Precision Parts Market is Expected to Reach USD 387.89 Billion by 2030
As per the report published by Kings Research, 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.
The global precision parts market is expected to experience significant growth in the coming years, driven by increasing demand from end-use industries such as automotive, aerospace, electronics, and healthcare. For instance, the aerospace industry requires precision-made parts for aircraft engines, landing gears, and other critical components. The rise in demand for better and more efficient aerospace components and solutions is in turn observed to drive the market for precision parts.
Product innovation by key market players such as DATRON AG, FANUC CORPORATION, and Martinrea International Inc., amongst others, would further accelerate the market expansion owing to strategies that have been put in place by these players. Other activities amongst companies, such as partnerships, collaborations, and acquisitions, support the presence and establishment of prominent players across the globe.
- Based on material type, the metals segment held the largest market share in 2022, accounting for 67.94% of the segment's revenue
- Based on the end-use industry, the aerospace & defense segment generated the highest revenue in 2022, garnering USD 52.13 billion
- On the basis of region, North America held the largest market share, accounting for 39.80% of the global value in 2022
Acquisition of Metalsa S.A. de C.V. by Martinrea International Inc.
March 2020 – Metalsa S.A. de C.V. was acquired by Martinrea International Inc., to expand manufacturing units in Germany, U.S., South Africa, Mexico, and China. Metalsa is among the top companies supplying passenger car’s structural components.
Penetration of Technologies and Expanding End-Use Industry Verticals to Drive Market Growth
The precision parts market is experiencing significant growth largely due to an increase in industrial automation and innovation in the healthcare and medical devices industry. As artificial intelligence, robotics, and automation technologies continue to advance, there is a greater need for accurate and reliable precision parts in various industries. The precision parts market is also witnessing growth due to technological advancements, such as 3D printing, automation, and machine learning amongst other technologies, which enables companies to produce precision parts more efficiently and cost-effectively.
Technology Penetration Amid Industry 4.0 Would Create Lucrative Opportunities for The Market
Advanced technologies such as Artificial Intelligence, the Internet of Things, and automation are transforming how manufacturers produce and distribute their products, and this is driving the demand for high-quality precision parts. The adoption of Industry 4.0 technologies has led to more efficient use of resources, reduced production costs, and greater production flexibility, which are all vital factors influencing the growth of the precision parts market. With the integration of these advanced technologies into their operations, precision parts manufacturers can leverage their advantages to surpass competitors and create new growth opportunities. This technological penetration can also allow manufacturers to provide custom-made precision parts that cater to specific customer requirements.
Development of Efficient Manufacturing Techniques to Support North America and Europe over 2023 - 2030
In 2022, North America and Europe were at the forefront, capturing the share of 39.80% and 31.52% respectively. This dominance is attributed to the development of precision parts–manufacturing technologies, and exponentially increasing demand from automotive, healthcare, and aerospace industries. North America is estimated to reach a valuation of USD 80.16 billion in 2023 and Europe to exhibit a steady growth rate of 9.43% as compared to other regions. The U.S. and Germany are foreseen to highest CAGR over 2023 – 2030.
Emerging Countries to Favour the Growth of the Market in Asia-Pacific
In 2022, Asia-Pacific accrued revenue of USD 39.67 billion and has experienced exponential growth in recent years. The region has a thriving precision engineering industry, with countries such as China, Japan, South Korea, and India leading the way in manufacturing high-quality precision parts. The growing demand for precision parts in key end-use sectors, such as automotive, aerospace, electronics, and healthcare, is driving the market's growth in the region. The rapid adoption of the latest technologies, along with low labor and related costs, are observed to be the factors driving the market progress. These factors are anticipated to support the market growth and exhibit the fastest growth rate of 11.24% between 2023 and 2030.
Increasing Focus On Strategic Mergers and Acquisitions for Sustainable Growth
The market is fragmented with significant players such as Beyonics Pte Ltd, DATRON AG, FANUC CORPORATION, Martinrea International Inc., WM Berg Inc., Barnes Group Inc., Haas Automation, Inc., Amera-Seiki, and Sigma, among others, concentrated on expanding their business through collaboration and partnership strategies.