Machining Services Market Growth By Service and Geography - Industry Forecast & Analysis - 2022-2026

According to the research report, the machining services market will witness a growth of 3.89% at a CAGR of 4.67%, which is expected to increase by USD 18.07 billion during the forecast period 2021 to 2026.

This machining services market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers machining services market segmentations by service (automotive, general machinery, precision engineering, and others) and geography (APAC, Europe, North America, South America, and the Middle East and Africa). The machining services market report also offers information on several market vendors, including AMADA Co. Ltd., Chiron Group SE, DMG MORI Co Ltd, DN Solutions Co. Ltd., Electronica Hitech Engineering Pvt. Ltd., General Technology Group Dalian Machine Tool Corp., Georg Fischer Ltd., Gleason Corp., GROB WERKE GmbH and Co. KG, Haas Automation Inc., HOMAG Group AG, Hyundai Wia Corp., JTEKT Corp., karkhana.io, Komatsu Mining Corp., Makino Inc., Micromatic Machine Tools Pvt. Ltd., Okuma Corp., and Spinner Werkzeugmaschinenfabrik GmbH among others.

What will the Machining Services Market Size be During the Forecast Period?

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Machining Services Market: Key Drivers, Trends, and Challenges

The researcher studied the historical data considered for forecast years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the machining services market.

Key Machining Services Market Driver

Growing demand from the oil and gas industry is notably driving the machining services market growth. The demand for oil and gas is continuously increasing, owing to the rising consumption of energy. The use of oil and gas will grow during the forecast period due to rapid industrialization and urbanization in developing countries such as India and China. This corresponds with the need for additional machinery, together with machining services, during the manufacturing process. Global liquid fuel consumption accounted for 99.93 mbpd in 2018 and increased to 102.22 mbpd in 2020. Thus, to cater to the increasing demand for energy, major oil and gas companies are increasing their exploration and production (E&P) activities. As per the International Energy Agency (IEA), global energy demand is expected to grow by 25% during 2018-2040. Moreover, with the increasing use of fuel in developing economies such as India and China, the demand for natural gas is likely to rise during the forecast period.

Key Machining Services Market Trend

The emergence of 3D printing in manufacturing is the primary key trend driving the machining services market growth. This technology can be used to manufacture engines as well as transmission and other automotive parts with some vital 3D-printed components. The miniaturization of components has made the manufacturing process very complicated, owing to the enhanced quality requirements. CNC machining is carried out after 3D printing, using horizontal or vertical 3-axis milling because of its ability to move in the X, Y, and Z planes. By combining 3D printing and CNC machining, engineers can make their timelines flexible and suggest design improvements. This just involves updating the CAD/computer-aided manufacturing (CAM) files and printing and machining a new part, unlike the need to make changes to an injection molding tool, which can be expensive and nearly impossible, causing major delays in production. Therefore, in the automotive industry, the adoption of 3D printing is expected to increase significantly when compared with that of traditional manufacturing processes. Thus, the emergence of 3D printing in the manufacturing process could propel the market growth during the forecast period.

Key Machining Services Market Challenge

The fluctuations in raw material prices are the major challenge impeding the machining services market growth. Instability in raw material prices affects the cost of production. Thus, many key machining service providers enter into long-term contracts with suppliers to reduce the negative impact of raw material price fluctuations on their businesses. The market comprises a large number of small and mid-sized enterprises (SMEs) and small metal fabricators, which offer machining services and equipment, but they are unable to enter into such long-term contracts owing to the uncertainty in order quantities. Fluctuations in the prices of raw materials, such as iron, steel, aluminum, magnesium, copper, and brass, which are the major raw materials used in the metal fabrication business, have been significant for market growth. In most cases, metal fabricators pass on the costs to end-users. Fluctuating prices directly affect the contracts for vendors, and such volatility in the costs affects the new contracts and impacts the overall fabrication costs. In 2021, steel production in China declined by 40% as compared to the previous five years. Due to the growing tariffs on imports by the US government, the demand for steel is likely to outweigh its supply. Most prominent vendors seek long-term contracts with their suppliers so that they are not affected by raw material price fluctuations. However, this may not be feasible for smaller vendors that lack financial resources.

This machining services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global machining services market as a part of the global industrial machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the machining services market during the forecast period.

Who are the Major Machining Services Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• AMADA Co. Ltd.
• Chiron Group SE
• DMG MORI Co Ltd
• DN Solutions Co. Ltd.
• Electronica Hitech Engineering Pvt. Ltd.
• General Technology Group Dalian Machine Tool Corp.
• Georg Fischer Ltd.
• Gleason Corp.
• GROB WERKE GmbH and Co. KG
• Haas Automation Inc.
• HOMAG Group AG
• Hyundai Wia Corp.
• JTEKT Corp.
• karkhana.io
• Komatsu Mining Corp.
• Makino Inc.
• Micromatic Machine Tools Pvt. Ltd.
• Okuma Corp.
• Spinner Werkzeugmaschinenfabrik GmbH

 

This statistical study of the machining services market encompasses successful business strategies deployed by the key vendors. The machining services market is fragmented, and the vendors are deploying organic and inorganic growth strategies such as to compete in the market.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

The machining services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.

Machining Services Market Value Chain Analysis

Our In-house experts produce extensive information on the value chain and parent market of the machining services market, which vendors can leverage to gain a competitive advantage during the forecast period. The Value Chain information provides an end-to-end understanding of product insight and profit and also optimization and evaluation of business strategies The players across the value chain includes selective data and analysis from entire research findings as per the scope of the report.

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Machining Services Market?

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41% of the market’s growth will originate from APAC during the forecast period. China is the key market for the machining services market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The increasing number of construction activities in emerging countries will facilitate the machining services market growth in APAC over the forecast period. This market research 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.

COVID-19 Impact and Recovery Analysis

The outbreak of the COVID-19 pandemic in 2020 severely impacted the lives of thousands of people around the world. Due to the widespread nature of COVID-19, governments across several APAC countries imposed lockdowns to contain the spread of the disease during 2020. This resulted in the suspension of activities across various end-user industries and, in turn, led to a decline in the volume of sales of machining services, thereby hampering the growth of the regional market in 2020. Furthermore, construction activities in India were halted due to the outbreak of the second wave of COVID-19 during the first half of 2021. Several states in the country were under either a partial or complete lockdown, which disrupted construction activities. These factors impacted the demand for machining services in the region in the second half of 2021.

What are the Revenue-generating Service Segments in the Machining Services Market?

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The machining services market share growth in the automotive segment will be significant during the forecast period. With increasing competition, automotive manufacturers resort to cost savings to ensure profitability. Grinding, when replaced by machining in the manufacturing of automotive parts, such as steering racks, exhaust manifolds, and large shaft manufacturing, offers significant cost savings in terms of capital expenditure, consumable tools, logistics, and cycle time. This will facilitate segment growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the machining services market size and actionable market insights on the post-COVID-19 impact on each segment.

 

Machining Services Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 4.67%
Market growth 2022-2026	$18.07 billion
Market structure	Fragmented
YoY growth (%)	3.89
Regional analysis	APAC, Europe, North America, South America, and the Middle East and Africa
Performing market contribution	APAC at 41%
Key consumer countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	AMADA Co. Ltd., Chiron Group SE, DMG MORI Co Ltd, DN Solutions Co. Ltd., Electronica Hitech Engineering Pvt. Ltd., General Technology Group Dalian Machine Tool Corp., Georg Fischer Ltd., Gleason Corp., GROB WERKE GmbH and Co. KG, Haas Automation Inc., HOMAG Group AG, Hyundai Wia Corp., JTEKT Corp., karkhana.io, Komatsu Mining Corp., Makino Inc., Micromatic Machine Tools Pvt. Ltd., Okuma Corp., and Spinner Werkzeugmaschinenfabrik GmbH
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, and Market condition analysis for the 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.

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What are the Key Data Covered in this Machining Services Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive machining services market growth during the next five years
• Precise estimation of the machining services market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the machining services industry across APAC, Europe, North America, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of machining services market vendors

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