Automotive Forgings Market Report: USD 42 Billion Revenue – Latest Trends & Demand [4.6% CAGR]

According to TechSci Research, the Global Automotive Forgings Market stood at USD 42 Billion in 2022 and is anticipated to grow at a CAGR of 4.6% during the forecast period from 2024 to 2028. The market is witnessing a robust transformation driven by increasing vehicle production, a strong push for lightweight materials, technological advancements in forging techniques, and the accelerating shift toward electric mobility.

As OEMs and Tier-1 suppliers adapt to evolving consumer expectations, environmental mandates, and performance demands, automotive forging emerges as a vital segment in the automotive manufacturing value chain.

Introduction

Automotive forgings are critical to the performance, durability, and safety of modern vehicles. These forged components, produced by compressing and shaping metal under high pressure, are essential in powertrains, suspension systems, drivetrains, and various structural assemblies. The market’s evolution is being driven by innovation in materials, precision manufacturing, and a global focus on sustainability.

Automotive Forgings Market Dynamics

• Rising Automotive Production Across Emerging Economies

Emerging economies, particularly in Asia-Pacific and Latin America, are experiencing a surge in automotive demand due to rising income levels, urbanization, and infrastructure development. Nations such as India, China, Brazil, and Indonesia are witnessing significant growth in automobile ownership, directly fueling the demand for forged automotive parts.

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• Focus on Vehicle Lightweighting and Emission Reduction

Global emission norms are becoming increasingly stringent, prompting automakers to seek solutions that enhance fuel efficiency and reduce CO₂ emissions. Forged components, known for their high strength-to-weight ratio, play a vital role in weight optimization without compromising performance or safety. Lightweight forged parts are increasingly used in chassis, suspension, and engine assemblies.

Material Advancements in Automotive Forgings

Adoption of High-Strength Steel and Aluminum Alloys

Forging materials have shifted toward high-strength steels, aluminum, and titanium, which offer improved mechanical properties and corrosion resistance. Steel remains dominant due to its cost-effectiveness and robustness, especially for heavy-duty applications, while aluminum is gaining traction in passenger cars and electric vehicles (EVs) due to its lightweight attributes.

Enhanced Safety and Crash Performance

These advanced materials also contribute to vehicle safety, as forged components used in steering, suspension, and structural systems must meet high crashworthiness standards. The superior strength and fatigue resistance of forged parts are essential for maintaining occupant protection in crash scenarios.

Technological Advancements in Forging Processes

Modern forging facilities are increasingly deploying CAD software and simulation tools to optimize die design and metal flow, reducing material waste and enhancing accuracy. These tools allow for virtual testing, reducing the number of physical trials and expediting product development cycles.

Innovations such as precision forging and near-net shape forging are allowing for tighter dimensional tolerances and less post-processing, leading to significant cost and time savings. These techniques improve surface finish and mechanical properties, which are crucial for high-performance vehicle components.

Impact of Electrification on Forgings Market

Surge in Electric Vehicle Production

The global shift toward EVs has created a new frontier for the forging industry. EVs demand a unique set of lightweight yet strong components, especially in electric drivetrains, motor casings, battery enclosures, and suspension systems. Aluminum and hybrid alloys are increasingly forged to meet these requirements.

Specialized Components for Electric Drivetrains

Unlike ICE vehicles, EVs often require more compact and thermally efficient components, and forgings offer an optimal solution due to their superior strength, heat resistance, and lightweight nature. These attributes are vital in improving EV range and efficiency.

Application Segmentation

Forged gears are a staple in both ICE and EV drivetrains due to their excellent fatigue resistance and durability. With increasing performance demands in passenger and commercial vehicles, the market for precision-forged gears continues to expand.

Engine components such as crankshafts and connecting rods are traditionally forged to withstand high loads and pressures. These parts benefit from enhanced wear resistance and strength, contributing to overall engine efficiency and longevity.

Forged suspension parts and axles play a critical role in load-bearing, stability, and safety. These components are increasingly being manufactured using aluminum forging to reduce unsprung mass and improve ride dynamics.

