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Automotive Forging Market Size, Share, and Analysis, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles), By Material (Aluminum, Steel, and Others), By Application (Gears, Crankshaft, Pistons, Axle, Bearings, Connecting Rods, and Others), By Technology (Closed Die, Open Die, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Automotive Forging Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 5.1% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 47.9 billion and is projected to reach USD 83.1 billion by the completion of 2034.
Automotive forging is a manufacturing method that shapes and forms metal components for vehicles using heat and pressure. This procedure improves the structural integrity and mechanical properties of automobile parts by aligning the metal's grain structure, which results in increased strength and longevity. Automotive forging is widely used for the creation of various items including crankshafts, connecting rods, and gears, ensuring precision shape and uniform material density. The standard technique of automotive forging involves heating the metal to a malleable state, then pressing or hammering it into the required shape with specialized dies. Furthermore, the finished forged products have high fatigue resistance, impact strength, and better performance, which significantly contribute to the reliability and safety of automotive systems.
Automotive Forging Market is projected to reach USD 83.1 billion over the forecast period, owing to the rising demand across industries for lightweight and high-strength components. Automobile manufacturers are prioritizing fuel efficiency and safety, which has resulted in increased use of forged parts such as crankshafts and connecting rods. Additionally, the global growth in car production is another factor driving market expansion. Automotive forging has significant advantages, such as increased durability, fatigue resistance, and component strength, which aligns with the industry's emphasis on satisfying high performance standards. Moreover, key competitors in the automotive forging market are investing heavily in R&D to stay competitive and improve their product offerings. Therefore, the market's growth trajectory is defined by the focus on innovation and a persistent search for advanced materials to satisfy evolving industry demands.
Source: Fatpos Global
Based on Vehicle Type, the Automotive Forging Market is segmented into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. The passenger car segment is anticipated to dominate the automotive forging market, due to significant revival of car production across major economies such as India and China. The developing designs of mechanical components within electric cars further solidifies the dominance of passenger car segment. These components have a simplified geometry which facilitates more striking designs and promotes the adoption of forged aluminum parts. Furthermore, the superior performance of forged aluminum components in passenger vehicles compared to machined or cast parts improves the comprehensive reliability. Therefore, these combined factors, along with the growing demand for electric vehicles, establish the passenger car segment as an essential growth driver in the sustained expansion of the automotive forging market.
By Material, Automotive Forging Market is divided into Aluminum, Steel, and Others. The steel segment will likely lead the automotive forging market due to its unique characteristics that align with the demands of various industries. The exceptional forgeability of carbon steel, combined with high impact strength and affordability, establish it as the ideal material for forging in the automotive industry. Additionally, the requirement for steel supports the commitment of automotive industry on producing lightweight yet durable components, which contributes in reducing the weight of vehicles. Consequently, since weight loss has a significant impact on both fuel efficiency and performance, steel's superior strength makes it an appealing option for manufacturers. The long-term significance of these qualities is projected to maintain the supremacy of steel in the automobile forging business and accelerating future growth.
Source: Fatpos Global
Growing Demand for Lightweight Components Creates Growth Opportunities
Emphasis of automotive industry on improving fuel efficiency and reducing pollutants is driving the demand for lightweight components in vehicle manufacturing. Automotive forging helps to address this demand by providing materials such as aluminum and advanced steel alloys which provide the ideal mix of strength and weight. Forged components including crankshafts and connecting rods help to reduce weight while maintaining structural integrity. This tendency is especially important as manufacturers try to meet strict environmental rules while improving vehicle performance. Thus, the automotive forging market is expected to increase gradually due to the industry's constant focus on fuel efficiency and the growing use of lightweight materials in critical component manufacturing.
Rising Adoption of Electric Vehicles (EVs) will Likely Result in Market Expansion
Global automotive ecosystem is witnessing a transformational shift toward electric mobility, which is demonstrated by the growing adoption of electric cars (EVs). As EVs become more popular, there will be an increasing demand for specialized components which are capable of withstanding the specific challenges given by electric engines. Automotive forging emerges as an important solution, that provides components with exceptional mechanical qualities required for the strong and dependable functioning of electric vehicles. Moreover, the adaptability of forged parts positions them at the core of the electric vehicle revolution. This shift toward electrification in the automobile sector represents a significant development factor for the automotive forging business, offering new opportunities for the manufacturing of high-performance components which are customized to meet special demands of electric mobility.
High Initial Costs to Prevent Industry Expansion
Substantial initial capital investment required for the establishment and maintenance of forging facilities is a significant constraint in the automotive forging market. The setup of modern and technologically advanced forging plants requires substantial financial resources. Furthermore, ongoing investments are crucial to keep these facilities updated of the latest technologies and industry standards. This financial barrier presents a challenge, particularly for smaller or emerging market players, thereby limiting their capacity to compete on the same scale as more established manufacturers. The capital-intensive characteristics of the automobile forging business can create entry hurdles, restricting the growth opportunities of new competitors and perhaps consolidating market power among well-capitalized firms.
Automotive Forging Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region is expected to assert dominance in the automotive forging market, due to the presence of developing economies such as China and India, playing a major role in the production of forged components. Major companies have made investments in modern technology, especially in automation and high-tech gear with low energy consumption and high efficiency, which have contributed to the region's dominance. This continued emphasis on technology developments ensures a competitive advantage in production capacity. Additionally, renowned industry players such as Bharat Forge Limited actively contribute to the growth in the Asia Pacific region. Furthermore, their proactive engagement in creating opportunities in the Asia Pacific region positively impacts the expansion of the automotive forging market.
Source: Fatpos Global
COVID-19 pandemic had a profound influence on the automotive forging market. Global disruptions in supply chains, along with factory closures and low consumer demand resulted in a significant downturn in automotive production. Moreover, lockdowns and restrictions further impeded the manufacturing and distribution of forged components. Growing uncertainties and financial constraints led to postponement in investments and project delays within the industry. However, the pandemic highlighted the importance of resilient and flexible supply chains, encouraging industry participants to reevaluate and strengthen their strategies. Therefore, high vaccination rates and economic reopening resulted in a rebound in automotive manufacturing post the COVID-19 pandemic.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 5.1% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Vehicle Type |
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By Material |
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By Application |
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By Technology |
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By Region |
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Automotive Forging Market size was values at USD 47.9 billion in 2023 and is projected to reach the value of USD 83.1 billion in 2034, exhibiting a CAGR of 5.1% during the forecast period.
The Automotive Forging Market refers to the process of shaping and forging metal components for cars, such as crankshafts and connecting rods. This procedure improves the structural integrity and strength of automobile parts, resulting in increased durability and performance.
The Passenger Cars segment and the Steel segment accounted for the largest Automotive Forging Market share.
Key players in the Automotive Forging Market include Nippon Steel Corporation, Thyssenkrupp AG, American Axle & Manufacturing, Inc., Arconic Inc., Precision Castparts Corp. , ATI (Allegheny Technologies Incorporated), Bharat Forge Limited, Mahindra CIE Automotive Limited, Kalyani Group, Hirschvogel Automotive Group, Norsk Hydro ASA, Trenton Forging Company, Ellwood Group, Inc., SIFCO Industries, Inc., Sona BLW Precision Forgings Limited., and Other Prominent Players.
Growing demand for lightweight components and rising adoption of electric vehicles (EVs) are the factors driving the automotive forging market.
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