North America Automotive Forging Market – Industry Size, Share, Trends, Opportunity, and Forecast By Material (Aluminium, Steel, Others), By Component (Gears, Piston, Bearing, Axel, Connecting Roads, Crankshaft, Others) and By Vehicle (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Country, By Competition, 2020-2030F

Market Overview

The North America Automotive Forging Market was valued at USD 16.58 billion in 2024 and is expected to reach USD 22.40 billion by 2030 with a CAGR of 5.14% during the forecast period.

Forged automotive components play a critical role in ensuring structural integrity, strength, and weight reduction for vehicles, contributing to fuel efficiency and performance targets. According to the U.S. Energy Information Administration, light-duty vehicle fuel economy improved from 22.2 miles per gallon in 2010 to 25.4 miles per gallon in 2023, emphasizing material efficiency in component design. Demand for forging processes is supported by the increasing deployment of high-strength materials in automotive manufacturing, while regulatory pressure on emissions continues to push manufacturers toward lightweight solutions.

Increasing automotive production volumes fuel the requirement for forged parts, with the U.S. Bureau of Economic Analysis reporting that U.S. motor vehicle assemblies reached an annualized rate of 11.1 million units in April 2025. The market benefits from growth in electric and hybrid vehicles, as forged aluminum and steel parts offer weight savings critical for battery efficiency. According to the International Energy Agency, EV sales rose to 17 million globally in 2024, representing 18% of the market, driving higher demand for precise, lightweight components. The forging industry is also seeing innovation in forming processes to improve dimensional accuracy and material utilization.

Rising raw material costs and energy prices pose challenges for forging companies, as steel and aluminum prices remain volatile. The U.S. Bureau of Labor Statistics highlights that producer price indices for primary metals increased 5.8% year-on-year as of May 2025. Workforce shortages in skilled forging operations and the capital-intensive nature of advanced forging equipment create hurdles for smaller firms. Sustainability requirements and circular economy practices are evolving, requiring new recycling strategies for forging scrap and end-of-life automotive components to minimize environmental impact.

Market Drivers

Lightweighting Imperatives

Automakers pursue lightweight vehicle designs to enhance fuel efficiency and meet stringent emission regulations. According to the U.S. Department of Energy, reducing vehicle weight by 10% can improve fuel economy by 6% to 8%. Forging enables manufacturers to produce strong yet lightweight parts, essential for lowering overall vehicle mass without compromising safety or durability. As electric vehicles gain market share, forging offers solutions to keep battery packs lighter while maintaining chassis and powertrain strength. This trend sustains strong demand for forged aluminum and advanced high-strength steel parts across a range of vehicle segments.

EV Production Surge

The shift toward electrification amplifies the use of forged components because of the high load-bearing requirements in electric drivetrains. Data from the International Energy Agency highlights that EV sales captured 18% of the global market in 2023. Electric vehicles demand forged parts for motor shafts, differential gears, and suspension components to withstand increased torque and ensure lightweight designs for maximizing range. As automakers expand their EV portfolios, forging manufacturers invest in new processes tailored to complex geometries and tighter tolerances needed in electric propulsion systems.

Stringent Emission Standards

Governments worldwide enforce rigorous emission standards, compelling automakers to cut vehicle weight and improve powertrain efficiency. According to the U.S. Environmental Protection Agency, proposed rules aim for an average fleet fuel economy of 58 miles per gallon by 2032. These targets create opportunities for forging processes to deliver high-performance parts that reduce mass and emissions. The automotive forging sector supports lighter engine and transmission components, enabling carmakers to comply with regulations while maintaining safety and performance, sustaining demand for advanced forging technologies.

Demand for Durability

Forged automotive parts offer superior strength, fatigue resistance, and durability compared to other manufacturing processes. According to the American Iron and Steel Institute, forged steel delivers exceptional impact toughness, crucial for critical components like suspension arms, gears, and axle parts. As vehicles operate under more demanding conditions, automakers increasingly adopt forged components to ensure reliability and minimize warranty costs. Forging processes continue evolving to produce parts that withstand higher stresses, supporting market growth across all vehicle categories.

Growing Material Innovation

Material research is transforming automotive forging, introducing lightweight alloys and advanced steels with superior mechanical properties. The U.S. Department of Energy reports ongoing R&D into lightweight alloys targeting automotive weight reductions of up to 50%. Such materials enable forging manufacturers to produce parts with excellent formability and strength-to-weight ratios, aligning with automakers’ performance and efficiency goals. The integration of innovative materials expands forging applications across vehicle platforms, fostering new product developments and enhancing competitiveness in the market.

