Published: Jan, 2018
The global metal fabrication market consist of a large number of market players but none of them has a visible supremacy over others. The unorganized nature of these market players makes the vendor landscape highly fragmented, thus, easing the entry of new players. However, sustenance in the market is not guaranteed for any of the players and even the seemingly well-established players hold a minimal share of the market. Transparency Market Research finds that the top six market players account for less than 6% of the total market share, which reflects the homogeneity of the competitive landscape. These market players are O’Neal Manufacturing Services, Interplex Holdings Mayville Engineering, BTD Manufacturing Inc., Defiance Metal Products, and Ironform Corporation. It is anticipated that these players would engage in rigorous research and development to introduce better products and gain a larger market share. To exemplify, an investment of US$5 mn towards purchasing better equipment was made by O’Neal Manufacturing Services. It proved to be a worthy step for the company that now provides fabricated components to Caterpillar Inc. The market players have resorted to a host of strategies including mergers and acquisitions to amplify their presence in the market. Cost saving, better logistics, and efficient management of production are amongst other strategies that could give an impetus to the market entities.
The market was valued at US$16.35 bn in 2015 and is expected to elevate to a value of US$21.38 by 2024. The market is projected to expand at a CAGR of 3.0% over the forecast period from 2016-2024. Based on service type, the highest market share was captured by metal welding in 2015. On a geographical footing, Europe held 1/4th of the total market share in 2015 while Asia Pacific accounted for 43% of share in total revenue in the same year.
Europe Offers Lucrative Growth Opportunities to Market Players
The automotive and manufacturing sectors have grown by leaps and bounds across Europe. The quest of the regional governments to give an edge of distinction to their nations has further augmented the development of the aforementioned sectors. Since metal fabrication is a key element in the automotive and manufacturing industries, there is a need to have a good number of fabrication units across the region. To complement this need, the government has liberalized the policies with regards to the metal fabrication industry. This is expected to persuade a number of market players to try their fortunes in the market. Furthermore, the prominence of the industrial setup within a region is gauged through the affluence of the automotive and manufacturing sector. Hence, governments have also taken ardent steps to assist the metal fabrication industry that would in turn benefit the manufacturing and automotive sectors. The demand for iron and steel from several industrial longitudes has played a major role in driving demand within the market for metal fabrication. The construction sector is also a vital propeller of demand for metal fabrication.
3D Metal Printing Could Obstruct Growth
The growth of 3D metal printing is seen as a threat to the market for metal fabrication. Ever since 3D metal printing came to the fore, the stakeholders within the metal fabrication market have been apprehensive about market growth. 3D metal printing finds its relevance in marine, automotive, and aerospace industries. This escalating growth graph of 3D printing could obstruct the growth of the market.
The review is based on TMR’s report titled, “Metal Fabrication Market (Service - Metal Welding, Machining, Metal Forming, Metal Shearing, Metal Cutting, Metal Rolling, Metal Folding, Metal Punching and Metal Stamping; End Use Industry - Construction, Automotive, Manufacturing, Energy & Power, Electronics) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024”
- Since metal fabrication is a key element in the automotive and manufacturing industries, there is a need to have a good number of fabrication to assist these industries.
- The growth of 3D metal printing is seen as a threat to the market for metal fabrication.
The market is segmented along the following parameters:
Metal Fabrication Market, by Service
- Metal Welding
- Metal Forming
- Metal Cutting
- Metal Folding
- Metal Rolling
- Metal Punching
- Metal Stamping
Metal Fabrication Market, by End-use Industry
- Energy & Power
- Others (Defense & Aerospace and Mining)
Metal Fabrication Market, by Geography
- North America
- Rest of Europe
- Asia Pacific (APAC)
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA
- South America
- Rest of South America
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