North America and Asia Pacific 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 North America and Asia Pacific aluminum forging market size was valued at USD 3.31 billion in 2023 and is projected to grow from USD 3.47 billion in 2024 to USD 4.56 billion in 2032, at a CAGR of 3.5% during the 2024-2032 period.

Aluminum forging is a manufacturing process that involves shaping aluminum alloys into desired forms through the application of compressive force. This process begins with the heating of aluminum billets or ingots to a temperature where they become malleable and not molten. The heated material is then placed into the forging die and high pressure and forces are applied, which deform it to conform to the shape of the die cavity. This process allows for the production of complex shapes with high strength and durability. The process is widely used in various industries such as automotive, aerospace, and construction due to its lightweight nature. The increasing demand for forging within the automotive & transportation industry is driving the North America and Asia Pacific aluminum forging market growth.

The North America and Asia Pacific aluminum forging market, such as many other industries, faced significant challenges during the COVID-19 pandemic, primarily in its supply chain. One of the primary challenges in the market was the disruption in sourcing raw materials. Many forging manufacturers rely on a global network of suppliers for raw materials such as aluminum billets or ingots. To mitigate the risk of disruptions, companies diversified their supplier base. This involved identifying alternative sources for raw materials in forging production and establishing backup suppliers across different geographic regions to reduce dependency on a single supplier. The COVID-19 pandemic, while presenting significant challenges, also created potential growth opportunities for the market as industries adapted to new norms, embracing changes in consumer behavior and market dynamics.

North America and Asia Pacific Aluminum Forging Market Trends

Shift toward Lightweight Materials in the Construction Industry to Add Impetus

The construction industry is experiencing a shift toward lightweight materials to enhance structural integrity, improve energy efficiency, and reduce construction costs. Aluminum forging offers a solution to meet these demands, as aluminum-forged components provide an exceptional strength-to-weight ratio compared to traditional materials such as steel or iron. The growth of the construction industry, especially in developing economies, also presents a significant opportunity for the market, as the forging process is widely used in constructing aluminum-based structural components such as beams and columns. By using this forged aluminum, manufacturers can reduce the weight of construction components without compromising their properties. This simplifies construction processes and reduces transportation costs, labor expenses, and environmental impacts associated with heavier materials, thereby driving sustainability in construction projects.

North America and Asia Pacific Aluminum Forging Market Growth Factors

Expansion of Aerospace and Defense Industry to Drive Market Growth

The aerospace & defense industry is witnessing robust expansion, with aluminum forging playing a crucial role in meeting the rising demands. There is a growing demand for lightweight materials to enhance aircraft performance and fuel efficiency. The two-step heating and cooling treatment in aluminum forging yields good strength, hardness, and ductility. This is suitable for applications that require high strength and good ductility, such as aircraft structural parts, including fuselage and wings. This improves aircraft agility, extends flight range, and boosts payload capacity, contributing to operational efficiency and cost savings for airlines and military agencies.

Furthermore, aluminum-forged components provide high strength, durability, and corrosion resistance, especially in demanding operational environments. The forging process enhances the grain structure of aluminum, resulting in enhanced mechanical strength, toughness, and fatigue resistance, making it an ideal choice for critical aerospace applications where reliability and performance are essential.

RESTRAINING FACTORS

Volatility in Raw Material Prices is Likely to Hamper Market Growth

Fluctuations in raw material prices have a significant impact on the growth and stability of the market, influencing production costs, pricing strategies, and profitability for manufacturers and suppliers. Aluminum, being the primary raw material for forging, is susceptible to price volatility driven by various factors, including changes in supply and demand fundamentals, geopolitical events, and trade policies. This volatility can hinder investment decisions and long-term planning within the industry.

Sudden spikes or declines in aluminum prices can significantly impact the cost structure of forging manufacturers, directly affecting their profitability and competitiveness in the market. High raw material costs may necessitate price adjustments, leading to reduced demand from customers unwilling to purchase products at higher rates, thereby hampering the market growth. Furthermore, volatility in raw material prices can disrupt supply chains and production schedules, leading to operational delays in delivery times.

North America and Asia Pacific Aluminum Forging Market Segmentation Analysis

By Forging Type Analysis

Closed Die Held the Largest Share Owing to Economic Advantages

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

The closed die segment held the largest share of the market in 2023 and is poised to grow at a significant growth rate during the forecast period. Closed die forging is called impression die forging and uses molds to produce exceptionally durable components compared to alternative methods. This method is commonly employed in fabricating automobile components, hardware apparatuses, and tools as it produces near-net shapes, saving time and money on additional machining. Manufacturers prefer closed die forging owing to its economic advantages.

Open die forging is an effective technique for several kinds of manufacturing. It allows the rough and final shaping of metal, most commonly steel, and its alloys. Owing to its ability to forge extremely large workpieces, weighing many tons and having large widths and lengths, it is used in machinery and component manufacturing. Open die forging allows the rough and final shaping of metal, usually steel and steel alloys. Open-die forging advances to small runs and is suitable for art smithing and customized work. Additionally, it is often used to rough-shape slabs and ingots to prepare them for consequent operations.

By End-use Industry Analysis

Building Components Holds the Major Share Owing to Flexible Manufacturing Solutions

Based on end-use Industry, the market is classified into aerospace and defense, automotive & transportation, industrial machinery, construction, and others.

The aerospace and defense segment holds the major North America and Asia Pacific aluminum forging market share. Growing demand for materials with high strength-to-weight ratios and structural dependability, which influence performance, is driving the market. Increasing forging process adoption in aerospace applications owing to their versatility of shape, size, and properties make them ideal for manufacturing components including hinges, bulkheads, engine mounts, wing roots & spars, brackets, shafts, arresting hooks, beams, wheels, landing gear cylinders, and brake carriers & discs.

The automotive & transportation segment is expected to register significant growth during the forecast period. The automotive industry is one of the prime consumers of forged products such as engines, frames, gear components, drive shafts, clutch, and others. The growing automotive industry is expected to boost the market of metal forging significantly. The increasing use of aluminum for manufacturing automobile components is influencing market growth. For instance, according to The European Automobile Manufacturers' Association (ACEA), in 2022, North America produced 14,901 thousand units of vehicles and stood as the third largest producer after China and Europe.

REGIONAL INSIGHTS

Asia Pacific region captured the dominant share of the North America and Asia Pacific aluminum forging market. It is anticipated to be the fastest-growing region during the forecast period. The increasing technological advancement in manufacturing processes, rising consumer expenditure, and increasing industrial development activities boost consumption and drive the market in this region. China is a global manufacturing hub and a major producer of aluminum and aluminum products, including forged components. The country’s large manufacturing base, coupled with its advanced forging capabilities, sets it in an important position in the global market.

The growth of the market in North America is attributed to factors such as technological advancements, industry regulations, economic conditions, and market trends toward sustainable and lightweight materials. The U.S. government’s focus on infrastructure renewal and development projects is driving demand for aluminum-based forgings in construction. 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 enable manufacturers to produce complex shapes with tight tolerances, meeting the demands of diverse industries.

List of Key Companies in North America and Asia Pacific Aluminum Forging Market

Key Players Adopting Expansion Strategies to Maintain Dominance in the 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 the North America and Asia Pacific markets. These players have a significant manufacturing capacity and are engaged in aluminum forging for industry-specific applications. They are also engaged in the expansion of their manufacturing capacity and distribution & sales network across different parts of North America and Asia Pacific. For instance, ELLWOOD planned to invest in its New Wilmington, PA, ELLWOOD Specialty Steel (ESS) facility for capacity expansion.

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 to expand its automotive aluminum panel business in China through a joint venture with China Baowu Steel Group as a shift to electric vehicles drives demand for new cars.


• February 2024: Alcoa Corporation announced an agreement with Alumina Limited on terms and processes to acquire Alumina Limited. 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 Breaks Ground on New Aluminum Housing Expansion. 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, and end-users of the product. Besides this, the report 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 over recent years.

Report Scope & Segmentation