Global Precision Parts Market - Focused Insights 2024-2029

MARKET INSIGHTS

The global precision parts market was valued at USD 234.80 billion in 2023 and is projected to reach USD 403.22 billion by 2029, growing at a CAGR of 9.43% during the forecast period. The market is growing significantly due to the increased focus on lightweight materials, the rise of Industry 4.0, and smart precision manufacturing. The increased prominence of EVs, application of additive manufacturing across all industries, growing demand from the healthcare industry, and advancement in CNC and milling machinery are also boosting the market's growth.

KEY TAKEAWAYS

1. Market Growth: The global precision parts market was valued at USD 234.80 billion in 2023 and is projected to reach USD 403.22 billion by 2029, growing at a CAGR of 9.43% during the forecast period.
2. By End-User: The automotive segment accounted for the largest market share due to increasing demand for EVs and the vast requirement of precision parts for vehicles.
3. By Automotive: The light vehicle segment shows the highest growth during the forecast period, as there are high production volumes of light vehicles and an increased focus on fuel efficiency.
4. By Geography: APAC dominated the market with the largest share of over 48% in the global precision parts market.
5. Growth Factor: The global precision parts market is set to grow, driven by the increased focus on lightweight materials and increasing prominence for EVs.

MARKET TRENDS & DRIVERS

Increased focus on Lightweight Materials

Increased focus on lightweight materials is a global precision parts market trend. This is due to the increased need for performance enhancement, sustainability, energy efficiency, technological advancements, and increased demand for lightweight precision parts from multiple industries. Lightweight materials, such as titanium, aluminum carbon fiber, etc., offer a greater strength-to-weight ratio. It enhances its performance in various applications. The demand for lightweight precision parts is rising significantly from various industries such as aerospace, medical devices, electronics, and automotive. It helps to improve fuel efficiency, maneuverability, and speed.

Rise of Industry 4.0 And Smart Precision Manufacturing

The rise of Industry 4.0 and smart precision manufacturing is a significant global precision parts market trend. This is due to increased automation & connectivity, mass customization, improved supply chain visibility, real-time data & analytics, and increased focus on sustainability. Industry 4.0 is enabling automation in precision manufacturing processes. It increases and reduces errors and efficiency and can produce highly complex precision parts with greater consistency and accuracy. Precision manufacturers are no exception in switching from traditional manufacturing procedures to fully automated manufacturing. Industry 4.0 refers to combining digital technology innovations or traditional methods with digitalization. These technologies include robotics, AI, sensors, cloud computing, IOT, and others, which will support and integrate the software and hardware to build the whole advanced system. The advent of smart factories using advanced technology has been the key factor in the growth of Industry 4.0.

Growing Demand from Healthcare Industry

The demand for precision parts is growing significantly in the healthcare industry. It is driven by increased demand for medical devices & equipment, technological advancements, rising healthcare expenditure, and miniaturization in medical devices. Precision components also play a key role in the advancement of medical technology. Investment casting is one of the most widely used processes for manufacturing medical devices' components since it ensures quality and helps in large-scale manufacturing of such components. MRI, x-ray, lab, and other patient-handling equipment are the same application areas.

MARKET RESTRAINTS

Price Volatility and Supply Chain

The price volatility and supply chain are major global precision parts market challenges. These factors may impact the industry, including raw material costs, energy prices, currency exchange rates, logistics challenges, and global events. It causes increased costs and production delays. The price of raw materials like plastics and metals is crucial for manufacturing the parts. It can fluctuate due to natural disasters, supply-demand imbalance, etc. This volatility makes it more challenging for the manufacturers to maintain stable pricing and predict product costs. It can cause production delays and delays in the delivery timeline of precision parts.

SEGMENTATION INSIGHTS

INSIGHTS BY END-USER

The global precision parts market by end-user is segmented into automotive, electronics & semiconductor, aerospace, healthcare, industrial equipment, defense, heavy equipment, marine & offshoring, and others. The industrial equipment shows an absolute growth of 77.14%. The industrial equipment segment plays a significant role in the global precision parts market. Diverse applications, customization requirements, and stringent performance requirements drive it. Precision parts are used for various industrial equipment such as machinery & robotics, manufacturing & processing equipment, and instrumentation & measurement equipment. The customer demand for industrial equipment manufacturers is highly dynamic. The majority of end-use customers of industrial equipment demand to increase the value of the product offerings while reducing the cost involved. Thereby, the role and demand for precision-made components have significantly increased over the years in terms of sales volume in fresh purchases and aftermarket sales of OEMs.

INSIGHTS BY AUTOMOTIVE

The global precision parts market by automotive is categorized into light, medium, & heavy commercial vehicles, light vehicles, two-wheelers & three-wheelers. The light vehicles segment shows significant growth, with the fastest-growing CAGR during the forecast period. The light Vehicles segment is impacting global precision parts significantly, including light-duty trucks and passenger cars. It is driven by high production volumes, increased focus on fuel efficiency & emissions, and technological advancements. The high volume of light vehicle production across the globe creates a significant demand for precision parts. Higher affordability of consumers and growing demand for luxury segment passenger vehicles are major propelling factors fueling the sales volume of the light vehicles market in developed countries. The automotive companies are increasing their collaborations and innovative product offerings by providing hybrid and electric vehicles. The demand for the same is expected to bolster the precision-manufactured auto components market during the forecast period.

GEOGRAPHICAL ANALYSIS

APAC dominated the global precision parts market with the largest share of over 48%. China is the major revenue contributor in this region due to its strong manufacturing hub compared to other countries in the APAC region. While the developed markets in Europe and North America cannot keep pace with the emerging markets in APAC, the automotive market of APAC is growing both in consumption size and purchasing power. Also, FDI investment rules have been relaxed in many countries(for instance, India), attracting strong direct and indirect investments. The major contributors to the market were defense-related electronic machinery, mobile phones, and sophisticated and advanced television sets.

COMPETITIVE LANDSCAPE

The global precision parts market report consists of exclusive data on 52 vendors. The market is highly fragmented, with no major vendors ARC Group Worldwide, Inc., Barnes Group Inc., Linamar International, Martinrea International Inc., NN, Inc., Renishaw group, Regal Rexnord, and Suprajit Group having a significant share of the market. Intense competition with a mix of large multinational corporations, smaller niche players, and mid-sized specialized firms characterize the market. The companies constantly invest in R&D to develop new innovative technologies and manufacturing. Precision parts are often customized per the specific customer requirements, increasing the responsiveness and flexibility in manufacturing.