Cold Heading Machine Market

Market Overview

The global cold heading machine market size was valued at USD 3,267.40 million in 2021. It is projected to reach USD 5335.53 million by 2030, growing at a CAGR of 5.60% during the forecast period (2022-2030). 

A method for progressively molding metal into net-shaped or nearly so components is called cold heading, often known as cold forming. The cold heading machine shapes apart from a slug initially cut from a continuous coil of wire material using a series of solid hammers and dies. This technique results in little to no waste, much lower material costs, and equal volumes for the initial slug and the completed product. The net volume does not change since the material is molded into the die rather than being sliced from the blank. The global cold heading machine market is expanding due to rising electrical industry demand and other considerations.

Market Dynamics

Market Drivers

Growing Demand from the Electrical Industry

Population growth, infrastructure development, rising living standards, middle-class per capita income, and an increase in replacing traditional lighting are just a few of the factors driving the expansion of the electrical and electronics business. Due to the continually rising demand for mobile phones, portable computers, gaming consoles, and other personal electronic gadgets, the worldwide consumer electronics business has been expanding quickly. Due to numerous OEMs in the area, the Asia-Pacific electronics manufacturing industry is anticipated to increase over the next few years. Low costs, an easy supply of raw materials, and inexpensive labor contribute to the sector's expansion.

Expanding Chinese, Indian, and Thai Metalworking Industries

Cold forming dies are widely employed to produce steering rods and other specialized goods and tools for the automobile industry. For various shafts made of hard metals, automotive manufacturers use cold heading, which has been shown to extend the tool life for several parts. The machine tool industry in India produces fundamental capital goods. It falls under the "heavy engineering units" heading in the engineering sector. The machine tool industry creates mother machines and is essential to the engineering and manufacturing industry's cost, quality assurance, and technical advancement. The cold heading, straightening, and flattening equipment used in the metal forming business in India includes press breaks, punching and/or shearing equipment, presses, die casting, etc. Currently, there are over 50,000 enterprises in Thailand's mechanical and metalworking sectors.

Market Restraint

Retrogress of the Automotive Industry

According to the European Automobile Manufacturers' Association (ACEA), the COVID-19 pandemic caused a 23.7% decline in passenger automobile registrations in the European Union to 9.9 million units. Compared to 2019, there were 3 million fewer new-car registrations. Throughout 2020, there were double-digit reductions in each of the 27 EU markets. Spain, one of the region's largest markets for automobiles, experienced the most significant decline (-32.3%), closely followed by Italy (-27.9%), France (-25.5%), and Germany (-19.1%). India, which has seen an increase in vehicle production throughout the years (except 2019), had zero domestic sales in April 2020 due to the country's stringent statewide lockdown regulations. Nearly all manufacturers reported an 80–90% year-over-year sales decline in May 2020.

Market Opportunities

Expanding Aerospace and Defence Industries

In the aerospace and defense industries, the cold heading is used to create intricate and extremely detailed parts for military vehicles, ammunition, and airplanes. The aerospace and defense industry is currently in a "supercycle," primarily due to enormous order backlogs, which might propel production over the next ten years. Additionally, every nation has been investing in its military industries to maintain peace and security. Further, each year, governments set aside a certain amount in their budgets for the defense industry. Governments in nations like the United States, China, and India have routinely raised the national defense budget, which is anticipated to grow the global cold heading machine market during the forecast period.

Regional Analysis

The global cold heading machine market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global cold heading machine market and is anticipated to expand at a CAGR of 5.80% during the projection period. China has the largest GDP in the Asia-Pacific region. Despite the economic disruption caused by the trade war with the United States in 2019, the country's GDP grew by roughly 5.8%. Since the virus outbreak began within its borders, the country suffered more than any other country in the first half of 2020. China has historically been the world's top manufacturer and exporter of industrial fasteners. Since joining the World Trade Organization, it has grown to be the largest manufacturer and exporter of fasteners across all categories. Numerous businesses are present in the nation, and the industrial fasteners market is highly fragmented.

Europe is expected to grow at a CAGR of 5.20%, generating USD 1,348.04 million during the forecast period. With 41 assembly and engine production facilities, Germany dominates the European automotive market and produces one-third of the continent's cars. Makers from many regions, including equipment manufacturers, suppliers of materials and components, and integrators of complete systems, may be found in Germany, one of the top manufacturing hubs for the automobile industry. Germany is home to several businesses, including equipment manufacturers and suppliers of raw materials and components, and is one of the primary centers for the aircraft industry. The country's construction industry has been expanding slowly due to the rise in new residential construction activity.

The world's largest aerospace market is the United States in Europe. The US electronics market is one of the biggest in the world, and because of its size, it serves as one of the industry under study's most promising potential regions. It is also projected that this market would maintain its leadership during the projection period due to the adoption of cutting-edge technology, increased R&D facilities, and rising consumer demand. There is a significant need for newer and faster electronic gadgets as a result of the rapid pace of innovation, the advancement of technology, and R&D activities in the electronics industry. The emphasis on creating high-end products has led to significant growth in the number of manufacturing facilities and development hubs in the United States.

The cold heading machine market is anticipated to grow significantly during the forecast period. Brazil is one of the top producers of business and regional planes. It produces a variety of aerospace goods, such as turboprops, general aviation, business, commercial, and helicopters. The third-largest maker of civil aircraft worldwide is a Brazilian company, Embraer. Argentina, Saudi Arabia, the United Arab Emirates, Egypt, and Qatar are a few of the top customers in the segment of other countries.

Segmental Analysis

The global cold heading machine market is segmented by technique and end-user industry.

Based on technique, the global cold heading machine market is bifurcated into upsetting and extrusion.

The upsetting segment is the highest contributor to the market and is expected to grow at a CAGR of 5.90% during the forecast period. Metal pieces can be formed at room temperature using a multi-step procedure called cold heading manufacture. In contrast to other metal manufacturing methods, hammers and dies are employed rapidly to create the metal without heating it. The material is typically forced into the die using two distinct methods: upsetting and extrusion. The punch block in the upset process pushes the metal out of the dice to create a more giant head than the starting blank. The most popular and fundamental method of cold heading used nowadays is upsetting. When the beginning diameter is increased while the slug's height is decreased, an upset is created.

Another cold heading method is extrusion. Extrusions can be divided into two categories: forward extrusions and backward extrusions. Forward extrusions reduce the material's width and length by forcing it through an aperture with a decreasing diameter. Before this form of extrusion begins, the beginning material may be confined in the tooling entirely or partially. The material enclosed in a die or punch insert is forced to flow around a penetrating punch or pin by backward extrusions. Typically, this extrusion is used to create a void or cavity inside something. In order to make pieces, the cold extrusion process often relies on a large volume transfer of metal and depends on the mold to manage the metal flow. China has the capacity to design and produce a range of tonnage extrusion presses.

Based on the end-user industry, the global cold heading machine market is bifurcated into automotive, electrical and electronics, industrial, aerospace and defense, and others.

The automotive segment owns the highest market share and is expected to grow at a CAGR of 5.30% during the forecast period. The demand for electric cars is primarily driven by shifting pollution rules and stringent regulations. The market is also being driven by consumers' increased choice to refrain from purchasing cars with engines that produce more pollutants than electric ones. Automobiles will soon have even more electronic components because of recent advances in automotive electronics and the rise of electric vehicles (EVs). This means that cars will likely have a greater variety of cold-headed car parts during the forecast period.

It is anticipated that the electronics sector will expand moderately. Future market growth is anticipated to be aided by a rise in demand for new technical items. The LAMEA region is expected to be a sizable market for e-commerce, particularly the Gulf region, which is expected to have rapid growth over the forecast period. The usage of electronics and appliances in the area may rise. The largest electrical and electronics sector in Europe is located in Germany, with 11% of Germany's total industrial production. These factors are anticipated to drive market growth during the forecast period.

Recent Developments

• June 2022- In cooperation with the relevant partners and associations, Messe Düsseldorf postponed wire and tube to June 20–24, 2022. The Düsseldorf trade show calendar has been modified due to the fast-spreading Omicron variant and the currently very dynamic infection patterns, necessitating a rescheduling of the wire and Tube initially scheduled for 9 to 13 May. As a result of METAV being partially held concurrently, the new period provides more planning security and extra value. The German Machine Tool Builders' Association (VDW) had already postponed this vital trade show for metalworking technologies until June 21–24.