Forming induced residual stresses give the potential to improve the application conditions which are dependent on the whole material flow history along the production line. A better knowledge of the generation of residual stresses leads to a more sustainable manufacturing process. Furthermore, hollow parts offer reduced weight thus saving energy and material consumption especially in the transportation sector. Thus, a sustainable swaging process needs to be designed with the understanding of multi-critical effects and interactions. In this study, the diameter reduction of annealed E355 steel tubes by infeed rotary swaging was exemplarily investigated. The reduction was performed by three different routes—one stage, two stages and three stages swaging using several swaging dies to reduce a diameter from 20 to 8 mm. The resulting residual stresses and geometric properties were discussed. It could be observed that an increased number of forming stages contributed to improved part properties like better surface quality and compressive residual stresses. Furthermore, the integration of multiple forming stages in a new swaging die design was presented. The improved part properties and new die design enhanced the processes and parts sustainability.