Automotive Forgings Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Material Type (Aluminium, Steel, Others), By Component (Gears, Piston, Bearing, Axel, Connecting Roads, Crankshaft, Others), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Regional, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 46.62 Billion
CAGR (2026-2031)	5.11%
Fastest Growing Segment	Passenger Cars
Largest Market	Asia Pacific
Market Size (2031)	USD 62.87 Billion

Market Overview

The Global Automotive Forgings Market will grow from USD 46.62 Billion in 2025 to USD 62.87 Billion by 2031 at a 5.11% CAGR. Automotive forgings are precision-engineered metal components shaped by compressive forces to create high-strength parts such as crankshafts, gears, and connecting rods essential for vehicle powertrains and chassis systems. The primary drivers supporting the market’s growth include the sustained increase in global vehicle production volumes and the rising demand for lightweight, durable materials to meet stringent fuel efficiency standards and emission regulations.

However, the industry faces a substantial challenge from the accelerating transition to electric vehicles, which utilize fewer moving mechanical parts than internal combustion engines, potentially reducing the volume of forged components per unit. Despite this structural shift, demand remains robust in key developing regions. According to the Association of Indian Forging Industry, in 2024, the forging sector registered a growth of 8.3 percent during the first quarter of the fiscal year, indicating continued industrial resilience amidst changing market dynamics.

Key Market Drivers

Global vehicle production volumes serve as the foundational catalyst for the automotive forgings sector, as higher assembly rates directly correlate with increased procurement of critical metal components like transmission gears, axle beams, and connecting rods. The recovery of supply chains has enabled manufacturers to ramp up output, intensifying the requirement for precision-engineered parts that ensure structural integrity and performance in internal combustion engine vehicles. According to the European Automobile Manufacturers’ Association, February 2024, in the 'Economic and Market Report', EU car production expanded by 11.3 percent in 2023 compared to the previous year, reaching 12.1 million units. This upward trajectory in manufacturing necessitates a steady supply of high-strength forged steel and aluminum components to satisfy the operational requirements of major automotive original equipment manufacturers.

Simultaneously, the rapid expansion of the electric vehicle market is reshaping demand patterns, pushing the forging industry toward lightweighting solutions to offset heavy battery packs and maximize driving range. While electric drivetrains utilize fewer engine-related parts, they demand specialized, high-performance forgings for chassis, suspension, and driveline applications that can withstand instant torque delivery. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', electric car sales approached 14 million units globally in 2023, representing a 35 percent year-on-year increase. This structural shift compels forging companies to innovate in non-ferrous materials and near-net-shape processes. Furthermore, robust regional demand continues to underpin the broader component market; according to the Society of Indian Automobile Manufacturers, in April 2024, passenger vehicle sales in India touched a record 4.21 million units during the fiscal year 2023-24, reinforcing the continued need for durable forged parts in developing automotive hubs.

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Key Market Challenges

The accelerating transition to electric vehicles constitutes a significant structural impediment to the global automotive forgings market by fundamentally altering the composition of vehicle powertrains. Unlike internal combustion engines, which rely heavily on complex, high-strength forged components such as crankshafts, connecting rods, and camshafts to manage intense mechanical stress, electric drivetrains utilize simplified motor assemblies with substantially fewer moving parts. This technological shift eliminates the requirement for many traditional heavy-weight forged items, directly eroding the baseline volume of components per vehicle produced and threatening the core revenue streams of established manufacturers.

Consequently, this reduction in component intensity creates a volume gap that rising global vehicle production numbers cannot fully offset, particularly in mature markets aggressively adopting electrification. The tangible impact of this demand contraction is evident in production data from established industrial regions. According to Euroforge, in 2024, the total production volume for closed die forging was forecasted to decrease to approximately 3.4 million tonnes, representing a decline from the previous year. As automakers prioritize battery efficiency over mechanical complexity, the forging sector faces a sustained decline in its most volume-heavy product categories, limiting overall market expansion.

Key Market Trends

The adoption of sustainable and energy-efficient green forging processes is becoming a critical priority as manufacturers strive to lower carbon footprints and comply with stringent environmental mandates. Forging companies are increasingly investing in decarbonization technologies, such as energy-efficient heat treatment furnaces and the utilization of green steel, to reduce direct emissions from fuel combustion. This shift is not merely regulatory but also a competitive necessity to align with the net-zero goals of global automotive OEMs. According to Bharat Forge Limited, August 2025, in the 'Integrated Annual Report 2024-25', the company reduced its Scope 1 greenhouse gas emissions to 78,486 metric tonnes of CO2 equivalent, down from 82,745 metric tonnes in the previous fiscal year, demonstrating the tangible impact of these sustainability initiatives.

