The Global Automotive Forging Market Size Was Valued At USD 40.49 Billion In 2021. The Market Is Projected To Grow From USD 45.49 Billion In 2022 To USD 67.75 Billion By 2029, Exhibiting A CAGR Of 5.10% During The Forecast Period.

Automotive Forging Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking, and the market has seen less demand than expected compared to levels before the pandemic. Based on our research, the world market was 23.5% smaller in 2020 than it was in 2019.

Forging is a way to make things that involves using compressive forces to shape metal. Forging parts for cars includes engine parts, chassis, bearings, axles, gears, and other parts. Depending on the mechanical properties needed, this process can be done on different kinds of materials. Also, compared to other ways of making things, metal forging makes some of the strongest parts with high mechanical properties.

Market Dynamics:

Latest Trends:

Automation and smart manufacturing technologies are being used more and more in the market. Almost all of the top players are working to automate their forging lines to improve operational efficiency, productivity, and safety. For example, ThyssenKrupp AG started up one of the most advanced forging lines in the world in September 2021. In Homburg/Saarland, the company set up its advanced forging line. The company put about USD 85 million into its new facility for forging parts for truck chassis.

A 16-thousand-ton forging press that is almost 15 metres tall and weighs 1,700 tonnes is the showpiece of Homburg's new highly automated and digitally-controlled forging line. The new line will be able to make different large-scale products and can make up to 360,000 forged parts per year. So, soon, the growth of the automotive forging market is likely to be sped up by the use of automation and smart manufacturing technologies to improve quality, precision, and productivity on the automotive forging line.

Driving Factors:

People are more likely to buy cars because of the pandemic, which is causing more people to worry about their health and making cities more crowded. So, more people are likely to choose private transportation to avoid having to talk to people they don't need to, which is expected to boost auto sales and increase the need for forged parts and components. Over the past 10 years, urbanisation has been most noticeable in places like Asia and Oceania that are still developing. Also, the UN Department of Economics and Social Affairs says that by 2050, almost 68% of the world's population is expected to live in cities.

Car sales are also going up because people have more money to spend, their standard of living is getting better, and more people of all ages want to drive cars. For example, the International Organization of Motor Vehicle Manufacturers (OICA) says that the number of passenger cars sold will go up by almost 4.6% in 2021 compared to 2020. In the same way, the number of commercial vehicle sales went up by 5.7% compared to 2020. So, market growth is expected to be boosted in the coming years by the recovery of auto sales after the pandemic.

As the price of fossil fuels rises quickly, so does the demand for cars that are light and use little gas. The parts and auto parts of these light vehicles are made from lightweight materials like aluminium. In the coming years, the demand for aluminium forged products is likely to be driven by the rising sales of lightweight vehicles.

Aluminum is in high demand in the automotive industry because it is lightweight, strong, durable, resistant to corrosion, and easy to work with at high temperatures. So, using aluminium alloy in car parts can reduce the amount of energy lost due to friction and make the car run more efficiently because it keeps a good weight-to-power ratio. This kind of demand and investment from key players are helping to build a business that will grow in the years to come.

Restraining Factors:

One of the biggest markets for forged metal products and parts is the auto industry. At the moment, the auto industry is going through a once-in-a-century change. The automotive industry is becoming more electric because of rising concerns about the environment, government programmes to encourage green transportation, stricter emission rules, and higher fuel prices. Almost all of the top automakers are working on electric cars as a way to get around in the future.

But electric cars have fewer moving parts and parts made of metal than regular cars. So, the growing popularity and use of electric vehicles and the increasing use of electricity in the global automotive industry are likely to slow the growth of the market over the next few years. For example, the International Energy Agency (IEA) says that the number of electric vehicles sold worldwide will double from 2020 to 2021, reaching a new record of 6.6 million units. Also, government programmes that give tax breaks and subsidies to people who buy new electric cars are likely to increase the number of electric cars in emerging economies.

During the forecast period, more electric vehicles are expected to be sold worldwide, which will slow the market growth even more.

Segmentation Analysis:

By Vehicle Type:

In 2021, the passenger car segment had the biggest share of the market, and this is likely to stay true for the rest of the forecast period. The production of passenger cars has come back strongly in 2021, with a 28% increase in China and a 61% increase in India. Electric cars will have much easier-to-design mechanical parts because designers can make big changes with simple shapes. Aluminum parts that are forged work better than those that are machined or cast, which makes them more reliable. So, these factors can make the market grow for the better.

With a CAGR of 10.78% from 2022 to 2030, the construction equipment segment was the one that grew the most quickly. Ferrous forgings are used a lot in heavy construction and off-road equipment because they are strong, tough, and easy to machine. Forgings are used to make parts for engines and transmissions, as well as axle beams, gears, wheel hubs, bearing holders, shafts, levers, links, yokes, rollers, and spindles. So, the growth of the segment is likely to be driven by the growing demand for these automotive forged parts.

During the forecast period, growth rates were also seen in other segments, such as commercial vehicles and agricultural and construction equipment. In 2021, there was a rise in the number of medium and heavy commercial vehicles that were made. For example, sales volumes rose by 75%, 101%, 20%, and 22% in India, Brazil, the U.S., and Mexico, which are all important markets. During the forecast period, the segment is expected to grow by a lot.

