Aluminum Component Forging Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Forging Type (Open Die Forging, Close Die Forging, And Ring Rolled Forging), By Component Type (Transmission Parts, Steering Parts, Others), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Region and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 28.22 Billion
CAGR (2026-2031)	5.76%
Fastest Growing Segment	Steering Parts
Largest Market	North America
Market Size (2031)	USD 39.49 Billion

Market Overview

The Global Aluminum Component Forging Market will grow from USD 28.22 Billion in 2025 to USD 39.49 Billion by 2031 at a 5.76% CAGR. Aluminum component forging is a specialized manufacturing process wherein aluminum alloys are shaped under extreme compressive forces to produce high-strength, lightweight parts with superior structural integrity compared to cast alternatives. The market is primarily supported by the automotive industry's fundamental need for vehicle weight reduction to enhance fuel efficiency and electric vehicle range, alongside the aerospace sector's requirement for materials that withstand high stress while minimizing payload. These core performance necessities serve as the distinct economic drivers sustaining long-term demand.

However, a significant challenge impeding broader market expansion is the volatility of raw material prices and energy costs, which introduces financial uncertainty into the supply chain. According to The Aluminum Association, in 2025, preliminary estimates indicated that aluminum demand in the United States and Canada totaled 26,969 million pounds for the 2024 fiscal year. While this figure highlights substantial consumption volume, the unpredictability of input costs remains a critical barrier that manufacturers must navigate to maintain profitability and steady growth.

Key Market Drivers

The rapid proliferation of electric vehicles (EVs) and the escalating demand for vehicle lightweighting are the primary economic forces accelerating the adoption of aluminum forgings. Automotive original equipment manufacturers are increasingly replacing heavy steel components with forged aluminum to offset the substantial mass of battery packs and maximize driving range without compromising safety. This transition is technically critical for chassis and suspension applications, where the superior strength-to-weight ratio of forged aluminum ensures structural durability under dynamic loads. According to Norsk Hydro, June 2025, in the 'By 2030, cars will be using much more aluminium than today' report, updated industry projections indicate that the average aluminum content per European vehicle is expected to reach 256 kilograms by 2030. This rising intensity per unit guarantees sustained order volumes for forging houses even as total vehicle production fluctuates.

Simultaneously, a surge in commercial and defense aerospace manufacturing activity is driving significant procurement of high-strength forged alloys. Aerospace manufacturers require materials that can withstand extreme thermal and mechanical stress for critical applications such as landing gear, engine pylons, and wing structures. Consequently, major suppliers are witnessing substantial revenue expansion in their aerospace divisions as production rates ramp up to meet global travel demand. According to Howmet Aerospace, February 2025, in the 'Fourth Quarter and Full Year 2024 Results', revenue for the company's commercial aerospace segment increased by 20% year-over-year. While sector-specific growth remains robust, broader market demand dynamics continue to evolve; according to The Aluminum Association, in 2025, total aluminum demand in the United States and Canada reached an estimated 13.1 billion pounds through the first half of the year.

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Key Market Challenges

The volatility of raw material prices and energy costs stands as a substantial barrier impeding the growth of the Global Aluminum Component Forging Market. This financial unpredictability directly affects the operational stability of forging manufacturers, who rely heavily on energy-intensive processes to shape high-strength alloys. When input costs fluctuate sharply, manufacturers face eroded profit margins and difficulty in securing long-term pricing agreements with automotive and aerospace clients. This instability often forces producers to absorb cost increases or pass them downstream, which can dampen demand for forged components in cost-sensitive applications.

Furthermore, erratic energy markets frequently lead to curtailments in primary aluminum smelting, thereby restricting the availability of the essential feedstock required for forging. According to the Aluminum Association, in January 2025, North American primary aluminum production totaled 3,993.7 thousand metric tons for December 2024, reflecting a 3.9% decline from the previous year's annual rate. Such contractions in primary metal output, often driven by cost pressures, create supply bottlenecks that prevent forging companies from expanding their production capacities to fully capitalize on market opportunities.

Key Market Trends

The Implementation of Sustainable and Circular Economy Practices is reshaping the forging landscape as manufacturers prioritize closed-loop recycling systems to lower carbon footprints and secure raw material stability. Forging companies are increasingly integrating secondary aluminum feedstock into their production streams to meet stringent OEM decarbonization mandates while mitigating the risks of primary metal price volatility. This shift towards circularity involves significant infrastructure upgrades to process scrap without compromising the structural integrity of the final forged components. According to Constellium, March 2025, in the '2024 Sustainability Report', the company inaugurated a new recycling center at its Neuf-Brisach facility, which increased its global recycling capacity to over 750,000 metric tons annually.

