Forged Steel Market is Expected to grow at a robust CAGR of 4.53% through 2030F

Forged Steel Market is increasing due to growing demand for high-strength, durable components across automotive, aerospace, energy, and construction industries during the forecast period 2026-2030F.       

According to TechSci Research report, “Forged Steel Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2020-2030F”, The Global Forged Steel Market was valued at USD 78.62 billion in 2024 and is expected to reach USD 103.48 billion by 2030 with a CAGR of 4.53% during the forecast period.

The global energy sector’s expansion, particularly in oil and gas, renewable energy, and power generation, is a significant driver for the Forged Steel Market, as forged steel components are critical for high-performance applications in harsh environments. In oil and gas, forged steel is used for pipelines, valves, and drilling equipment, offering corrosion resistance and strength under extreme pressures. The renewable energy sector, particularly wind and hydroelectric power, relies on forged steel for turbine shafts, gears, and structural components that endure high stress and fatigue.

For instance, wind turbine installations require large forged steel rotor hubs, with global renewable energy capacity growing rapidly. The push for energy transition, with investments in offshore wind and green hydrogen, increases demand for forged steel in specialized applications. In 2024, global energy investments reached USD 2 trillion, with significant allocations to renewable projects. Forged steel’s ability to meet stringent standards, like those set by the American Petroleum Institute (API), ensures its adoption in critical energy infrastructure.

The Asia-Pacific region, led by China’s renewable energy expansion, drives significant demand, while North America’s shale gas boom further boosts forged steel consumption. Innovations in forging, such as seamless ring rolling, enhance the production of large-scale components for energy applications. As the energy sector prioritizes efficiency and sustainability, the Forged Steel Market is expected to grow, driven by the need for durable, high-performance components through 2032.

In 2024, the global energy sector consumed 1.1 million metric tons of forged steel, with 600,000 metric tons used in renewable energy applications like wind turbines. Oil and gas projects utilized 400,000 metric tons for pipelines and valves. China’s renewable energy sector accounted for 350,000 metric tons, reflecting a 17% increase from 2023, driven by 28,000 new wind turbine installations requiring forged steel components..

Environmental sustainability and regulatory compliance have emerged as critical challenges for the Forged Steel Market, particularly in light of increasing global efforts to combat climate change. Steel forging is an energy-intensive process that involves high-temperature heating, metal deformation, and thermal treatment, all of which consume substantial amounts of electricity and fossil fuels. As a result, forged steel production contributes significantly to greenhouse gas emissions, particulate matter release, and industrial waste generation. With growing awareness of climate issues and a global push for cleaner industrial practices, the sector faces mounting pressure to reduce its environmental footprint.

Governments across the world are enforcing stricter environmental regulations that mandate lower emissions, efficient energy usage, and improved waste management in manufacturing facilities. For instance, the European Union’s Emissions Trading System and various carbon taxation frameworks in countries such as Canada and Japan are increasing the operational costs for carbon-intensive industries. Compliance with these regulations requires significant investments in emission-reduction technologies, clean energy integration, and environmental monitoring systems, which can strain financial resources—especially for small and medium enterprises.

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Based on End User, the Original Equipment Manufacturers segment dominated the Forged Steel Market and is expected to maintain its dominance throughout the forecast period. This leadership position is primarily driven by the consistent and large-scale demand for forged steel components directly from industries such as automotive, aerospace, construction, power generation, and oil and gas, where original equipment manufacturers play a central role in sourcing high-quality, precision-engineered parts. These manufacturers rely heavily on forged steel for critical structural and performance-related applications, including crankshafts, gears, axles, turbine blades, pressure vessels, and heavy machinery components. Forged steel offers superior strength, fatigue resistance, and dimensional stability, making it indispensable for industries that prioritize product durability, operational safety, and compliance with stringent regulatory standards.

