Precision Parts Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 185.53 Billion
Forecasted Value (2030)
USD 387.89 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
By Material Type
Metal, Plastic, Other
By End-Use Industry
Aerospace & Defence, Automotive, Electronics, Healthcare, Consumer Packaged Goods, Other
The global Precision Parts Market was valued at USD 185.53 billion in 2022 and is projected to reach USD 387.89 billion by 2030, growing at a CAGR of 9.87% from 2023 to 2030.
Precision parts are essential for the creation of a wide range of products, particularly in industries such as healthcare, automotive, and aerospace. The healthcare industry, for instance, relies heavily on precision parts to produce medical devices like surgical tools, diagnostic equipment, insulin pumps, implants, bone screws, and defibrillators that require high levels of accuracy and precision. The surge in the demand for medical devices has significantly contributed to the growth of the precision parts market. However, price volatility or unstable supply chains are observed to be a few factors that could slow down the market expansion.
Analyst’s Review on Precision Parts Market
The growth of the precision parts market is attributable to the rising demand for these components across various end-use sectors, which is a result of a substantial increase in manufacturing or production units globally. Furthermore, product advancements and developments could provide lucrative offerings for the key players, along with strategic collaborations.
The precision parts market plays a key role in numerous industries by providing highly accurate and precisely manufactured machine components. These components are typically based on custom specifications from industrial and machine-based companies. The precision parts market supplies a wide range of parts that are essential to the functioning of various industries, such as automotive, healthcare, and electronics.
For instance, precision components are used in the healthcare industry in the manufacturing of medical equipment, such as prosthetics and orthotics, medical implants, and surgical instruments. In the automotive industry, these parts are used in the manufacture of various components, such as engine and transmission parts, suspension systems, and braking systems. In the electronics industry, precision components are used in the production of circuit boards, semiconductors, and sensors.
The production of precision parts typically involves the use of high-tech manufacturing techniques such as CNC turning, which involves the use of computer-controlled machines to create complex shapes and designs with great accuracy and precision. Another common technique used in the production of precision parts is metal stamping, which involves the use of a stamping press to form parts from metal sheets.
The market has observed significant growth in recent years owing to increasing demand for precision components from multiple end-use sectors, especially from the healthcare industry, along with an uptick in vehicle production. Precision parts are critical components in the manufacturing of medical devices, such as implants, diagnostic equipment, bone screws, surgical tools, insulin pumps, and defibrillators, which require high levels of accuracy and precision.
Increasing vehicle production across the globe will further fuel the demand for precision parts. An increase in vehicle production from 2021 to 2022 is anticipated to support the demand for precision parts market. In 2021, over 79 million vehicles were produced globally. Widespread adoption of EVs is estimated to further augment the demand during 2023-2030.
However, the cost of raw materials significantly affects the final price of a product. Any changes in raw material prices resulting from economic or political disruptions can impact component prices, which in turn can impact the final product price. A sudden increase in the price of raw steel would have a direct impact on the cost of the component. Supply of raw materials, including steel, aluminum, and other metals, has become unstable with fluctuating prices, thereby exacerbating these issues. Numerous factors have contributed to this situation, including pandemic-triggered shutdowns, global transportation issues, weather disruptions, and tariffs that are deemed to be unfavorable
The global precision parts market is segmented based on material type, end-use industry, and geography.
Based on material type, the precision parts market is further categorized into metal, plastic, and others. In 2022, the metal category of the type segmented held the largest revenue, accruing USD 126.05 billion. This category is estimated to observe the fastest growth throughout the forecast period and account for 67.94% share. Precision processes commonly rely on a variety of metals or alloys of metal raw materials, including aluminum, stainless steel, copper, steel, titanium, and brass. Among these, stainless steel is a particularly popular choice for its excellent strength and resistance to corrosion. Its unique properties make it an ideal raw material for producing precision parts that must withstand harsh environmental conditions. During the forecast period, plastic as a raw material is anticipated to gain steady traction owing to the easy availability of the material. Replacement of metals by plastic has limited applications owing to its properties. By 2030, plastics will observe a significant growth rate of 8.67%.
Based on the end-use industry, the precision parts market is further categorized into aerospace & defense, automotive, electronics, healthcare, consumer packaged goods, and others. The aerospace and defense industry accounted for the majority of the segmental share of 28.10% in 2022. The aerospace industry is subject to particularly challenging operating conditions, with high velocities, fast-moving air currents, and extreme pressure exerted on aircraft components during flight. To prevent damage to aircraft and ensure operational safety, precision engineering plays a vital role in the design and manufacture of every component. However, the exponential increase in the demand for EVs in the automotive industry, along with the development of low-emission automotive, has resulted in the end-use industry observing the fastest growth at 11.38% during 2023 – 2030.
Based on regional analysis, the global precision parts market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America dominated the global market in 2022, accounting for 39.80% of the overall industry revenue at a significant growth rate of 9.89% over the review period. North America is estimated to reach a valuation of USD 155.09 billion by 2030 and continue its global dominance in terms of revenue. The presence of advanced manufacturing companies in numerous industries is observed to be the key factor driving regional business revenue. The U.S. is anticipated to experience the highest growth rate of 10.29%, followed by Canada, during the forecast period.
Europe accounted for the second largest regional share following North America in 2022, accruing revenue of USD 58.48 billion in 2022. The region is estimated to grow at a rate of 9.43% during 2023 – 2030. Germany, the U.K., and France are the prominent countries owing to the presence of the most advanced technologies in the region. Technological advancements help the market grow by improving efficiency, reducing manufacturing costs, and avoiding challenges faced by precision parts manufacturers.
The global precision parts industry study report will provide valuable insight with an emphasis on the global market and market is highly fragmented. Major players are focusing on some lucrative strategies such as partnership, mergers and acquisition, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion efforts by manufacturers involve investments in R&D, new manufacturing facilities, and supply chain optimization. The major players in the precision parts market are:
- Beyonics Pte Ltd
- Martinrea International Inc.
- WM Berg Inc.
- Barnes Group Inc.
- Haas Automation, Inc.
- Sigma Components Holdings Ltd
- DATRON AG
- FANUC CORPORATION
- February 2023 (Acquisition) - Effenco Development Inc., a company based out of Montreal, was acquired by Martinrea International Inc. Martinrea is a global supplier of automotive components viz., propulsion systems with precise engineered components. With the acquisition, Martinrea aimed to expand its business lines to hybrid or electric solutions.
The global Precision Parts Market is segmented as:
By Material Type
By End-Use Industry
- Aerospace & defense
- Consumer packaged goods
- North America
- Rest of Europe
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America