Forged Automotive Components Market Size, Share, and Growth Forecast for 2025 - 2032

Forged Automotive Components Market Outlook (2025 to 2032)

The global forged automotive components market is valued at US$ 50.3 Bn in 2025 and is projected to reach US$ 70.7 Bn by 2032-end, expanding at a CAGR of 5.0% over the next ten years.

Automotive forging components are made using advanced technology that has improved over time to make them stronger, more precise, and affordable. These components help cars perform better and last longer. As cars become lighter and more efficient, forging plays a key role in improving performance and fuel savings.

A key advantage of forged automotive components is their exceptional strength. The forging process aligns the grain structure of the metal, making it denser and more uniform. This alignment enhances the component's ability to withstand high stresses, impact loads, and fatigue, which are prevalent in automotive applications.

The process of forging utilizes compressive force to shape metal, serving as a manufacturing method. Automotive forging is employed in the production of engine parts like connecting rods, injection components, crankshafts, camshafts, pistons, and more. Components like chassis, bearings, gears, and axles are also created through forging. Depending on the desired mechanical properties, forging can be conducted on materials at either high or low temperatures. Forged automotive products offer advantages such as toughness, strength, and high strength-to-weight ratios.

As automakers strive to improve fuel efficiency and reduce emissions, there is a strong emphasis on using lightweight components. Forged automotive components, known for their high strength-to-weight ratios, offer an ideal solution, enabling vehicles to achieve better performance while minimizing weight.

Increasing budget and spending on military requirements in the Asia Pacific region present a significant opportunity for the market. As countries in the region focus on strengthening their defense capabilities, there is a growing demand for advanced military vehicles and equipment. Forged automotive components play a crucial role in the construction of robust and high-performance military vehicles, such as tanks, armored personnel carriers, and artillery systems. Rise in defense expenditure creates a favorable market environment, offering opportunities for manufacturers to cater to the growing demand and supply forged components for military applications.

Additive manufacturing, also known as 3D printing, is gaining traction in the market. This emerging trend allows for the production of complex, lightweight, and highly customized forged components. Additive manufacturing offers design flexibility, enabling the creation of intricate geometries that are difficult to achieve through traditional forging methods.

Sales Analysis of Forged Automotive Components (2019 to 2024) vs. Industry Projections (2025 to 2032)

There are three ways that COVID-19 impacted the global economy-fluctuations in manufacturing & demand, supply chain disruptions, and disturbance in the financial stability of companies. Sales of forged automotive components were also affected by the COVID-19 pandemic, as there was a significant drop in the demand for these systems in 2020. Production activities for almost all industries, including manufacturing and transportation, were affected.

The forged automotive components market expanded at a CAGR of 4.3% from 2019 to 2024. Market growth is projected to exhibit a V-shape recovery as economic activities are back to pre-crisis levels post the containment of the pandemic. Over the decade, sales of forged components are expected to rise at a CAGR of 5.0%.

What is Driving the Demand Growth for Forged Automotive Components?

“Rising Safety Regulations and Enhanced Vehicle Performance Requirements”

Forged automotive components provide exceptional strength, durability, and resistance to fatigue, making them well-suited for critical applications. As safety regulations become more rigorous, manufacturers are increasingly adopting forged components to ensure the structural integrity and reliability of vehicles, boosting the demand for these components.

“Increasing Mergers & Acquisitions between Key Manufacturers of Forged Automotive Components for Portfolio Expansion”

Mergers and acquisitions among key market players are allowing them to stay ahead in the market.

• In Oct 2024, Bharat Forge announced they have signed a definitive agreement to acquire AAM India Manufacturing (AAMIMCPL) for Rs. 544.5 crore. AAMIMCPL is a subsidiary of American Axle & Manufacturing Holdings (AAM), a US-based company specializing in automotive components.
• In July 2022, Siderforgerossi Group S.p.A. acquired Grupo Euskal Forging, S.L. and its subsidiaries. This acquisition is expected to help Siderforgerossi reach a leading position in the forgings market across offshore and onshore applications.

“Surging Popularity of Electric & Hybrid Vehicles”

The growing adoption of electric and hybrid vehicles is a key factor driving the forged automotive components market. As the demand for eco-friendly transportation increases, automakers are making significant investments in electric and hybrid vehicle production. These vehicles require lightweight yet durable components to enhance energy efficiency and extend driving range.

• According to the International Energy Agency, nearly 14 million new electric cars were registered globally in 2023, bringing the total number on the roads to 40 million.
• Electric car sales in 2023 were 3.5 million higher than in 2022, reflecting a 35% year-on-year increase. This is more than six times the sales recorded in 2018. In 2023 alone, over 250,000 new registrations occurred per week—exceeding the entire annual total from 2013. Electric cars accounted for approximately 18% of all cars sold in 2023, compared to 14% in 2022 and just 2% in 2018.

Forged automotive components, known for their high strength and weight-saving advantages, are particularly suited for these applications. The shift toward electric and hybrid vehicles is accelerating demand for forged components, driving technological advancements and market expansion.

What Steps Should Manufacturers of Forged Components Adopt to Stay Profitable?

“Growing Need for Investments in Research & Development Driven by Increasing Demand for Better Ride Quality”

By the end of 2032, the market size is expected to reach US$ 67.8 billion. Growing demand for efficient & reliable forged components with improved safety is the major factor driving the growth of the market. One crucial step for manufacturers of forged components is to prioritize R&D investments to improve the performance and quality of their products.

The automotive industry is witnessing a growing demand for better ride quality, which encompasses factors such as comfort, handling, and overall vehicle dynamics. By investing in R&D, manufacturers can develop innovative solutions and advanced forging techniques that enhance the performance, durability, and reliability of forged components. This includes exploring new materials, optimizing design geometries, and improving manufacturing processes to meet the evolving demands of customers.

What are the Hindrances That Manufacturers of Forged Automotive Components Need to Tackle?

“High Initial Investment Required for Forging Facilities and Limited Design Flexibility”

High initial investment required for forging facilities and equipment remains a big challenge for manufacturers. The machinery and infrastructure needed for the forging process can be capital-intensive. This poses a challenge, especially for small- and medium-sized manufacturers or new entrants into the market, who may face difficulties in making the necessary upfront investments. The high cost of entry can act as a barrier, limiting the number of players in the market and potentially impacting its growth.

While forging offers excellent strength and durability, it has some constraints when it comes to complex and intricate component designs. The shaping process in forging is primarily focused on creating solid and robust structures, which may limit the ability to incorporate intricate shapes or intricate internal features that could be achieved through other manufacturing methods. This limitation can restrict design innovation and customization options, particularly in industries where aesthetic or intricate designs are valued.

Country-wise Insights

What is the Current Position of China in the Forged Automotive Components Industry?

“Supportive Government Policies Promoting Increased Vehicle Production”

The market in China is expected to reach US$ 23.2 billion by 2032, expanding at a CAGR of 5%, due to the ever-rising demand for automobiles in the country. The forged automotive components market in China is poised for notable growth as the country experiences an increase in government support and vehicle production.

China's government has introduced various policies and incentives to foster the growth of its automotive industry, particularly in the electric and hybrid vehicle segments. This strategic support is driving increased demand for forged automotive components, which play a crucial role in vehicle manufacturing across multiple categories.

• According to the China Association of Automobile Manufacturers (CAAM), automobile production and sales in China are expected to reach approximately 32.9 million units in 2025, reflecting a 4.7% year-on-year increase. The production and sales of new energy vehicles (NEVs) are projected to surge to 16 million units, a 24.4% rise, while exports are anticipated to grow by 5.8% to 6.2 million units.
• In 2024, China's cumulative automobile production reached 31.28 million units, with sales totalling 31.44 million units, marking year-on-year growth of 3.7% and 4.5%, respectively. These figures set new industry records, surpassing the full-year sales target previously established by CAAM.

China's thriving automotive industry, marked by a significant increase in vehicle production, fuels the growth of the market. China has emerged as the world's largest automotive market, with high domestic and international demand for vehicles.

What is the Demand Outlook for Forged Automotive Components in the United States?

“High Regulatory Compliance and Vehicle Safety Standards Propelling Demand for Forged Automotive Components”

The forged automotive components industry in the United States is expected to reach US$ 15.7 billion by 2032, expanding at a CAGR of 4.9%. Tightening regulatory standards in the country are playing a significant role in driving market growth by generating demand for compliant forged components.

In the United States, the leading six automotive forging companies include Zetwerk, Sypris Solutions, Powers & Sons, LLC, Aichi Forge USA, LLC, Angstrom-USA, LLC, and American Axle & Manufacturing, Inc. (AAM).

Regulatory standards play a significant role in shaping the automotive industry, particularly in vehicle safety. Stricter regulations compel automakers to enhance safety features and improve structural integrity. Given their exceptional strength and durability, forged automotive components are critical to ensuring vehicle safety and reliability. Consequently, there is a growing demand for forged components that comply with these rigorous safety standards.

