Precision Parts Market Size & Share, by Type (Metal, Plastic); Application (Aerospace, Automotive, Electronics, Healthcare, Consumer packed goods); Product (Cold-formed micro components, Electroforms, Retaining Rings, Metal Stampings, Tubing products, Spring anchors) Distribution Channel (Online, Offline) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3618
  • Published Date: Sep 07, 2023
  • Report Format: PDF, PPT

Precision Parts Market Size & Share, Growth Trends 2035

Precision Parts Market size is poised to surpass USD 170.2 billion by the end of 2035, witnessing around 13.3% CAGR during the forecast period, i.e., 2023 - 2035. In the year 2022, the industry size of precision parts was USD 142.36 billion. The global market for precision parts is projected to grow with increasing industrial automation and innovation in industry sectors such as healthcare and medical devices. As demand for integrated and scalable products is at an all-time high, the market is constantly growing. The shift towards digitalization on the production line has been observed in the industry around the world.

Furthermore, given the growing abundance of electric cars with global sales at USD 2.3 million as of the 1st quarter of 2023, several key precision component vendors have increased their manufacturing capacity for engines, transmission, and propulsion components in hybrids and traditional EVs.


Precision Parts Market
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Precision Parts Sector: Growth Drivers and Challenges

Growth Drivers

  • Rapid Digitization In The past few years, demand for electronics and semiconductors has been growing at a steady pace. This growth is expected to be influenced by advances in technology such as Digital Technology, Artificial Intelligence UXI, and the anticipated introduction of 5G networks with 1.9 million subscriptions worldwide.  The demand for precision components is projected to increase rapidly with the rapid development of several trending applications, e.g. Virtual Reality, Internet of Things devices, home automation, Industry 4.0 systems, and autonomous vehicles.
  • Increasing Demand for Commercial and Défense Aircraft- The precision parts manufacturing market is growing at a rapid pace. Investments in the provision of Unmanned Vehicles ArielUAV are increasing by 75%. Therefore, precision components are expected to contribute positively to the global precision parts market over the forecast period by observing innovation in the aerospace industry. The requirement for precision parts among aircraft manufacturers is expected to increase as a result of replacing lighter materials with high temperature and pressure resistance while upgrading the essential plane components.
  • Increasing innovation in the healthcare and medical device manufacturing sector in recent years the healthcare industry has taken steps towards innovation. The main factors expected to stimulate demand for precision parts over the forecast period are several technological developments such as cardio Pulmonary and cardiac devices, AI-based surgery planning, etc. The expenditure on health care will be significantly increased due to the growing concern about quality in medical practice and initiatives from governments offering public health insurance to boost market growth.

Challenges

  • Miniaturization of Precision Parts:
    In the precision parts industry, miniaturization of parts is an important trend. As the parts shrink, tolerances which must be met by machinists are becoming more and more tight. This requires more advanced skills and experience of the machinist, along with a higher level of accuracy and costly equipment. Moreover, smaller pieces can be difficult to work with and require special fittings and tools. Moreover, because even minor imperfections may lead to problems, the miniaturization of parts is also putting increased pressure on quality control.
  • Fluctuating price of raw materials.
  • Demand for smaller lot sizes.

Precision Parts Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 13.3%

Base Year Market Size (2022)

~ USD 142.36 Billion

Forecast Year Market Size (2035)

~ USD 170.2 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Precision Parts Segmentation

Type (Metal, Plastic)

By the end of 2035, it is expected that there will be USD 75.6 billion worth of revenue generated from the metal segment in the precision parts market. The rising demand in the automation industry is a major driver for the market. silicon steel has been a popular material of choice for the precision parts industry as it is strong & resistant to corrosion; making this material a primary choice in the medical device manufacturing sector. Moreover, the Electronic car market provides a major boost for the industry.

