Automotive Components Forging Sales Market Outlook

The global automotive components forging market is expected to reach approximately USD 70 billion by 2035, with a compound annual growth rate (CAGR) of about 4.5% during the forecast period from 2025 to 2035. The rising demand for lightweight and fuel-efficient vehicles, alongside the growing emphasis on enhancing vehicle performance, is a significant factor contributing to this market's growth. Furthermore, the automotive industry is increasingly focusing on adopting advanced manufacturing processes and materials, which is expected to bolster the forging market. Additionally, the implementation of stringent regulations concerning emissions and safety is driving manufacturers to invest more heavily in advanced forged components. The shift towards electric vehicles (EVs) is also anticipated to be a key driver, as these vehicles require specialized components that can benefit from forging technology.

Growth Factor of the Market

The growth of the automotive components forging market is primarily driven by the increasing production of both passenger and commercial vehicles worldwide. The automotive industry has been experiencing a renaissance, with innovative technologies being integrated into vehicle design and manufacturing. Consequently, there is a growing demand for lightweight materials that can enhance fuel efficiency and reduce carbon emissions. Additionally, the surge in electric vehicle production is creating new opportunities for forged components, as these vehicles often require high-performance materials that can withstand greater stresses. The expansion of the automotive aftermarket also plays a crucial role, as it creates a steady demand for replacement parts, including forged components. Moreover, advancements in forging technologies, such as precision forging and closed-die forging, are enabling manufacturers to produce more complex shapes and designs, thereby meeting the diverse needs of modern vehicles.

Key Highlights of the Market

• The automotive components forging market is projected to grow at a CAGR of 4.5% from 2025 to 2035.
• Increased production of lightweight vehicles is driving demand for advanced forged components.
• The rise of electric vehicles is creating new opportunities for innovation in forging technologies.
• Enhanced focus on vehicle safety and emissions regulations is influencing manufacturing processes.
• Precision forging technologies are enabling manufacturers to create complex and high-quality components efficiently.

By Product Type

Engine Components:

Engine components represent a vital segment of the automotive components forging market, as they are crucial for the overall performance and efficiency of vehicles. Forged engine components often include crankshafts, camshafts, and connecting rods, which require exceptional strength and durability to withstand extreme operational conditions. The increasing demand for high-performance engines is propelling the need for advanced forged components, as they are known for their ability to improve fuel efficiency and reduce emissions. Additionally, manufacturers are increasingly investing in specialized forging techniques that enhance component design, allowing for lighter and more compact engine designs. The growth of the electric vehicle segment further supports this product type, as electric motors also benefit from precision-forged components designed for optimal performance.

Transmission Components:

Transmission components are crucial for the smooth operation of vehicles, and their demand in the automotive components forging market is on the rise. Forged transmission components, such as gears, shafts, and housings, are designed to endure high levels of stress and wear, making them essential for ensuring long-lasting vehicle performance. The growing trend towards automatic and semi-automatic transmissions is particularly driving the need for advanced forging techniques to produce lighter and more efficient components. With the rise of electric and hybrid vehicles, the demand for specialized transmission systems that utilize forged components is also increasing, further contributing to this segment's growth. Manufacturers are focusing on developing innovative materials and forging processes to enhance the performance and reliability of transmission components.

Steering Components:

Steering components play a critical role in vehicle maneuverability and safety, and their presence in the automotive components forging market is significant. Forged steering components, including steering knuckles and racks, offer enhanced strength and precision, which is essential for maintaining vehicle control. The shift towards advanced steering systems, such as electric power steering, is boosting the demand for high-quality forged components that can withstand varying loads and stresses. Additionally, manufacturers are adopting advanced forging methods to produce lightweight yet robust steering components that improve overall vehicle performance. As consumer expectations for safety and handling increase, the importance of reliable forged steering components becomes even more pronounced, driving growth in this segment.