Download Free Sample Report

Key Market Challenges

Raw Material Volatility

Price fluctuations for steel, aluminum, and specialty alloys complicate cost management for forging businesses. According to the U.S. Bureau of Labor Statistics, primary metal prices rose 5.8% in May 2025 compared to the previous year. Such volatility impacts profit margins, forcing manufacturers to renegotiate supply contracts and optimize inventory management. Forging companies must remain agile, balancing raw material sourcing strategies and customer pricing expectations to navigate market uncertainty and sustain financial performance under shifting cost conditions.

High Capital Costs

Forging operations demand substantial investments in advanced presses, automation, and heat treatment facilities. Data from the U.S. Department of Commerce highlights that capital spending in U.S. fabricated metal product manufacturing totaled $11.9 billion in 2023. Smaller forging firms face hurdles accessing capital for modernization projects, which limits their competitiveness in supplying high-precision parts required in modern vehicles. Managing these costs while maintaining quality and meeting automotive standards places continuous financial pressure on the sector.

Skilled Labor Shortage

The forging industry relies heavily on skilled technicians to operate and maintain complex equipment. The U.S. Bureau of Labor Statistics projects a persistent shortage of machinists and metal workers through 2032. Recruiting, training, and retaining qualified personnel remains a challenge, impacting productivity and quality. Aging workforces and limited new entrants into skilled trades exacerbate labor availability, compelling forging businesses to invest in workforce development programs and automation to bridge the talent gap.

Process Complexity

Automotive forging requires stringent dimensional tolerances and defect-free surfaces to meet safety standards. Developing dies, simulating metal flow, and controlling cooling rates introduce complexity and potential quality issues. The need for precise process control limits flexibility in adapting production lines for new vehicle designs. Forging firms must allocate significant time and resources to process engineering and testing, which extends development cycles and raises costs for new part introductions.

Environmental Regulations

Environmental policies mandate energy efficiency and emissions control in manufacturing operations, adding compliance costs for forging businesses. According to the U.S. Environmental Protection Agency, industrial sector greenhouse gas emissions standards are tightening for processes like heating and forging. Companies must upgrade equipment, reduce fossil fuel consumption, and manage waste responsibly. Navigating these evolving regulations while maintaining competitiveness creates challenges, particularly for small and medium-sized forging operations lacking resources for rapid adaptation.

Key Market Trends

Adoption of Green Forging

Sustainability goals drive interest in green forging technologies, including electric induction heating and closed-die processes with lower scrap rates. The U.S. Department of Energy notes industrial energy efficiency initiatives can reduce forging energy consumption by up to 30%. Automotive OEMs seek suppliers aligned with sustainability goals, prompting forging firms to invest in eco-friendly methods. The trend toward carbon-neutral manufacturing offers both challenges and opportunities as firms balance environmental performance with cost constraints.

Digital Simulation Technologies

Advancements in digital simulation enable forging manufacturers to model metal flow, predict die wear, and optimize process parameters. Data from the National Institute of Standards and Technology shows digital tools reduce development time and scrap rates, improving part quality. The integration of simulation software into forging design enhances precision, accelerates prototype validation, and supports complex part geometries. Automotive suppliers increasingly adopt these tools to meet OEM requirements for shorter development timelines and tighter tolerances.

Custom Alloy Development

Custom alloys tailored for specific automotive applications are transforming forging processes. The U.S. Department of Energy highlights research into aluminum-magnesium alloys offering high strength with reduced weight. OEMs collaborate with forging suppliers to co-develop materials that meet unique load, fatigue, and temperature requirements. This trend fuels differentiation among forging companies as material science becomes a competitive edge, enabling parts with optimal mechanical performance and lighter designs.

Integration of Automation

Forging operations increasingly incorporate robotics and automation for part handling, trimming, and quality inspection. The U.S. Census Bureau reported significant growth in robotic equipment investments in the fabricated metal sector, reaching $1.3 billion in 2023. Automation enhances consistency, reduces manual labor dependence, and improves workplace safety. As labor shortages persist, forging firms integrate smart automation to ensure stable production volumes and lower operational costs, supporting efficiency and profitability.

Focus on Weight Savings in EVs

The electric vehicle shift fuels demand for ultra-lightweight forged components. Electric powertrains impose unique load and thermal conditions requiring specialized forged parts. The International Energy Agency emphasizes lightweighting as key to EV efficiency, with battery weight reductions directly influencing vehicle range. Forging processes adapt to produce intricate geometries in lightweight alloys, aligning with EV manufacturers’ goals to maximize range without sacrificing performance or safety, further expanding forging applications.

Segmental Insights

Material Insights

Automotive forging utilizes a range of metals to achieve component strength, durability, and weight efficiency, with aluminum, steel, and other materials serving key roles. Steel remains a fundamental material in forging due to its exceptional tensile strength, fatigue resistance, and cost-effectiveness. It is widely used in drivetrain components, suspension systems, and axle parts where structural integrity is critical. The adaptability of forged steel to high-stress and impact applications makes it suitable for both traditional and electrified powertrains.