By Material Analysis:

Aluminum and steel are the two main types of materials on the market. In 2021, steel held most of the market share for automotive forging. Carbon steel, in particular, is in high demand in the automotive industry because of its high forging ability, its high impact strength, its high production efficiency, and its low cost of use. This could help the market grow during the forecast period. Fuel economy and performance are affected by many things, and one of them is reducing the weight of a vehicle.

Aluminum is the segment that is expected to grow the fastest over the next five years. According to a study by Frank Czerwinski, aluminium use in the automotive industry has gone from 154 kg per vehicle in 2010 to 208 kg per vehicle in 202. (Current Trends in Automotive Light weighting Strategies and Materials). With 10% less weight, internal combustion engine (ICE) cars will get 6–8% more miles per gallon. Aluminum, which can be recycled and used again and again, is a lighter alternative to steel.

By Application:

An axle is a shaft that connects two wheels on a car so that they can move and stay in the same place. It was thought that the axle segment would have the highest CAGR in 2021 and the most market share from 2022 to 2030. Input/output shafts, chassis, high-pressure valves, and other forged automotive parts are also used in this segment.

During the forecast period, the segments with the fastest growth rate were "others" and "bearings." Connecting rods, differential gears, clutch hubs, transmission shafts, crankshafts, drive shafts, and universal joint yokes are all parts of the engine and powertrain that are made by forging. Gears, pinions, camshafts, and rocker arms that are made by forging are strong and easy to harden in certain places. Applications that need a lot of toughness and strength are axle beams and shafts, idler arms, linkages, steering arms, wheel spindles, and torsion bars for cars, trucks, and buses. Because of this, this is a good way to make automotive parts.

By Technology:

By the type of technology used, the segment is broken down into open die, closed die, and other types of forging. In 2021, the closed die technique had the highest market share and ruled the market. Closed dies make it possible to make parts with complicated shapes. The surface finish of a closed die is better, and it has better mechanical properties. This makes the need for machining even smaller. Closed die forged parts have made it possible for many designs to handle more stress and load.

From 2022 to 2030, it was thought that the open die segment would grow. The open die segment is growing because there is more demand for simple-shaped forged products like shafts, axle beams, yokes, ball joints, and others. Also, because the material has a higher ratio of strength to weight, the weight of parts can be reduced. So, vehicles use more than 200 closed die forgings, and almost all types of forging units use closed die machines to make high-quality developed products quickly.

By Supplier Type:

The market for supplier types is split into two parts: local and international (import). From 2022 to 2030, the local segment had the most market share and was the leader. The biggest reason for its growth is that Europe and North America buy parts and accessories for cars and electric cars from China and other Asian countries.

During the period in question, the international segment also grew at a positive rate. This growth is due to low production costs, economies of scale, a government programme to remove trade barriers, and incentive programmes for manufacturers.

Regional Insights:

When compared to other regions, Asia Pacific (APAC) is expected to be the largest and fastest-growing segment. A lot of the forged parts made in the world are made in China and India. Major players in the region are putting their new money into automation and high-tech machines that use less energy and work better.

Due to new ways of making things in this industry, Europe is expected to have a high growth rate. Government rules help products made in Europe, which makes the European market grow.

Due to the growing demand for forged auto parts, North America is expected to keep moving up in the world market.

Scope Analysis

Recent Development:

• In May 2022, Ramkrishna Forgings Limited received a multi-year contract order valued at USD 13.5 million per annum from a leading manufacturer of chassis-related systems and components for trailers, trailers, trucks and buses primarily in the United States.
• In March 2022, American Axle & Manufacturing announced it had secured several next-generation heavy truck rear and front axle programs with global OEM customers. Contracts in early 2021 and previously announced contracts are projected to generate lifetime revenues of nearly $10 billion or more from mid-decade through 2030 and beyond.
• In February 2021, ZF announced a $200 million investment to manufacture transmissions for commercial vehicles in North America. From 2023, ZF will produce the ZF Powerline 8-speed automatic transmission at the company's state-of-the-art manufacturing facility in Greycourt, SC.
• In February 2022, Cummins Inc. announced the acquisition of Meritor Inc., a global brake mobility, drivetrain, aftermarket and electric powertrain solution for the commercial automotive and industrial markets. Cummins acquired Meritor for approximately $3.7 billion. The deal is expected to close by the end of 2022. The addition of Meritor's complementary strengths will help Cummins address critical technology challenges, such as developing economically viable carbon-free solutions for commercial and industrial applications.
• In July 2020, Dana Limited introduced the new Spicer® Trac-Lok® Limited Slip Differential (LSD) for heavy duty truck applications. The new model autonomously delivers improved vehicle handling within a compact and lightweight design for improved traction, durability and performance.

Market Segmentation

By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicle
• Medium & Heavy Commercial Vehicles
• Agricultural Machinery
• Construction Equipment
• Others

By Material:

• Steel
• Aluminum
• Others

By Application:

• Gears
• Crankshaft
• Piston
• Axle
• Bearings
• Connecting Rods
• Others

By Technology:

• Closed Die
• Open Die
• Others

By Supplier Type:

• Local
• International (Import)
• Others

By Companies:

• ThyssenKrupp AG (Germany)
• CIE Automotive (Spain)
• NTN Corporation (Japan)
• American Axle and Manufacturing Inc. (U.S.)
• Bharat Forge Limited (India)
• Ramkrishna Forgings (India)
• Dana Limited (U.S.)
• Meritor Inc. (U.S.)
• ZF Friedrichshafen AG (Germany)
• Others