Suspension Components:

The suspension components segment is integral to vehicle stability and comfort, making it a significant part of the automotive components forging market. Forged suspension components, such as control arms and struts, are designed to absorb shocks and enhance ride quality while ensuring the vehicle's structural integrity. As automakers continue to prioritize performance and comfort, the demand for high-quality forged suspension parts is expected to rise. Innovations in material science and forging techniques are leading to the production of lighter suspension components, improving fuel efficiency without compromising safety. Additionally, the increasing adoption of advanced suspension systems in electric and hybrid vehicles is further driving the need for specialized forged components capable of supporting these technologies.

Braking Components:

Braking components are essential for the safety and performance of vehicles, and their forging is a vital aspect of the automotive components forging market. Components like brake calipers, rotors, and brackets must meet stringent safety standards and performance criteria, which is why forging is often preferred over other manufacturing methods. The growing focus on vehicle safety features and regulatory compliance is increasing the demand for advanced forged braking components. Moreover, the shift towards high-performance vehicles and electric vehicles, which require specialized braking solutions, is propelling this segment. Manufacturers are continually innovating to enhance the performance and durability of forged braking components, ensuring they can withstand the demands of modern driving conditions.

By Application

Passenger Vehicles:

The passenger vehicles application segment accounts for a significant share of the automotive components forging market, driven by the increasing production of cars and light trucks worldwide. The demand for forged components in passenger vehicles is primarily driven by the need for improved performance, fuel efficiency, and safety. As consumers become more environmentally conscious, automakers are compelled to innovate and adopt lightweight materials that enhance fuel economy, leading to increased utilization of forged components. Additionally, the growing trend towards electric vehicles is creating opportunities for advanced forged components designed specifically for electric drivetrains. Manufacturers are focusing on producing high-strength, lightweight materials that not only meet performance standards but also contribute to emissions reduction.

Commercial Vehicles:

The commercial vehicles application segment is witnessing substantial growth within the automotive components forging market, as the demand for heavy-duty trucks and buses continues to rise. Forged components in commercial vehicles, such as axles, frames, and suspension parts, are critical for ensuring structural integrity and load-bearing capacity. The increasing demand for efficient logistics and transportation solutions is driving manufacturers to enhance the performance and durability of commercial vehicles, leading to greater reliance on forged components. Additionally, advancements in forging technologies are allowing for the production of more complex and robust parts that can withstand the rigors of heavy use. As governments implement stricter emissions regulations for commercial vehicles, the shift towards lightweight forged components is expected to gain momentum.

Off-Highway Vehicles:

The off-highway vehicles application segment is a growing niche within the automotive components forging market, driven by the need for robust components that can withstand harsh operating conditions. This segment includes vehicles such as construction equipment, agricultural machinery, and mining vehicles that require high-strength forged components to perform effectively in rugged environments. The increasing investment in infrastructure projects and agricultural development is boosting the demand for off-highway vehicles, which in turn drives the need for advanced forging solutions. Manufacturers are focusing on producing specialized forged components that provide enhanced performance and durability, catering to the unique demands of off-highway applications. As the global economy continues to expand, the demand for reliable forged components in this segment is expected to grow significantly.

By Distribution Channel

OEMs:

The Original Equipment Manufacturers (OEMs) distribution channel is a dominant segment in the automotive components forging market, accounting for a large portion of sales. OEMs are the primary buyers of forged components as they require high-quality parts for the assembly of new vehicles. The growing automotive production, driven by increasing consumer demand, is propelling the need for OEM-sourced forged components. Additionally, collaborations between manufacturers and OEMs are fostering innovation and ensuring that the latest forging technologies are integrated into new vehicle designs. The trend towards electrification, with an increasing number of automakers producing electric vehicles, is also creating opportunities for OEMs to source specialized forged components that meet the unique requirements of EVs.

Aftermarket:

The aftermarket distribution channel segment is witnessing significant growth within the automotive components forging market, as vehicle owners increasingly seek replacement parts to maintain and upgrade their vehicles. The demand for high-quality forged components in the aftermarket is driven by the need for durability and performance in replacement parts. As vehicles age, the requirement for replacement components becomes more pronounced, leading to a robust aftermarket for forged parts. Additionally, the trend towards DIY repairs and modifications is further enhancing the demand for aftermarket forged components. Manufacturers are focusing on providing a wide range of forged components that cater to varying vehicle models and specifications, ensuring that consumers have access to high-quality replacement options.

