Automotive Forgings Market Outlook

The global automotive forgings market is projected to reach approximately USD 39.6 billion by 2035, growing at a CAGR of around 4.8% during the forecast period from 2025 to 2035. This growth can be attributed to several factors, including the increasing demand for efficient and lightweight vehicles, which are becoming essential in today's automotive industry. As manufacturers strive to enhance fuel efficiency and reduce emissions, the requirement for lightweight components, which can be achieved through advanced forging techniques, is rising. Additionally, the growing trends of electric vehicles and hybrid vehicles are propelling the demand for high-strength automotive components, further driving the market for automotive forgings. Furthermore, the expansion of the automotive sector in emerging markets is expected to create new opportunities for market players. With technological advancements and innovations in forging processes, manufacturers are better equipped to meet the evolving demands of the automotive industry.

Growth Factor of the Market

The automotive forgings market is witnessing robust growth due to multiple driving factors. Firstly, the increasing focus on reducing vehicle weight to enhance fuel efficiency is propelling the demand for forged components, which offer superior strength-to-weight ratios compared to traditional materials. Secondly, the rise in electric and hybrid vehicle production necessitates the use of high-strength materials that can withstand the unique stresses associated with these types of vehicles. Additionally, the emphasis on safety and performance in vehicles is leading manufacturers to opt for forged components, which provide enhanced durability and reliability. Moreover, advancements in forging technology, including the adoption of automated and precision forging processes, are making it easier for manufacturers to produce complex shapes and designs that meet stringent industry standards. Finally, the post-pandemic recovery of the automotive sector, along with an increase in vehicle production rates, is expected to further stimulate the growth of the automotive forgings market in the coming years.

Key Highlights of the Market

• The automotive forgings market is projected to reach USD 39.6 billion by 2035.
• The market is growing at a CAGR of approximately 4.8% from 2025 to 2035.
• Increasing demand for lightweight and high-strength components is driving market growth.
• Technological advancements in forging processes are enhancing manufacturing capabilities.
• The rise of electric and hybrid vehicles is creating new opportunities in the forgings segment.

By Product Type

Crankshaft:

Crankshafts are critical components in an engine, responsible for converting the linear motion of pistons into rotational motion. The automotive forgings market has seen a significant demand for forged crankshafts due to the superior strength and durability they offer compared to their cast counterparts. Forged crankshafts can withstand higher stress levels and provide better performance in terms of efficiency and longevity. As vehicle manufacturers continue to prioritize performance and fuel efficiency in engine designs, the demand for high-quality forged crankshafts is expected to increase, fueling market growth in this segment. Furthermore, the shift towards high-performance engines, especially in sports and luxury vehicles, is further driving the need for advanced forging techniques to produce crankshafts that meet stringent performance standards.

Camshaft:

Camshafts play a vital role in controlling the timing of the engine's valves, which directly impacts the overall performance of the vehicle. The automotive forgings market has recognized the importance of camshafts in enhancing engine efficiency, leading to a growing preference for forged camshafts. Forged camshafts provide superior strength and resilience, which are essential in high-performance engines that operate at higher RPMs. The increasing trend towards turbocharged and high-efficiency engines is further boosting the demand for specially designed forged camshafts. Additionally, with the automotive industry's ongoing transition towards electrification, camshafts designed for hybrid and electric vehicles are also emerging, presenting new opportunities for market growth in this segment.

Axle:

Axles are fundamental components that connect wheels to the vehicle and support the weight of the vehicle while enabling movement. The demand for forged axles is on the rise due to the need for lightweight yet strong components that can withstand the rigors of driving. Forged axles offer enhanced mechanical properties and reduced weight, which contribute to improved fuel efficiency and vehicle handling. Additionally, the growing focus on safety and performance standards necessitates the use of high-strength forged axles in both traditional and advanced vehicles, including electric and hybrid models. As manufacturers continue to innovate in axle design and production processes, the market for automotive forgings in the axle segment is expected to experience substantial growth.

Steering Knuckle:

The steering knuckle is a crucial component in a vehicle's steering system, providing a connection point between the steering mechanism and the wheels. The automotive forgings market has seen increased adoption of forged steering knuckles due to the improved strength and rigidity they offer, which are paramount for vehicle stability and handling. The shift toward larger and heavier vehicles also demands higher-performance steering knuckles that can endure increased loads, further driving the demand for forged products. Additionally, advancements in manufacturing technologies that enable the production of complex forging shapes are enhancing design possibilities for steering knuckles, thus encouraging their adoption in modern vehicle designs.

