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The Metal Machining Market size is estimated to grow at a CAGR of 3.86% between 2022 and 2027 and the size of the market is forecast to increase by USD 17.17 billion. The growth of the market depends on several factors, such as the increased investment in infrastructure, the expansion of production facilities, and the growing demand in the oil and gas industry.
This report extensively covers market segmentation by application (automotive, construction, aerospace, and others), product (laser cutting machine, plasma cutting machine, flame cutting machine, and waterjet cutting machine), and geography (APAC, North America, Europe, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Metal Machining Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The oil and gas industry is highly capital-intensive due to the need for large, expensive machines. Workers and machinery shall be exposed to hostile environments within the oil and gas industry. Thus, companies operating in this industry focus on asset maintenance and employee safety. With the increase in offshore oil and gas exploration activities, particularly deepwater exploration, metal machining operations have become significant.
Moreover, metal machining is used for the fabrication of pipelines, oil rigs, and more infrastructures within the oil and gas industry. Thus, in the industry, there's a big demand for metal machining equipment. However, the demand for oil and gas is continuously increasing, owing to the rising consumption of energy. Moreover, with the increasing use of fuel in developing economies, such as India and China, the demand for natural gas is likely to rise which in turn will positively impact the market in focus during the forecast period.
Several types of industrial equipment are being launched with IoT features, for example, compressors, pumps, robots, and machine tools. The integration of IoT allows industrial machines to transmit data related to critical operating parameters, such as temperature, pressure, stress, and health and performance, over IP to a control room or device. Such data can help increase the efficiency of industry machines, decrease their idleness, and improve operational life and process safety.
However, real-time data collection is a strength of IoT solutions across the entire metal fabrication process. Problems that can occur as a result of sudden machine failure and disruption to the workflow may also be avoided by the Industrial IoT. IoT sensors can avoid these challenges by capturing operational information that indicates abnormalities or that a machine needs maintenance to avoid issues. Thus, the advent of IoT in the metal fabrication industry will drive the growth of the global metal machining market during the forecast period.
The costs of production are influenced by the uncertainty in raw material prices. Therefore, in order to mitigate the negative impacts of raw material price fluctuations on their businesses, a number of major metal supplier providers are signing long-term contracts. The market comprises a large number of small and mid-size enterprises (SMEs). Fluctuating prices directly affect contracts for vendors, and such volatility in the cost affects the new contracts and the overall fabrication costs.
Due to the growing tariffs on imports by the US government, demand for steel is likely to outweigh supply. To avoid being caught up by the uncertainty of raw material prices, a large number of leading contractors are negotiating longer-term contracts with their suppliers. However, this may not be feasible for smaller vendors lacking financial resources. This in turn will negatively impact the market in focus during the forecast period.
The automotive segment will account for a major share of the market's growth during the forecast period. The automotive industry is one of the leading end-user segments of the global metal machining market, as a significant number of metal parts are used in the automotive industry. These metal parts have been used in a wide range of vehicle parts, such as chassis and fuel injection systems, which also include bus bars, electric connections, terminals, lead frames, or shields and clips.
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The automotive segment was valued at USD 23.94 billion in 2017 and continued to grow until 2021. For the applications of motors, engines, batteries, alternators, brake systems, and fuel systems, there is a high demand for metal parts by car manufacturers, sports cars as well as trucks. The increasing demand for vehicles and subsequent efforts of manufacturers toward enhancing their businesses will, therefore, fuel the demand for metal machining products required to produce vehicle parts and components during the forecast period.
In this construction segment, the governments of various countries, such as India, Saudi Arabia, and Qatar, are investing heavily in the development of smart cities. Smart cities provide better transportation facilities, smart grids, improved healthcare facilities, advanced technologies, and enhanced traffic management systems. The use of fabrication metal in the construction of large and small buildings is known to have a structural strength greater than that of nonfabricated metals, so as to be more fire resistant. Some of the most important end products to be manufactured with metal machining are fire escapes, metal stairways, catwalks, and decking. The focus on the development of public infrastructure will drive the growth of the global construction industry. This will increase the demand for metal products and, in turn, will drive the market to focus during the forecast period.
