Precision Parts Market

Market Definition

The market involves the manufacturing of highly accurate components used in sectors such as aerospace, medical devices, electronics, and automotive. These parts are produced using processes such as CNC machining, electrical discharge machining, and laser cutting. 

Materials often include stainless steel, titanium, and advanced polymers. Applications range from surgical instruments to engine parts and semiconductor tools. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Precision Parts Market Overview

The global precision parts market size was valued at USD 213.72 billion in 2024 and is projected to grow from USD 233.79 billion in 2025 to USD 454.13 billion by 2032, exhibiting a CAGR of 9.79% during the forecast period. 

The growth of semiconductor equipment manufacturing is leading to increased demand for highly accurate and reliable precision parts. Additionally, the ongoing trend of miniaturization across industries such as electronics, medical devices, and aerospace is highlighting the need for intricate components.

Major companies operating in the precision parts industry are AccuRounds Inc., Aequs Private Ltd., Anton Häring KG, Armor Meca, Berger Holding GmbH, Beere Precision Products Inc., Beyonics Technology Ltd., Bruderer AG, Bonfiglioli Riduttori S.p.A., Caldwell Manufacturing Company, Coler Supply Solutions Ltd., Dana Motion Systems Italia S.r.l., DATRON AG, E-Fab Inc., and FANUC.

Modern CNC systems enable the production of complex parts with high repeatability and minimal waste. The integration of AI-driven controls, automation, and real-time feedback has improved machining efficiency and precision. 

These technologies have made it easier for manufacturers to meet industry-specific demands in shorter timeframes. The continuous innovation in CNC capabilities contributes to the growth of the precision parts market across sectors such as automotive, defense, and electronics.

• In November 2024, Hexagon's Manufacturing Intelligence division unveiled ProPlanAI, an AI-powered CAM programming tool that reduces machine tool programming time by up to 75%. Integrated with Microsoft Azure's AI services, ProPlanAI learns from a company's existing CAM data to automate process planning and provide real-time programming suggestions. It features a co-pilot assistant for guided machine setup and is set for public release in Q1 2025.

Key Highlights

1. The global precision parts market size was valued at USD 213.72 billion in 2024.
2. The market is projected to grow at a CAGR of 9.79% from 2025 to 2032.
3. North America held a market share of 34.07% in 2024, with a valuation of USD 72.81 billion.
4. The metal segment garnered USD 90.03 billion in revenue in 2024.
5. The electronics segment is expected to reach USD 135.97 billion by 2032.
6. Asia Pacific is anticipated to grow at a CAGR of 10.72% over the forecast period.

Market Driver

Growth of Semiconductor Equipment Manufacturing

The semiconductor industry relies on high-precision parts in tools for wafer processing, lithography, and assembly. These tools require components with extremely tight dimensional tolerances and surface finishes. 

Growth in chip demand, including AI and advanced computing, has increased capital expenditure on semiconductor equipment. The ongoing investment in fab infrastructure and cleanroom manufacturing significantly boosts the growth of the precision parts market.

• In March 2025, SiCarrier, a Chinese chip equipment manufacturer closely associated with Huawei, unveiled dozens of semiconductor manufacturing tools at Semicon China 2025. The company is seeking USD 2.8 billion to support its goal of becoming China's leading chipmaking equipment provider. With 92 patents filed, SiCarrier plans to offer a comprehensive suite of chipmaking tools, including lithography and AI-driven inspection systems, to help reduce China's reliance on foreign semiconductor equipment amid U.S. export restrictions.

Market Challenge

High Manufacturing Costs and Complex Production Processes

A significant challenge hindering the progress of the precision parts market is the high cost and complexity involved in manufacturing ultra-precise components. Producing parts with tight tolerances often requires advanced machinery, skilled labor, and strict quality controls, which can increase expenses and limit scalability.

To address this, key players are investing in automation technologies such as CNC machining and additive manufacturing. They are also forming partnerships to share expertise and resources, improving efficiency and reducing costs. These strategies help manufacturers maintain quality while making production more cost-effective, supporting steady market growth.

Market Trend

Miniaturization Trend Across Multiple Industries

Consumer electronics, medical devices, and industrial sensors are becoming increasingly compact, highlighting the need for small, intricate parts with consistent tolerances. The trend toward miniaturization has raised the standards for dimensional accuracy, materials selection, and advanced machining. Companies specializing in micro-machining and high-precision turning are seeing higher demand, fostering the expansion of the precision parts market.

• In July 2024, Knowles Corporation expanded its services to offer device miniaturization solutions to medtech OEMs. Leveraging over 70 years of expertise in miniaturized technologies, Knowles provides micro-stamping, micro-molding, ultra-fine wire coil winding, and precision machining services, catering to the increasing demand for compact medical devices.

Precision Parts Market Report Snapshot

Segmentation	Details
By Material	Metal, Plastic, Others
By End-use Industry	Aerospace & Defense, Automotive, Electronics, Healthcare, Consumer Packaged Goods, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Material (Metal, Plastic, and Others): The metal segment earned USD 90.03 billion in 2024 due to its superior strength, durability, and versatility, meet the requirements of the aerospace, automotive, and medical device industries.
• By End-use Industry (Aerospace & Defense, Automotive, Electronics, Healthcare, Consumer Packaged Goods, and Others): The electronics segment held a share of 29.90% in 2024, attributed to the rising demand for miniaturized, high-accuracy components essential for advanced consumer devices, semiconductors, and communication equipment.

