Forging is Estimated to Witness High Growth Owing to Rising Automotive production

Author : naufan cmi | Published On : 18 Jan 2024

Forging is a manufacturing process involving the shaping of metal using localized compressive forces. It is used to produce complex components with high structural integrity. Forged parts are extensively used across automotive, construction equipment, aerospace, and other industrial applications for parts that require high strength, durability, and reliability. The automotive industry primarily uses forged components for manufacturing critical drivetrain parts, steering and suspension components, connecting rods, and crankshafts among others.

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:
Growing automotive production across emerging economies in Asia Pacific and Latin America is expected to drive the demand for forged components over the forecast period. Rising vehicle ownership and replacement demand are amplifying automotive manufacturing which is expected to positively influence the forging market growth. The report states that China accounts for over 30% of global vehicle production and demand in the country is anticipated to grow exponentially through 2030 owing to rapid urbanization and rising disposable incomes. This in turn is projected to boost the Asia Pacific forging market size. Additionally, advancements in precision forging technologies are enabling manufacturers to develop complex forged components with closer dimensional tolerances for applications across aerospace, oil & gas, and industrial machinery sectors.

SWOT Analysis
Strength: Forging is a cost-effective way of processing raw metals and allows shaping complex geometries in a single step. Many components in aerospace, automotive and other applications require intricate shapes that forging can achieve. Forging also imparts strength to the workpiece through work hardening.

Weakness: Forging requires heavy machinery and molds which require large capital investments. Changes to part designs may require replacing or modifying expensive tooling. Forging is also not suitable for producing intricate interior cavities or complex external features compared to other fabrication methods.

Opportunity: Increasing demand for lighter, more fuel efficient vehicles is driving growth in demand for forged components in automotive powertrains. Forging allows consolidation of multiple parts into single components to reduce weight. Growth in aerospace manufacturing is also opening opportunities as aluminum and titanium forgings are increasingly used in jet engines and airframes.

Threats: Substitution threat from additive manufacturing as 3D printing technology advances for low-volume production. Economic downturns can reduce orders from automotive and manufacturing industries rapidly. Rising raw material costs, especially of aluminum and steel, increase production costs.

Key Takeaways
The Global Forging Market Size is expected to witness high growth over the forecast period driven by rising automotive production and aerospace manufacturing. The market size is projected to reach US$ 81.12 Billion by 2023.

Regional analysis: Asia Pacific currently dominates the forging market, led by China, India and Japan. The region is expected to continue its dominance due to rising vehicle and infrastructure development. Countries like China and India are major automotive hubs fueling forging demand. North America and Europe are other major markets driven by aerospace and defense manufacturing.

Key players: Key players operating in the forging market include Canada Forge, American Axle, Ferralloy, Erie Press Systems. These companies produce forged components and supply to automotive, hardware and machinery industries globally. They are investing in new automated production lines and expanding geographic footprint to cater growing demand.

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