The localization of forging supply chains to mitigate global logistical risks is reshaping the market's geographic footprint, particularly in high-growth developing regions. Manufacturers are moving away from centralized global production models to regionalized strategies that ensure supply continuity and reduce exposure to geopolitical disruptions or shipping delays. This trend is further amplified by the need to cater to specific domestic vehicle preferences, such as the heavy demand for forged components in commercial vehicles and two-wheelers in emerging economies. According to the Association of Indian Forging Industry, May 2025, in the 'Focus' publication, vehicle retail sales in the region grew by 9 percent in 2024, reaching nearly 26.1 million units, a surge that underscores the necessity for robust, localized forging capacities to satisfy resilient regional demand.

Segmental Insights

The Passenger Cars segment is currently experiencing the most rapid growth within the Global Automotive Forgings Market, driven by the escalating global demand for personal mobility and increasing vehicle production rates. This expansion is further accelerated by stringent fuel efficiency and safety mandates enforced by regulatory frameworks such as the Corporate Average Fuel Economy (CAFE) standards. To comply with these rigorous requirements, automakers are increasingly utilizing high-strength, lightweight forged components like transmission gears and axles. These parts are essential for reducing overall vehicle weight and enhancing structural integrity, thereby ensuring compliance with emission targets while meeting consumer expectations for safety and performance.

Regional Insights

Asia Pacific holds the dominant position in the Global Automotive Forgings Market, driven by the extensive manufacturing capabilities of major economies like China and India. The region benefits from substantial government investments in infrastructure, which increase the demand for commercial vehicles that rely heavily on durable forged components. Furthermore, the availability of cost-effective raw materials strengthens the local supply chain for original equipment manufacturers. Data from the China Association of Automobile Manufacturers indicates sustained high vehicle output, confirming the region's central role in supporting the global demand for automotive components.

Recent Developments

• In October 2024, Bharat Forge Limited entered into a definitive agreement to acquire the commercial vehicle axle business of American Axle & Manufacturing Holdings, Inc. in India for an enterprise value of $65 million. The transaction included the acquisition of manufacturing facilities in Pune and Chennai, as well as the Pune Engineering and Development Center, while excluding certain other assets. This acquisition was intended to expand the company's product portfolio in the commercial vehicle segment and strengthen its position as a leading supplier of safety-critical components to original equipment manufacturers in India and global markets.
• In August 2024, Ramkrishna Forgings Limited completed the acquisition of Resortes Libertad S.A. de C.V., a company based in Mexico, effectively making it a wholly-owned subsidiary. This strategic move was aimed at establishing a strong manufacturing footprint in North America, allowing the company to supply machined forgings directly to customers in the region. The acquisition was accompanied by a long-term take-or-pay agreement with a North American client, ensuring a steady revenue stream and enabling the company to utilize the new facility for machining and warehousing operations starting from the third quarter of the fiscal year 2025.
• In May 2024, Happy Forgings Limited secured a significant contract to supply machined axle seats and steering knuckles for electric SUVs in the United States market. This seven-year contract, which extends until the fiscal year 2032, represented a major milestone for the company as it expanded its presence in the global electric vehicle sector. The deal was valued at approximately Rs 500 million per annum upon full volume ramp-up, with a total estimated value of Rs 3.2 billion to Rs 3.5 billion over the contract's duration, reinforcing the company's partnership with a prominent global original equipment manufacturer.
• In January 2024, Sona BLW Precision Forgings Limited (Sona Comstar) launched a new product known as the Integrated Motor Controller, designed specifically for the electric two-wheeler segment. This innovative component combines the motor and controller into a single unit, offering advantages such as compact design, improved efficiency, and cost-effectiveness compared to separate setups. The company secured an order from a new customer, an Indian original equipment manufacturer of internal combustion engine and electric two-wheelers, to supply these controllers for their upcoming high-performance electric bikes, with production scheduled to commence in the first quarter of the fiscal year 2026.

Key Market Players

• 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.

By Material Type	By Component	By Vehicle Type	By Region
Aluminium Steel Others	Gears Piston Bearing Axel Connecting Roads Crankshaft Others	Passenger Cars Light Commercial Vehicles Heavy Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• 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
• 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