Automotive Forgings Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Material Type (Aluminium, Steel, Others), By Component (Gears, Piston, Bearing, Axel, Connecting Roads, Crankshaft, Others), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Regional, By Competition
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 42 Billion |
| CAGR (2023-2028) | 4.6% |
| Fastest Growing Segment | Passenger Cars |
| Largest Market | Asia-Pacific |
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Market Overview
Global Automotive Forgings Market size worth USD 42 billion in the year 2022 is estimated to display vigorous growth with CAGR 4.6% during forecast years.
The international automotive forgings market is experiencing significant growth and change fueled by a number of factors, such as improvements in material and manufacturing technology, increasing focus on light weighting, and the development of the electric vehicle (EV) market. This market overview discusses the major trends, drivers, challenges, and opportunities impacting the international automotive forgings market.
Automotive forgings industry has seen remarkable growth over the years and is now an important part of the automotive manufacturing industry. Forgings are metal parts that are manufactured through a forging process to develop parts that possess better mechanical properties and have superior strength. These parts play an essential role in many areas of vehicle assembly, ranging from the engine, drivetrain, and chassis to suspension systems.
One of the key drivers of the worldwide automotive forgings market is the industry-wide focus on lightweighting. Automakers are constantly looking for means to minimize vehicle weight in order to enhance fuel efficiency, lower emissions, and overall performance. Forged parts have a special advantage in this context, as they deliver the necessary strength and durability while being lighter than cast or machined parts. With ever-stricter fuel economy and emissions requirements becoming the new standard, car manufacturers are turning more and more to forgings to comply.
The industry has been enhanced by continuous improvements in manufacturing and material technologies. New materials, including advanced high-strength steels and lightweight alloys, are widely applied in forging operations. These materials have improved strength-to-weight ratios and facilitate the production of more intricate and lighter forged parts. Furthermore, new forging technologies, such as precision forging and hot isostatic pressing (HIP), have enhanced the overall quality and reliability of forged parts.
The world move to electric cars is a serious thing for the car forgings business. Electric cars need strong and light-weight materials to increase mileage and efficiency. Forgings are now the most important answer as they have the ability to shed weight on high-value parts such as electric motor enclosures, suspension components, and battery elements. The forging demand is expected to go through a remarkable upsurge with the continuing boom in the electric vehicle business.
Growing ecological consciousness and regulatory pressure from governments have further stimulated the use of forgings in the auto sector. Forgings help make a vehicle more sustainable by making it more fuel-efficient and lowering emissions through weight saving. In addition, the durability and life of forgings can make a vehicle last longer, minimizing the environmental cost of disposal and replacement of parts.
The world automotive forgings market has regional differences in demand and production. Those regions with a high presence of automotive manufacturing, like North America, Europe, and Asia-Pacific, are major contributors to the market. These regions are supported by the presence of established automotive OEMs and forging suppliers. Emerging economies, like India and Southeast Asia, are also seeing growing demand for forgings as their automotive industries grow.
In spite of the many benefits, the automotive forgings industry is challenged by cost competitiveness and competition from other manufacturing processes. Forgings tend to need special equipment and tooling, which can result in increased initial investment. In addition, other manufacturing processes such as casting and additive manufacturing are still developing, and they pose competition to conventional forging processes. Overcoming these challenges will involve continued innovation and cost reduction in the forging industry.
The worldwide automotive forgings market is poised for exciting growth opportunities, especially in terms of EVs and the pursuit of lightweighting. As auto manufacturers strive to make more fuel-efficient and cleaner vehicles, advanced forged components' demand will go up. Secondly, forging suppliers can look at opportunities to add new products, provide customized products, and also work with the OEMs as a way of fulfilling the shifting demands of the automotive sector.
Key Market Drivers
Lightweighting Efforts
One of the key drivers of the global automotive forgings market is the collective push in the industry for lightweighting. Automotive companies are always looking for means to lower vehicle weight in order to increase fuel efficiency, lower emissions, and overall performance. Forged parts have a specific benefit here. They can meet the strength and durability requirements while being much lighter than cast or machined equivalents.
Advancements in Materials
Material advancements have been instrumental in propelling the use of forged parts in the automotive sector. Car manufacturers can now access a variety of new materials, such as advanced high-strength steels, lightweight alloys, and specialty composites. These materials possess higher strength-to-weight ratios, which make them suitable for forging operations.
Manufacturing Process Advancements
Along with material development, process innovations in manufacturing have further driven the global automotive forgings market. Precision forging and hot isostatic pressing (HIP), among others, have enhanced the quality and consistency of forged components. These new techniques enable higher precision in forming components and improving their mechanical properties.
Expansion of the Electric Vehicle Segment
The development of electric vehicles (EVs) is one of the strongest drivers of the global automotive forgings market. EVs are engineered to be light, efficient, and environmentally sustainable. This requires the incorporation of light but strong materials and components, the exact characteristics that forged parts can provide.
Forgings have achieved an essential place in EV production, especially the making of electric motor housings, suspension pieces, and battery parts. Such pieces need to be light-weight in order to provide the most amount of mileage with the car and yet hold their structure together. Forged components serve the above purposes and therefore play an indispensable role in EV production.
Sustainability and Environmental Concerns
The world's emphasis on sustainability and environment issues is another major driving factor of the automotive forgings market. Forged parts play a part in sustainability efforts in many different ways. For one, by lightening the vehicle, forgings enhance fuel efficiency and lower emissions. Vehicles are lighter in weight and consume less energy as well as emit fewer pollutants, which fits into strict environmental regulations.
Regional Dynamics
The automotive industry demand for forged parts also differs by region, based on regional dynamics and local preferences. Strong automotive manufacturing presence regions like North America, Europe, and Asia-Pacific are major contributors to the worldwide market. These regions enjoy the advantage of the presence of established automotive original equipment manufacturers (OEMs) and forging suppliers.
Challenges and Competition
As the world automotive forgings market grows at a strong pace, it also has to contend with cost competitiveness and competition from other manufacturing processes. Forgings tend to demand specialized tooling and equipment, which can increase initial investment expenses. Casting and additive manufacturing, among others, continue to improve, providing substitute solutions for making some components.
Opportunities for Growth
The worldwide automotive forgings market presents substantial opportunities for growth, especially in light of the automotive sector's continued quest for lightweighting, the growth of the EV segment, and the wider emphasis on sustainability. As vehicle manufacturers look to create more efficient and sustainable cars, demand for sophisticated forged components will increase. Forging suppliers are able to expand their product range, provide custom solutions, and partner with OEMs to cater to the changing requirements of the automotive sector.
Key Market Challenges
Cost Competitiveness
One of the primary challenges facing the global automotive forgings market is cost competitiveness. Forging processes often require specialized equipment, tooling, and skilled labor, which can result in higher initial investment costs compared to alternative manufacturing methods like casting or stamping. This cost disparity can pose a hurdle for forging suppliers and make forged components less attractive to automakers seeking cost-effective solutions.
Competition from Alternative Manufacturing Processes
The automotive industry's constant pursuit of innovation has led to the emergence and evolution of alternative manufacturing processes that challenge traditional forging techniques. Casting, in particular, has made significant advancements, enabling the production of complex components with reduced material waste. Additionally, additive manufacturing, or 3D printing, has gained traction as a viable method for producing certain automotive components.
Complexity of Geometries
While forging processes excel at producing strong and durable components, they may face limitations when it comes to complex geometries and intricate designs. Some automotive components, such as those used in modern engines and transmissions, have increasingly intricate shapes to optimize performance, efficiency, and emissions.
Environmental Regulations and Sustainability
Material Availability and Cost
The global automotive forgings market relies heavily on the availability and cost of specific materials, particularly high-strength steels and lightweight alloys. Fluctuations in the availability and cost of these materials can directly impact the profitability of forging suppliers and, by extension, the competitiveness of forged components.
Technological Advancements and Automation
The advancement of automation and digital technologies presents both opportunities and challenges for the global automotive forgings market. While automation can enhance production efficiency and reduce labor costs, it may also require substantial capital investment. Integrating automation into forging processes, such as robotics and artificial intelligence, requires specialized expertise and resources.