Based on product, the market has been segmented into Laser cutting machines, Plasma cutting machines, Flame cutting machines, and waterjet cutting machines. The laser-cutting machine segment will account for the largest share of this segment. The laser cutting machine emits a high-powered laser beam to cut or etch a specific design on materials such as steel, plastic, or wood. Laser cutters are used by a variety of sectors in order to perform precise cutting and design tasks. In order to enhance the effectiveness of the laser-cutting process, robots are used. Many industrial sectors have achieved a new degree of flexibility that has enabled them to do more things than before, for example in the ability to work with several metallics which had not been possible. In addition, other noticeable factors, such as technological advances such as industrial automation, and growing industrial applications, are expected to contribute to market growth during the forecast period.
Plasma cutting machines are primarily developed for high-quality and precision cutting applications. In addition to the high quality of the cut, these machines offer ease of operation and mobility. Advantages of plasma cutting machines Can perform high-quality cuts Offer high cutting speed (10 times more than oxyfuel). These machines are equipped with a solid aluminum body, which is capable of cutting straight and circular as well as bevelling. Plasma-cutting machines are mainly used in the areas of construction, repair, and maintenance. Growing construction activities in the industrial sector, the rapid expansion of the automotive industry in various nations such as India and China, along with the above-mentioned benefits are driving the growth of the portable segment, which is anticipated to propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 43% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. APAC was the largest geographical segment of the global metal machining market in 2022 and will continue to be the largest segment during the forecast period. The growth of the metal machining market in APAC will be supported by an increasing number of construction activities in emerging economies and increased government spending on infrastructure development. The regional metal machining market is expected to grow steadily during the forecast period due to the need for new residential and commercial infrastructure for the expanding urban population base. Metal machining is essential for bending, cutting, and molding steel structures to create beams, columns, and steel members. Such factors will increase the market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 led to a decline in the growth of the metal machining market. However, in 2021, several countries, such as India, China, and South Korea, have initiated vaccination drives, which resulted in a decline in the number of COVID-19 cases. In turn, in 2021 lockdown restrictions across the countries have been lifted and production will be revival. Furthermore, the increasing construction activities in the region will positively impact the market in focus during the forecast period. Thus, the regional metal machining market is expected to grow during the forecast period.
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.
Atlas Copco AB - The company offers metal machining such as Sheet metal machinery, cutting machines, grinding machines, stamping presses, and micro welding.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Bystronic Laser AG, DN Solutions Co. Ltd., FANUC Corp., IPG Photonics Corp., Jenoptik AG, Jet Edge Inc., Matsu Manufacturing Inc., Mayville Engineering Co. Inc., Messer Cutting Systems Inc., Okuma Corp., Otter Tail Corp., Sandvik AB, Shenyang Yiji Machine Tool Sales Co. Ltd., TRUMPF SE Co. KG, AMADA Co. Ltd., DMG MORI Co. Ltd., Guangzhou Komaspec Mechanical and Electrical Products Manufacturing Co. Ltd., JTEKT Corp., and Yamazaki Mazak Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The metal machining market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Metal Machining Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.86% |
Market growth 2023-2027 |
USD 17.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.16 |
Regional analysis |
APAC, North America, Europe, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atlas Copco AB, Bystronic Laser AG, DN Solutions Co. Ltd., FANUC Corp., IPG Photonics Corp., Jenoptik AG, Jet Edge Inc., Matsu Manufacturing Inc., Mayville Engineering Co. Inc., Messer Cutting Systems Inc., Okuma Corp., Otter Tail Corp., Sandvik AB, Shenyang Yiji Machine Tool Sales Co. Ltd., TRUMPF SE Co. KG, AMADA Co. Ltd., DMG MORI Co. Ltd., Guangzhou Komaspec Mechanical and Electrical Products Manufacturing Co. Ltd., JTEKT Corp., and Yamazaki Mazak Corp. |
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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