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India Metal Fabrication Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 150 Pages
  • March 2023
  • Region: India
  • Mordor Intelligence
  • ID: 4846038
The size of India Metal Fabrication market is USD 84.1 billion in the current year and is anticipated to register a CAGR of over 5.1% during the forecast period

Key Highlights

  • India's metal fabrication sector suffered a significant blow on account of operational difficulties and poor demand due to COVID-19, and a slow recovery back to the pre-pandemic level of production was expected in the forecast period. According to the business standards, a severe dent in domestic demand for metals is anticipated, and it will take until at least the end of 2023 to return to pre-pandemic levels.
  • The Indian steel industry is considered one of the few bright spots in the global steel industry. The country's steel industry has recovered from demonetization and the goods and services tax (GST) reform and is expanding rapidly, increasing demand for the country's metal fabrication market.
  • The rising demand for goods and services across various sectors in India, combined with the fact that global manufacturing companies focus on diversifying their production by setting up low-cost plants in countries like China and India, is expected to drive the Indian manufacturing sector, further growing the metal fabrication sector in the country for infrastructure projects.
  • Throughout the forecast period, it is anticipated that factors such as the expanding metal and manufacturing industries, expanding automotive and aerospace sectors, and rising R&D expenditures would drive the Indian market for metal fabrication. Moreover, the metal fabrication industry is also growing because of government policies that help the industry.

India Metal Fabrication Market Trends

Increasing Number of Manufacturing Plants Are Propelling Market Growth

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.

Infrastructure Development Activities in India are boosting the Market

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.

India Metal Fabrication Market Competitor Analysis

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.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Technological Advancements in the Indian Metal Fabrication Market
4.6 Government Regulations and Key Initiatives in the Indian Metal Fabrication Market
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers/Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Value Chain Analysis
4.9 Impact of COVID-19 on the Market
5.1 End-user Industry
5.1.1 Manufacturing
5.1.2 Power and Utilities
5.1.3 Construction
5.1.4 Oil and Gas
5.1.5 Other End-user Industries
5.2 Material Type
5.2.1 Steel
5.2.2 Aluminum
5.2.3 Other Material Types
5.3 Service Type
5.3.1 Casting
5.3.2 Forging
5.3.3 Machining
5.3.4 Welding & Tubing
5.3.5 Other Services
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Salasar Techno Engineering Ltd
6.2.2 Kirby Building Systems
6.2.3 Zamil Industrial Investment Co.
6.2.4 Pennar Group
6.2.5 ISGEC Heavy Engineering Ltd.
6.2.6 Godrej Process Equipment
6.2.7 TEMA India
6.2.8 Larsen & Toubro Ltd.
6.2.9 Diamond Group
6.2.10 Novatech Projects (India) Private Limited
6.2.11 SKV Engineering India Pvt LTD.
6.2.12 Karamtara Engineering Pvt Ltd.*
7 Future of the Market8 Appendix

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Salasar Techno Engineering Ltd
  • Kirby Building Systems
  • Zamil Industrial Investment Co.
  • Pennar Group
  • ISGEC Heavy Engineering Ltd.
  • Godrej Process Equipment
  • TEMA India
  • Larsen & Toubro Ltd.
  • Diamond Group
  • Novatech Projects (India) Private Limited
  • SKV Engineering India Pvt LTD.
  • Karamtara Engineering Pvt Ltd.