The global automotive stamping market is projected to reach a value pool of USD 11,014.5 million in 2023, registering a modest CAGR of 5.3% from 2023 to 2033. By 2033, the worldwide market is predicted to surpass USD 18,460.7 million.
Stamping is a metalworking process that achieves the desired shape and structure of a material. This metalworking process is used in industries that process hardened surfaces, such as sheet metal and plastic components.
The stamping process is the foundation of all building processes in the automotive industry, as it produces more than 80% of the components that comprise a vehicle. This process creates both interior structural components as well as exterior build components.
Following the global economic downturn in 2009, demand for automobiles has amplified exponentially since 2010. This has resulted in a surge in the demand for stamping machines, in order to meet the demand of slowing growth in the automotive sector. The rising use of stamping machines in the automotive sector is attributed to the growth of stamped automotive parts and is forecast to grow at a booming rate between 2023 and 2033.
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The rising Emergence of Plastics as Metal Alternatives is likely to Impede Market Growth
The rising emergence of plastics/composites as metal substitutes, among other factors, limit market growth and further challenge the automotive stamping business during the forecast period.
Moreover, manufacturers who prefer to use new technologies in the manufacturing process stifle market growth. Automobile manufacturers face a number of challenges, including relatively high costs and complications in handling advanced equipment, which are limiting factors for the market.
Rising Vehicle Production to Boost Market Growth
Escalating vehicle production, along with surging demand for passenger vehicles globally, is projected to influence the automotive stamping sector growth significantly. However, with the growing trend of engine downsizing to improve fuel efficiency and lighter vehicles, lightweight metals such as aluminum are expected to see a surge in demand among automotive stamping companies.
The automotive stamping business is anticipated to be fueled by technological advancements, such as laser metal stamping and hydraulic metal stamping, which help to reduce manufacturing costs. The rapid expansion of manufacturing industries is further amplifying the global automotive stamping industry. Furthermore, owing to burgeoning vehicle production across the region, Asia-Pacific is dominating the market. The rapid expansion of small and medium-scale manufacturing industries across the region is expected to drive significant market growth.
In addition to that, metals and alloys are widely used in the automotive industry. Key OEMs have established manufacturing contracts with automotive stamping companies, which are an important source of business expansion for the latter. As a result, automotive production trends and policy frameworks aimed at automobile composition have a significant impact on the automotive stamping industry.
Production growth in key automotive markets such as the USA, Germany, France, the United Kingdom, Italy, and Japan is expected to promote industry growth over the forecast period. Apart from that, the automotive industry is expected to grow during the forecast period due to economic growth and rising consumer disposable income in emerging markets such as China, India, Brazil, and Mexico.
Large automakers such as Ford, Volkswagen, Mercedes (Daimler AG), and Toyota have established manufacturing facilities in these high-growth areas. This has resulted in technology transfer and an expansion of the domestic metalworking industry's scope of operations. This pattern is important in determining regional competition in the automotive stamping sector.
| Attributes | Details |
|---|---|
| Automotive Stamping Market CAGR (2023 to 2033) | 5.3% |
| Automotive Stamping Market Size (2023) | USD 11,014.5 million |
| Automotive Stamping Market Size (2033) | USD 18,460.7 million |
The global demand for automotive stamping reached from USD 8,630.5 million in 2018 to USD 10,490 million in 2022, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 5%.
Significant factors influencing the growth of the automotive stamping market include increased vehicle production and sales, as well as rapid growth in automobile component exports. Moreover, cost-cutting pressures on suppliers and complex technology impede the growth of the market. Furthermore, technological advancements and an increase in the use of hybrid electromagnetically-supported sheet stamping machines are expected to propel the automotive stamping business forward.
Automobile production is increasing significantly, resulting in increased demand from both domestic as well as international consumers. As a result, the demand for automotive stamping has increased. Since India is a rapidly emerging automotive components hub for engine and transmission parts, the demand for automotive stamping is expected to rise in the near future.
This is expected to compel original equipment manufacturers (OEMs) to manage their production capacity by establishing a new stamping process. As a result, the market is expected to expand during the forecast period.
| Countries | Market Share (2023) |
|---|---|
| United States | 14.7% |
| Germany | 13.8% |
| Japan | 8.7% |
| Australia | 4.5% |
Presence of Leading Market Players in the Region Creating Opportunities for the Automotive Stamping Industry
The presence of key vehicle manufacturers in North America is likely to amplify demand for metals such as aluminum, steel, and iron, which are the most commonly used metals in the automotive industry for automotive stamping. The use of stamped metal parts in automobiles and recreational vehicles is expected to drive significant growth in the North American market.
