Sheet Metal Market Trends

Growth Drivers

• Rapid Growth in Automotive Industry – The production of vehicles requires large amount of sheet metal. Further, the advantaged provided by the sheet is the prime factor that is expected to drive the sales of sheet metal in the automotive industry. Thus, the expansion of automotive industry is expected to drive the growth of sheet metal market. As per recent statistics, the revenue generation by the global automotive industry by 2030 is projected to reach at USD 9 trillion.
• Recent Advances in Chemical Industry – The focus of the government and expenditure made the chemical industry to grow. This has propelled the Indian chemical industry to grow by a CAGR of 10% with a revenue of USD 300 billion by 2025.
• Increased Level of Electronics Industry - As per recent estimates, it was calculated that the revenue generated by the U.S. electronics industry in 2019 stood up at USD 300 billion.
• High Expenditure in Research & Development – World Bank released the global expenditure made in Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of total GDP in 2016.

Challenges

• Fluctuation in Costs of Raw Materials
• Additional Expenses Incurred – During the manufacturing process of sheet metals, several other additional expenses are incurred. As a result, the cost of end product rises, making it less accessible to the population with middle income. This trend is expected to pose as a challenge to the market growth in the forecast period.
• Stringent Government Rules