The global aluminum forging market size was estimated at around USD 21.29 billion in 2022 and it is projected to hit around USD 37.8 billion by 2032, growing at a CAGR of 5.91% from 2023 to 2032.
Report Scope of the Aluminum Forging Market
|Market Size in 2022||USD 21.29 billion|
|Revenue Forecast by 2032||USD 37.8 billion|
|Growth rate from 2023 to 2032||CAGR of 5.91%|
|Forecast Period||2023 to 2032|
|Market Analysis (Terms Used)||Value (US$ Million/Billion) or (Volume/Units)|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Companies Covered||Arconic; Alcoa; Aluminum Precision Products;American Handforge; ATI; BE | Alutech Kft; Farinia Group; FORGINAL industrie; GV STAMPERIE SpA; Norsk Hydro|
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.
North America is expected to register a CAGR of 5.56%, 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 5.12%, 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 2032. Over the forecast period, Asia Pacific is anticipated to register a CAGR of 6.66%, in terms of revenue.
Aluminum Forging Market Segmentations:
|By Product||By Application|
Open Die Forging
Close Die Forging
Oil & Gas