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The sheet metal fabrication services market share is expected to increase by USD 3.52 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 3.47%.
The sheet metal fabrication services market has been broadly categorized into the following demographic segmentations:
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The increasing demand for fabricated metal parts in major end-user industries is notably driving the market growth, although factors such as lack of skilled workforce may impede the market growth.
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 sheet metal 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 metal 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 future prospects of the sheet metal fabrication services market showcase abundant opportunities for growth, driven by the global demand for precision metalwork. Countries like Brazil, Italy, and Spain play a pivotal role in shaping the industry's basis, contributing to the overall economy. Fabricators, metal machining, and welding suppliers are witnessing increased opportunities in the evolving sheet metal market. The custom fabrication list is expanding, offering diverse solutions in the metal fabrication industry. With advancements in metal manufacturing technologies, the steel fabrication market and the broader fabricated metals market are poised for substantial growth, presenting a promising landscape for sheet metal industry players worldwide.
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 an 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.
This market forecasting 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.
In the market, regulatory frameworks and licensing requirements are pivotal in governing operations and ensuring efficiency. With bending technologies and advancements shaping the sector worldwide, questions about the range of services and competition arise. Different countries, such as Canada and Australia, contribute uniquely to this global landscape. Sectors are adopting new equipment, and the efficiency of operations is a key consideration for market players. The order and expansion of machines align with economic trends, influencing the presence of services across the world. The market's evolution relies on the strategic adoption of technologies and regulatory compliance for sustained growth.
The market research and growth report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as increasing their investments in R& D to improve metal fabrication processes to compete in the market.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our market trends and analysis report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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43% of the market's growth will originate from APAC during the forecast period. China, Japan, and South Korea are the key markets for the market in APAC. 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.
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The fabricated metal market share growth by the automotive segment will be significant during the forecast period. The automotive industry is a primary end-user in the metal manufacturing industry 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. 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.
Sheet Metal Fabrication Services Market Scope |
|
Market Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.47% |
Market growth 2022-2026 |
USD 3.52 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.12 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key consumer countries |
US, China, Japan, South Korea, Germany, and France |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
All Metals Fabricating Inc., BTD Manufacturing, Classic Incc. 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 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 forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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