Aluminum Forging Market Size, Share & Trends Analysis Report By Product (Open-Die, Closed-Die, Ring-Rolled), By Application (Automotive, Aerospace), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global aluminum forging market was valued at USD 21.27 billion in 2022 and is expected to expand at a compounded annual growth rate (CAGR) of 5.9% from 2023 to 2030. The rising demand for lightweight materials in the automotive industry is driving growth. Automobile manufacturers have been trying to reduce the weight of vehicles for many years to increase fuel efficiency and improve vehicle performance, as well as to reduce carbon emissions. According to the U.S. Department of Energy, a decrease in the weight of vehicles by 10% can increase fuel efficiency by 6% to 8%. Thus, global automotive manufacturers are shifting towards the production of lightweight cars.

The U.S. is one of the key markets, owing to the presence of large-scale vehicle and aircraft production facilities in the country. Also, the strict government regulations and policies to reduce carbon emissions are increasing the demand for lightweight aluminum forgings in the country.

For instance, in March 2022, the U.S. Environmental Protection Agency published a new stringent standard to reduce carbon emissions from heavy-duty vehicles and engines from the beginning of 2027. The new stricter regulations are expected to force automotive manufacturers to use more lightweight materials, which may open new opportunities for the product across the forecast period.

Increasing demand for new defense aircraft is expected to further augment market growth. For instance, Airbus’ profit surged by 200% due to the rise in passenger aircraft sales and increasing demand for military aircraft. As a result of this, in May 2022, Airbus announced an increase of 50% in its A320 aircraft production and aims at manufacturing at least 75 aircraft per month by 2025.

The industry’s growth is anticipated to be restrained by the fluctuations in global aluminum prices. Volatility in prices can be attributed to a sudden increase in demand for aluminum after the economic recovery of countries from the COVID-19 pandemic in 2021 and supply constraints of raw materials owing to the cut down of aluminum production by China, along with the ongoing Russia-Ukraine war.

Product Insights

Based on product, open die forging is expected to register a CAGR of 5.7%, in terms of revenue, during the forecast period. The process is carried out between flat dies or very simple shapes, struck, bars, and hollows. Forge components from this process find applications in industries such as aerospace, defense, energy, and automotive.

Rising investment in the aerospace industry is expected to propel the growth of the open-die segment. For instance, in September 2022, Godrej Aerospace, a subsidiary of Godrej and Boyce announced its plan to invest INR 2,500 million (~USD 30.5 million) to build a new facility in Maharashtra, India to boost aerospace and defense manufacturing capacity. The construction is expected to be completed by 2025.

The close-die segment dominated the market share in 2022. Close-die process produces more complex shapes with higher tolerances than the open-die because of the presence of two or more dies enclosed during the process. Closed-die forging is typically more economical than open-die in case of large-scale production. The components manufactured from this process are primarily used in the aerospace and automotive industries.

The ring-rolled segment is anticipated to register a CAGR of 5.4%, in terms of revenue, over the forecast period. Rings are lightweight, able to resist corrosion, and extremely durable. Owing to the aforementioned reasons, the process is an ideal choice for applications that require high stress such as parts used in the defense and aerospace industry.

Application Insights

Based on application, the automotive segment dominated the global market with a revenue share of over 51.0% in 2022. Aluminum forged components are used in automobiles in applications that require high mechanical performance such as chassis suspension system control arms, steering knuckles, wheels, and air-conditioning scroll plates of vehicles.

The global automotive industry is increasing its consumption of forged components to lower the weight of vehicles. This has led to new orders from automobile manufacturers to companies offering forged components. For instance, in 2022, Bharat Forge secured a new order of aluminum forging worth USD 121.6 million from the automotive and industrial sectors. According to the company, its utility vehicle segment grew by approximately 43% in 2022 due to these new orders.

The aerospace segment is expected to register a CAGR of 6.0%, in terms of revenue, during the forecast period. The weight of aircraft is significantly reduced when aluminum alloys are used in its production, as they weigh almost one-third lighter than steel. This enables aircraft to carry the increased weight of cargo and passengers or reduces their fuel consumption.

The construction sector is anticipated to register a CAGR of 5.4%, in terms of revenue, over the forecast period. Aluminum forged components are used in the development of structures wherein the performance and safety parameters are of the highest priority. One of the most important advantages of aluminum is its high strength-to-weight ratio.

Regional Insights

North America is expected to register a CAGR of 5.5%, in terms of revenue, during the forecast period. The increase in orders to the U.S. for new defense aircraft from other countries is expected to propel market growth in the coming years. For instance, in 2022, Jordan ordered 70 new F-16 fighter jets. Similarly, Bahrain is set to receive 70 F-16 fighter jets by 2024.

Europe is expected to register a CAGR of 5.1%, in terms of revenue, over the forecast period. In 2022, Germany accounted for a revenue share of 35.0% of the European market and is one of the leading producers of aluminum forged components in Europe. The increasing demand for lightweight components from the automotive industry is driving product demand in the country.

For instance, in December 2022, Germany-based Mercedes received low-carbon aluminum from Norsk Hydro that complies with European standards related to emissions. The aluminum forged components have been ordered by the former to be used in a range of its car models in 2023 to achieve net zero carbon emissions by 2030.

Over the forecast period, Asia Pacific is anticipated to register a CAGR of 6.6%, in terms of revenue. Rising investment by the countries to upgrade their defense equipment and modernize their aerospace sector is expected to increase market growth across the forecast period.

Key Companies & Market Share Insights

The market is expected to witness a high competitive rivalry owing to the presence of both well-established and small-scale companies in the industry. Key players engage in mergers & acquisitions, capacity expansions, and aggressive R&D activities to stay ahead of their competitors. For example, in December 2022, Forged Solutions Group (FSG) announced the acquisition of Continental Forge. This acquisition is expected to help the former expand its complex aluminum-forged components manufacturing capacity for the aerospace & defense industry. Some prominent players in the global aluminum forging market include:

• Arconic

• Alcoa

• Aluminum Precision Products

• American Handforge

• ATI

• BE | Alutech Kft

• Farinia Group

• FORGINAL industrie

Aluminum Forging Market Report Scope

Global Aluminum Forging Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global aluminum forging market report based on product, application, and region:

• Product Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Open Die Forging

  • Close Die Forging

  • Ring-Rolled Forging

• Application Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Automotive

  • Aerospace

  • Oil & Gas

  • Construction

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Netherlands

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • GCC