Metal Fabrication Market Estimated to Rise at a Lucrative CAGR of 12.1%
Posted by amol on July 11th, 2019
The global metal fabrication market was valued at around US$ 17 Bn in 2017 and is anticipated to expand at a CAGR of over 3% from 2018 to 2026, according to a new report published by Transparency Market Research (TMR) titled ‘Metal Fabrication – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.’ The global metal fabrication market is driven by rise in the demand from construction and automotive companies. The metal fabrication market in North America is expected to expand at a CAGR of over 4% during the forecast period. Rise in automation and technological upgrades are likely to propel the market in the region between 2018 and 2026.
Automation in metal fabrication and diversified end-use industries to drive the metal fabrication market
Robotics and automation tools are being increasingly used in the metal fabrication process. Automation is employed to increase efficiency and lower labor costs. Deployment of automated manufacturing systems in metal fabrication helps in making manufacturing facilities safe as all critical jobs such as welding and cutting are performed by robots. Apart from this, automation tools such as laser saws make it easier for fabricators to manufacture metal parts that are precisely cut. Fabricated metals are employed in various sectors such as automotive, oil & gas, construction, aerospace, agriculture, consumer products, medical devices, and military & defense. As these end-use industries are diversified, effects of cyclic nature of the metal fabrication market are mitigated.
Moreover, various ERP technologies and software are used in metal fabrication. This makes the data easily accessible and accelerates the decision-making process. Increase in usage of computer-aided manufacturing technologies is helping metal fabrication companies improve their operational efficiency and enhance production.
Rise in demand from construction industry is boosting demand for metal welding
In terms of services, the metal fabrication market can be classified into metal welding, metal machining, metal forming, metal shearing, metal cutting, metal folding, metal rolling, metal stamping, and metal punching. Welding is one of the vital services under the purview of metal fabrication. Welding ranks high among all industrial processes, owing to its necessity in the production of bulldozers, material-handling equipment, food-processing machinery, office machinery, cranes, and papermaking and printing equipment. The metal welding segment is anticipated to account for a major share of the global metal fabrication market during the forecast period, as metal welding is the most commonly used industrial process. Welding is an integral part of automotive and construction industries. The wide construction and automotive base in developing countries such as China and India is expected to increase the use of metal welding in these countries during the forecast period.
Increasing urbanization in developing economies to fuel the construction industry
In terms of end-use industry, the metal fabrication market can be divided into construction, automotive, manufacturing, energy & power, electronics, and others. The construction segment dominated the global metal fabrication market in 2017. The trend is expected to continue during the forecast period as well. The construction segment is likely to be followed by the automotive segment, in terms of market share, during the forecast period. The automotive segment held more than 20% of the market share in 2017. Expansion of the automotive segment can be attributed to increase in the number of cars and rise in population across the world.
Wide customer base in developing countries of Asia Pacific to offer opportunities
In terms of region, the global metal fabrication market can be categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific and Europe hold a prominent share of the global market, as a majority of construction and automotive companies are established in these regions. North America also constitutes a significant share of the global market. The market in North America is estimated to expand at a rapid pace during the forecast period, due to rapid development in automation technologies and ongoing research in developed economies such as the U.S. and Canada. The market in Middle East & Africa and Latin America is expected to expand at a sluggish pace during the forecast period.
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About the Authoramol
Joined: June 20th, 2019
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