Forging is a manufacturing process involving the shaping of metal using localized compressive forces. The forging process produces a part that is stronger than a similar part produced by other manufacturing processes like casting or machining. Forged components are used in various manufacturing industries like automotive, oil & gas, aerospace, agriculture, construction, etc. The automotive industry utilizes forged components extensively for making critical engine and transmission components, axles, drive shafts, suspension components etc. as it enhances the reliability and performance of vehicles.

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 Opportunity

High Growth in Automotive Industry

The automotive industry is witnessing strong growth especially in emerging economies due to rising disposable incomes and increasing vehicle ownership. This is driving the demand for forged auto components from OEMs globally. As forged parts are stronger and lighter compared to other manufacturing processes, auto manufacturers are increasingly relying on forging to develop high performance vehicles with improved fuel efficiency and handling. The opportunity for forgers lies in developing innovative products suitable for new vehicle architectures as well as meeting stringent sustainability standards adopted by auto companies. Catering to the needs of evolving automotive industry will help drive higher growth for players in the forging market over the forecast period.

Porter's Analysis

Threat of new entrants: The Global forging market size has moderate threat of new entrants due to the availability of raw materials and requirement of heavy capital investment to setup manufacturing facilities.

Bargaining power of buyers: Buyers have moderate bargaining power as forging parts are not differentiated and have multiple options available.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of raw material substitutes and presence of established buyers.

Threat of new substitutes: Threat from substitutes is low as forging parts have precise tolerances and strength benefits over other forming processes.

Competitive rivalry: The forging market sees high competition due to the presence of global players operating at scale.

SWOT Analysis
Strength: Economical manufacturing of complex metal parts using shaped dies. Growth in end-use industries boosts forging demand.

Weakness: Heavy dependence on economic cycles exposes forging to volatility. Require specialized skills and equipment.

Opportunity: Emerging technologies in 3D printing and automation open new avenues. Growing aerospace industry fuels aircraft component demands.

Threats: Strict environmental norms increase compliance costs. Threat from low-cost substitutes.

Key Takeaways

The global forging market is expected to witness high growth during the forecast period of 2023 to 2030. 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.

Regional analysis shows that Asia Pacific currently dominates nearly 50% of the global forging market led by China, India, and Japan. Rapid industrialization in these countries and growth in automotive and equipment manufacturing sectors have boosted forging demands. North America and Europe are other major markets and account for over 35% share.

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