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Automotive Forging Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Agriculture Machinery, Construction equipment, and Others), By Material (Steel and Aluminum), By Application (Gears, Crankshaft, Pistons, Axle, Bearings, Connecting Rods, and Others) By Technology (Closed Die, Open Die, and Others) By Supplier Type (Local and International), and Regional Forecasts, 2022-2030

Region : Global | Format: PDF | Report ID: FBI105153

 

KEY MARKET INSIGHTS

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The global automotive forging market size was valued at USD 40.49 billion in 2021. The market is projected to grow from USD 45.49 billion in 2022 to USD 67.75 billion by 2030, exhibiting a CAGR of 5.10% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 23.5% in 2020 as compared to 2019.


Forging is a manufacturing process involving the molding of metal using compressive forces. Automotive forging consists of components, including engine parts, chassis, bearings, axles, gears, and others. This process can be carried out on materials depending upon the mechanical properties required. Moreover, metal forging produces some of the sturdiest manufactured parts with high mechanical properties compared to other manufacturing methods.


COVID 19 IMPACT:


Declined Automotive Production and Sales to Hamper Market Growth


The COVID-19 pandemic has had a significant negative impact on the global economy. Due to the pandemic, the economy had severely shrunk, which had a negative demand shock on almost all automotive forging items internationally. This widespread drop in car sales during the pandemic impacted the demand for forged goods all over the world. Additionally, the viability of small and medium firms in emerging and underdeveloped economies is negatively impacted by government-enforced lockdown, the downturn in the automobile sector, and closed manufacturing facilities. The International Organization of Motor Vehicle Manufacturers (OICA) estimates that the total volume of vehicle sales fell by 13.7% in 2020 compared to 2019.


Moreover, during the pandemic, varying raw material prices due to a disrupted supply chain and unavailability of the material also harmed the global industry. Especially in developing countries where inflation is significantly high, the surge in raw material prices hampered the market growth. For instance, in India,  in January 2021, hot-rolled steel coil prices in the wholesale market reached 52,000 INR (USD 710.32) per Ton from 36,500 INR (USD 485.45) per Ton in July 2020.


LATEST TRENDS


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Adoption of Smart Manufacturing Technology and Automation In the Automotive Forging Industry to Propel the Market Growth


The acceptance of automation and intelligent manufacturing technologies is an ongoing trend in the market. Nearly all the leading players are focused on turning their forging lineup automated to increase operational efficiency, overall productivity, and safety. For instance, in September 2021, ThyssenKrupp AG started one of the most advanced forging lines in the world. The company established its advanced forging line in Homburg/Saarland. The company invested roughly USD 85 million in its new forging facility designed for truck chassis components.


The flagship of the new highly automated and digitized forging line in Homburg is a 16 thousand-ton forging press measuring nearly 15 meters in height and weighing 1,700 tons. The new line has the capacity to produce 360,000 forged components per year and will be able to make different large-scale products. Therefore the adoption of automation and smart manufacturing technologies to improve quality, precision, and productivity in the automotive forging line is anticipated to accelerate the automotive forging market growth shortly.                 


DRIVING FACTORS


Rising Automotive Sales Post-Pandemic to Drive Market Growth


Rising urbanization and overburdened public transport, coupled with the increasing number of health concerns among the populace due to the pandemic, are influencing automotive adoption. Therefore, increasing the preference for private transportation to limit unnecessary social interaction is anticipated to drive automotive sales, further fueling the demand for forged parts and components. It is witnessed that over the previous decade, urbanization has been most pronounced in developing regions such as Asia and Oceania. Additionally, according to the United Nations (UN) Department of Economics and Social Affairs, nearly 68% of the world population is anticipated to live in urban areas by 2050.


Additionally, rising disposable income, improving the standard of living, and the popularity of driving automobiles among the various age group are also accelerating automotive sales. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in 2021, passenger car sales volume will increase by nearly 4.6% compared to 2020. Similarly, commercial vehicle sales volume increased by 5.7% compared to 2020. Therefore, recovering automotive sales post-pandemic is anticipated to boost market growth in future years.