Application (Automotive, Aerospace, Electronics, Consumer packed goods, Healthcare)

The precision parts market is expected to be dominated by the aerospace segment during the forecast period garnering 45% of the market. The need to precisely construct to prevent aircraft damage owing to conditions faced by aircraft based on speed, air currents, and extreme pressure. Increasing the manufacturing of defense jets and aircraft for national security is a major boost to the industry globally.  Increasing capital investments in the space sector over the last decade has a major impact on the market.

Product (Electroformed, Retaining Rings, Tubing products, Metal Stampings, Spring anchors, Cold-formed micro components)

Precision parts market from the electroforms segment is anticipated to hold the largest revenue share over the forecast period. Increased customization in the automotive industry to drive the market forward. Integration of electroforms in the medical industry, particularly in the production of nebulizer plates is a major boost for the precision parts market.

Distribution Channel (Online, Offline)

Based on distribution channel, the precision parts market is segmented into online and offline, out of the two offline segment is expected to generate the largest revenue by the end of 2035. While online segment is expected to grow with the highest CAGR during the forecast period. The growing demand for high-precision components is met through online sales, as a result of integrating IoT and AI.

Our in-depth analysis of the global precision parts market includes the following segments:

          Type

  • Metal
  • Plastic

          Application

  • Aerospace
  • Automotive
  • Electronics
  •  healthcare
  •  Consumer-packed goods

          Product

  • Cold-formed microcomponents
  •  Electroforms
  • Retaining Rings
  •  Metal Stampings
  •  Tubing products
  •  Spring anchors

          Distribution Channel

  • Online
  • Offline

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Precision Parts Industry - Regional Synopsis

North American Market Forecast

The North American precision parts market is anticipated to hold a significant share of 46% over the forecast period, with significant growth during the forecast period. Demand and sales volumes for electric vehicles in the country have increased swiftly, as a result of major updates to environmental laws by the United States Environmental Protection Agency; and favorable tax and credit incentives offered by federal governments. This is the primary driver in the region. Additionally, increasing application in diagnostic equipment and medical devices provides substantial growth for the market. The United States is one of the world's largest automobile manufacturing countries, and this has also been an important factor contributing to growth in precision parts throughout the region.

European Market Statistics

The European precision parts market is expected to show sustainable growth. The market is projected to generate a revenue of USD 64 billion by the end of 2035. One of the main factors that are expected to stimulate market growth is increasing technological innovation in medicine and healthcare manufacturing.  Additionally, increased demand for civilian and military aircraft is also providing a driver for the market.

Research Nester
Precision Parts Market Size
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Companies Dominating the Precision Parts Market

top-features-companies
    • Sigma Components Holdings Ltd 
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Beyonics Pte Ltd
    • Tessa Precision Products, Inc.
    • Barnes
    • NN, Inc. 
    • Linamar Corporation
    • Renishaw plc.
    • Digitaleo 
    • Precision Castparts Corp.

In the News

  • At the EMO Hannover 2023, Renishaw, the world's leading engineering technology company, will demonstrate its latest tool-setting technology. The HPMAX is a new addition to the company's Highprecision Tool Setting Arms product line and has been designed to be able to handle the most demanding turning applications.
     
  • Barnes Group Inc. has entered into definitive agreements in connection with the acquisition of MB Aerospace. For an enterprise value of approximately $740 million, MB Aerospace is a leading provider of precision aero-engine components manufacturing and repair services to major aerospace and defense engine OEMs, Tier 1 suppliers, and maintenance, repair, and overhaul providers. Assuming receipt of legal approval and fulfillment of all relevant contractual closing conditions, this transaction is estimated to close in the 4th quarter of 2023.

Author Credits:  Rushikesh, Richa Gupta


  • Report ID: 3618
  • Published Date: Sep 07, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increased innovations in the healthcare and medical device manufacturing sector, rapid digitization, and increasing demand for commercial and defense aircraft are some of the major factors anticipated to drive the market forward.

The market size of precision parts is anticipated to attain a CAGR of 13.3% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes, NN, Inc., Linamar Corporation, Renishaw plc., Digitaleo, Precision Castparts Corp. and others

The Metal segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Precision Parts Market Report Scope
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