Automotive Forgings Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Forgings Market is projected to expand from USD 46.62 Billion in 2025 to USD 62.87 Billion by 2031, reflecting a compound annual growth rate of 5.11%. These forgings consist of precision-engineered metal parts formed through compressive forces, resulting in high-strength components such as gears, connecting rods, and crankshafts that are critical for vehicle chassis and powertrain systems. Key factors fueling this growth include a steady rise in global automobile manufacturing and an increasing need for durable, lightweight materials to satisfy strict emission regulations and fuel efficiency targets.

Conversely, the industry confronts a significant hurdle due to the rapid shift toward electric vehicles, which require fewer moving mechanical components compared to internal combustion engines, thereby potentially lowering the volume of forged parts per vehicle. Despite this structural transition, demand remains strong in major developing markets. As reported by the Association of Indian Forging Industry, the forging sector achieved an 8.3 percent growth rate in the first quarter of the 2024 fiscal year, highlighting continued industrial resilience in the face of evolving market conditions.

Market Drivers

Global vehicle manufacturing rates act as the primary catalyst for the automotive forgings industry, as increased assembly volumes lead directly to higher procurement of essential metal parts such as axle beams, transmission gears, and connecting rods. Supply chain recovery has allowed manufacturers to increase production, thereby heightening the demand for precision-engineered components that guarantee performance and structural integrity in internal combustion engine vehicles. According to the European Automobile Manufacturers’ Association's 'Economic and Market Report' from February 2024, car production in the EU grew by 11.3 percent year-on-year in 2023, totaling 12.1 million units, creating a consistent need for high-strength aluminum and steel forged items to meet OEM requirements.

Concurrently, the burgeoning electric vehicle sector is altering demand dynamics, compelling the forging industry to adopt lightweighting strategies to counterbalance heavy batteries and optimize range. Although electric drivetrains require fewer engine-specific components, they necessitate specialized, high-performance forgings for driveline, suspension, and chassis systems capable of handling instant torque. The International Energy Agency's 'Global EV Outlook 2024' noted that global electric car sales reached nearly 14 million units in 2023, a 35 percent increase, prompting firms to innovate with near-net-shape processes and non-ferrous materials. Additionally, robust regional demand supports the market; the Society of Indian Automobile Manufacturers reported record passenger vehicle sales of 4.21 million units in India during fiscal year 2023-24, underscoring the ongoing reliance on durable forged parts in emerging hubs.

Market Challenges

The rapid shift toward electric mobility presents a major structural obstacle for the global automotive forgings sector by fundamentally transforming vehicle powertrain configurations. While internal combustion engines depend on complex, high-strength forged parts like camshafts, connecting rods, and crankshafts to withstand intense mechanical stress, electric drivetrains employ simplified motor assemblies with significantly fewer moving components. This technological evolution removes the need for numerous traditional heavy-weight forged products, directly reducing the baseline volume of components per unit and jeopardizing the core revenue sources of established manufacturers.

As a result, this decrease in component intensity generates a volume deficit that cannot be entirely neutralized by increasing global vehicle production figures, especially in mature markets that are aggressively pursuing electrification. The practical effect of this contraction in demand is reflected in production statistics from key industrial areas. For instance, Euroforge forecasted in 2024 that the total production volume for closed die forging would fall to roughly 3.4 million tonnes, marking a decrease from the prior year. With automakers prioritizing battery efficiency over mechanical complexity, the forging industry faces a prolonged downturn in its highest-volume product categories, which restricts overall market growth.

Market Trends

Implementing sustainable and energy-efficient green forging methods is emerging as a vital priority as manufacturers aim to minimize carbon footprints and adhere to strict environmental regulations. Forging enterprises are increasingly adopting decarbonization technologies, including the use of green steel and energy-efficient heat treatment furnaces, to lower direct emissions resulting from fuel combustion. This transition represents not only a regulatory compliance measure but also a competitive imperative to match the net-zero objectives of global automotive OEMs. For example, Bharat Forge Limited's 'Integrated Annual Report 2024-25' from August 2025 highlights that the firm lowered its Scope 1 greenhouse gas emissions to 78,486 metric tonnes of CO2 equivalent, down from 82,745 metric tonnes the previous year, proving the effectiveness of these sustainability efforts.

Additionally, the localization of forging supply chains to reduce global logistical risks is redefining the market's geographic structure, especially within rapidly growing developing regions. Manufacturers are shifting away from centralized global production models in favor of regionalized approaches that guarantee supply continuity and limit vulnerability to shipping delays or geopolitical issues. This movement is further driven by the necessity to address specific domestic vehicle preferences, such as the high demand for forged parts in two-wheelers and commercial vehicles in emerging economies. According to the Association of Indian Forging Industry's 'Focus' publication in May 2025, vehicle retail sales in the region increased by 9 percent in 2024 to nearly 26.1 million units, a rise that emphasizes the need for strong, localized forging capabilities to meet resilient regional demand.

Key Players Profiled in the Automotive Forgings Market

• NTN Corporation
• Kovarna Viva
• ThyssenKrupp AG
• Bharat Forge Limited
• Nanjin Automobile Forging Co Ltd.
• Dana Inc.
• CIE Automotive SA
• Meritor Inc.
• Aichi Forge USA Inc.
• American Axle & Manufacturing Inc.

Report Scope

In this report, the Global Automotive Forgings Market has been segmented into the following categories:

Automotive Forgings Market, by Material Type:

• Aluminium
• Steel
• Others

Automotive Forgings Market, by Component:

• Gears
• Piston
• Bearing
• Axel
• Connecting Roads
• Crankshaft
• Others

Automotive Forgings Market, by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Automotive Forgings Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Forgings Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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