Global Sheet Metal Fabrication Services Market to Reach $17.2 Billion by the Year 2026
Amid the COVID-19 crisis, the global market for Sheet Metal Fabrication Services estimated at US$14.8 Billion in the year 2020, is projected to reach a revised size of US$17.2 Billion by 2026, growing at a CAGR of 2.6% over the analysis period.
Growth in the global market is being driven by rapid urbanization in many developing regions, and a robust trend of R&D investments in several services sectors. Increasing demand for sheet metal fabrication from a wide range of major end users such as military & defense, aerospace, automotive, oil and gas, industrial machinery, medical devices, construction, agriculture, consumer products, and electronics is expected to drive growth.
Moreover, the current focus on enhancing operational efficiency and lean manufacturing is contributing to increased demand for the process of sheet metal forming among OEMs. Innovative prefabrication techniques adopted by sheet metal fabrication service providers to meet the growing demand are expected to further drive the growth. The increasing shortage of labor could be addressed by adopting cobots in metal fabrication processes.
Therefore, increasing number of metal fabrication facilities are adopting cobots to enhance operational efficiency and improve product quality. The sheet metal fabrication industry is also witnessing increase in the use of CNC machine tools as one of the essential tools in several applications including molding and shaping.
Steel, one of the segments analyzed in the report, is projected to grow at a 3% CAGR to reach US$7.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Aluminum segment is readjusted to a revised 2.5% CAGR for the next 7-year period.
This segment currently accounts for a 38.9% share of the global Sheet Metal Fabrication Services market. Steel and aluminum constitutes the most widely used metals for sheet metal fabrication on account of their durability, high strength, and corrosion resistant properties. Steel is poised to continue making strong gains in the market, given its important as a preferred building material in large-scale construction projects.