Skilled Labor Shortages
Skilled labor shortages are a concern in many manufacturing sectors, including forging. The forging process relies on experienced personnel who possess specialized knowledge of metallurgy, equipment operation, and quality control. As the older generation of skilled workers retires, the industry faces a challenge in attracting and retaining new talent with the necessary expertise.
Regional Disparities in Demand
The demand for forged components varies significantly by region, influenced by regional dynamics, preferences, and economic conditions. Regions with strong automotive manufacturing bases, such as North America, Europe, and Asia-Pacific, are significant contributors to the global market. However, emerging markets in regions like Africa and South America may have different automotive needs and preferences.
Navigating these regional disparities in demand requires forging suppliers to be agile and adaptable, tailoring their product offerings to meet the unique requirements of each market. This may involve collaborating with local partners or establishing regional manufacturing facilities.
Key Market Trends
Shift Towards Lightweighting
Adoption of Advanced Materials
Growth of Electric Vehicles (EVs)
Increasing Focus on Safety
Global Expansion and Supply Chain Diversification
Increased Automation and Industry 4.0 Integration
Automation and Industry 4.0 technologies are making their way into the automotive forgings industry. These advancements are enhancing production efficiency, reducing labor costs, and improving quality control. For example, robotic forging cells are being used for tasks like material handling and part inspection. The integration of sensors and data analytics allows manufacturers to monitor and optimize the forging process in real-time, leading to higher precision and productivity.
Sustainable Practices and Environmental Concerns
Customization and Prototyping
Collaboration and Strategic Alliances
Regulatory Changes and Quality Standards
The automotive industry is subject to a multitude of regulations and quality standards, and compliance is essential for market access. Forging manufacturers are continuously adapting to meet evolving standards related to safety, emissions, and materials. Staying compliant with these regulations requires ongoing investment in research and development to develop forged components that meet or exceed these standards.
Segmental Insights
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Vehicle Type Insights
The global Automotive Forgings market is segmented into various vehicle types including passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Passenger vehicles occupy a significant share of the market, attributed to the high demand for fuel-efficient vehicles and a rise in per capita income in developing countries. Light commercial vehicles are also seeing growth due to increasing small-scale businesses and the need for smaller transportation vehicles. Heavy commercial vehicles, on the other hand, are driven by the growing industrial and construction sectors. These market segments present a significant impact on the overall growth of the global Automotive Forgings market.
Material Type Insights
The global automotive forging market is driven by a wide range of materials, each offering distinctive properties and advantages. Steel, for instance, is highly favored for its durability and resistance to wear and tear, making it ideal for components subjected to high stresses, such as engine parts and transmission systems. Aluminum, however, is gaining popularity due to its lightweight properties, contributing to improved fuel efficiency and vehicle performance. The emergence of new materials, such as high-strength low-alloy (HSLA) steels, is anticipated to further shape the landscape of the global automotive forging market.
Regional Insights
The global automotive forgings market exhibits significant regional variations. North America, with its robust automobile industry, is a leading consumer of automotive forgings, driven by the demand for high-quality, durable components in both private and commercial vehicles. Europe follows closely, with Germany's strong automotive sector propelling growth. Asia-Pacific, led by China and India, is the fastest-growing region for automotive forgings. Rapid urbanization, increasing disposable income, and the expanding automobile industry are key growth factors in this area. Conversely, regions like Africa and the Middle East have a nascent market, gradually expanding as automotive infrastructure develops.
Recent Developments
- February 2022- Bharat Forge Limited announced an agreement for theacquisition of Foundry India to expand its product portfolio.
- In 2022, Siderforgerossi Group S.p.S. acquired Groupo Euskal ForgingS.L. and its subsidiaries.
Key Market Players
- NTN Corporation
- Kovarna Viva
- ThyssenKrupp AG
- Bharat Forge Limited
- Nanjin Automobile Forging Co Ltd
- Dana Inc
- CIE Automotive SA
- Meritor Inc
- Aichi Forge USA Inc
- American Axle & Manufacturing Inc.
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