The global precision parts market by revenue is expected to grow at a CAGR of over 10% during the period 2019-2025.
The study considers the present scenario of the precision parts market and its market dynamics for the period 2019-2025.
The global precision parts market is projected to observe growth on account of the increase in industrial automation and innovation in the healthcare and medical devices industry.
The global industrial automation market is growing continuously as the demand for integrated and scalable products is at an all-time high.
Industries across the world are witnessing a shift to digitalization in the production line.
Factories are no longer run at the surface level, but they need to collect data from different sensors to measure throughput, and systems need to provide analysis in real-time and controls for optimized performance.
One of the key sectors driving innovation in the healthcare and medical devices industry is micro-manufacturing.
The demand for minimally invasive curative and diagnostic procedures is growing exponentially as medical service delivery organizations and patients are striving to reduce operational and recovery times and increase the accuracy of diagnosis.
As technology providers are increasingly forging partnerships with medical device OEMs, there arises a need for highly optimized solutions.
However, the demand for key components and spare parts is set to grow high, facilitating the easy availability of precision parts.
The following factors are likely to contribute to the growth of the precision parts market during the forecast period:
- Development and Usage of New Substrate Materials
- Increased Prominence of Asia Manufacturing
- Increase in Automation Expenditure
- Rise of Industry 4.0 and Smart Precision Manufacturing
The global precision parts market research report includes a detailed segmentation by end-users and geography.
Automotive: The increased vehicles demand, especially in emerging markets such as Asia and Africa and the introduction of stringent vehicle regulatory compliance are major factors that are driving the spares and automotive precision components market.
This development is increasing the requirement for precision parts engineering facilities to accommodate the high demand.
However, the trade spat between the US and China is expected to have an impact on shorter timelines.
Impact of COVID-19: Automobile sales are expected to be volatile due to lockdowns and the implementation of safety measures.
The impact of the pandemic is expected to be high on the segment.
The supply chain has been disrupted in H1, 2020, hence, a realignment of contracts is expected in the auto industry.
Electronic and Semiconductor: The trade dispute between China and the US has been impacting the semiconductor market as most companies in Taiwan and China cater to US clients.
Trade negotiations between the countries have been going on continuously, and the last two years have been dynamic due to tariff wars, and restrictions on technology usage.
Sourcing and production have been re-assessed by the electronics and semiconductor industry as it is expected to observe breather in trade concerns between China and the US.
Impact of COVID-19: There exists a high likelihood of supply disruptions in the semiconductor industry till the end of 2020. China is one of the largest players in the semiconductor industry.
The precision parts and products requirement is significant; however, the availability of the same has been disrupted since the outbreak of COVID-19 in APAC.
Insights by Geography
The market growth rates in APAC are truncated on account of COVID-19 in several end-user sectors.
The growth of the APAC precision parts market is challenged by the lack of technological advances in the manufacturing industry.
The upgrading of technology is limited to a few major players in the industry.
The impact of labor shortage, productivity, strikes, and job cuts will be high during the period 2020-2025 as the shift toward automation will exert pressure on the APAC labor-intensive market.
Automotive, electronics, and semiconductor industries hold over 40% of the precision parts market shares.
The automotive industry outlook is strengthened on account of the abolition of tariffs on imported completely built-up vehicles.
The growth of light vehicle sales was affected across the globe in 2019 and also in H1 2020, and APAC took a major bow on account of slowdown in the auto market of India.
Precision parts manufacturing companies in India are increasingly getting advance due to the well-established IT services industry in India, which is aiding the design and development of precision manufacturing techniques and products.
Insights by Vendors
The global precision parts market is highly fragmented with no major vendors having a significant share in the market.
Vendors are mainly located near the manufacturing hubs to enable collaboration on the design and development of precision parts.
A downturn in one of the end-market categories will not impact the overall market as many vendors are not into servicing a single end-market.
The market is characterized by vendors that are application-specific, product-specific, or multiple-service vendors at any point in time.
- Barnes Group Inc.
- NN Inc.
- Martinrea International
- Linamar International
- WM Berg
- Renishaw International
- ARC Group Worldwide
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