Aluminum Forging Market Size, Share & Industry Analysis, By Forging Type (Open Die, Closed Die, and Ring Rolled), By End-use Industry (Aerospace and Defense, Automotive & Transportation, Industrial Machinery, Construction, and Others), and Regional Forecast, 2024-2032

The global aluminum forging market size was valued at USD 3.78 billion in 2023 and is projected to grow from USD 3.94 billion in 2024 to USD 5.12 billion by 2032 at a CAGR of 3.3% during the 2024-2032 forecast period. Asia Pacific dominated the aluminum forging market with a market share of 45.77% in 2023.

Aluminum forging is a manufacturing process where aluminum is shaped by applying compressive force under high temperatures. It involves heating aluminum to a temperature where it becomes malleable, then pressing or hammering it into a desired shape using dies or molds. This process gives aluminum components superior strength, durability, and precision compared to cast or machined parts. The market is driven by increased demand from industries, such as automotive, aerospace, and construction due to the material’s lightweight nature, strength, and corrosion resistance.

The COVID-19 pandemic had a significant impact on the market, particularly in 2020 and early 2021. The market faced challenges due to disruptions in supply chains, temporary shutdown of manufacturing facilities, and decreased demand from key industries, such as automotive and aerospace. However, as the world adapted to the pandemic and industries began to recover, the market started showing signs of recovery. Increased focus on domestic production and supply chain resilience, along with rising demand for lightweight and durable materials in various applications, contributed to the market’s gradual rebound.

Aluminum Forging Market Trends

Development of New Aluminum Alloys to Drive Innovation in Market

The development of new aluminum alloys with enhanced properties, such as improved strength, corrosion resistance, and formability is driving innovation in the market. These advanced alloys enable manufacturers to produce components that meet stringent performance requirements in various applications.

Advanced aluminum alloys are being increasingly used in automotive manufacturing to produce lightweight components that improve fuel efficiency and reduce emissions. These alloys enable the fabrication of high-strength, crash-resistant structural parts, such as chassis components, engine mounts, and suspension systems.

Furthermore, in aerospace applications, advanced aluminum alloys are utilized to manufacture critical components for aircraft and spacecraft. These alloys offer a combination of essential properties, such as high strength, corrosion resistance, and low density, making them ideal for structural parts, engine components, and aerospace fasteners.

Aluminum Forging Market Growth Factors

Growing Demand for Aluminum Forging Within Automotive & Transportation Industry to Drive Market Growth

The automotive & transportation industry is experiencing a significant shift toward lightweight materials to enhance fuel efficiency, reduce emissions, and improve overall performance. Aluminum forging has emerged as an ideal solution to meet these demands, driving market growth. Aluminum forging offers an excellent strength-to-weight ratio compared to traditional materials, such as steel. As automotive manufacturers are concentrating on developing vehicles that are lighter and more durable, aluminum forging presents an ideal solution. By utilizing aluminum forged components in critical vehicle parts, such as engine components, chassis, and suspension systems, manufacturers can significantly reduce the overall weight of the vehicle without compromising on its safety and performance. This is useful in enhancing fuel efficiency and can also lower carbon emissions.

RESTRAINING FACTORS

Volatile Raw Material Prices to Impede Market Growth

Fluctuating raw material costs may force manufacturers to reevaluate their strategies and explore alternative suppliers to mitigate risk and minimize the impact of price volatility on their operations. However, such measures may incur additional costs and create complications. In addition, volatility in raw material prices can hinder investor decisions and long-term planning within the aluminum forging industry. Uncertainties surrounding the future price trends and supply availability may prevent companies from committing capital to expansion projects, capacity upgrades, and research & development initiatives. Sharp fluctuation in raw material prices may result in price instability and uncertainty for both suppliers and consumers, potentially hindering the aluminum forging market growth.

Aluminum Forging Market Segmentation Analysis

By Forging Type Analysis

Closed Die Dominated Market Owing to Increasing Use of Aluminum Forged Products in Aerospace & Defense

Based on forging type, the market is classified into open die, closed die, and ring rolled.

The closed die segment held the highest share of the global market in 2023 and is estimated to record a significant growth rate during the forecast period. Closed die aluminum forging is crucial for manufacturing critical aerospace components, such as engine parts, landing gear, and structural elements due to its high strength-to-weight ratio and fatigue resistance. Closed die aluminum forging plays a vital role in the global manufacturing landscape, serving diverse industries and contributing to economic growth and technological advancement.

By End-use Industry Analysis

Aerospace and Defense Dominated Market Due to Technological Advancements and Innovations

In terms of end-use industry, the market is segmented into aerospace & defense, automotive & transportation, industrial machinery, construction, and others.

