The forging industry involves the manufacturing process where heated metal stocks are shaped by pressing, hammering or extruding. Forgings are crucial components used across industries such as automotive, oil & gas, construction and agriculture. Forgings offer advantages like high tensile strength, dimensional stability and durability. With leading automotive manufacturers aiming to reduce vehicle weight for improving fuel efficiency, the demand for forged parts made of strong yet lightweight materials like aluminum and magnesium alloys is increasing.
The Global Forging Market is estimated to be valued at US$ 95 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the forging market include Drop Forging Aurangabad, Scot Forge Company, Precision Castparts Corp, Bharat Forge Limited, Thyssenkrupp AG, Ellwood Group Inc., AICHI STEEL CORPORATION, ATI Ladish Forging and Sypris Solutions Inc.
Growing demand: The growing demand from the automotive industry for components like drive shafts, crankshafts, connecting rods and transmission parts is a major driver for the forging industry. The focus on light-weighting of vehicles is expected to further propel the demand for forged aluminum and magnesium parts.
Global expansion: Forging Market Demand companies are expanding globally by acquiring regional players and setting up new facilities to cater to growing markets such as India, China, Mexico and Brazil. They are also investing in R&D to develop air and hot forging techniques for producing complex net shape components.
Market key trends
The forging industry is entering an era of robotic automation with forging players taking steps to adopt industrial robots and cobots. Robotics helps address issues like labor shortage, improve productivity and quality consistency. Key players are installing robots for material handling, die loading/unloading, heat treatment and non-destructive testing. Systems integrators offer turnkey robotic solutions for complete forging lines. This transition to an automated manufacturing model will aid the industry in meeting growing demand while dealing with rising labor costs.
Porter’s Analysis
Threat of new entrants: The high initial capital requirements and costs associated with production equipment poses as a barrier for new companies to enter this industry.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated products from various forging companies. However, switching costs are low.
Bargaining power of suppliers: Suppliers of raw materials such as steel have some bargaining power over forging companies as steel is an indispensable raw material with few substitutes.
Threat of new substitutes: Threat of substitution is moderate because alternative production methods like metal forming provide viable alternatives for certain applications.
Competitive rivalry: The industry has numerous medium and large players globally operating at regional and global levels leading to high competitive rivalry.
Geographical Regions
North America dominates the global forging market, accounting for over 30% of the total market value, led by the well-established automotive and aerospace industries in the region.
The Asia Pacific region is expected to be the fastest growing market during the forecast period due to growing manufacturing industries, increasing automotive production and strong economic growth in various countries including China and India. Robust growth of the automotive, construction and shipbuilding sectors will drive demand.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)