Metal Fabrication Equipment is used in fabricating metals like steel, including carbon steel, stainless steel, alloy steel, tool steel, etc., in various industrial applications. The machines & equipment employed in the fabrication process for shaping the metals range across shears, saws, shapers, planers, along with milling, grinding, & drilling machines, etc. The mounting need for metal processing in various industries and rapid industrialization across the UAE have been driving the demand for metal fabrication equipment in the country for a few years.
The UAE Metal Fabrication Equipment Market is projected to grow at a CAGR of around 3.80% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the mounting demand for metal fabrication equipment in the swiftly expanding manufacturing industries across the UAE, coupled with the surging government focus on diversifying the economy away from oil. It, in turn, is resulting in increasing investments in the construction sector to build commercial & residential complexes.
Besides, several prominent market players are also investing substantially in enhancing existing equipment. The growing adoption of metal fabrication equipment integrated with the latest technologies like the Internet of Things (IoT) & automation to improve performance efficiency shall also drive the market in the coming years. Additionally, vehicle sales across the UAE are substantially rising since they are of immense importance as a status symbol to the UAE population. Hence, the automotive industry is increasing its production capabilities, i.e., propelling the demand for metal fabrication equipment and displaying remunerative growth opportunities for the leading market players over the forecast years.
Moreover, the UAE government is actively participating in the Metal Fabrication Equipment Market in line with UAE Vision 2030 to attain sustainable development targets, including strategies to expand economic growth. For instance:
These initiatives are likely to act as crucial stimulators for the expansion of the UAE Metal Fabrication Equipment Market during the forecast period.
Key Trend in the UAE Metal Fabrication Equipment Market
The growing prevalence of Industry 4.0 is introducing a smart manufacturing process where the operations & physical production is carried out using technologies like machine learning, cloud computing, & big data, among others. These are principally to create a more inclusive & interconnected environment in manufacturing. Industry 4.0 metal fabrication equipment focuses on interconnectivity, automation, machine learning, and real-time data. Industry 4.0 in metal fabrication equipment provides real-time information about the occurring issues & informs engineers or the operators by sending alerts, thereby improving the productivity & efficiency of the manufacturing industry.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||GERIMA, Fezer, Rexroth Parker USA, AMADA, CIDAN Machinery Group (Yes Machinery), Drilltech Oilfield Equipment Manufacturing and Services LLC, NOK Corporation, Al Shirawi Equipment Company, Microteknik, Dishaa Machinery & Tools LLC, Others|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the UAE Metal Fabrication Equipment Market
The Covid-19 pandemic in 2020 caused catastrophic upheavals for different industries across the UAE, where the Metal Fabrication Equipment Market was no exception. In response to the rapid spread of this dreadful disease, the UAE government imposed stringent movement restrictions & lockdowns.
As a result of cross-border restrictions and isolation practices, the market faced several unprecedented challenges like the unavailability of labor & raw materials & the shut down of industries, which resulted in massive financial losses to the leading market players. Additionally, these disruptions impacted both the supply chain & the demand for metal fabrication equipment.
However, on the other hand, while people had to stay indoors, the healthcare sector introduced a temporary upsurge in the market growth to build healthcare equipment like ventilators, oxygen cylinders, beds, & other provisions, basically due to the exponentially increasing number of Covid-19 patients.
Hence, it can be said that the UAE Metal Fabrication Equipment Market observed a downfall during the initial stages of the pandemic and witnessed swift growth in the later months. Moreover, since 2021, the government has uplifted the restrictions & allowed the recommencement of business operations, which, in turn, has enabled the market to regain its usual growth pace & revive from revenue losses.
Of all End-Users, the Industrial Manufacturing sector is expected to witness the fastest market growth during the forecast period, owing primarily to the rapidly increasing number of projects associated with industrialization, i.e., surging the requirement of metal fabrication equipment.
Besides, the market is expanding dramatically across industries like defense, aerospace, & automotive sectors, making them the largest consumers of metal fabrication equipment to make precise & accurate shapes out of metals. Moreover, massive government investments in these industries shall also significantly boost the demand for metal fabrication equipment during the forecast period.
By Machinery Type:
Of them all, the demand for Laser Cutting Machines witnessed rapid growth in recent years, primarily for metals that are difficult or impossible to cut using conventional equipment. These machines offer more precision & less energy consumption when cutting metal sheets, which is another reason behind their rapidly increasing demand in the UAE.
Additionally, the swiftly expanding automobile industry is also projected to positively influence the demand for laser cutting machines due to rising vehicle sales on account of increasing urbanization & disposable income, coupled with the need to cut metal precisely.
Furthermore, the defense & aerospace, electrical, electronics, and steel industries are further propelling the demand for laser cutting machines to build accurate & precise shapes of metal structures and, in turn, is fueling the overall market growth.
Recent Developments by Leading Companies
Key Driver: Growing Demand for High Precision Fabrication
With the exponentially rising population & increasing number of development activities in the country, the UAE is witnessing a surging demand for metal fabrication equipment, especially across oil & gas, pharmaceuticals, automotive, & petrochemical industries, among others. Of all sectors, the defense & aerospace sectors are anticipated to create profitable opportunities for the leading players in the UAE Metal Fabrication Market due to the extensive utility of this equipment to fabricate metal sheets into advanced machinery with high precision & quality. Besides, the mounting demand for carbon steel in construction projects is another crucial aspect projected to boost the market in the coming years.
Possible Restraint: High Costs of Raw Materials
Raw materials like copper, iron, & aluminum, etc., required to build machinery are witnessing price fluctuations, i.e., making their procurement difficult for the medium & small scale industries, thereby reducing investments in the market & hampering the overall expansion across the UAE.
Growth Opportunity: Government Initiatives for Developing Technological Advanced Metal Fabrication Equipment
The government is taking various initiatives toward developing technologically advanced metal fabrication equipment & addressing issues associated with the high costs of raw materials. It, in turn, is projected to generate significant growth opportunities for the leading players to introduce new products & expand their portfolio across the UAE.
According to MarkNtel Advisors, the leading players in the UAE Metal Fabrication Equipment Market are GERIMA, Fezer, Rexroth Parker USA, AMADA, CIDAN Machinery Group (Yes Machinery), Drilltech Oilfield Equipment Manufacturing and Services LLC, NOK Corporation, Al Shirawi Equipment Company, Microteknik, Dishaa Machinery & Tools LLC, Others.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The UAE Metal Fabrication Equipment Market is projected to grow at a CAGR of around 3.80% during 2021-26.
A. Laser Cutting Machines are anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE Metal Fabrication Equipment Market during the forecast period.
A. Rapidly increasing demand for high precision fabrication entwined with growing support from the government through investments & projects is anticipated to drive the market & generate growth opportunities for the leading players during the forecast period.
A. With the growing need to build robust healthcare infrastructure & medical facilities, the UAE government is investing substantially in the development & construction of the sector, which shall augment the growth of the UAE Metal Fabrication Equipment Market after the pandemic during the forecast period.