The aerospace & defense segment held the largest aluminum forging market share. The U.S., China, and India have burgeoning aerospace industries that rely on aluminum forging for producing components for commercial and military aircraft. This factor is expected to drive the segment’s growth in the global market.

The automotive & transportation segment is predicted to witness notable growth in the coming years. The forged products are mainly used in automotive bodies and engines. The increasing demand for lightweight automobiles is expected to drive the product adoption in the automotive & transportation segment. Factors such as increasing investments in construction projects and growing population across the world are expected to fuel the segment’s expansion. Moreover, supportive government initiatives to create affordable housing solutions for people belonging to lower income groups will bolster the segment’s growth.

REGIONAL INSIGHTS

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific occupied the dominant share of the global market and might emerge as the fastest-growing region in the future. China, India, and Japan are increasing their investments in the real estate sector to develop robust infrastructure. This factor is predicted to boost the demand for aluminum-forged products. In addition to this, the ever-expanding aerospace & defense industry across these nations will augment the demand for forged components as they are affordable and durable, thereby accelerating the regional market’s growth.

The market in North America is growing due to factors, such as technological advancements, industry regulations, economic conditions, and increasing adoption of sustainable and lightweight materials. The U.S. government’s focus on infrastructure renovation and development projects is driving the need for aluminum-forged components in the country’s construction industry. Moreover, innovations in forging techniques, such as precision forging and Computer Numerical Control (CNC) machining are improving the efficiency and quality of aluminum forging processes. These advancements will enable manufacturers to produce complex product shapes with tight tolerances, meeting the demands of diverse industries.

Europe is expected to showcase significant growth in the global market during the forecast period. Germany is one of the prime countries contributing to the global production of forged aluminum. The rapid growth of the automotive industry in the country due to production excellence, innovations in mobility, and an increase in the spending capacity of consumers will positively influence the regional market.

The market in Latin America will grow due to the high demand for aluminum-forged components from the industrial machinery segment. The region’s increasing use of aluminum for machinery and equipment manufacturing is the key driving factor. Additionally, increasing FDIs in Brazil is expected to boost the country’s manufacturing activities, further driving the regional market’s growth. For instance, according to CEIC Brazil, Foreign Direct Investment (FDI) grew by USD 7.7 billion in March 2023, compared with an increase of USD 6.5 billion in February 2023.

The Middle East & Africa market might display tremendous growth in the coming years. The rapidly growing industrial mining sector is likely to boost the use of aluminum-forged components in heavy machinery. Moreover, increasing machinery, defense, automotive, and shipbuilding investments is expected to positively impact the regional market.

List of Key Companies in Aluminum Forging Market

Key Players to Adopt Organic and Inorganic Business Growth Strategies to Maintain Dominance in Market

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. Bharat Forge, ELLWOOD Group Inc., Kobe Steel, Ltd., ThyssenKrupp AG, and Precision Castparts Corp. are some of the key players in this market. These players have a significant manufacturing capacity and are engaged in forging for industry-specific applications. They are also engaged in the expansion of their manufacturing capacity, and distribution & sales network in different parts of the world.

LIST OF KEY COMPANIES PROFILED:

• Bharat Forge (India)


• ELLWOOD Group Inc. (U.S.)


• Kobe Steel, Ltd. (Japan)


• ThyssenKrupp AG (Germany)


• Precision Castparts Corp (U.S.)


• Kalyani Technoforge Limited (India)


• Alcoa Corporation (U.S.)


• Ace Forge Pvt Ltd (India)


• Sansera (India)


• Accurate Steel Forgings (INDIA) Limited (India)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Kobe Steel announced its decision to expand its automotive aluminum panel business in China through a joint venture with China Baowu Steel Group as a shift to electric vehicles is driving the demand for new cars.


• February 2024: Alcoa Corporation announced an agreement with Alumina Limited on terms and processes to acquire the latter. This agreement would further enhance Alcoa’s position as one of the world’s largest alumina producers.


• July 2022: Bharat Forge announced the acquisition of JS Autocast Foundry India Private Limited, located in Coimbatore, India. JS Autocast provides the essential machined ductile castings for various industries and applications, including automotive, hydraulic, off-highway, and wind.


• February 2022: Precision Castparts Corp. announced the completion of its acquisition of Noranco Inc., a provider of aluminum forging and machining services. The acquisition is expected to strengthen Precision Castparts' position in the aerospace industry and provide opportunities for growth in other markets.


• October 2020: ELLWOOD conducted its groundbreaking ceremony to expand its production of specialized aluminum. This expansion will house products coming from the company's new state-of-the-art facility, ELLWOOD Aluminum.

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, forging types, compositions used to produce these products, and end-use industries of the product. Besides this, it offers insights into the market and current industry trends, and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth.

Report Scope & Segmentation