Increasing Demand for Light Weight Fuel Efficient Vehicles to Propel Market Growth


As fossil fuel prices are increasing rapidly, the demand for lightweight, fuel-efficient vehicles are increasing rapidly. These light vehicles have parts and automotive components manufactured from lightweight materials such as aluminum. Therefore, rising lightweight vehicle sales are anticipated to drive the demand for aluminum forged products in upcoming years.


Aluminum has been gaining high demand from the automotive industry due to its beneficial properties, such as lightweight, high durability, high strength, corrosion resistance, and enriched handling capabilities at high temperatures. Therefore, using aluminum alloy in automotive parts can minimize energy loss due to friction and provide higher operational efficiency as it maintains a favorable weight-to-power ratio. Such demand and investment from key players are propelling to create a business automotive forging growth in coming years.


RESTRAINING FACTORS


Rising Electric Vehicle Penetration to Hinder Market Growth


The automotive industry is one of the leading customers for metal forged products and parts. Currently, the automotive industry is going through once in century revolution. Rising environmental concerns, government initiatives to promote green mobility, an increasing number of stringent emission regulations, and rising fuel prices are driving electrification in the automotive industry. Nearly all the leading automakers are focused on developing electric vehicles as future mobility solutions.


However, electric cars have fewer movable parts and forged components than conventional vehicles. Therefore, the growing popularity and adoption of electric vehicles and rising electrification in the global automotive industry probably hamper the market growth during the forecast period. For instance, according to the (IEA) International Energy Agency, global electric vehicle sales doubled in 2021 compared to 2020, reaching a new record of 6.6 million units. Additionally, government initiatives to offer tax benefits and subsidies for purchasing new electric vehicles are anticipated to drive the penetration of electric vehicles in emerging economies.


Electric vehicles are expected to penetrate deeper in total vehicle sales globally during the forecast period, further restraining the market growth.


SEGMENTATION


By Vehicle Type Analysis


Increasing Number of Forging Parts in Passenger Cars to Propel the Segment Growth


By vehicle type market is categorized as passenger cars, light, heavy, medium commercial vehicles, agricultural machinery, construction equipment, and others.


The passenger car segment had the largest market share in 2021 and is anticipated to continue its dominance throughout the forecast period. Passenger car production has witnessed considerable recovery in 2021, with a 28% and 61% increase in China and India, respectively. The design of mechanical components in electric cars will be much simpler as designers can create significant impacts with simple geometries. Forged aluminum parts perform better than machined or cast parts, increasing reliability. Hence, these factors can positively impact the growth of the market.


The construction Equipment segment was the fastest growing segment with a CAGR of 10.78% from 2022 to 2030. Ferrous forgings are used heavily in heavy construction & off-highway equipment owing to the need for strength, machinability, and toughness. In addition to transmission and engine parts, forgings are utilized for axle beams, gears, wheel hubs, bearing holders, shafts, levers, links, yokes, rollers, and spindles. Therefore, increasing demand for these automotive forged parts is anticipated to drive the segment growth.


Other segments like commercial vehicles and agricultural and construction equipment also saw a positive growth rate during the forecast period. Medium & heavy commercial vehicles production volumes showed positive recovery in 2021. For instance, in key markets such as India, Brazil, the U.S., and Mexico, sales volumes increased by 75%, 101%, 20%, and 22%, respectively. The segment is expected to grow significantly in the forecast period.


By Material Analysis


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Steel Segment to Dominate Owing to Increasing Demand For Aluminum Forged Lightweight Auto Parts In Vehicles


By material, the market is categorized into aluminum and steel. Steel dominated the automotive forging market share in 2021. Due to the high forge ability of carbon steel, in particular, along with its impact strength, production efficiency, and economic utilization, the demand for carbon steel is high in the automotive industry, possibly fueling the market growth during the forecast period. Vehicle weight reduction is one of the many factors that affect fuel economy and performance.