Category-wise Insights

Which Vehicle Type Accounts for Extensive Deployment of Forged Components?

“Rising Demand for Forged Automotive Components in Passenger Cars for Enhanced Automotive Safety & Performance”

By vehicle type, passenger cars are expected to dominate the forged automotive components industry. Demand for forged components designed for passenger cars is foreseen to rise at a CAGR of 5.1% from 2024 to 2032.

Passenger cars play a crucial role in the forged automotive components industry due to their diverse component requirements, performance and safety demands, and involvement in light-weighting initiatives. Passenger cars often require high-performance capabilities, precise handling, and safety features. Forged automotive components, known for their strength, durability, and resistance to wear, contribute to meeting these requirements.

Competitive Landscape

The forged automotive components market is moderately fragmented, where tier-I players hold 15% to 20% share of the global market. The automotive forging component market is witnessing steady growth, driven by increasing demand for high-quality forged and precision-machined components. Companies are focusing on expanding their production capabilities, securing long-term contracts, and investing in technological advancements to strengthen their market presence. ThyssenKrupp AG, CIE Automotive, NTN Corporation, American Axle and Manufacturing Inc., and Bharat Forge Limited are among the leading manufacturers of forged automotive components, operating with a vast global presence.

Market participants are strategically emphasizing the introduction of durable and lightweight materials, along with leveraging public and private investments in the automotive sector, to attain higher market shares. As the industry adapts to evolving trends, including the rise of electric vehicles and advanced manufacturing processes, key players are making significant investments to stay competitive. This dynamic landscape highlights the continuous expansion and innovation within the automotive forging sector.

Development:

• In Feb 2025, The Automotive Forging Component market continues to expand with Happy Forgings Limited (HFL) securing a significant order to supply crankshafts for the domestic passenger vehicle segment. As a key manufacturer of complex, safety-critical forged, and precision-machined components in India, HFL's latest contract underscores the growing demand for high-quality forged components in the automotive industry. The INR 140 crore (USD 16.1 Million) order covers crankshaft supply from FY26 to FY31, with deliveries starting post-testing and approval in FY26.
• In Oct 2024, Bharat Forge announced they have signed a definitive agreement to acquire AAM India Manufacturing (AAMIMCPL) for ?544.5 crore (USD 65 Million) AAMIMCPL is a subsidiary of American Axle & Manufacturing Holdings (AAM), a US-based company specializing in automotive components.
• In May 2024, Happy Forgings Limited (HFL), a leading engineering-driven manufacturer of heavy-forged and high-precision machined components in India, has secured a significant contract for supplying machined Axle Seats and Steering Knuckles for Electric SUVs in the U.S. market. This development marks a major step in strengthening HFL’s collaboration with a prominent global OEM. The seven-year contract, running until FY32, will begin supply in Q3FY25, with full-volume ramp-up by Q4FY26. Peak annual sales are expected to exceed ?50 crores (USD 5.7 Million)  with a total contract value estimated at ?320-350 crores (USD 36-40 Million).
• In 2023, Samtech is set to expand its facility in the PILBA Industrial Park in León, Guanajuato, with a US$ 19 million investment. This expansion will create 30 new direct jobs. The company, operating in the automotive sector, specializes in forging technology for manufacturing gears used in the industry.

In July 2023, Talbros Automotive Components secured a multi-year business contract valued at INR 400 Crore (USD 48.4 million). Over the contract term of 5 to 7 years, Talbros will supply gasket, heat shield, forging, and chassis product lines.

Forged Automotive Components Industry Report Scope

Segmentation of Forged Automotive Components Industry Research

By Vehicle Type:

• Heavy Commercial Vehicles
• Light Commercial Vehicles
• Passenger Vehicles

By Automotive Component:

• Connecting rods
• Injectors
• Gears
• Crankshafts
• Axles
• Bearings
• Pistons
• Steering Knuckles
• CV Joints
• Beams
• Fittings & Flanges
• Valve Bodies & High-pressure Valves
• Others

By Material:

• Steel
• Aluminium
• Other

By Forging Process:

• Impression Die Forging
  • Hydraulic Presses
  • Mechanical Presses
  • Hammers
• Cold Forging
• Open Die Forging
• Seamless Rolled Ring Forging

By Application:

• Power Train Components
• Chassis Components
• Transmission Parts
• Other Parts

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• MEA

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