As global demand for fuel-efficient vehicles, renewable energy systems, and smart industrial infrastructure continues to rise, original equipment manufacturers are increasingly integrating advanced forged steel solutions into their product lines. Additionally, the trend towards lightweighting in transportation and the expansion of electric vehicle production are encouraging manufacturers to seek high-strength, low-weight forged alternatives that support performance while meeting emission and efficiency targets. Original equipment manufacturers also benefit from the scalability and design flexibility offered by modern forging technologies, which allow for faster development cycles and cost-effective mass production of custom components.

Moreover, long-term supply agreements and partnerships between forging companies and original equipment manufacturers ensure consistent procurement, quality control, and timely delivery—factors critical to maintaining uninterrupted production operations. In contrast, the aftermarket segment, while essential for replacements and maintenance, tends to operate on smaller volumes and irregular demand patterns. Given the sustained industrial growth, innovation in manufacturing, and increasing adoption of forged solutions in core applications, the Original Equipment Manufacturers segment is expected to continue dominating the Forged Steel Market well into the forecast period.

In 2024, Europe emerged as the fastest-growing region in the Forged Steel Market and is expected to maintain this growth trajectory during the forecast period. This accelerated growth is primarily driven by the region's strong industrial base, technological advancement, and increasing demand for high-performance forged steel components across diverse sectors such as automotive, aerospace, energy, and construction. Europe is home to several of the world’s leading automotive and aerospace manufacturers, including Germany, France, Italy, and the United Kingdom, where forged steel is extensively used in critical applications such as drive shafts, crankshafts, gears, landing gear, engine components, and structural parts. The rising emphasis on lightweighting, fuel efficiency, and emission reduction is prompting manufacturers to opt for advanced forged steel products that offer superior strength-to-weight ratios and enhanced durability.

Furthermore, Europe’s commitment to clean energy transition is driving investments in wind energy, hydrogen infrastructure, and advanced power generation systems, all of which require forged components for turbines, generators, and support structures. The European Union’s Green Deal and decarbonization targets are also encouraging the use of eco-efficient materials and production processes, pushing the adoption of forged steel manufactured through low-emission methods, such as electric arc furnaces using recycled steel. The region’s highly skilled workforce, strong engineering capabilities, and widespread adoption of automation and Industry 4.0 technologies have further enhanced the competitiveness and innovation within the forging sector.

Additionally, robust government support for industrial modernization, coupled with investments in research and development, is enabling European forging companies to expand capacity and improve product precision, performance, and sustainability. Strategic mergers, acquisitions, and partnerships within the region are further consolidating technological expertise and expanding market reach. As demand for forged steel intensifies in advanced manufacturing applications, Europe is poised to continue as the fastest-growing region in the global Forged Steel Market, supported by its innovation-driven ecosystem and strong industrial demand.

Key market players in the Global Forged Steel market are: -

• Scot Forge
• Bharat Forge Limited
• Nippon Steel Corporation
• KOBE STEEL, LTD.
• VDM Metals GmbH (Acerinox Group)
• Arconic Corporation
• Allegheny Technologies Incorporated (ATI)
• American Axle & Manufacturing Holdings, Inc.
• China First Heavy Industries (CFHI)
• Ellwood Group, Inc.

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“The Forged Steel Market is projected to experience steady growth in the coming years, driven by rising demand from key industries such as automotive, aerospace, construction, and energy. Increasing infrastructure development, the global shift toward electric mobility, and the expansion of renewable energy projects are fueling the need for high-strength, durable forged components. Technological advancements in forging processes, including automation and digital manufacturing, are enhancing production efficiency and product quality. Additionally, the growing emphasis on sustainability and lightweight materials will further support market growth, as manufacturers seek innovative forged solutions to meet evolving performance, safety, and environmental standards worldwide.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“Forged Steel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Seamless Rolled Rings, Open Die Forgings, Closed Die Forgings), By Application (Automotive, Aerospace, Oil and Gas, Power Generation, Construction, Agriculture, General Industrial Equipment), By End User (Original Equipment Manufacturers, Aftermarket), By Region & Competition, 2020-2030F,” has evaluated the future growth potential of Global Forged Steel Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Forged Steel Market.

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