Europe & CIS Automotive Forging Market By Material (Aluminium, Steel, Others), By Component (Gears, Piston, Bearing, Axel, Connecting Roads, Crankshaft, Others), By Vehicle Type (Passenger Cars, Commercial Vehicle), By Country, Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Europe & CIS Automotive Forging Market was valued at USD 16.67 Billion in 2024 and is expected to reach USD 21.54 Billion by 2030 with a CAGR of 4.37% during the forecast period. The Europe & CIS automotive forging market is experiencing notable transformation driven by rising demand for lightweight and high-strength components, stringent fuel efficiency standards, and the growing integration of hybrid and electric drivetrains. Forging plays a pivotal role in improving vehicle performance, safety, and durability while supporting weight reduction targets through advanced materials like aluminum and high-strength steel. Technological advancements in closed-die and precision forging are enhancing production efficiency, enabling the creation of complex shapes with minimal waste. The market is also witnessing trends such as the automation of forging lines, integration of IoT-based monitoring systems, and shift towards near-net-shape forging to minimize post-processing.

Market Drivers

Lightweighting Demand in Automotive Engineering

The global push for improved fuel efficiency and reduced emissions is intensifying the demand for lightweight vehicle components, significantly driving the growth of the automotive forging market. Forged parts, especially when produced using aluminum or advanced high-strength steel, offer an excellent balance of reduced weight and increased mechanical performance. Automakers are under constant pressure to enhance vehicle efficiency without compromising structural integrity or crashworthiness, making forged components ideal for critical areas like suspension systems, crankshafts, and connecting rods. Lightweighting is not just limited to passenger vehicles; commercial and utility vehicles are also undergoing similar transformations to comply with emission norms and to improve payload capacity. Forging offers superior material utilization and denser grain structures that enhance fatigue resistance and load-bearing capabilities key characteristics for vehicles seeking long-term durability. For instance, Lightweight advanced materials such as high-strength steel, aluminum alloys, magnesium alloys, carbon fiber, and polymer composites play a critical role in improving vehicle fuel economy by reducing overall weight. Replacing conventional cast iron and steel components in the body and chassis with these materials can lower vehicle weight by up to 50%, leading to significant efficiency gains. A 10% reduction in vehicle weight is associated with a 6%–8% improvement in fuel economy, making lightweight material adoption a key strategy for enhancing performance and meeting fuel efficiency targets without compromising safety.

Rising Demand for High-Performance Commercial Vehicles

The automotive forging market is gaining momentum from the expanding need for high-performance commercial vehicles used in logistics, construction, agriculture, and mining sectors. These vehicles require components that endure heavy mechanical stress, prolonged usage cycles, and variable terrain conditions. Forged components like axles, camshafts, gears, and differentials are essential in delivering this level of endurance and operational reliability. As commercial vehicle operators seek longer maintenance intervals and lower total cost of ownership, forged components are being prioritized for their superior fatigue strength and resistance to wear. With the surge in global freight movement and construction activities, demand for medium- and heavy-duty trucks is rising, directly influencing the need for forged chassis and drivetrain components. Furthermore, precision forging techniques allow for the production of near-net-shape parts, reducing machining time and material waste, which aligns with manufacturers’ efficiency goals.

Advancements in Forging Technology and Automation

Technological innovation is a crucial driver of growth in the automotive forging market. Modern forging processes have evolved beyond traditional hammer and press methods, integrating automation, robotics, and real-time quality monitoring systems. These advancements significantly improve throughput, reduce energy consumption, and minimize human error, leading to consistent quality and reduced cycle times. The adoption of closed-die and precision forging enables manufacturers to create complex geometries that meet the design demands of modern automotive assemblies. Furthermore, innovations in simulation software allow for virtual testing of forging processes, helping manufacturers optimize dies, improve material flow, and reduce trial-and-error costs. Automation is being leveraged for billet handling, die changing, lubrication systems, and inspection tasks, enhancing repeatability and workplace safety.  

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Key Market Challenges

High Capital and Operational Costs

One of the primary challenges facing the automotive forging market is the high capital investment required for setting up and maintaining forging operations. The purchase of forging presses, hammers, induction heaters, dies, and automated handling systems demands substantial upfront expenditure. Operational costs are also elevated due to the energy-intensive nature of forging, particularly in heating, die lubrication, and cooling systems. Frequent die maintenance and replacement, along with downtime during tool changes, further increase cost pressure. Forging also requires highly skilled technicians and engineers to operate complex machinery, perform quality checks, and manage equipment lifecycles.

