Aluminum Forging Market Size, Share & Trends Analysis Report By Product (Open-Die, Closed-Die, Ring-Rolled), By Application (Automotive, Aerospace), By Region, And Segment Forecasts, 2023 - 2030

Aluminum Forging Market Size, Share & Trends Analysis Report By Product (Open-Die, Closed-Die, Ring-Rolled), By Application (Automotive, Aerospace), By Region, And Segment Forecasts, 2023 - 2030

Aluminum Forging Market Growth & Trends

The global aluminum forging market size is expected to reach USD 33.61 billion by 2030, expanding at a CAGR of 5.9% from 2023 to 2030, according to a new report by Grand View Research, Inc. Increasing demand for lightweight metal forgings in the aerospace & automotive industries is propelling the market growth.

The process of forging involves pressing and squeezing metal under high pressure for manufacturing high-strength parts. Forged aluminum is preferable for applications that require high safety and performance along with lightweight for enhanced fuel efficiency and speed.

Product penetration is increasing in the aerospace & defense industry as aircraft part manufacturers are shifting towards lightweight materials for developing components such as landing gears and engines to reduce aircraft weight. A lighter aircraft results in increased fuel efficiency, thereby improving airline profitability.

Based on product, the market is segmented into open-die, close-die, and ring-rolled. In terms of revenue, close-die is anticipated to register the fastest growth rate over the forecast period. The close-die forging process involves using two or more dies containing impressions. It enables the production of a variety of shapes with relatively precise tolerances, compared to other processes.

The market witnessed high raw material costs in 2022 due to the Russia-Ukraine war. The operating costs of companies increased in 2022 as there was a surge in the prices of aluminum and its raw materials. These prices were corrected in the mid of 2022 as alternative countries were found for importing aluminum products. Global supply chain disruptions caused by the war have also led to inflationary pressures.

Based on region, Europe is anticipated to register a CAGR of 5.1% in terms of revenue during the forecast period. The primary aluminum industry in Europe has been severely impacted by rising energy costs and soaring natural gas prices, along with the lack of sufficient nuclear or renewable energy. The invasion of Ukraine by Russia also affected the product supply chain. It adversely impacted the trade of natural gas in Europe, which made the issue worse for European countries. Energy-intensive sectors in Europe, including forging companies, halted or temporarily suspended their operations across Europe owing to these difficulties.

Market participants continue to expand their production capacity to stay ahead of their competition. For instance, in December 2022, Strojmetal announced that it has installed a new 2,500-ton scotch yoke press for aluminum forging in its plant located in the Czech Republic. The new product manufacturing line of the company is anticipated to help it in catering to the surging demand for lightweight components from automobile manufacturers.

Aluminum Forging Market Report Highlights

• Based on application, automotive held the largest revenue share of over 56.0% in 2022. The growth is attributed to the large demand for light vehicles to reduce fuel consumption and emissions
• Based on product, close-die forging was the largest segment in 2022 with a revenue share of over 72.0% and it is expected to continue its dominance over the forecast period. This is due to increasing demand for close-die components in end-use industries such as aerospace, construction, and aerospace
• Based on region, Asia Pacific is expected to register the fastest CAGR of 6.6%, in terms of revenue, during the forecast period. The increasing requirement for aluminum forgings in the automotive and energy industries is driving product demand in the region
• Aluminum prices have been volatile in recent years due to the uncertainties such as the COVID-19 pandemic, the geopolitical conflict between Russia and Ukraine, economic uncertainties, rising inflation across the globe, and recession fears. Fluctuations in raw material prices impacted the manufacturing costs of the forging industry

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