Transmission Gears:

Transmission gears are essential for controlling the power output from the engine to the drivetrain, impacting a vehicle's performance and efficiency directly. The automotive forgings market is experiencing a significant uptick in the demand for forged transmission gears due to their enhanced strength and durability. Forged gears can better handle the high stresses and strains involved in power transmission, making them ideal for high-performance vehicles. As the automotive industry shifts towards continuously variable transmissions (CVTs) and dual-clutch systems, the need for reliable and high-strength forged gears is expected to rise, contributing to the growth of this segment in the automotive forgings market.

By Application

Engine:

The engine application segment is a major driver of the automotive forgings market, as forged components are vital for enhancing engine performance, efficiency, and durability. With the growing demand for high-performance and fuel-efficient engines, manufacturers are increasingly turning to forged parts, such as crankshafts and camshafts, which offer superior strength-to-weight ratios. The shift towards electric vehicles also presents opportunities in the engine segment, as these vehicles require advanced materials and components to support their unique performance needs. As the automotive industry continues to innovate and focus on engine efficiency, the demand for forged components in this application is anticipated to grow significantly.

Transmission:

The transmission application segment is witnessing robust growth in the automotive forgings market, driven by the increasing complexity and performance requirements of modern automotive transmissions. Manufacturers are increasingly adopting forged transmission components, including gears and shafts, to meet the demands for strength, endurance, and reliability. Forged components provide enhanced performance in high-stress environments, making them ideal for use in both traditional and advanced transmission systems. As the automotive industry embraces new transmission technologies, such as automated and hybrid systems, the need for high-quality forged parts in this segment is expected to rise sharply.

Steering System:

The steering system application segment is crucial in ensuring vehicle safety and performance, leading to a growing demand for forged components like steering knuckles and gears. The automotive forgings market is seeing increased adoption of forged parts in the steering system due to their superior strength and reliability, which are essential for maintaining precise vehicle control. As manufacturers push for enhanced driving dynamics and safety features in vehicles, the need for high-quality forged components in steering systems is expected to grow, driving market expansion in this area.

Drivetrain:

The drivetrain application segment is another significant contributor to the automotive forgings market, where forged components play a vital role in transmitting power from the engine to the wheels. The need for strong and lightweight parts in the drivetrain is critical for improving fuel efficiency and performance. As the automotive industry continues to adopt new technologies, such as electric and hybrid drivetrains, the demand for high-strength forged components that can withstand unique operating conditions is expected to increase. Moreover, advancements in manufacturing processes are enabling the production of more complex and efficient drivetrain parts, further propelling market growth in this segment.

Suspension System:

The suspension system is integral to vehicle safety and ride comfort, and the automotive forgings market is experiencing increasing demand for forged components such as control arms and links. Forged parts provide enhanced strength and durability, which are essential for handling the stresses experienced during vehicle operation. The trend towards larger and more powerful vehicles necessitates higher performance and more robust suspension components, creating a significant growth opportunity for forged products in this application segment. As manufacturers focus on improving suspension performance and vehicle stability, the demand for high-quality forged components in the suspension system is expected to rise substantially.

By Distribution Channel

OEMs:

The original equipment manufacturers (OEMs) segment is a key driver of the automotive forgings market, as these manufacturers require high-quality forged components for vehicle production. OEMs prioritize reliability and performance in the parts they utilize, often favoring forged materials for their superior mechanical properties. As the automotive industry continues to evolve, OEMs are increasingly investing in advanced forging technologies to improve the performance and efficiency of their vehicles. Furthermore, the rise of electric vehicles and autonomous driving technologies is prompting OEMs to adopt more sophisticated forging solutions that can meet the unique demands of these innovations, thus supporting market growth in this segment.

Aftermarket:

The aftermarket segment of the automotive forgings market is growing steadily as vehicle owners and repair shops increasingly seek high-performance replacement parts. The demand for forged components in the aftermarket is driven by the need for improved strength and durability in replacement parts, particularly for older vehicles that may require upgraded components to enhance performance. As vehicle maintenance becomes more focused on quality and performance, the aftermarket segment is witnessing increased adoption of forged parts, leading to further expansion of the overall automotive forgings market. Additionally, as vehicle customization becomes more popular, the demand for specialized forged components is expected to rise in the aftermarket sector.

