Passenger Car Component Forging Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Material Type (Aluminum, Steel, Others), By Component Type (Gears, Piston, Bearing, Axle, Connecting Rods, Crankshaft, Others), By Vehicle Type (SUV, Sedan, Hatchback, MUV), By Region and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 26.22 Billion
CAGR (2026-2031)	6.89%
Fastest Growing Segment	Aluminum
Largest Market	Asia Pacific
Market Size (2031)	USD 39.11 Billion

Market Overview

The Global Passenger Car Component Forging Market will grow from USD 26.22 Billion in 2025 to USD 39.11 Billion by 2031 at a 6.89% CAGR. Passenger car component forging is defined as the manufacturing process of shaping critical load-bearing parts, such as crankshafts, connecting rods, and transmission gears, using compressive forces to ensure superior structural integrity and fatigue resistance. The market’s expansion is primarily supported by the consistent global demand for passenger vehicles and the intrinsic need for high-strength components that guarantee safety and durability under mechanical stress. Underpinning this demand, according to the China Association of Automobile Manufacturers, in 2024, cumulative automobile production reached 31.28 million units, demonstrating the sustained industrial requirement for these essential assembly inputs in major manufacturing hubs.

However, a significant challenge impeding the market's long-term expansion is the accelerating transition toward electric vehicles. Unlike internal combustion engines, electric powertrains utilize simplified designs that eliminate the need for numerous traditional forged parts, such as engine blocks and pistons, thereby reducing the overall volume of forged components required per vehicle.

Key Market Drivers

The resurgence of global automotive manufacturing acts as a primary catalyst for the forging sector, necessitating consistent supplies of chassis and powertrain components. As assembly lines accelerate output to meet pent-up consumer demand, the requirement for forged steel and aluminum parts increases proportionally to ensure vehicle structural integrity. According to the European Automobile Manufacturers’ Association, February 2024, in the 'Economic and Market Report Full-year 2023', EU passenger car production grew by 11.3 percent to 12.1 million units, underscoring the trajectory of industrial recovery requiring substantial forging volumes in established hubs. This momentum is not limited to western markets, as rapid expansion in developing nations further fuels the need for essential assembly inputs. According to the Society of Indian Automobile Manufacturers, in 2024, passenger vehicle sales in India reached a record high of 4.21 million units in the fiscal year ending March 31, signaling robust procurement activity across the global supply chain.

Concurrently, stringent emission regulations are compelling manufacturers to adopt lighter forged components to enhance fuel efficiency without compromising safety. This regulatory pressure drives a material shift from traditional heavy steel to high-strength aluminum alloys in suspension and drivetrain applications, ensuring vehicles meet rigorous carbon reduction targets while maintaining durability. According to the United States Environmental Protection Agency, March 2024, in the 'Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles' final rule, the industry is targeted to achieve a fleet-wide real-world average of 85 grams per mile of CO2 by 2032. Consequently, component suppliers are increasingly investing in precision technologies to deliver lightweight parts that strictly adhere to these mandated efficiency standards, securing their position in a compliance-driven market.

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Key Market Challenges

The accelerating transition toward electric vehicles acts as a significant structural constraint on the growth of the global passenger car component forging market. Internal combustion engines heavily rely on forged parts, such as crankshafts, connecting rods, and pistons, to ensure structural integrity under high mechanical stress. In contrast, electric powertrains employ simplified architectures with fewer moving parts, effectively eliminating the need for these dense, weight-bearing engine components. This technological shift directly erodes the addressable market for manufacturers that depend on traditional powertrain orders, as the forging intensity per vehicle drops substantially when moving from gasoline to battery-powered platforms.

This displacement of traditional assembly inputs is quantitatively evident in major manufacturing hubs where electrification is outpacing historical trends. According to the China Association of Automobile Manufacturers, in 2024, sales of new energy vehicles reached 12.87 million units, accounting for 40.9% of the total new car market. Such a substantial market share for electric mobility signals a corresponding decline in the production of internal combustion engine vehicles. Consequently, the industry faces a reduction in the overall volume of forged steel components required per manufactured unit, creating a long-term impediment to revenue growth for established forging suppliers.

Key Market Trends

The development of specialized forged components for electric vehicle powertrains is emerging as a critical adaptation strategy for manufacturers facing the decline of internal combustion engine volumes. Forging companies are increasingly pivoting their product portfolios to manufacture high-precision parts essential for electric mobility, such as rotor shafts, differential gears, and battery tray components, which require the superior strength and reliability that only forging can provide. This strategic realignment allows suppliers to offset the reduced demand for traditional engine blocks and pistons by capturing value in the growing electrification segment. According to CIE Automotive, April 2025, in the 'Annual Report 2024', almost 15% of the company's consolidated revenues were generated by environmentally sustainable lines, reflecting the accelerated industrial shift toward electrified powertrain solutions and neutral-footprint technologies.

Concurrently, the focus on sustainable and green forging practices is transforming manufacturing operations as suppliers strive to decarbonize their production processes to align with OEM net-zero targets. This trend extends beyond simple material substitution, emphasizing the reduction of Scope 1 and Scope 2 emissions through the adoption of energy-efficient induction heating systems and the procurement of renewable electricity for plant operations. Forging facilities are investing heavily in process optimizations to minimize their carbon intensity per unit produced, ensuring compliance with stringent environmental audits. According to Thyssenkrupp, December 2024, in the 'Sustainability Strategy and Targets' report, the company established a specific target to reduce emission intensity by 1 ton of CO2 per million € of sales for the 2024/2025 fiscal year, underscoring the sector's commitment to low-carbon manufacturing protocols.

Segmental Insights

The aluminum segment represents the fastest-growing category within the global passenger car component forging market. This expansion is primarily driven by the increasing demand for vehicle lightweighting to comply with stringent fuel economy and emission standards mandated by regulatory bodies like the European Commission and the U.S. Environmental Protection Agency. Manufacturers are shifting toward forged aluminum for chassis and suspension components to lower overall vehicle weight while maintaining strength. This transition enhances fuel efficiency in internal combustion engines and extends the driving range of electric vehicles, securing the position of aluminum in modern automotive production.

Regional Insights

Asia Pacific maintains a leading position in the global passenger car component forging market, primarily due to the high volume of vehicle manufacturing in China, India, and Japan. This dominance is supported by the availability of abundant raw materials and cost-effective labor, which encourages global automotive companies to localize production facilities. Furthermore, rapid urbanization and increasing disposable income levels across developing nations fuel the demand for new passenger vehicles. These factors create a robust supply chain environment that sustains the region's status as the major revenue generator in the sector.

Recent Developments

• In December 2025, Aichi Steel Corporation signed a Memorandum of Understanding (MoU) with Vardhman Special Steels to deepen their strategic partnership in India. This collaboration involves a planned investment of Rs 500 crore to expand manufacturing operations and facilitate technological exchange for high-quality automotive steel and components. The agreement serves to strengthen the supply chain for special steel used in passenger car applications and leverages the combined expertise of both entities. This development highlights the company's continued focus on international growth and its commitment to meeting the rising standards of the Indian automotive component market.
• In January 2025, American Axle & Manufacturing (AAM) announced a definitive agreement to combine with Dowlais Group plc in a transaction valued at approximately $1.44 billion. This major collaboration aims to create a leading global supplier of driveline and metal-forming technologies with a comprehensive portfolio suited for internal combustion, hybrid, and electric vehicles. The merger is designed to leverage the complementary strengths of both companies to better serve the changing needs of the global automotive industry. This strategic consolidation is expected to generate significant synergies and enhance the combined entity's ability to deliver innovative component solutions to original equipment manufacturers.
• In June 2024, MM Forgings commenced the production of electric vehicle motors through its subsidiary, Abhinava Rizel, signifying a major diversification beyond its traditional forging operations. The company began manufacturing motors with a power output of up to 100 kilowatts and announced plans to install an additional line to produce higher-capacity motors by early 2025. This development aligns with the company's strategy to capture opportunities in the evolving electric mobility landscape by offering integrated powertrain solutions. The move demonstrates the company's commitment to adapting its manufacturing capabilities to support the shift towards electrification in the passenger vehicle market.
• In April 2024, Sona BLW Precision Forgings (Sona Comstar) inaugurated a new manufacturing facility in Silao, Mexico, marking a strategic expansion to serve the North American market. The plant specializes in producing differential assemblies and reduction gears meticulously designed for Battery Electric Vehicles (BEVs), addressing the increasing demand for electrified powertrain components. This facility, located in the Fipasi Industrial Park, allows the company to enhance supply chain efficiency and responsiveness for its customers. The launch underscores the company's focus on diversifying its product portfolio and strengthening its position as a key supplier in the global passenger car component sector.

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 Material Type	By Component Type	By Vehicle Type	By Region
Aluminum Steel Others	Gears Piston Bearing Axle Connecting Rods Crankshaft Others	SUV Sedan Hatchback MUV	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Passenger Car Component Forging Market, By Material Type:

• Aluminum
• Steel
• Others

• Passenger Car Component Forging Market, By Component Type:

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

• Passenger Car Component Forging Market, By Vehicle Type:

• SUV
• Sedan
• Hatchback
• MUV

• Passenger Car 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