The India Metal Fabrication Market size is estimated at USD 20.89 billion in 2023, and is expected to reach USD 28.46 billion by 2028, growing at a CAGR of 6.38% during the forecast period (2023-2028).
India's metal fabrication sector is expected to be driven by the rising demand for goods and services in many sectors, as well as the fact that global manufacturing companies are trying to diversify their production by setting up low-cost plants in countries like China and India.
Additionally, the Indian manufacturing sector is expected to register a growth of more than six times its current value by 2025, to USD 1 trillion. This growth in the manufacturing sector in India is likely to lead to more manufacturing facilities in the country, which is expected to increase demand in the market studied.
For instance, the number of mobile manufacturing plants that were set up in India has increased by more than 60 times since 2017. This shows that the number of manufacturing units in the country is making the market more and more popular.
The Reserve Bank of India measures capacity utilization in the manufacturing sector through its quarterly order books, inventories, and capacity utilization survey. It shows not only how much companies are making, but also how much they might be able to invest in the future. This shows that the Indian metal fabrication market has more potential.
The infrastructure development activities by the Government of India are likely to boost the Indian metal fabrication market over the next few years. The market studied is expected to grow because of government projects like building metro stations, new no-frills airports, international terminals, industry corridors, power plants, and ports, all of which need heavy steel structures.
There is a huge infrastructure gap in the country. According to the government, infrastructure investment of USD 4.5 trillion may be required through 2040. Over the next few years, capital expenditure (CAPEX) is expected to remain high for Indian infrastructure players across sectors.
In addition, the construction and infrastructure sector is the largest end-user vertical consumer of steel in India. Larsen & Toubro (L&T), an infrastructure company, won a mega order from SJVN Thermal Pvt. Ltd. to set up an ultra-supercritical power plant in the Buxar district of Bihar. The mega project is estimated to cost more than INR 7,000 crore (USD 1 billion).
Larsen & Toubro (L&T) is in charge of designing, engineering, making, buying, supplying, building, putting together, testing, and starting up the Buxar thermal power project (2x660 MW). Further, as part of India’s Sagarmala Program, more than 610 projects (worth INR 7.78 lakh crores, about USD 100 billion) have been identified for implementation across the areas of port modernization, new port development, port connectivity enhancement, port-linked industrialization, and coastal community development during 2015–2035.
All the projects would require high-quality metal fabrication for infrastructure purposes, boosting the market's growth over the forecast period.
The Indian metal fabrication market is fragmented by nature, with the presence of many small- and medium-sized companies and EPC companies. Most of the large fabricators present in the market studied are primarily EPC companies, which handle end-to-end solutions for structural steel fabrication and process equipment fabrication services. In structural steel, fabricators in the market are focusing on expanding their product portfolios through prefabricated buildings and providing engineering solutions to their clients. The increasing construction sector and the preference for pre-engineered buildings are expected to further increase competition within the market studied. Salasar Techno Engineering Ltd., Kirby Building Systems, Zamil Industrial Investment Co., Pennar Group, and ISGEC Heavy Engineering Ltd. are some of the leading players operating in the India Metal Fabrication market. Some other major players in the market are Godrej Process Equipment, TEMA India, Larsen & Toubro Ltd., Diamond Group, Novatech Projects (India) Private Limited, SKV Engineering India Pvt. Ltd., Karamtara Engineering Pvt. Ltd., etc.
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