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.
May 2021: Renishaw plc announced that it has launched functionally safe variants of its enclosed linear absolute encoder system series, FORTiS. The encoder, which is certified with ISO 13849:2015 PLd, IEC 61508:2010 SIL2, IEC 61800-5-2:2016 SIL2 functional safety standards, would allow machine tool builders to make safer machines.
September 2020: Barnes Group Inc. announced that its aerospace business unit, Barnes Aerospace, has entered into a long-term agreement with General Electric Corporation’s aviation unit, GE Aviation, for manufacturing components of the LEAP engine program.
June 2017: Beyonics International announced that it has plans to invest an addition USD 3 Million for building its new facility of metal stamping operation at the i-Park Industrial Park in Bandar Indahpura in Singapore.
The global precision parts market is estimated to garner a revenue of USD 268.30 Billion by the end of 2025 by growing at a CAGR of 8.19% over the forecast period, i.e., 2021 – 2025. Moreover, in the year 2015, the market in the region registered a revenue of USD 115.66 Billion. The growth of the market can be attributed to growing demand for precision parts from different end-use industries, as these parts are used to manufacture different devices, especially in the healthcare industry, automotive, and aerospace industry. In the healthcare industry, medical devices, such as diagnostic equipment, surgical tools, bone screws, implants, insulin pumps, and defibrillators, use precision parts to attain different machining capabilities. Moreover, with the recent surge in the medical devices industry, the demand for these precision parts has also increased massively, which in turn, is anticipated to drive the market growth.
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On the other hand, the rising shipment of aircrafts and its parts worldwide, backed by the rising preferences for air travel amongst individuals globally, is also anticipated to create numerous business opportunities for market growth. For instance, according to the statistics by the General Aviation Manufacturers Association (GAMA), total piston airplane shipments and total turbine airplane shipments increased from 889 units and 2020 units respectively in the year 2010 to 1324 units and 1334 units respectively in the year 2019. The industry utilizes different types of precision parts, including precision motors, which is estimated to boost the market growth in the coming years.
The growth of the market can also be attributed to the rising industrial automation, increasing shift from Industry 4.0 to Industry 5.0, growing industrial manufacturing output, and the surge in sales of electric vehicles globally.
Regionally, the global precision parts market is segmented into five major regions including North America, Europe, Asia, South America and Rest of World. The market in Asia region is anticipated to generate the largest revenue of USD 101.95 Billion by the end of 2025, up from a revenue of USD 35.78 Billion in the year 2015. The market in the region is also anticipated to grow with the highest CAGR of 10.4% during the forecast period. The growth of the market in the region can primarily be attributed to the increasing sales of electric vehicles in countries, such as China and India, along with the presence of a strong manufacturing hub for such precision parts in the region. According to the statistics by the International Energy Agency (IEA), total electric car stock in China increased from 0.21 Million in the year 2015 to 2.58 Million in the year 2019.
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Moreover, amongst the countries in the region, the market in India is expected to garner a revenue of USD 8.68 Billion by the end of 2025. On the other hand, the market in North America is expected to grow with the second-highest CAGR of 8.8% during the forecast period.
The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
The global precision parts market is segmented by product into cold-formed micro components, electroforms, retaining rings, metal stampings, tubing products, spring anchors, and others. Amongst these segments, the electroforms segment is projected to generate the largest revenue of USD 75.59 Billion by the end of 2025, up from a revenue of USD 31.78 Billion in the year 2015. By application, the market is segmented into automotive components, and non-automotive components. Out of these, the automotive components segment is anticipated to generate the largest market revenue by the end of 2025, while the non-automotive components segment is projected to grow with the highest CAGR of 8.4% during the forecast period. By type, the market is segmented into metal, plastic, and others. Out of these, the metal segment is projected to generate the largest revenue of USD 180.15 Billion by the end of 2025. By distribution channel, the market is segmented into online and offline, out of which, the offline segment is expected to generate the largest revenue by the end of 2025, while the online segment is predicted to grow with the highest CAGR of 9.0% during the forecast period.
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global precision parts market that are included in our report are Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes Group Inc., NN, Inc., Linamar Corporation, Renishaw plc, ARMOR MECA, Precision Castparts Corp., and others.
Ans: The increasing innovation in the healthcare and medical device manufacturing industry and the rising demand for commercial and defense aircraft are some of the major factors anticipated to drive the market growth.
Ans: The market is anticipated to attain a CAGR of 8.19% over the forecast period, i.e., 2021 – 2025.
Ans: The fluctuating prices of raw materials and the lack of technical expertise for manufacturing these parts are estimated to hamper the market growth.
Ans: The market in Asia region is anticipated to generate the largest revenue of USD 101.95 Billion by the end of 2025 and display significant business opportunities in the future.
Ans: The major players in the market are Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes Group Inc., NN, Inc., Linamar Corporation, Renishaw plc, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, application, type, distribution channel, and by region.
Ans: The electroforms segment is projected to generate the largest revenue of USD 75.59 Billion by the end of 2025 and display significant growth opportunities.