Aluminum, on the other hand, is valued for its light weight and corrosion resistance. Forged aluminum components are commonly used in electric vehicle parts, wheels, and engine mounts to reduce mass and improve energy efficiency. The growth of electric mobility and the need for higher range per charge are encouraging automakers to integrate more aluminum-based forged components. Its superior strength-to-weight ratio allows automakers to meet efficiency and performance goals without compromising durability.

Other materials, such as titanium, magnesium alloys, and specialty composites, are emerging in niche applications. These are typically adopted in performance or luxury vehicles where the cost is justified by weight and performance gains. Each of these materials requires specific forging conditions, including temperature control and die design, to maintain mechanical integrity and dimensional precision. As vehicle designs evolve, the combination of material science and forging technology continues to support lightweight, high-strength component manufacturing that aligns with evolving automotive requirements.

Download Free Sample Report

Region Insights

In 2024, the United States dominated the North America automotive forging market due to its robust automotive production base and advanced manufacturing infrastructure. The country’s automotive industry benefits from long-standing OEM-supplier relationships and a well-developed supply chain. The U.S. Bureau of Economic Analysis reported 11.1 million annualized light vehicle assemblies in April 2025, indicating consistent production volumes that sustain demand for forged parts.

Investments in electric vehicle manufacturing further support the domestic forging industry. With EV production capacity expanding, forged aluminum and steel components are increasingly used in battery enclosures, electric motor shafts, and lightweight chassis parts. Federal incentives and infrastructure funding have also prompted automotive manufacturers to localize supply chains, encouraging regional forging suppliers to scale operations and enhance technological capabilities.

The U.S. industrial base supports a high degree of automation and digital integration in forging processes. The integration of Industry 4.0 technologies and the push for sustainable manufacturing practices are reshaping how components are forged. Digital simulation tools, predictive maintenance systems, and electric-powered forging presses contribute to improving operational efficiency while reducing environmental impact.

Recent Developments

• In April 2024, Ramkrishna Forgings announced a supply agreement to provide powertrain components to the largest electric carmaker in the U.S. The deal highlights growing demand for forged components in electric mobility platforms, supporting localization efforts and strengthening North America’s EV supply chain.
• In February 2022, MacLean-Fogg introduced its ThreadStrong line of aftermarket wheel fasteners. This launch reflects the increasing focus on safety and performance in forged wheel components and addresses the demand for high-quality, durable fasteners in North American passenger and commercial vehicles.
• In March 2021, Anchor Harvey established a dedicated workgroup to focus on electric vehicle component forging. The initiative aims to develop forging solutions optimized for EV weight, durability, and structural needs, reinforcing the company’s alignment with the electric mobility transition.
• In July 2025, Modern Automotives revealed its goal to achieve a 25% CAGR in its forged component segment by FY2031. The company’s strategic shift toward electric three-wheeler components underlines the forging industry’s increasing relevance in the lightweight and small-format EV segment.
• In July 2025, Ramkrishna Forgings confirmed plans to start forged wheel manufacturing at its Chennai facility by FY2027. The new production line is intended to support growth in both domestic and export markets, including high-strength forged wheels for North America.
• In June 2025, thyssenkrupp Automotive Technology announced its strategic realignment to prioritize profitable growth and capital market readiness. The move includes expanding high-margin operations like forging, demonstrating continued confidence in the role of forged parts in next-generation vehicles.
• In October 2024, AAM disclosed the sale of its commercial vehicle axle business in India. This restructuring allows the firm to reallocate resources toward high-demand areas, such as forged component supply for electric and light commercial vehicles in North America.

Key Market Players

• Nanjin Automobile Forging Co Ltd
• ThyssenKrupp AG
• Bharat Forge Limited
• Meritor Inc
• Aichi Forge USA Inc
• Kovarna Viva
• CIE Automotive SA
• Dana Inc
• NTN Corporation
• American Axle & Manufacturing Inc

Report Scope:

In this report, the North America Automotive Forging Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         North America Automotive Forging Market, By Material:

o    Aluminium

o    Steel

o    Others

·         North America Automotive Forging Market, By Vehicle:

o    Passenger Cars

o    Light Commercial Vehicles

o    Heavy Commercial Vehicles

·         North America Automotive Forging Market, By Component:

o    Gears

o    Piston

o    Bearing

o    Axel

o    Connecting Roads

o    Crankshaft

o    Others

·         North America Automotive Forging Market, By Region:

o    United States

o    Canada

o    Mexico     

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the North America Automotive Forging Market.

Available Customizations:

North America Automotive Forging Market report with the given market data, TechSci Research, offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

North America Automotive Forging Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com