UK-based research firm Technavio forecasts the global metal machining market is poised to grow by US$14.76 billion during 2020-2024 at a compounded annual growth rate (CAGR) of almost four per cent during that period.
In its latest report, the firm predicts growing demand from the oil and gas industry and emergence of 3D printing in manufacturing will boost market growth.
Technavio says rapid industrialization and urbanization, followed by increasing consumption of energy in developing countries including China and India, will drive the need for E&P activities in the oil and gas industry.
The rise in offshore oil and gas exploration activities—particularly deep-water exploration—will increase demand for fabricated parts for pipelines, oil rigs and other infrastructure. The report says this will in turn boost demand for metal machining equipment used to fabricate and install pipelines and gathering lines to deliver the oil and gas to refineries.
Although the accelerating growth will offer opportunity, the shortage of a skilled workforce will be a challenge for many market participants. To increase market share, companies should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
For more information, or to purchase a copy of the report, visit Technavio’s site here.
