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The sheet metal fabrication services market size is estimated to grow by USD 3.31 billion at a CAGR of 3.27% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for fabricated metal parts in major end-user industries such as automotive, construction, and consumer electronics. This trend is driven by the need for lightweight, durable, and customized components to enhance product performance and efficiency. Additionally, the adoption of automation technologies in fabrication processes is enabling manufacturers to leverage increased profitability through improved productivity and reduced labor costs. Furthermore, the shift towards contract manufacturing is gaining momentum as companies seek to outsource production to specialized fabricators to focus on their core competencies and reduce overhead costs. Overall, the market is poised for continued growth as it caters to the evolving needs of various industries and adapts to advancements in technology.
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In the market, pitfalls and challenges such as raw material price volatility and intense competition underscore the need for innovative solutions and sustainable practices. Embracing building information modeling and on-demand manufacturing, alongside leveraging industrial automation, artificial intelligence, and robotics, enables companies to navigate complexities efficiently. Digitization enhances operations across assembly networks, particularly in metalworking, minimizing defects and optimizing energy usage. Amidst this landscape, prominent players drive innovation, exploring novel materials and designs, including foil and casting techniques. Business metrics informed by diverse data sources inform strategic decisions, aligning offerings with evolving industry products and cater to diverse industry verticals. The synergy of these elements shapes the dynamic market, propelling growth and fostering resilience in the face of challenges. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for fabricated metal parts in major end-user industries is one of the key drivers supporting the market growth. The automotive industry requires different types of fabricated parts such as brackets, enclosures, and flange plate assembly as well as complex specialty parts. The strong growth of the market in APAC can be attributed to the fact that the region has high growth in automotive sales. Chinese and Indian governments, which focus on reducing air pollution and dependency on foreign oil imports, drive investments in the electric vehicle manufacturing sector.
The aerospace and defense sector is another key end-user of products. In addition, fabricated sheet metal parts must be durable and withstand fluctuations in pressure and temperature created during aircraft flight profiles. The demand for aircraft is not limited to the commercial aerospace sector. An increase in global defense spending will raise the demand for products. Conflicts and political tension in the Middle East and Southeast Asian countries will encourage governments in these countries to increase their spending on defense aircraft. Such an increasing investment will drive the market growth during the forecast period.
The advent of additive manufacturing is one of the key market trends fueling market growth. The manufacturing industry has witnessed the emergence of revolutionary 3D printing technology, which is also known as additive manufacturing. This technology uses a digital file to create 3D objects and builds the product in thin layers. 3D printing helps produce complex geometries that cannot be produced through traditional manufacturing techniques and helps optimize the use of the material and minimizes wastage.
Dies such as V-shaped, U-shaped, and 90-degree angle production are expensive and have long lead times, which delay the processing process. However, with the development of 3D printers, dies and tools can be printed from a fiber-reinforced polymer quickly, besides reducing costs and the overall lead time. 3D printing can help manufacture cost-effective parts that are considerably low priced than those parts manufactured traditionally, thus offsetting the high initial cost. Such factors of 3D printing will propel the market growth and trends during the forecast period.
The lack of skilled workforce is one of the factors impeding the market growth. Welding is one of the crucial processes in the process, and labor is the highest cost-consuming part of welding, which represents about 80% of the cost of in-field welding. In the US, a large part of the workforce in the welding industry is on the verge of retirement, with the average age of operators in the welding industry in the US reaching 55 years as of April 2021. This would create a serious skill shortage in an industry where experience is crucial.
Although factory floors are upgrading rapidly, there is a dearth of skilled machinists in the workforce. There is an enormous gap between the demand and the availability of people who have these skills. The lack of skilled labor in the manufacturing sector increases overtimes and downtimes, which add nearly 5%-10% to average labor costs. It also increases production cycle times and sometimes leads to the production of inferior quality products. These factors will impede the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
All Metals Fabricating Inc. - The company offers sheet metal fabrication services such as tube laser cutting, laser cutting, and CNC punching services.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the Automotive segment will be significant during the forecast period. The automotive industry is a primary end-user in the market as fabricated metal parts are used in most vehicle systems. These parts are used in a variety of components, including fuel delivery systems and the chassis of a vehicle.
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The Automotive segment showed a gradual increase in market share from USD 4.91 billion in 2018. Some of the commonly used fabricated metal parts in the automotive industry include bus bars, terminals, and others. They are used by truck, car, sports vehicle, and hybrid electric vehicle manufacturers in various applications such as batteries, motors, and others. Such high use of the steel fabrication industry will drive market growth during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Market growth in this region will be faster than the growth of the market in other regions. The emergence of local vendors that offer low-cost and high-quality fabricated metal products will facilitate the steel market growth in APAC over the forecast period. This steel sheet market growth analysis report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Sheet Metal Market: Sheet Metal Market Analysis North America, Europe, EMEA, APAC: US, Canada, China, Germany, UK - Size and Forecast
Metal Fabrication Equipment Market in Germany: Metal Fabrication Equipment Market in Germany by End-user and Type - Forecast and Analysis
Metal Stamping Market: Metal Stamping Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, South Korea, Germany - Size and Forecast
In the market, the integration of collaborative robots and e-commerce platforms revolutionizes traditional processes like cutting, punching, stamping, forming, bending, welding, and finishing. With a focus on diverse materials including steel, aluminium, and silver, coupled with infrastructure investments, the market witnesses a shift towards affordable solutions without compromising on quality. High strength metal reinforcements such as aluminum, brass, silver, stainless steel, and carbon steel cater to the demand for durability and electrical conductivity across sectors.
Furthermore, operational efficiency is enhanced through advanced machining, cutting, and bending technologies, benefiting industries ranging from defense and space to construction and aviation. The market's versatility is evident in applications including lightweight components for skyscrapers, railway bridges, residential units, and satellites, all supported by robust metal reinforcements and recyclable metals, ensuring sustainability in smart manufacturing and infrastructure development.
Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.27% |
Market growth 2024-2028 |
USD 3.31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.13 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
China, US, Germany, Japan, South Korea, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
All Metals Fabricating Inc., BTD Manufacturing, Classic Sheet Metal Inc., Cupples J and J Co. Inc., Diehl Stiftung and Co. KG, Dynamic Aerospace and Defense Ltd., Ironform Corp., Kapco Metal Stamping, Marlin Steel Wire Products LLC, Mayville Engineering Co. Inc., Metal Fab Services Inc., Metal Working Group, Metcam Inc., Moreng Metal Products Inc., Noble Industries Inc., ONeal Manufacturing Services, Otter Tail Corp., Quality Sheet Metal Inc., Ryerson Holding Corp., and Standard Iron and Wire Works Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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