By Material Type

Steel:

Steel remains the dominant material used in the automotive forgings market due to its excellent mechanical properties, affordability, and versatility. It is widely used for various forged components, including crankshafts, camshafts, and gears. The increasing demand for high-strength and lightweight components in the automotive industry is driving the innovation of advanced steel grades that offer improved performance characteristics. Additionally, advancements in steel forging technologies are enabling manufacturers to produce more complex shapes and designs, thus enhancing the application scope of steel forgings in the automotive sector. As the automotive industry continues to evolve, the demand for steel forgings is expected to remain robust.

Aluminum:

Aluminum is becoming increasingly popular in the automotive forgings market due to its lightweight properties, which contribute to improved fuel efficiency and reduced emissions. The adoption of forged aluminum components is on the rise, particularly in electric and hybrid vehicles, where weight reduction is critical for enhancing performance and range. Forged aluminum parts also provide excellent corrosion resistance, making them suitable for various automotive applications. As manufacturers continue to explore innovative aluminum alloys and forging techniques, the use of aluminum in the automotive forgings market is expected to grow significantly, driven by the industry's focus on sustainability and efficiency.

Titanium:

Titanium is recognized for its exceptional strength-to-weight ratio, making it an attractive option for high-performance automotive applications. While the use of titanium in automotive forgings is still relatively niche, its adoption is gradually increasing, particularly in specialized vehicles such as sports cars and aerospace applications. The ability of titanium to withstand high temperatures and corrosive environments makes it suitable for various components, including engine parts and exhaust systems. As advancements in titanium forging technologies continue to emerge, the potential for increased usage of titanium in the automotive forgings market is projected to expand.

Nickel-Based Alloys:

Nickel-based alloys are employed in high-temperature environments and applications where corrosion resistance is critical. The automotive forgings market is witnessing a growing interest in nickel-based alloys for applications such as turbocharger components and exhaust systems, where they can outperform traditional materials. While the market for nickel-based alloys in automotive forgings is relatively small, its unique properties are driving innovation and demand in specialized applications. As automotive manufacturers aim to enhance performance and durability in extreme conditions, the use of nickel-based alloys is expected to see steady growth in the coming years.

Magnesium:

Magnesium is recognized for its lightweight characteristics and is gaining traction in the automotive forgings market, particularly in applications where weight reduction is crucial. Due to its ability to provide significant weight savings compared to traditional materials, magnesium is increasingly being used in forged components for electric and hybrid vehicles. The automotive industry's focus on improving fuel efficiency and lowering emissions is driving the demand for magnesium forgings. As manufacturers continue to develop advanced magnesium alloys and forging techniques, the market for magnesium in automotive applications is anticipated to expand, supporting the overall growth of automotive forgings.

By Region

In North America, the automotive forgings market is expected to witness significant growth, driven by the increasing demand for high-performance vehicles and the presence of major automotive manufacturers in the region. North America is projected to account for approximately 24% of the global automotive forgings market share by 2035, supported by advancements in forging technologies and the adoption of lightweight materials. The region's focus on sustainable transportation solutions, including electric vehicles, is further boosting the demand for forged components, with several companies investing in developing innovative forging processes tailored to meet the needs of this evolving market.

Europe is another key region for the automotive forgings market, projected to hold approximately 30% of the market share by 2035, driven by the presence of established automotive manufacturers and a strong focus on vehicle performance and safety. The European market is witnessing a growing shift toward electric and hybrid vehicles, which are creating new opportunities for forged components that meet stringent performance requirements. Additionally, advancements in forging technologies are enabling manufacturers to produce high-quality components that cater to the region's emphasis on sustainability and reduced emissions. The CAGR for the European market in the automotive forgings segment is expected to be around 5% during the forecast period.

Opportunities

The automotive forgings market is poised to leverage significant opportunities in the coming years, primarily driven by the ongoing transition towards electric and hybrid vehicles. The growing emphasis on fuel efficiency and sustainability is leading manufacturers to invest in advanced forging technologies that can produce lightweight and high-strength components essential for these vehicle types. As the demand for electric vehicles surges, the need for innovative forging solutions to meet the unique performance requirements of electric drivetrains is expected to create new avenues for growth in the automotive forgings sector. Furthermore, the increasing adoption of automation and smart manufacturing processes presents opportunities for manufacturers to optimize production efficiencies and reduce costs, positioning them favorably in the competitive landscape. The continuous pursuit of enhanced vehicle performance and safety features, coupled with the need for superior quality components, will likely drive the automotive forgings market towards new heights.

