In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
The process of structuring and constructing raw metal material into finished products is called metal fabrication. The equipment used for fabrication and assembly of these products are known as metal fabrication equipment. This can be termed as value added process as it improves the value of raw material by converting them into usable products. These equipment helps to fabricate and install the final products such as gates, grills, doors, structural materials, OTS, safety rails and parking structures. There are variety of equipment for metal fabrication such as lathe machine, welding machine, drilling machine and milling machine. Depending on types of metal, plasma cutter is the best equipment which helps in effective cutting without reducing the cutting speed and have the same start and end angle.
According to Bureau of Labor Statistics of United States 2016, 1.425 million people were working in metal fabrication industries and were cutting, punching, press machine operators. In traditional manufacturing technique, large amount of raw materials is wasted due to various technical issues such as low quality and inadequate design. As the technology is growing at rapid rate, there are several modern or non-conventional metal forming equipment available in market such as water jet machining, laser cutter, ultrasonic machining and electrochemical machining. These modern equipment reduce the amount of metal wastage and enhance the quality of finished product. The introduction of computer in the process of metal fabrication for design, analysis and quality check has revolutionized the metal fabrication industry by reducing the time and cost of metal forming. Computer integrated manufacturing equipment have reduced the manpower requirement and improved the accuracy in metal forming.
The global metal fabrication equipment market is anticipated to record a significant CAGR over the forecast period i.e. 2019-2027. The market is segmented on the basis of end-user into oil & gas, automotive, aviation, power plants, chemical & mining and others, out of which, automotive segment is expected to account for leading market share on the back of increasing application of modern metal fabrication equipment in manufacturing process of vehicle. Additionally, implementation of IoT and rising automation in fabrication of different metal equipment is projected to propel the market growth over the forecast period. Also, demand of high-quality end-use products and their surface finishing further boost the market growth in near future.
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All automobiles companies have to follow stringent emission standards and the best way to do is to reduce their weight. Various kind of aluminum alloys and generation of advanced high strength steels, magnesium, composite materials, carbon fiber and various plastic materials used in the manufacturing of automobiles. The combination of strength with ductility is the key performance parameter for automotive applications. Although, aluminum in automobiles has been used for more than two decades, mostly in engine, power train castings, wheels and extrusions. New assembling technique of aluminum sheet increase the sales of metal alloys in automobile segment. These factor drives the market over the forecast period.
Emerging technologies, such as metal 3D printing is disrupting traditional methods of metal fabrication. As metal fabrication involves a time-consuming process of casting and CNC machining, as well as tooling. It can take months and huge investment to design and manufacture metal parts at scale. New metal 3D printing machines, such as Massachusetts-based Desktop Metal, enable 3D printing with a variety of metals, which simplifies the process for metal fabrication. The new additive manufacturing would allow metal fabricators to print prototype such as metal airplane parts. These factors are likely to fuel the market growth over the overcast period.
In recent years, the raw material such as copper, aluminum and iron required to produce finished metal products declining and use of plastics, composite materials and other alternatives instead of metal are rising. Additionally, the high cost of metal fabrication equipment which is not affordable to small-scale manufacturers is projected to dampen the market growth over the forecast period.
Our-in depth analysis of the global metal fabrication equipment market includes the following segments:
On the basis of regional analysis, the metal fabrication equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is expected to display a significant growth on the back of advancement in technology and innovation in various metal fabrication equipment. Further, the Europe market is anticipate to induce growth owing to increasing demand of metal equipment in automobile industries for fabrication of gears, transmission system and chassis.
The market in Asia Pacific is estimated to highest growth during the forecast period on account of increasing number of machinery export in the world and China has leading share of market in manufacturing segment.
The global metal fabrication equipment market is further classified on the basis of region as follows: