The global sheet metal fabrication services market is expected to post a compound annual growth rate (CAGR) of over 3 percent during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the increasing demand for fabricated metal parts from major end-user industries. Despite the emergence of carbon fibre, sheet metal forming plays a crucial role in the automotive and aerospace and defence industries. Metals are the major raw materials used in these industries as they can easily be transformed and made into shapes as per application requirement.
With the current focus on lean manufacturing and increasing operational efficiency, including cost-cutting, sheet metal forming process will be a valuable service for OEMs. Since automotive and aerospace and defence industries are the major end-users in the global sheet metal fabrication services market, the increasing investments in these industries will drive the global sheet metal fabrication services market during the forecast period.
As per Technavio, the increasing adoption of cobots (collaborative robots) in metal fabrication process will have a positive impact on the market and contribute to its growth significantly over the forecast period.
A cobot works alongside humans without physical separation or any caging requirement. These cobots use specialised sensors and robot controllers for operation, thereby increasing the operational efficiency and safety in the process line. They are used to ease programming and reduce safety costs. They are built using sensors, such as torque sensors and built-in safety sensors, to identify the presence of humans near them. With the improving safety standards in industries, vendors will increase their investments in improving sensing technologies, specifically for collaborative robots. Moreover, the rising shortage of labour can be addressed by fabricators by using cobots. Vendors in the industrial robotics market are also focusing on developing cobots specifically for the metal fabrication process.
Apart from the increasing adoption of cobots in the metal fabrication process, the advent of additive manufacturing is one other factor that is expected to boost the market growth, according to Technavio. The manufacturing industry has witnessed the emergence of revolutionary 3D printing technology, which is also known as additive manufacturing. The adoption of 3D printers has helped sheet metal fabricators, as dies used in machine tools for the punching process can be produced cost-efficiently using 3D printers. Thus, improvements in the 3D printing technology and the increased adoption will lead to a complete shift in the manufacturing process, besides driving the growth of the global sheet metal fabrication services market during the forecast period.
From a regional perspective, the Asia Pacific led the market in 2018, followed by North America, Europe, South America, and the Middle East and Africa, respectively. During the forecast period, the APAC region is expected to maintain its dominance over the global market and register the highest incremental growth due to increasing demand from automobiles manufactured in the region.
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