Precision Parts Market Trends

  • Report ID: 3618
  • Published Date: Dec 20, 2024
  • Report Format: PDF, PPT

Precision Parts Market Trends

Growth Drivers

  • Rapid Digitization In The past few years, demand for electronics and semiconductors has been growing at a steady pace. This growth is expected to be influenced by advances in technology such as Digital Technology, Artificial Intelligence UXI, and the anticipated introduction of 5G networks with 1.9 million subscriptions worldwide.  The demand for precision components is projected to increase rapidly with the rapid development of several trending applications, e.g. Virtual Reality, Internet of Things devices, home automation, Industry 4.0 systems, and autonomous vehicles.
  • Increasing Demand for Commercial and Défense Aircraft- The precision parts manufacturing market is growing at a rapid pace. Investments in the provision of Unmanned Vehicles ArielUAV are increasing by 75%. Therefore, precision components are expected to contribute positively to the global precision parts market over the forecast period by observing innovation in the aerospace industry. The requirement for precision parts among aircraft manufacturers is expected to increase as a result of replacing lighter materials with high temperature and pressure resistance while upgrading the essential plane components.
  • Increasing innovation in the healthcare and medical device manufacturing sector in recent years the healthcare industry has taken steps towards innovation. The main factors expected to stimulate demand for precision parts over the forecast period are several technological developments such as cardio Pulmonary and cardiac devices, AI-based surgery planning, etc. The expenditure on health care will be significantly increased due to the growing concern about quality in medical practice and initiatives from governments offering public health insurance to boost market growth.

Challenges

  • Miniaturization of Precision Parts:
    In the precision parts industry, miniaturization of parts is an important trend. As the parts shrink, tolerances which must be met by machinists are becoming more and more tight. This requires more advanced skills and experience of the machinist, along with a higher level of accuracy and costly equipment. Moreover, smaller pieces can be difficult to work with and require special fittings and tools. Moreover, because even minor imperfections may lead to problems, the miniaturization of parts is also putting increased pressure on quality control.
  • Fluctuating price of raw materials.
  • Demand for smaller lot sizes.

Precision Parts Market: Key Insights

Regionally, the global precision parts market is segmented into five major regions including North America, Europe, Asia, South America and Rest of World. The market in Asia region is anticipated to generate the largest revenue of USD 101.95 Billion by the end of 2025, up from a revenue of USD 35.78 Billion in the year 2015. The market in the region is also anticipated to grow with the highest CAGR of 10.4% during the forecast period. The growth of the market in the region can primarily be attributed to the increasing sales of electric vehicles in countries, such as China and India, along with the presence of a strong manufacturing hub for such precision parts in the region. According to the statistics by the International Energy Agency (IEA), total electric car stock in China increased from 0.21 Million in the year 2015 to 2.58 Million in the year 2019.

Electric Car Stock Graph

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Moreover, amongst the countries in the region, the market in India is expected to garner a revenue of USD 8.68 Billion by the end of 2025. On the other hand, the market in North America is expected to grow with the second-highest CAGR of 8.8% during the forecast period.

The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).

Base Year

2024

Forecast Year

2025-2037

CAGR

13.20%

Base Year Market Size (2024)

USD 182.58 billion

Forecast Year Market Size (2037)

USD 915.08 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Browse Key Market Insights with Data Illustration:


Author Credits:  Richa Gupta


  • Report ID: 3618
  • Published Date: Dec 20, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of precision parts is estimated at USD 223.18 billion.

The precision parts market size was over USD 182.58 billion in 2024 and is anticipated to cross USD 915.08 billion by 2037, witnessing more than 13.2% CAGR during the forecast period i.e., between 2025-2037. Increased innovations in the healthcare and medical device manufacturing sector, rapid digitization, and increasing demand for commercial and defense aircraft will propel the market growth.

Europe industry is set to hold largest revenue share of 38% by 2037, propelled by increasing technological innovation in medicine and healthcare manufacturing in the region.

The major players in the market are Sigma Components Holdings Ltd, Beyonics Pte Ltd, Tessa Precision Products, Inc., Barnes, NN, Inc., Linamar Corporation, Renishawplc., Digitaleo, Precision Castparts Corp.
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