Simultaneously, the Development of Next-Generation High-Strength Aluminum Alloys is enabling the production of components that offer superior mechanical properties and improved machinability for critical applications. To satisfy the rigorous performance standards of modern aerospace and automotive platforms, market players are investing heavily in R&D and capital improvements to commercialize advanced alloy compositions that deliver higher strength-to-weight ratios. These material innovations allow for thinner, lighter designs that maintain durability under extreme stress, directly addressing the technical needs of next-generation vehicles. According to Kaiser Aluminum, May 2025, in the '2024 Sustainability Report', the corporation invested $181 million in capital expenditures to support its growth strategies, which included the launch of the KaiserSelect Next Gen product line specifically engineered for enhanced consistency and performance.

Segmental Insights

The Steering Parts segment is currently experiencing the most rapid growth within the Global Aluminum Component Forging Market. This expansion is primarily driven by the automotive industry's accelerated shift towards vehicle lightweighting to comply with stringent fuel economy mandates and extend the range of electric vehicles. Forged aluminum offers the critical strength-to-weight ratio required for safety-critical steering components, effectively replacing heavier steel alternatives. Consequently, manufacturers are increasingly adopting these materials to meet rigorous emission standards enforced by regulatory bodies such as the United States Environmental Protection Agency, ensuring compliance while maintaining structural integrity.

Regional Insights

North America dominates the Global Aluminum Component Forging Market driven by substantial demand from the established aerospace and defense sectors. The region requires high-strength forged parts for aircraft manufacturing and military applications. Additionally, the automotive industry significantly contributes to this leadership as manufacturers prioritize vehicle weight reduction to meet strict environmental mandates. Compliance with regulations such as the Corporate Average Fuel Economy standards compels automakers to replace heavier steel components with lighter aluminum forgings. This combination of industrial requirements and regulatory pressure solidifies North America as the primary revenue generator globally.

Recent Developments

• In October 2024, ILJIN, a South Korea-based manufacturer, announced its entry into the aluminum forging market with a plan to invest nearly US$100 million in a new facility in Auburn, Alabama. This development marks a strategic shift for the company, which has traditionally utilized steel forging, as it seeks to produce lighter and stronger components such as control arms for the automotive sector. The new operation is expected to enhance the company’s production capabilities in the United States, supporting the automotive industry's transition to lighter vehicles and strengthening the local supply chain for forged aluminum parts.
• In September 2024, Ramkrishna Forgings Limited received approval from its Board of Directors to establish a new manufacturing facility in Jamshedpur, India, dedicated specifically to aluminum forging. The company plans to invest ₹57.5 Crores in this project, which is set to have an installed capacity of 3,000 MT per annum. This strategic expansion is designed to cater primarily to the electric vehicle market, addressing the critical need for lightweighting to improve vehicle performance and range. By diversifying into aluminum forging, the company aims to broaden its product portfolio and capitalize on the growing global demand for sustainable automotive solutions.
• In June 2024, Bharat Forge Aluminum USA, Inc., a subsidiary of a major Indian multinational, announced a significant investment of US$40 million to expand its manufacturing capabilities in Sanford, North Carolina. This capital infusion is directed towards enhancing the company’s aluminum forging operations, which serve the automotive sector with critical lightweight components. The expansion project includes the installation of advanced infrastructure to meet the rising demand for high-performance aluminum parts. This move reinforces the company's commitment to strengthening its foothold in the North American market and supporting the automotive industry's shift towards lighter, more fuel-efficient vehicles.
• In May 2024, Kobe Steel, Ltd. announced a strategic initiative to supply green aluminum materials to Nissan Motor Co., Ltd. for use in mass-produced vehicles. This collaboration involves the incorporation of low-carbon aluminum into various automotive components, including suspension parts which are key applications within the aluminum forging market. The partnership aims to significantly reduce carbon dioxide emissions across the vehicle lifecycle by utilizing materials produced with lower environmental impact. This development highlights the growing industry trend of adopting sustainable materials for high-strength forged aluminum components, specifically targeting automotive markets in Japan and North America.

Key Market Players

• Accurate Steel Forgings (INDIA) Limited
• AICHI STEEL CORPORATION
• Alcoa Corporation
• Aluminum Precision Products
• Anderson Shumaker Company
• Arconic Inc
• Bharat Forge Limited
• Ellwood Group Inc.
• Kalyani Technoforge
• Kobe Steel, Ltd.

By Forging Type	By Component Type	By Vehicle Type	By Region
Open Die Forging Close Die Forging Ring Rolled Forging	Transmission Parts Steering Parts Others	Passenger Cars Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Aluminum Component Forging Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Aluminum Component Forging Market, By Forging Type:

• Open Die Forging
• Close Die Forging
• Ring Rolled Forging

• Aluminum Component Forging Market, By Component Type:

• Transmission Parts
• Steering Parts
• Others

• Aluminum Component Forging Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

• Aluminum Component Forging Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE