Metal Fabrication Market Progresses for Huge Profits During 2025
The global metal fabrication market was valued at around US$ 16,824.1 Mn in 2016 and is anticipated to expand at a CAGR of over 3.4% from 2017 to 2025, according to a new report published by Transparency Market Research (TMR) titled ‘Metal Fabrication – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025.’ Expansion of the global metal fabrication market is driven by rise in demand from construction & automotive companies. The metal fabrication market in North America is expected to expand at a CAGR of over 4.8% during the forecast period. Rise in automation and technological upgrades are likely to propel the metal fabrication market in the region.
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Automation in Metal Fabrication Industry and Diversified End-use Industries Expected to Drive the Metal Fabrication Market
Robotics and automation tools are being increasingly used in the metal fabrication industry. Automation is used in metal fabrication to increase efficiency and lower labor costs. Deployment of automated manufacturing systems in the metal fabrication industry helps in making manufacturing facilities safe as all the critical jobs such as welding and cutting are done by robots. Apart from this, automation tools such as laser saws make it easier for fabricators to manufacture precisely cut metal parts. Fabricated metals are used in various end-use industries such as automotive, oil & gas, construction, aerospace, agriculture, consumer products, medical devices, and military & defense. As end-use industries are diversified, effects of cyclical nature of the metal fabrication industry are mitigated.
Moreover, various ERP technologies and software are used in the metal fabrication industry. This makes data easily accessible and accelerates the decision-making process in the fabrication industry. Increase in usage of computer aided manufacturing technologies is helping the metal fabrication industry improve operational efficiency and enhance production.
Rise in Demand from Construction Industry is Boosting Demand for Metal Welding
In terms of type, the metal fabrication market can be classified into welding, 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. It ranks high among all industrial processes, owing to its necessity in manufacturing of bulldozers, material handling equipment, food-processing machinery, office machinery, cranes, textiles, and papermaking and printing equipment. The metal welding segment is anticipated to account for a major share of the metal fabrication market as it is the most commonly used industrial process. Welding is an integral part of the automotive and construction industries. A large construction and automotive base in developing countries such as China, India, and Japan is expected to increase the use of metal welding during the forecast period.
Increasing Urbanization in Developing Economies to Fuel Expansion of the Construction Industry
In terms of end-use industry, the market can be divided into construction, automotive, manufacturing, energy & power, electronics, and others. The construction segment dominated the metal fabrication market in 2016. The trend is expected to continue during the forecast period. The construction segment is likely to be followed by the automotive segment in terms of market share during the forecast period. The segment is anticipated to hold more than 20% market share in 2016. Expansion of the segment is attributed to the increase in number of cars and rise in population across the globe.
Large Customer Base in Developing Countries of Asia Pacific to Create 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 metal fabrication market, as most of the construction and automotive companies are well established in these regions. North America also constitutes a significant share of the market. The market in North America is estimated to expand at a rapid pace due to rapid development in automation technologies and research in developed economies such as the U.S. and Canada. The market in Middle East & Africa and Latin American is expected to expand at a slow pace during the forecast period.
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Key players operating in the metal fabrication market include O’Neal Manufacturing Service, BTD Manufacturing Inc., Ironform Corporation, Mayville Engineering Comp. Inc., and Defiance Metal Products Inc. Companies are heavily investing in the new tools for metal fabrication. For instance, in June 2016, high-precision Mitsubisihi laser cutting carbon dioxide equipment was ordered by Komaspec to cut metals having thickness of up to 16 mm. The newly added capability is anticipated to help the company meet the increase in demand for metal fabrication products.