Volatility in Raw Material Supply and Pricing

The automotive forging industry is highly dependent on the consistent availability and pricing of raw materials like alloy steels, aluminum, and specialty metals. Volatility in metal prices driven by global economic shifts, trade tariffs, geopolitical tensions, and supply chain disruptions directly impacts the cost structure of forging operations. Shortages or price spikes in critical raw materials force manufacturers to absorb costs or renegotiate contracts, both of which erode margins and reduce financial predictability. Many forged parts are produced under long-term contracts with fixed pricing, leaving little room to pass on raw material cost fluctuations to end users. Furthermore, specific automotive-grade alloys often have limited suppliers, making it difficult for forging companies to diversify sourcing. Logistics-related issues, such as transportation bottlenecks or port delays, can delay raw material deliveries and disrupt production schedules.    

Key Market Trends

Integration of Smart Forging Technologies

Smart manufacturing is increasingly being adopted in forging facilities to enhance productivity, traceability, and quality control. The integration of IoT sensors, machine learning algorithms, and real-time data analytics allows forging operators to monitor temperature, pressure, die wear, and energy consumption at granular levels. These smart systems can predict equipment failures, optimize die life, and adjust process parameters dynamically to maintain consistent part quality. Digital twins replicate forging operations in a virtual environment, enabling pre-production simulations, die stress analysis, and real-time process improvements. With these technologies, companies can achieve tighter tolerances, reduce material waste, and improve response times to design changes. Cloud-based dashboards provide actionable insights into production bottlenecks and operator performance, helping forge shops achieve leaner workflows. Smart forging aligns with the automotive industry's push toward Industry 4.0, where connected manufacturing systems are key to maintaining flexibility and meeting custom part requirements.

Growing Use of Aluminum and Lightweight Alloys

The shift toward sustainable transportation is propelling the use of aluminum and other lightweight alloys in forged automotive components. Traditionally dominated by steel, the forging industry is now adapting to materials that offer reduced mass without compromising mechanical integrity. Aluminum forging is being employed for parts like knuckles, control arms, and steering components in vehicles where weight savings contribute directly to fuel efficiency or extended battery range. The forging of magnesium, titanium, and mixed-metal composites is also gaining interest due to their exceptional strength-to-weight ratios. These materials, however, present new challenges in terms of die design, process temperature control, and material flow prediction, prompting innovations in forging techniques and equipment. Manufacturers are investing in hybrid forging methods, including isothermal and semi-solid forging, to accommodate these advanced materials. As OEMs and Tier-1 suppliers prioritize lightweight architectures for electric and hybrid vehicles, the demand for aluminum and alloy forgings is expected to rise sharply. For instance, Electric vehicles, including plug-in hybrids and full battery models, are expected to drive a 15–27% increase in aluminum usage compared to traditional internal combustion engine (ICE) vehicles. While a typical ICE vehicle contains around 160 kg of aluminum, EVs require significantly more, primarily due to the need for lightweighting to offset battery weight and enhance efficiency.

Near-Net-Shape and Net-Shape Forging Adoption

Automotive manufacturers are increasingly focusing on process efficiencies and cost reductions, which has led to the rising popularity of near-net-shape and net-shape forging techniques. These processes minimize the need for extensive machining and post-processing by producing parts closer to final dimensions straight from the forging die. This results in less material waste, shorter production times, and improved energy efficiency. Near-net-shape forging is especially beneficial for complex automotive components that traditionally required significant machining, such as gear blanks, axle shafts, and differential housings. The ability to achieve tighter tolerances and improved surface finishes directly from the die also reduces reliance on secondary operations, which can be both costly and time-consuming. For forging companies, this trend supports lean manufacturing goals and offers a competitive advantage when bidding for high-precision contracts.    

