Continuous investments in global infrastructure projects are leading to a significant growth in the global metal fabrication market. The high demand from the manufacturing sectors is also driving the market. As investments by developing nations are rising for bridge, tunnel, and subway construction, the demand for metal fabrication is increasing. According to a report published by Transparency Market Research (TMR), the global metal fabrication market is expected to rise from US$16.35 bn in 2015 to reach US$21.38 bn by 2024, expanding at a CAGR of 3.0%. The report states that the high demand for iron and steel from automobile and construction sectors in various countries in North America and Europe will result in a significant growth of the metal fabrication market.
TMR analysts shed light on three important questions that companies operating in the metal fabrication market have:
Q. Which region is expected to be a lucrative market in the coming years?
Asia Pacific led in terms of revenue in 2015 and accounted for almost 43% of the metal fabrication market. The reason behind the growth of the metal fabrication market in Asia Pacific is the consistently growing permanent modular construction (PMC) activities. Reduced interest rates in India have encouraged the use of steel in construction activities, subsequently driving the demand for metal fabrication. In terms of growth, however, North America is anticipated to expand at a significant CAGR and thus, emerge as a lucrative regional segment in the coming years.
Q. What are the challenges faced by the metal fabrication market?
The growing popularity of 3D metal printing is threatening the demand for metal fabrication. Three-dimensional metal printing is emerging as a trending technology for metal additive manufacturing. As such, this technology is now being used across industries such as marine, automotive, and aerospace. 3D metal printing offers better quality adherence and higher precision machining operations as compared to metal fabrication. This will likely impede the market’s growth in the coming years.
Q. What are key strategies adopted by leading players in the metal fabrication market?
Key players in the global metal fabrication market are extensively resorting to investments in research and development so as to provide metal fabricated components and products to companies. A case in point would be O’Neal Manufacturing Services. The company invested a high amount on equipment and machinery in May 2014, which has facilitated it to provide fabricated components and parts for Caterpillar Inc.
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Another strategy implemented by players in the metal fabrication market is the tie-ups with large original equipment manufacturers, acquisitions, and expansions to gain shares. Players are also focusing on efficient and cost saving production management to gain a competitive edge.