According to our latest market study on "Cold Forming and Cold Heading Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Material and Industry," the market is expected to grow from US$ 19,510.15 million in 2022 to US$ 27,332.39 million by 2028; it is estimated to grow at a CAGR of 5.8% from 2022 to 2028.
Developing countries have witnessed significant growth in their electronics industry in recent years, and cold heading machines have played a vital role in supporting the appliances industry by producing gears and fasteners for assembly. Cold heading is a preferred method as it prevents imperfections like porosity, segregation, large inclusions, and reduces the likelihood of parts leaking under high pressure. Additionally, cold heading is ideal for certain high-pressure and hydraulic components. In some cases, custom cold-pressed parts, such as rivets and fasteners, are necessary for appliances. As a result, the demand for cold forming and cold heading materials is expected to increase, especially in the electrical sector, which is anticipated to grow substantially in the future.
The use of cold forming and cold heading machines is expected to increase due to the growth of the construction industry, which heavily relies on connectors manufactured by these machines. Therefore, the development and investment in this sector are expected to promote the growth of the cold forming and cold heading market. For instance, in April 2021, the Canadian Bureau of Statistics reported a total investment of US$ 122,414 in sectors such as housing, industry, commerce, institutions, and government, compared to US$ 100 million in March 2021. These investments are likely to generate demand from the electrical industry and construction sector, further propelling the growth of the cold forming and cold heading market.
Impact of COVID-19 Pandemic on Cold Forming and Cold Heading Market
The presence of the United States significantly influences the North American market, as it has a high penetration of passenger vehicles per capita and a large capacity for automobile manufacturing. While the US experienced a surge in COVID-19 cases, the lack of strict government measures and restrictions had a minimal impact on the overall automotive industry, resulting in a moderate impact on the cold forming and cold heading market during the pandemic. However, the ongoing trade war between the US and China affected the availability of materials and components for automotive original equipment manufacturers (OEMs), which further impacted the cold forming and cold heading market after the pandemic. Additionally, Mexico and Canada experienced a decline in automotive sales demand and a notable reduction in the growth of their overall cold forming and cold heading market, including various automotive components, such as cold forming and cold heading and its related parts.
The rising number of COVID-19 cases led to the imposition of a lockdown on the US borders during Q2 and Q3, resulting in many manufacturing plants temporarily shutting down or operating with minimal staff. This disruption in the supply chain affected aircraft original equipment manufacturers (OEMs), aircraft component manufacturers, and related product manufacturers, among others, which were critical issues experienced in North American countries.
The US, followed by Canada and Mexico, has a significant presence of aircraft manufacturers and associated technology and system manufacturers. However, the COVID-19 outbreak has severely impacted their production as the lower number of manufacturing staff has led to a decrease in production quantity. In addition to Boeing, other aircraft OEMs like Bombardier, Textron, and Gulfstream have also faced disruptions in their orders and production lines due to the COVID-19 pandemic. On the supply side, the region has a large number of players operating in the cold forming and cold heading market. However, the restricted workforce, disruptions in the supply chain, and a limited number of orders have significantly impacted the cold forming and cold heading market players in the region.
The global cold forming and cold heading market comprises various stakeholders, including raw material component providers, cold forming and cold heading manufacturers, regulatory bodies, government organizations, and end customers. Apart from the manufacturers, there are several other important players in the market who play a crucial role in enabling technological advancements and driving market growth. These players include government organizations, regulatory bodies, and hardware component providers. The market is also witnessing technological advancements, such as remote machine monitoring systems that predict failures accurately by measuring vibrations. Increasing environmental awareness has led to the production of eco-friendly products, which positively impacts market growth. Additionally, the growing demand for heavy machinery and machinery in the construction industry is expected to drive the market growth further. The use of cold heading is also expected to contribute to the growth of the cold forming and cold heading market.
Key Findings of Study
The cold forming and cold heading market is categorized into five regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and South America. The Asia Pacific region held the largest share in the market in 2021, followed by Europe and North America. The market is further divided based on material and industry. The material segment includes aluminum, alloy steel, stainless steel, and others. The alloy steel segment is anticipated to be the leading segment in the cold forming and cold heading market during the forecast period. On the other hand, based on the industry, the market is classified into aerospace & defense, automotive, industrial equipment & machinery, and others. The automotive industry is expected to hold the highest share in the cold forming and cold heading market during the forecast period.
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