Aluminum is the fastest growing segment throughout the forecast, aluminum usage in the automotive industry has increased from 154 kg per vehicle in 2010 to 208 kg per vehicle in 202, according to a study published by Frank Czerwinski (Current Trends in Automotive Light weighting Strategies and Materials). For internal combustion engine (ICE) vehicles, with 10% less weight, fuel economy will improve by 6-8%. A lower-weight alternative to steel is aluminum, which is highly recovered and reused.


By Application Analysis


Axle Segment to Dominate Owing to its Vitality in Vehicle Drive train


The application segment is categorized into the crankshaft, gears, piston, axle, bearings, connecting rods, and others.


An axle is a shaft that connects a pair of wheels in the automotive to propel wheels and retain their position to one another. The axle segment was estimated at the highest CAGR in 2021 and maximum dominance from 2022 to 2030. The segment comprises applications for other automotive forged components such as input/output shafts, chassis, high-pressure valves, and others.


Others and bearing segments showcased fasted growth rate over the forecast period. Forged engine and powertrain components include connecting rods, differential gears, clutch hubs, transmission shafts, crankshafts, drive shafts, and universal joint yokes. Forged gears, pinions, camshafts, and rocker's arms offer strength and ease of selective hardening. Axle beams and shafts, idler arms, linkages, steering arms, wheel spindles, and torsion bars for passenger cars, trucks, and buses characterize applications that require substantial toughness and strength. Hence, this is a suitable manufacturing process for automotive components.


By Technology Analysis


Closed Die Segment to Dominate Owing to its Surface Finish and Superior Mechanical Properties


By technology type segment is categorized into the open die, closed die, and other types of forging. The closed die technique dominated the market in 2021 with the highest market share. Closed die enables the manufacturing of components with a complex profile. Closed die provides a better surface finish and superior mechanical properties. This factor further reduces the machining requirement. Closed die forged components have enabled many designs to accommodate greater stresses and higher loads.


The open die segment was estimated to grow from 2022 to 2030. Growth of the open die segment is driven by increasing demand for forged products with simple profiles such as shafts, axle beams, yoke, ball joints, and others. Moreover, owing to the inherent characteristic of a higher strength-to-weight ratio, savings in the weight of parts is achieved. Therefore, more than 200 closed die forgings are used in vehicles, and nearly all types of forging units install closed die machines to manufacture high-quality developed products efficiently.


By Supplier Type Analysis


Local Segment to Dominate Attributable to Low Production Costs And Manufacturing Incentive Schemes


The supplier type market is segmented into local and International (import). The local segment had the highest market share and dominance from 2022 to 2030. The major driving factor for its growth is the importation of auto ancillaries and electric vehicle components from China and other Asian countries to Europe and North America.


The international segment also saw a positive growth rate in the forecast period. This growth is because of low production costs, economies of scale, a government initiative to tackle trade barriers, and manufacturing incentive schemes


REGIONAL INSIGHTS


Asia Pacific Automotive Forging Market Size, 2021 (USD Billion)

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Increasing Budget and Spending on Military Requirements to Propel Market Growth in the Asia Pacific


Regionally the market is classified into North America, Europe, Asia Pacific, and the Rest of the world.


Asia Pacific (APAC) is expected to be the dominant and fastest-growing segment compared to other regions. China and India account for a huge share of forged components produced. The new investments by major players in the region are focused on automation and high-level machinery with low energy consumption and higher efficiency.


Europe is expected to show a significant growth rate owing to alternative production techniques in this industry. Government regulations support locally manufactured products, making the European market rise.


North America is expected to rise steadily in the global market owing to the increasing demand for forged automobile parts.


KEY INDUSTRY PLAYERS


Early Adoption of Smart Manufacturing Technology is Driving the Competition in the Market


ThyssenKrupp group is an international group of companies consisting of largely independent industrial technology businesses. The company has a presence across 56 countries. Six segments handle its business activities: industrial components, automotive technology, material services, industrial components, steel Europe, multi-tracks, marine systems, and automotive technology. Adopting automation and smart/intelligent manufacturing technologies is an ongoing trend in the market. The company’s nearly 3,600 employees work in the R&D department across 78 locations worldwide.