Precision Parts Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America precision parts market share stood at around 34.07% in 2024, valued at USD 72.81 billion. North America is home to several leading aerospace and defense manufacturers with complex component needs. Companies such as Boeing, Lockheed Martin, and Raytheon rely on precision parts for aircraft engines, navigation systems, and advanced defense equipment. 

Moreover, North America possesses a well-established ecosystem of small-to-mid-sized precision machining companies serving niche applications. These companies enable quick turnarounds, rapid prototyping, and scalable production, often in direct collaboration with OEMs, strengthening the region’s manufacturing capabilities.

The Asia Pacific precision parts industry is estimated to grow at a robust CAGR of 12.85% over the forecast period. The region hosts several major electronics production hubs. 

The rise in manufacturing contracts from global electronics brands has increased the need for precise mechanical components. In response, suppliers are scaling up production to meet volume and quality demands, accelerating regional market expansion.

• In September 2024, Dutch-based NTS Group inaugurated a 20,000 sq. m. manufacturing facility in Singapore to produce ultra-precision mechatronic components for semiconductor equipment manufacturers such as ASML and Lam Research. This expansion aims to meet the rising demand for high-precision components in the region.

Furthermore, Asia Pacific is witnessing large-scale investments in automation and smart factory technologies, particularly in manufacturing-intensive sectors. Local companies and multinational OEMs are developing advanced industrial robots, boosting consistent demand for precision-machined components. This growing automation ecosystem continues to bolster regional market expansion.

Regulatory Frameworks

• The precision parts industry in the U.S. is regulated by standards such as AS9100 (Aerospace Quality Management System) and IATF 16949 (International Automotive Task Force standard for automotive quality). Companies handling military-related components must comply with ITAR (International Traffic in Arms Regulations). Additionally, the NIST (National Institute of Standards and Technology) Cybersecurity Framework applies to digitally integrated manufacturers, ensuring secure operations across CNC systems and automated production lines.
• In the UK, precision parts manufacturers must follow the General Product Safety Regulations 2005, ensuring all marketed products are safe. Since Brexit, UKCA (UK Conformity Assessed) marking has replaced CE marking for regulated products. Additionally, the British Standards Institution (BSI) sets sector-specific standards, including BS EN ISO 13485 for medical device parts and BS EN ISO 9001 for general industrial production, helping companies meet quality and traceability benchmarks.
• China’s precision parts industry is governed by CCC (China Compulsory Certificate) standards for product safety and conformity. Exporters must comply with the Export Control Law, particularly for aerospace, defense, or dual-use parts. Manufacturers using electronic materials must meet China RoHS (Restriction of Hazardous Substances). Compliance with GB (Guobiao) national standards is necessary, covering tolerances, material strength, and machining accuracy, particularly in automotive and electronic components manufacturing.
• Japan regulates the precision parts sector through JIS (Japanese Industrial Standards), which define dimensional accuracy, hardness, and tolerance for various machined components. Electrical parts require compliance with PSE (Product Safety Electrical Appliance & Material) law. Companies working in aerospace and medical applications often follow ISO 13485 and AS9100 as well. Japan also enforces strict metrology laws under the Measurement Act, ensuring accuracy in gauges and tools used in production.

Competitive Landscape

Major players in the precision parts market are focusing on strategic partnerships and collaborations to strengthen their production capabilities and expand their reach in high-growth sectors. 

These alliances allow companies to combine technological strengths and respond to the rising demand for complex, high-precision components. Collaboration enable firms to scale advanced manufacturing processes, improve part quality, and meet the specific needs of industries such as aerospace, defense, and medical.

• In April 2024, HP Inc. partnered with INDO-MIM to address the growing global demand for 3D-printed high-precision metal parts. As part of this collaboration, INDO-MIM acquired three HP Metal Jet S100 printers, enhancing its capabilities in producing intricate components for sectors such as defense, medical, and aerospace.

List of Key Companies in Precision Parts Market:

• AccuRounds Inc.
• Aequs Private Ltd.
• Anton Häring KG
• Armor Meca
• Berger Holding GmbH
• Beere Precision Products Inc.
• Beyonics Technology Ltd.
• Bruderer AG
• Bonfiglioli Riduttori S.p.A.
• Caldwell Manufacturing Company
• Coler Supply Solutions Ltd.
• Dana Motion Systems Italia S.r.l.
• DATRON AG
• E-Fab Inc.
• FANUC

Recent Developments (Product Launches)

• In August 2024, Micrometal Group advanced its photo-chemical etching (PCE) processes to meet the demands of miniaturization. Their reel-to-reel and advanced sheet PCE technologies enable the production of components with fine details and high precision, benefiting industries such as electronics, medical devices, and aerospace.
• In July 2024, Shibaura Machine showcased its UVM-450D(H) High Precision Machining Center at IMTS 2024. This advanced machine features a 60,000 RPM aerostatic spindle, thermal stability systems, and linear motor axes, making it ideal for producing intricate components required in medical devices and optical applications.
• In June 2024, Chiron Group introduced the Micro5 machining center at IMTS 2024. Designed for ultra-precise manufacturing of small components, the compact and energy-efficient system targets applications in medical devices, watchmaking, and other specialized applications.