The global jigs, fixtures, and dies manufacturing market reached a value of nearly $56.8 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.6% from 2014, and is expected to grow at a CAGR of 9.3% to nearly $88.8 billion by 2023, according to a new report by The Business Research Company.
Previously, the main drivers of the market were the rise of manufacturing activity in emerging markets and increased spending on construction projects, while the main restraints were fluctuating raw material prices. Going forward, the main market drivers will be the growth in the automobile industry, technological advances and growth in consumer markets.
One of the key drivers of the dies, jigs and other tools market is the increased spending on construction projects. The market benefitted from the rise in metal consumption by the construction industry globally. Buildings with metal structures have become a standard choice for the construction of commercial and industrial facilities. For instance, around 40 million tons of steel were used in the construction industry in the United States in 2018. According to the Metal Building Manufacturers Association (MBMA), 34% of its members’ sales are generated from commercial buildings. This rise in metal consumption increased the demand for tools used for welding positioners, jigs and cutting dies.
Major trends influencing the dies, jigs and fixtures market include automation, and additive manufacturing and 3D printing. Automation tools and robotic solutions are being used by tool manufacturers to reduce downtime and increase productivity. Automatic tools include the use of computerized control systems for operating manufacturing equipment. Major automatic tools include smart camera systems, intelligent control systems, shop floor monitoring systems, 3D vision technology and robotic material handling systems. Robots allow faster assembling of complex components as compared to traditional manufacturing techniques. Robots also automate milling, trimming, drilling, cutting and forming processes, thereby reducing the production time. Automation further enables machine manufacturing companies to significantly increase production volumes with automation technologies, thereby decreasing production costs and increasing profit margins.
Meanwhile, tool manufacturers are also increasingly deploying additive manufacturing technologies to offer customized designs to customers. Additive manufacturing refers to the application of 3D printing to create functional components including prototypes, tooling and end-use production parts. Additive manufacturing aids in cost-effective production of small batches of intricate parts and complex part designs. It provides a high degree of design freedom, optimization and integration of functional features, and product customization.
Opportunities and Threats
The dies, jigs and other tools market size will gain the most in China. Meanwhile, the top opportunities in the global market will arise in the stamping and other tools segment, which will gain $22.7 billion of global annual sales by 2022. In fact, the stamping and other tools segment was also the largest sector in the global dies, jigs and fixtures market, with more than 67% of the market share, worth around $38 billion, in 2018. This higher share was due to extensive use of equipment to give shape to metals by electronics, automotive, metal manufacturing and plastic manufacturing companies, and the higher prices of these products compared with the prices of dies, and jigs and fixtures. Going forward, the stamping and other tools segment will continue to grow the fastest, growing at a CAGR of 9.7% between 2018 and 2023. The other segments of the market—dies, and jigs and fixtures—will grow at 9.2% and 8.3%, respectively, during the period.
The main threat, meanwhile, will be trade protectionism. Trade barriers are expected to have a negative impact on the market as many countries are placing trade restrictions, especially on imports, to boost local production. For instance, Brexit is likely to lead to more trade restrictions between the UK and other countries in Europe. The US is also implementing several trade restrictions, especially with China, to boost its local production. For instance, the US imposed 25% tariff on steel and 10% tariff on aluminium, in 2018. Steel and aluminium are extensively used in manufacturing of these tools. These trade restrictions are likely to limit the growth of demand going forward due to higher prices.
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