By Material Type

Steel:

Steel is the most widely used material in the automotive components forging market due to its exceptional strength and durability. Forged steel components are essential for various automotive applications, including engine, transmission, and suspension systems, where high resistance to wear and stress is crucial. The versatility of steel allows manufacturers to produce a wide range of components, from lightweight alloys to high-strength variants that meet specific performance criteria. As the automotive industry moves towards more fuel-efficient and environmentally friendly solutions, the demand for high-performance forged steel components is expected to grow. Innovations in steel forging technologies are also contributing to improved properties, enabling the production of more efficient and sustainable automotive parts.

Aluminum:

Aluminum is increasingly being adopted in the automotive components forging market, primarily due to its lightweight properties and resistance to corrosion. The demand for aluminum forged components is driven by the automotive industry's focus on reducing vehicle weight to enhance fuel efficiency and lower emissions. Forged aluminum components are commonly used in passenger vehicles, particularly in engine and transmission applications where weight savings can lead to significant performance improvements. As the market shifts towards electric vehicles, the adoption of aluminum forging is expected to rise, as these vehicles require lightweight materials that do not compromise strength. Manufacturers are continually developing innovative forging methods to optimize the performance of aluminum components while maintaining cost-effectiveness.

Titanium:

Titanium is becoming a material of choice in the automotive components forging market, particularly for high-performance applications that demand superior strength-to-weight ratios. The unique properties of titanium, such as its resistance to corrosion and ability to withstand high temperatures, make it ideal for forged components used in performance vehicles and aerospace applications. The growing trend of specialized vehicle production, including sports cars and luxury vehicles, is driving the demand for titanium forged components. However, the high cost of titanium compared to traditional materials poses challenges for widespread adoption. Nonetheless, advancements in forging technologies are enabling manufacturers to produce cost-effective titanium components, thereby expanding their application in the automotive sector.

By Region

The North American automotive components forging market is a significant contributor to the global landscape, spurred by the region's robust automotive industry. The U.S. is home to several leading automotive manufacturers and suppliers, driving the demand for forged components. The increasing integration of advanced manufacturing technologies and a growing emphasis on lightweight vehicle design are key trends shaping this market. Moreover, the projected CAGR for the North American region is estimated to be around 4.0%, driven by the transition towards electric vehicles and stringent safety regulations that require the use of high-quality components. The region's strong aftermarket segment also contributes to the steady demand for forged components as vehicle owners seek reliable replacement parts.

In Europe, the automotive components forging market is experiencing notable growth, fueled by the region's commitment to innovation and sustainability in the automotive sector. European automakers are leading the charge in developing electric and hybrid vehicles, which require specialized forged components that align with performance and environmental standards. The growth in production volumes of both passenger and commercial vehicles is contributing to this segment's expansion. The European automotive market is characterized by a high demand for lightweight materials, driving further investments in advanced forging technologies. The CAGR for the European market is projected at approximately 4.2%, reflecting the region's proactive approach towards vehicle electrification and safety compliance.

Opportunities

The automotive components forging market is ripe with opportunities, particularly as the global automotive industry undergoes a significant transformation toward electrification and sustainability. As automakers strive to produce lighter and more efficient vehicles, the demand for specialized forged components that can enhance performance will continue to rise. Manufacturers are encouraged to invest in research and development to explore innovative forging techniques that can produce high-strength, lightweight materials that meet evolving industry standards. The increasing trend of vehicle automation also presents opportunities for manufacturers to create forged components tailored for advanced driver-assistance systems (ADAS) and other cutting-edge technologies. Additionally, the growth of the automotive aftermarket is expected to provide a steady stream of demand for forged components as vehicle owners seek durable replacement parts to enhance their vehicles' longevity.

