Metal fabrication market to grow to $21.38 billion by 2024

Investments in global infrastructure projects have been increasing rapidly over the past decade, and this presents a growing opportunity for the prefabricated construction market to grow considerably in the coming years, according to Albany, N.Y.-based Transparency Market Research (TMR). This acts as a key factor driving the demand for metal fabricators, especially in developed regions such as North America.

The global market for metal fabrication also is fueled by continued investments in electric furnace and metals processing, the growing aluminum consumption, the reshoring of manufacturing practices in the automotive industry, recovery in nonresidential investments, and growing aerospace demand.

The global metal fabrication market was valued at $16.35 billion in 2015, and a recent report from TMR predicts it will expand at a CAGR of 3.0 percent to reach $21.38 billion by 2024.

Metal welding accounted for the lead share in the global metal fabrication market, with just more than 14 percent in 2015. However, machining services are anticipated to undergo rapid growth in the coming years, with a 4.1 percent CAGR from 2016 to 2024.

Based on end use, the construction sector held the dominant share in the metal fabrication market in 2015 and is anticipated to retain its lead throughout the forecast period. The manufacturing industry, on the other hand, is projected to expand at a rate higher than any other end-use segment.

Geographically, Asia Pacific is the leading market for metal fabrication—in 2015 it accounted for just less than 43 percent in terms of revenue. The North American market is expected to grow at 4.8 percent CAGR during the course of the forecast period, higher than any other regional segment.

"The rising demand for iron and steel by European and American construction and automobile industries has led to the rising significance of metal fabricators across these regions," said the author of the study. Substantial spending on industrial projects, the development of industrial infrastructure, and interest rate cuts by centralized banking authorities of India have helped promote the demand for steel in the construction sector, thereby driving the demand for metal fabrication. Continuous growth in global permanent modular construction activities over the past few years is expected to drive the metal fabrication market in the near future.

However, the growing popularity of 3-D metal printing poses a major threat to the development of the metal fabrication market. The technology has gained extensive usage in the aerospace, automotive, and marine sectors, which is viewed as a hindrance to the trajectory of the metal fabrication market, specifically in developed economies.

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