forging consuming country globally.
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., and Scot Forge among others. Precision Castparts and Scot Forge are technology leaders while Alcoa Corporation and All Metals & Forge Group have the largest market shares.