According to the American Automotive Policy Council, the automotive sector is the leading manufacturing sector in the USA, with key vehicle manufacturers such as Ford, Chrysler, and General Motors having manufacturing plants in the region. These companies are investing strategically in the market to support their future projects.
For example, General Motors announced in November 2021 that it invested more than USD 46 million in its Parma, Ohio, metal stamping operation to expand equipment upgrades and lay the groundwork for the facility to support future product programs. The USA has a significant presence in automotive stamping industries, which are expanding across the country.
For example, in July 2020, Challenge Manufacturing, based in Walker, Michigan, announced the acquisition of Great Lakes Metal Stamping's Cusseta, Alabama location. With this acquisition, the former was able to expand its presence in the Southeast.
Over the last four decades, the company has expanded to 3,500 employees in ten locations across the USA as well as Asia. The United States is North America's leading market for automotive stamping.
Thus, due to the aforementioned reasons, North America is expected to possess an 18% market share in 2022, further registering a CAGR of 4.9% for the automotive stamping market in the assessment period.
Presence of Automotive Industry Leaders in the Region favoring the market growth
Europe is expected to contribute significantly to the market in the forthcoming decade. The presence of automotive industry leaders such as Volkswagen and BMW, as well as key automotive manufacturing facilities in Germany, the United Kingdom, Italy, and elsewhere, is expected to boost market growth over the forecast period. Thus, Europe is expected to hold 26% of the market share in 2022, recording a CAGR of 5% for the automotive stamping sector.
| Countries | Market CAGR (2023 to 2033) |
|---|---|
| China | 5.7% |
| India | 6.2% |
Rising Demand for Automobiles fueling Rapid Adoption
In 2015, Asia Pacific accounted for 36.5% of global revenue in the automotive stamping market. Due to rising demand for automobiles and related activities, particularly in China and India, the region is projected to dominate the market during the forecast period.
Rising fire safety awareness combined with increasing automation is predicted to boost demand for automotive stamping over the next ten years. Thus, Asia Pacific is expected to procure a CAGR of 4.7% for the automotive stamping industry in the assessment period.
The Cold Stamping Segment to have the leading demand with a share of 59.2% in 2023.
On the basis of foaming temperature, the market is segmented into hot stamping and cold stamping. In hot stamping, steel blanks are heated until they are deformed. They are then formed into the desired shape using special dies, and rapidly cooled to lock into place.
Moreover, hot stamping allows the manufacturer to press complex parts with great strength, allowing the manufacturer to create a form in a single lightweight piece, rather than having to weld thicker, heavier parts together. Because of its ability to produce lightweight parts, hot stamping is ideal for manufacturing car frames.
Hot stamp parts have a high tensile strength, which is an asset. Furthermore, hot stamping is typically more expensive than cold stamping. In addition to that, once a part is formed by hot stamping, it cannot be reformed. Hot stamping is also not suitable for all metals. In fact, boron steel is required for hot stamping, which contributes to the higher cost.
On the other hand, in cold stamping, intense pressure is used to shape metal sheets into the desired shape. Because pressure, rather than heat, is the only method used to form the new shape, thicker pieces of metal are usually required so that there is more to apply the pressure to. Cold stamping is more efficient than hot stamping. Furthermore, cold stamping is required if you need to reform your part or perform processes such as draws or flanging. Furthermore, cold stamping allows you to use a variety of metals, whereas hot stamping only allows you to use boron steel. Hence, the cold stamping segment is anticipated to grow at a CAGR of 5% during the forecast period.
Key startup players in the market are:
To gain an advantage over their rivals, automotive stamping businesses are growing their footprints and using cutting-edge technology. Although there are several local participants in the sector, it is fragmented.
Recent Developments:
Key Players
The market is valued at USD 11,014.5 million in 2023.
Orchid International and Hyundai Rotem are key market players.
The cold stamping are likely to remain preferred through 2033.
Players opt for acquisitions, new launch and collaborations.
India and China are the key Asian countries in the global market.
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Automotive Stamping Market
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