Regional Insights of Automotive Forgings Market 

Asia-Pacific: Dominant Growth Hub

Asia-Pacific, led by China, India, Japan, and South Korea, is the largest and fastest-growing region in the global automotive forgings market. This dominance is attributed to:

• Rapid vehicle production

• Favorable government policies for EV adoption

• Growing presence of global and local forging suppliers

India, in particular, is emerging as a global forging hub due to its cost-effective manufacturing ecosystem and growing domestic automobile demand.

North America and Europe: Mature but Evolving Markets

North America and Europe are witnessing stable growth, driven by:

• High adoption of electric vehicles

• Focus on lightweighting technologies

• Stringent safety and emissions standards

In these regions, the demand for premium, high-performance forged components is particularly strong in commercial vehicles and luxury passenger cars.

Role of Automation and Industry 4.0

Automotive forging plants are increasingly integrating robotics and automated handling systems for tasks such as billet loading, die handling, and post-processing. These technologies improve productivity, reduce labor costs, and ensure consistent quality. IoT sensors and analytics enable real-time monitoring of forging parameters like temperature, pressure, and die wear. Predictive maintenance based on data analytics helps minimize downtime and extend equipment life, boosting overall operational efficiency.

Sustainability and Environmental Considerations

Energy Efficiency and Waste Reduction

Modern forging operations are implementing energy-efficient furnaces, recycling waste heat, and optimizing raw material usage to minimize carbon footprint. Forging’s high material utilization rates make it inherently more sustainable than other metal forming processes.

Use of Recyclable Materials

Forged components are often made from recyclable metals, which aligns with circular economy principles. Forging plants are increasingly incorporating closed-loop systems to recover and reuse scrap materials.

Growing Importance of Customization and Rapid Prototyping

Design Flexibility for Niche Models

As vehicle platforms become more diverse, the need for customized forged components tailored to specific models and use cases is rising. Forging offers greater geometric flexibility compared to casting or machining.

Prototyping for Shorter Development Cycles

Automakers are seeking shorter time-to-market cycles for new models. Forging companies that offer rapid prototyping capabilities are gaining a competitive edge in securing OEM contracts.

Competitive Landscape

Key Market Players

Major companies operating in the Global Automotive Forgings Market include:

• NTN Corporation

• Kovarna Viva

• ThyssenKrupp AG

• Bharat Forge Limited

• Nanjing Automobile Forging Co. Ltd

• Dana Incorporated

• CIE Automotive S.A.

• Meritor Inc.

• Aichi Forge USA Inc.

• American Axle & Manufacturing Inc.

These players are focusing on expanding production capacity, regional footprint, and strategic acquisitions to maintain a competitive edge.

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Recent Developments

• February 2022: Bharat Forge Limited acquired Foundry India to broaden its product offerings and strengthen its presence in the component manufacturing sector.

• 2022: Siderforgerossi Group S.p.A. acquired Grupo Euskal Forging S.L., enhancing its global footprint and technological capabilities.

Automotive Forgings Market Segmentation Overview

By Material Type

• Steel (dominant)

• Aluminum (rapidly growing)

• Others (Titanium, magnesium alloys)

By Component

• Gears

• Pistons

• Bearings

• Axles

• Connecting Rods

• Crankshafts

• Others

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Heavy Commercial Vehicles (HCVs)

Outlook and Forecast (2024–2028)

The Global Automotive Forgings Market is expected to continue on a steady growth trajectory, driven by:

• Rising global vehicle production, particularly in Asia-Pacific

• Continued expansion of the electric vehicle segment

• Ongoing innovations in forging technologies and materials

• Increasing investments in lightweighting and sustainability

The market is projected to reach substantial valuation by 2028, driven by both demand-side and supply-side dynamics, positioning it as a critical sector within the broader automotive industry.

Conclusion

The Global Automotive Forgings Market is undergoing significant transformation as the automotive industry adapts to new paradigms of sustainability, electrification, performance, and safety. Forgings, with their unique ability to provide strength, precision, and durability, are central to this evolution. Companies operating in this space must embrace technological innovation, strategic partnerships, and sustainability practices to capture emerging opportunities and navigate challenges.

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