Another promising area for growth within the automotive forgings market is the rising trend of vehicle customization and performance enhancement among consumers. As more vehicle owners seek to upgrade their vehicles for improved performance or aesthetic appeal, the demand for high-quality forged components in the aftermarket segment is expected to increase significantly. This trend aligns with the growing culture of car enthusiasts who value performance and personalization, thereby creating a lucrative market for manufacturers specializing in forged parts. Additionally, as technological advancements continue to influence the automotive industry, the emergence of new materials and forging techniques can potentially open up avenues for innovative product offerings, further propelling market growth and positioning manufacturers to capitalize on evolving consumer preferences.

Threats

The automotive forgings market faces several threats that could impede its growth trajectory in the coming years. One of the primary concerns is the volatility in raw material prices, particularly for metals like steel, aluminum, and titanium. Fluctuations in the cost of these materials can significantly impact production costs and, consequently, profit margins for manufacturers. Moreover, the global supply chain disruptions experienced during the COVID-19 pandemic highlighted the vulnerabilities in sourcing materials, which can further exacerbate challenges for the automotive forgings market. Additionally, increased competition from alternative manufacturing methods such as 3D printing is posing a threat to traditional forging processes, as these new technologies may offer cost-effective and efficient solutions for producing complex components. As automotive manufacturers strive for cost efficiency and performance optimization, the competitive landscape for forging companies may become increasingly challenging.

Another critical concern for the automotive forgings market is the ongoing advancements in alternative technologies and materials that could potentially replace traditional forged components. The rise of electric vehicles and advancements in composite materials are creating alternatives that may challenge the dominance of forged components in certain applications. As battery technology continues to improve and the automotive industry moves toward lightweight and sustainable solutions, manufacturers must be vigilant in adapting to these changes to remain competitive in the market. Furthermore, regulatory pressures surrounding emissions and sustainability could drive manufacturers towards alternative manufacturing processes and materials, leading to a potential decline in demand for certain forged components. As such, market players must be proactive in addressing these threats while continuously innovating their offerings to meet the evolving demands of the automotive sector.

Competitor Outlook

• Thyssenkrupp AG
• Alcoa Corporation
• ArcelorMittal
• Precision Castparts Corp.
• Forged Products, Inc.
• Hitachi Metals, Ltd.
• American Axle & Manufacturing, Inc.
• Molded Fiber Glass Companies
• Magna International Inc.
• Friedrich Geiss GmbH
• Hirschvogel Umformtechnik GmbH
• Jiangsu Shagang Group Co., Ltd.
• Dongfeng Forging Co., Ltd.
• Ferrostaal GmbH
• Wyman Gordon Company

The competitive landscape of the automotive forgings market is marked by the presence of several established players and emerging companies striving to capture market share. Leading manufacturers are increasingly focusing on technological advancements and innovation in the forging process to enhance the quality and efficiency of their products. Companies are actively investing in research and development activities to create high-performance forged components tailored to meet the specific requirements of the automotive industry. Additionally, many key players are pursuing strategic partnerships and collaborations to broaden their product offerings and expand their geographical presence in emerging markets. The competitive landscape is characterized by a continuous push for product differentiation, as manufacturers strive to offer unique solutions that align with evolving consumer preferences and industry trends.

Among the major players in the automotive forgings market, Thyssenkrupp AG stands out for its comprehensive capabilities in manufacturing various forged components. The companyÔÇÖs commitment to research and development has positioned it as a leader in producing high-strength and lightweight forged parts suitable for both traditional and electric vehicle applications. Alcoa Corporation is another key player recognized for its advancements in aluminum forging technologies, catering to the growing demand for lightweight materials in the automotive sector. The companyÔÇÖs focus on sustainability and innovative production techniques has bolstered its standing in the market, enabling it to capitalize on the trends toward eco-friendly vehicles.

American Axle & Manufacturing, Inc. is a prominent player in the automotive forgings market, specializing in the production of axles and drivetrain components. The company's extensive industry experience and commitment to quality have established it as a trusted supplier for major automotive manufacturers. Additionally, Precision Castparts Corp. has gained recognition for its expertise in manufacturing high-performance forged components, particularly in the aerospace and automotive sectors. The company's advanced manufacturing processes and focus on innovation have positioned it favorably within the competitive landscape, allowing it to meet the evolving demands of the automotive industry effectively. Overall, the automotive forgings market is expected to remain dynamic, with major players continuously striving to enhance their offerings and maintain a competitive edge.