Segmental Insights

Vehicle Type Insights

In 2024, the passenger car segment emerged as the dominant force in the Europe & CIS automotive forging market, driven by rising production volumes, evolving vehicle architectures, and increasing demand for high-performance forged components. Passenger cars require a wide range of forged parts including connecting rods, crankshafts, camshafts, and steering knuckles, all of which must meet stringent strength, fatigue resistance, and dimensional accuracy standards. The growing emphasis on fuel efficiency and vehicle weight reduction has led manufacturers to adopt forged aluminum and high-strength steel for critical parts, supporting better performance without compromising safety. Advances in precision forging have enabled tighter tolerances and more complex geometries, aligning with the requirements of modern car platforms and engine downsizing trends. For instance, in 2024, new passenger vehicle registrations across Europe (EU, EFTA, and the UK) reached nearly 13 million units, reflecting continued market recovery and sustained consumer interest. The European Union recorded over 10.6 million new car registrations, while the United Kingdom contributed close to two million units. In EFTA countries, new car sales totaled over 378,000 vehicles.

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Country Insights

In 2024, Germany led the Europe & CIS automotive forging market due to its strong vehicle production, advanced engineering base, and well-developed forging infrastructure. High demand for durable engine, chassis, and drivetrain parts drove growth, supported by innovations in closed-die and precision forging. Lightweight materials like aluminum and high-strength steel gained traction as manufacturers prioritized fuel efficiency. Automation, smart factory adoption, and investment in energy-efficient processes boosted productivity and quality. Germany’s forging sector set the pace with its focus on complex geometries, reduced emissions, and advanced manufacturing integration. For instance, in 2024, Germany produced approximately 4.1 million passenger vehicles, maintaining stable output levels compared to the previous year. Notably, the country reached a new milestone in electric vehicle manufacturing, with nearly 1.3 million electric cars produced in the first 11 months surpassing the full-year total for 2023. November marked a record month, with 155,700 electric vehicles built, including 120,500 battery electric vehicles and 35,200 plug-in hybrids. These figures underscore the strong momentum in Germany’s transition toward electrified mobility and its growing manufacturing capability in the EV segment.

France played a major role in the market with its focus on lightweight vehicle platforms and green mobility. Forging supported high-strength parts for hybrid and electric vehicles, especially in steering, suspension, and transmission systems. Adoption of CNC presses and simulation tools improved efficiency and precision. The shift toward recyclable materials and circular economy goals elevated the demand for forging in sustainable automotive production. France's forging industry aligned closely with its push toward low-emission transportation and material innovation.

Italy held a strong position in the forging market through its skilled craftsmanship and specialized production of forged engine and suspension components. The industry catered to both domestic and export markets, particularly in performance and luxury vehicle segments. Automation, robotic systems, and real-time monitoring improved process reliability and product quality. Italian forging firms emphasized customization, small-batch precision, and value-added finishing processes like heat treatment and machining to meet niche automotive needs.

Recent Developments

• ​In 2023, Mutares has completed the acquisition of three German forging businesses from CIE Automotive—Gesenkschmiede Schneider, Schöneweiss & Co., and Falkenroth Umformtechnik. With around 600 employees and €220 million in annual revenue, the deal strengthens Mutares’ FerrAl United Group, enhancing its forging capabilities for truck components and creating synergies in operations, procurement, and cross-selling.
• In 2025, American Axle & Manufacturing is acquiring UK-based Dowlais Group, parent of GKN Automotive, in a £1.16 billion cash-and-stock deal. The merger creates a global driveline leader across ICE, hybrid, and EV segments, aiming for $300 million in annual cost synergies.
• In 2024, Bharat Forge will invest ₹345 crore (€39 million) in its German subsidiary, Bharat Forge Global Holding GmbH, to support debt repayment and strengthen its manufacturing presence across Germany, Sweden, and France.
• Seohan ENP is advancing next-gen forging technology for large-scale industries like wind power and shipbuilding, integrating AI, automation, and real-time monitoring to enhance quality, efficiency, and supply of ultra-large components.

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 Europe & CIS Automotive Forging Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Europe & CIS Automotive Forging Market, By Material:

o    Aluminium

o    Steel

o    Others

•          Europe & CIS Automotive Forging Market, By Component:

o    Gears

o    Piston

o    Bearing

o    Axel

o    Connecting Roads

o    Crankshaft

o    Others

•          Europe & CIS Automotive Forging Market, By Vehicle Type:

o    Passenger Cars

o    Commercial Vehicle

•           Europe & CIS Automotive Forging Market, By Country:

o    Germany

o    Russia

o    France

o    Spain

o    Italy

o    United Kingdom

o    Poland

o    Rest of Europe & CIS

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Europe & CIS Automotive Forging Market.

Available Customizations:

Europe & CIS Automotive Forging Market report with the given market data, Tech Sci 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).

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