Cold Forming and Cold Heading Market Research Report and Outlook by 2028

The cold forming and cold heading sector is projected to expand from US$ 19,510.15 million in 2022 to US$ 27,332.39 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.8% during this period.

The surge in demand for cold forming and cold heading technologies is significantly influenced by the increasing production of both commercial and military aircraft, as these processes are essential for the construction of aircraft structures. The global rise in air travel has prompted major airlines in both developed and emerging markets to enhance their fleets, thereby boosting the need for aircraft manufacturing. Additionally, the defense sector's growing requirement for military aircraft has further propelled market expansion. For example, in July 2022, Voyager Aviation Holdings, LLC (VAH) entered into a purchase agreement valued at US$ 300 million with a prominent aircraft leasing company for seven new and in-production aircraft. Moreover, in November 2021, Indigo partner portfolios acquired an additional 255 A321neo aircraft, and in September 2021, the Indian government announced a deal for 56 Airbus C-295 military aircraft worth US$ 2.5 billion. Such contracts are anticipated to enhance aircraft manufacturing activities, thereby stimulating the growth of the cold forming and cold heading market.

The global market for cold forming and cold heading is witnessing a notable increase in demand, primarily driven by the rapid expansion of the automotive industry across the globe. Leading automotive manufacturers are making substantial investments in the development of autonomous and electric vehicles, which is resulting in a higher production rate of automobiles worldwide. This increase in production is consequently driving the need for cold forming and cold heading solutions. Furthermore, various governmental initiatives aimed at enhancing automotive production are expected to positively influence overall production volumes, thereby further propelling the growth of the global cold forming and cold heading market.

Cold heading machinery is extensively utilized in the automotive sector to manufacture molded components from metals such as copper alloys, brass, stainless steel, and aluminum. These components, including terminals, pins, and sensors, are integral to automotive control units, engine control units, and pressure sensors. The rising demand for eco-friendly and fuel-efficient vehicles, along with advancements in electric and hybrid vehicle technologies, is being driven by technological innovations, climate change regulations, and evolving consumer preferences. This trend is significantly contributing to the growth of the cold heading industry within the global automotive market.

The increasing investment in the development of energy-efficient and environmentally sustainable vehicles in North America and Europe is further driving the demand for cold forming and cold heading solutions. Consequently, automakers in these regions are expanding their production capabilities, which is expected to enhance the demand for cold forming and cold heading technologies. Additionally, multinational automotive companies are investing in Asia-Pacific nations such as India, Indonesia, Malaysia, and Thailand, which is further stimulating the growth of the cold forming and cold heading market.

In developing nations, the electronics sector has seen considerable growth in recent years. The application of cold heading machinery is advantageous for the appliances industry, as it facilitates the production of gears and fasteners essential for assembly processes. Cold heading effectively addresses issues such as porosity, segregation, and large inclusions, which are common in casting, thereby reducing the risk of leaks in high-pressure applications. For instance, leak-proof rod materials can replace rod ends and fittings in 3,000 psi cylinders. Cold heading machines are also employed in the electrical sector to manufacture cold heading rivets for electrical contacts, with solid and bimetal options being the most prevalent. In some instances, appliances require custom cold-pressed components, such as rivets and fasteners. These factors are expected to drive the demand for materials in the cold forming and cold heading market, particularly in electrical applications, leading to robust growth in this segment in the coming years.

The utilization of cold forming and cold heading machines is anticipated to rise due to the expansion of the construction industry. Connectors produced using these machines are widely used in construction projects, and investments in this sector will contribute to the development of the cold forming and cold heading market. For instance, data from the Canadian Bureau of Statistics indicates that investments across various sectors, including housing, industry, commerce, institutions, and government, reached US$ 122,414 million in April 2021, up from US$ 100 million in March 2021. The growing demand for these machines from the construction and electrical sectors will further enhance the growth of the cold forming and cold heading market.

The global cold forming and cold heading market size has been established through a thorough methodology that integrates both primary and secondary research sources. Secondary research involved gathering qualitative and quantitative data from various internal and external sources to provide a comprehensive overview and forecast for each market segment. Primary interviews were conducted with industry experts, including VPs, business development managers, cold forming and cold heading market intelligence managers, national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in this market. Key players in the market include STANLEY, Altra Industrial Motion Corp., KALYANI FORGE, Bharat Forge, National Machinery, Cold-Flow Corporation, Deringer-Ney Inc, Buchanan Metal Forming Inc, Fukui Byora Co., Ltd., and Cold Heading Company. These companies are employing strategies such as product innovation, mergers, and acquisitions to enhance their product offerings and maintain a competitive advantage in the market.