Furthermore, the expansion of infrastructure projects and investment in the commercial vehicle sector is likely to unlock new growth avenues for the automotive components forging market. As urbanization and population growth fuel the demand for logistics and transportation solutions, the need for heavy-duty forged components for trucks and buses will increase significantly. Additionally, the increasing emphasis on sustainability and green manufacturing practices presents an opportunity for manufacturers to differentiate themselves by producing eco-friendly forged components. Collaborations between manufacturers and research institutions can also stimulate innovation and drive the development of advanced forging technologies that will contribute positively to the market's growth.

Threats

Despite the positive outlook for the automotive components forging market, several threats could impact its growth trajectory. One of the primary challenges is the fluctuation of raw material prices, particularly for steel and aluminum, which can lead to increased production costs. This unpredictability may force manufacturers to adjust their pricing strategies, potentially affecting profitability and market competitiveness. Additionally, the global push towards sustainability and environmental compliance is prompting manufacturers to adapt their processes, which may involve significant capital investment. Companies that fail to innovate or keep pace with regulatory requirements risk losing market share to more agile competitors who can better respond to changing consumer demands.

Moreover, the ongoing trade tensions and geopolitical uncertainties may affect the supply chain dynamics within the automotive components forging market. Manufacturers that rely on global sourcing for raw materials or components may face disruptions that could hinder production timelines and lead to increased costs. Furthermore, competition from alternative manufacturing methods, such as additive manufacturing and machining, poses a threat to the traditional forging market. As these technologies evolve and demonstrate their capabilities, manufacturers may find themselves needing to adapt their business models to stay relevant in a rapidly changing landscape.

Competitor Outlook

• Thyssenkrupp AG
• Alcoa Corporation
• Precision Castparts Corp.
• American Axle & Manufacturing Holdings, Inc.
• Forging Industries, Inc.
• ArcelorMittal
• Frenzelit GmbH
• Omni International, Inc.
• Kobe Steel, Ltd.
• Hitachi Metals, Ltd.
• Dongfeng Motor Corporation
• Hindustan Aeronautics Limited (HAL)
• Magna International Inc.
• WHEMCO, Inc.
• Schuler AG

The competitive landscape of the automotive components forging market is characterized by both established players and new entrants seeking to capitalize on growth opportunities. Major companies are focusing on innovation, sustainability, and technological advancements to enhance their product offerings and maintain a competitive edge in the market. Many established players have invested heavily in R&D to develop cutting-edge forging technologies that improve efficiency and reduce waste, signifying a trend toward lean manufacturing practices. Furthermore, collaborations and strategic partnerships among key players are also common, allowing firms to pool resources, share expertise, and expand their market reach. This collaborative spirit is essential for fostering innovation and addressing evolving industry challenges.

Thyssenkrupp AG is a prominent player in the automotive components forging market, known for its comprehensive range of forged products. The company has made significant investments in forging technologies, particularly in the production of high-strength components for electric and hybrid vehicles. Thyssenkrupp's emphasis on sustainability and its commitment to reducing carbon emissions position it favorably within the growing market for eco-friendly automotive solutions. Similarly, Alcoa Corporation, a leader in aluminum manufacturing, is leveraging its expertise in lightweight materials to provide innovative forged solutions that cater to the needs of modern vehicles. The company's focus on recycling and sustainability further enhances its market position, appealing to environmentally conscious automakers.

American Axle & Manufacturing Holdings, Inc. is another significant player in the automotive components forging market, specializing in driveline and drivetrain components. The company's extensive experience in the industry allows it to deliver customized forging solutions that meet the specific demands of its clients. Moreover, American Axle's commitment to technological advancement and quality assurance ensures that its forged components are reliable and high-performing. Meanwhile, Magna International Inc., a major player in the automotive supply industry, is diversifying its product portfolio to include advanced forged components. The company's strategic focus on electric vehicle solutions and lightweight materials positions it well in the evolving automotive landscape, as it aims to meet the growing demand for efficient and sustainable vehicle manufacturing.