Automotive Forging Market Size & Share, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Agriculture Machinery, Construction Equipment), Material (Steel and Aluminum), Application (Gears, Crankshaft, Pistons, Axle, Bearings, Connecting Rods) By Technology (Closed Die, Open Die) By Supplier Type (Local and International), Regional Forecasts, 2023-2030

Market Outlook:

Automotive Forging Market size surpassed USD 43.62 Billion in 2022 and is poised to reach USD 54.02 Billion, growing at over 5.52% CAGR between 2023 and 2030. Factors such as the rising demand for light-weight and high-strength automotive components, increasing vehicle production, and the need for advanced automotive technologies are driving the market growth. Additionally, the growing preference for electric vehicles and the increasing focus on fuel efficiency are further expected to drive the market in the coming years.

• Base Year Value (2022): USD 43.62 Billion
• CAGR (2023-2030): 5.52%
• Forecast Year Value (2030): USD 54.02 Billion
• Historical Data Period: 2018-2021
• Largest Region: North America
• Forecast Period: 2023-2030

Market Dynamics:

Growth Drivers & Opportunities:

1. Increasing demand for light-weight and high-strength automotive components: The automotive industry is constantly seeking ways to reduce the overall weight of vehicles to improve fuel efficiency and reduce carbon emissions. Automotive forging provides lightweight yet durable components that meet these requirements, thereby driving market growth.

2. Rising vehicle production: The continuous growth in the production of automobiles, especially in emerging economies, is bolstering the demand for automotive forging. The rapid expansion of the automotive industry, coupled with increasing public and private investments, creates significant growth opportunities for market players.

3. Need for advanced automotive technologies: Growing consumer demands for advanced safety features and enhanced vehicle performance drive the need for technologically advanced automotive components. Forged components possess superior strength and durability, making them ideal for meeting these requirements and creating a positive market outlook.

 

Industry Restraints & Challenges:

Report Scope

Report Coverage	Details
Segments Covered	Vehicle, Material, Application, Technology, Supplier.
Regions Covered	• North America (United States, Canada, Mexico)   • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe)   Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC)   • Latin America (Argentina, Brazil, Rest of South America)   • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	ThyssenKrupp AG, CIE Automotive, NTN, American Axle and Manufacturing, Bharat Forge Limited, Ramkrishna Forgings, Dana Limited, Meritor, ZF Friedrichshafen AG.

1. High initial setup costs: Establishing a forging unit entails considerable investments in machinery, equipment, and infrastructure. The high initial setup costs may pose challenges for small and medium-sized companies, hindering market growth to a certain extent.

2. Intense competition: The global automotive forging market is highly competitive, with numerous established manufacturers and suppliers operating worldwide. The intense competition leads to cost pressures and may act as a restraining factor for companies trying to enter the market.

3. Fluctuating raw material prices: Forging requires specific raw materials such as steel and aluminum with varying market prices. Frequent fluctuations in raw material prices affect the profitability of market players and pose challenges in terms of cost management.

In conclusion, the global automotive forging market is expected to witness substantial growth due to factors such as the demand for light-weight and high-strength components, increasing vehicle production, and the need for advanced automotive technologies. However, challenges related to high setup costs, intense competition, and fluctuating raw material prices may pose temporary restraints. Nevertheless, the market presents numerous opportunities for existing and new players to capitalize on the growing automotive industry's evolving demands.

Regional Forecast:

The automotive forging market is expected to witness significant growth across various regions including North America, Asia Pacific, and Europe.

North America

North America is anticipated to dominate the market during the forecast period due to the rising demand for lightweight and fuel-efficient vehicles in the region. The increasing investments in the automotive industry, technological advancements, and stringent government regulations for vehicle safety and emissions are driving the growth of the automotive forging market in this region. Additionally, the presence of key automotive manufacturers and the rising preference for electric and hybrid vehicles further contribute to the market's expansion in North America.

Asia Pacific

Asia Pacific is projected to witness substantial growth in the automotive forging market owing to the rapid industrialization, urbanization, and rising disposable income levels in countries like China and India. The growing population, increasing automotive production, and the presence of an extensive customer base have resulted in the high demand for automobiles in this region. Furthermore, favorable government initiatives, supportive policies, and the steady growth of the automotive industry are driving the market's growth in Asia Pacific.

Europe

Europe is expected to witness significant growth in the automotive forging market due to the region's well-established automotive industry and the presence of major automobile manufacturers. The region's focus on vehicle safety, environmental regulations, and the adoption of advanced technologies have fueled the demand for lightweight forged components, driving the market's growth. The increasing demand for electric vehicles and the rise in automotive exports from European countries further contribute to the market's expansion in this region.

Segmentation Analysis:

The automotive forging market can be segmented based on various factors such as product type, material type, application, and vehicle type.

1. Sub-Segment: Crankshafts

Crankshafts are a crucial component of internal combustion engines, responsible for converting reciprocating motion into rotational motion. They are used in automobiles, heavy-duty trucks, and motorcycles, among others. Crankshafts undergo forging processes to enhance their strength, durability, and resistance to fatigue and impact. The increasing demand for lightweight vehicles with high fuel efficiency has led to the adoption of forged crankshafts. The superior mechanical properties of forged crankshafts, such as improved fatigue resistance and enhanced torsional strength, make them highly beneficial for various automotive applications.

Competitive Landscape:

The competitive landscape of the automotive forging market is characterized by the presence of several key players striving to gain a competitive edge. These market players are engaged in mergers and acquisitions, collaborations, partnerships, and product innovations to strengthen their market position and expand their customer base.

Prominent players in the automotive forging market include:

1. Thyssenkrupp AG

2. Bharat Forge Limited

3. Mahindra CIE Automotive Ltd.

4. Nippon Steel Corporation

5. Sumitomo Corporation

6. American Axle & Manufacturing Holdings, Inc.

7. Hirschvogel Holding GmbH

8. Montupet SA

9. CIE Automotive, S.A.

10. Georg Fischer Ltd.

These companies focus on technological advancements, product development, and expanding their production capacities to meet the growing demand for automotive forged components globally.