Global Precision Parts Market

Precision Parts Market Overveiw

The global Precision Parts market was valued at USD 8,595 Million and is expected to reach USD 2,892 Million with a CAGR of 8.9% during the forecast period, 2022-2028. The market’s expansion can be attributed to an increase in demand for precision parts from various end-use sectors since these parts are utilized to create various products, particularly in the healthcare, automotive, and aerospace industries. Medical devices such as diagnostic equipment, surgical tools, bone screws, implants, insulin pumps, and defibrillators require precision to achieve various machining capabilities in the healthcare industry. Furthermore, with the recent surge in the medical device industry, demand for these precise parts has skyrocketed, which is expected to propel the market forward. On the other hand, the increasing shipment of aircraft and their parts worldwide, backed by rising global preferences for air travel, is expected to open up new commercial opportunities for market expansion. According to the General Aviation Manufacturers Association (GAMA), overall piston and turbine airplane shipments climbed from 889 and 2020 units in 2010 to 1324 and 1334 units, respectively, in 2019. Precision parts, such as precision motors, are used in the sector, which is expected to support market growth in the upcoming years.

What are Precision Parts?

Precision components are highly exact machinery parts built to customer requirements and utilized in various applications by industrial and machine-based industries, such as CNC turning. Precision components are typically made from various materials to ensure stability and engineering functions, including stainless steel, brass, copper, bronze, aluminum, steel, titanium, and specialty alloys. When choosing precision components, there are numerous aspects to consider. Manufacturers who offer comprehensive CNC machining services can provide precision turned components with a superior finish that don’t require a secondary process, allowing you to reach end-use manufacturing with shorter cycle and processing times. Furthermore, pre-sale and after-sale service might reveal a company’s professionalism and efficiency.

Growth Driver

Increasing vehicle production

COVID-19 has resulted in a drop in car production, which directly impacts the automotive filter market. However, a gradual forecast rebound in vehicle production in Q1-Q2 of 2021 would sustain the Precision Parts market’s growth in the next years. The passenger automobile segment in Europe is likely to have increased demand for Precision Parts due to environmental concerns and rigorous emission standards. Precision Parts are predicted to expand faster as people become more conscious of the importance of air cabin quality. All sorts of cars are supplied with a variety of Precision Parts. The market will rise as a result of this and an increase in car production.

Restraints

Volatility in raw material prices

The cost of raw materials significantly impacts the final product’s price. Any changes in raw material prices resulting from economic or political upheaval might affect component prices, which in turn affect final product prices. Steel, aluminum, magnesium, or a combination of materials are used to make the final product, such as wheels, car components, and chassis. A spike in the price of raw steel would directly impact the vehicle’s price. The supply of basic raw materials such as steel, aluminum, and other metals has become unstable, with fluctuating prices. These issues are linked to pandemic shutdowns, but global transportation woes, weather disruptions, and foolish tariffs have exacerbated the situation.

Pre-Covid-19 impact on the global Precision Parts market

Before the pandemic, because metal frames are used in mobile phones, headphones, speakers, and gamepads and controllers, the increasing consumer electronics industry are likely to remain an important driving element. This was projected to boost demand for mobile phones and, eventually, metal stamping in the future years.

Covid-19 impact on the global Precision Parts market

The advent of COVID-19 and accompanying temporary lockout measures across the country influenced the industry’s operations. Due to supply chain issues and dried-up demand from end-use clients, downstream demand from major sectors such as automotive, aircraft, industrial machinery, and others was largely affected. As the rate of immunization has increased, the situation has stabilized. The rising demand for Precision Parts in the United States has forced manufacturers to expand their operations.

Post Covid-19 impact on the global Precision Parts market

Following the pandemic, the rising automotive production is expected to boost demand for Precision Parts, which are utilized in the production of car body panels, transmission components, and interior and exterior structural components, and are expected to drive the global market. The increased demand for lightweight automobiles prompts auto component makers to expand their production capacities and develop new products.

Product Segmental Analysis

Based on the Product, the global Precision Parts market is categorized into Cold-Formed Micro Components, Electroforms, Retaining Rings, Metal Stampings, Tubing Products, Spring Anchors, and Others. The Metal Stampings segment is expected to have a significant share in the global Precision Parts market in 2021 and is expected to continue this trend during the forecast period. Metal stamping is utilized in manufacturing antennas, chassis, and camera lens holders in mobile phones because it provides high tolerance, corrosion resistance, electrical conductivity, and a flawless finish. According to the GSM Association, the global number of unique mobile customers was 5.31 billion in January 2021, with a 1.8 percent annual growth rate. This is anticipated to boost demand for mobile phones and, eventually, metal stamping in the next years.

Application Segmental Analysis

Based on the Application, the global Precision Parts market is segregated into Automotive Components and Non-Automotive Components. The Automotive Components segment is expected to significantly share the global Precision Parts market during the forecast period. The development of lightweight materials has been a constant in the automotive industry. Over the years, the average percentage of carbon fiber reinforced composites and aluminum utilized in automobiles has steadily climbed. Due to lighter, faster, and better-performing automobiles and rising fuel costs, aftermarket companies are focusing on developing light-weighting technologies, which are expected to fuel the market.

Region Segmental Analysis

The Precision Parts market is characterized by North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific accounted for the biggest revenue share in 2021 and is predicted to grow quickly during the projection period due to the region’s rising demand for cars and consumer electronics. The rise is mostly fuelled by developing countries like China, India, Bangladesh, Indonesia, and Pakistan, where rising demand for phones and other consumer electronics is expected to fuel industry expansion.

Competitor Analysis

Companies include Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes Group Inc., NN, Inc., Linamar Corporation, Renishaw plc, ARMOR MECA, Precision Castparts Corp are the key players in the Precision Parts market. Key Stakeholders

• Market research and consulting firms
• Industry associations
• Global Precision Parts manufacturing firm
• Local Governments
• Regulatory bodies
• Suppliers
• Retailers

Scope of the Report

Report Attribute	Details
Revenue in 2021	USD 8,595 Million
The revenue forecast in 2028	USD 2,892 Million
Growth Rate	8.9%
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes Group Inc., NN, Inc., Linamar Corporation, Renishaw plc, ARMOR MECA, Precision Castparts Corp.

Market Modelling

By Product

• Cold-Formed Micro Components
• Electroformed
• Retaining Rings
• Metal Stampings
• Tubing Products
• Spring Anchors
• Others

By Application

• Automotive Components
• Non-Automotive Components

By Type

• Metal
• Plastic
• Others

By Distribution Channel

• Online
• Offline

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

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