R&D is mainly a company's team that mainly works in energy transition, climate protection, future mobility, and digital transition in the industry. ThyssenKrupp group has a portfolio of nearly 18,100 patents and utility models. Nearly all the leading players are focused on turning their forging lineup automated to increase operational efficiency, overall productivity, and safety. For instance, in September 2021, ThyssenKrupp AG started one of the most advanced forging lines in the world. The company established its advanced forging line in Homburg/Saarland. The company invested roughly USD 85 million investment in its new forging facility designed for truck chassis components.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • May 2022, Ramkrishna Forgings Limited received a multi-year contract order worth USD 13.5 million per year from the leading manufacturer of chassis-related systems and components primarily for trailers and trailers, trucks, and buses in the U.S.

  • March 2022, American Axle & Manufacturing announced that it had secured multiple next-generation full-sized truck rear and front axle programs with global OEM customers. The contracts and a previously announced award in early 2021 are anticipated to generate nearly more than USD 10 billion of lifetime revenue from mid-decade to beyond 2030.

  • February 2021, ZF Announced USD 200 Million Investment in Commercial Vehicle Transmission Manufacturing in North America. Beginning in 2023, ZF will produce the ZF Powerline 8-speed automatic transmission at the company’s state-of-the-art manufacturing facility in Gray Court, SC.

  • February 2022, Cummins Inc. announced the acquisition of Meritor Inc., the global braking mobility, drivetrain, aftermarket, and electric powertrain solutions for commercial automobiles and industrial markets. Cummins acquired Meritor for approximately USD 3.7 billion; the transaction will likely close by the end of 2022. The addition of Meritor’s complementary strength will assist Cummins in addressing critical technology challenges, such as developing economically viable carbon-free solutions for commercial and industrial applications.

  • July 2020, Dana Limited introduced its new Spicer® Trac-Lok® Limited Slip Differential (LSD) for medium-duty truck applications. The new model autonomously delivers improved vehicle handling within a compact and lightweight design for enhanced traction, durability, and performance.


REPORT COVERAGE


An Infographic Representation of Automotive Forging Market

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The automotive forging market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.


Report Scope & Segmentation


























































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2030



Historical Period



2019-2020



Unit



Value (USD Billion)



By Vehicle Type




  • Passenger Cars

  • Light Commercial Vehicle

  • Medium & Heavy Commercial Vehicles

  • Agricultural Machinery

  • Construction Equipment

  • Others



 By Material




  • Steel

  • Aluminum



By Application




  • Gears

  • Crankshaft

  • Piston

  • Axle

  • Bearings

  • Connecting Rods

  • Others



By Technology




  • Closed Die

  • Open Die

  • Others



By Supplier Type




  • Local

  • International (Import)



By Geography




  • North America (By Vehicle Type, By Material, By Application, By Technology, & By   Supplier Type)

    • U.S.

    • Canada

    • Mexico



  • Europe (By Vehicle Type, By Material, By Application, By Technology, & By   Supplier Type)

    • U.K.

    • Germany

    • France

    • Rest of Europe



  • Asia Pacific (By Vehicle Type, By Material, By Application, By Technology, & By   Supplier Type)

    • China

    • Japan

    • India

    • South Korea

    • Rest of Asia Pacific



  • Rest of the World (By Vehicle Type, By Material, By Application, By Technology, & By   Supplier Type)



Frequently Asked Questions

Fortune Business Insights market research says that the global market size was valued at USD 40.49 billion in 2021. The global Market is expected to grow to USD 67.75 billion by 2030.

The market is expected to register a CAGR of 5.10% during the forecast period 2022-2030.

Increasing demand for lightweight fuel-efficient vehicles to propel the market growth.

The Asia Pacific region led the global market in 2021.

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