Cold Heading Machine Market - Forecast(2023 - 2028)

Cold Heading Machine Market Overview

Cold Heading Machine Market size is forecast to reach US$5.49 million by 2027, after growing at a CAGR of 4.30% during 2022-2027. The cold heading machine is professional equipment supporting the automatic thread rolling machine in the whole plant of the industry. Its purpose is to use selected metal forming such as carbon steel, stainless steel, aluminum, copper, and others with suitable molds, according to the allowable compression ratio of the wire, under the action of the slider driven by the crankshaft connecting rod, automatic and fast. The cold heading machine automatically processes the wire into semi-finished products. High production efficiency, good product quality, and adjustable diameter and length. In sheet metal forming anisotropic hardening effects receive frequent attention, as spring-back. The operations required to prepare stock for cold heading are heat treating, drawing to size, machining, descaling, cutting to length, and lubricating. Cold heading machines are employed to manufacture headed parts, which are widely utilized to fabricate terminals of automobile control units, pressure sensors, engine controls units, and other mechanical machinery. The cold heading machine is also used to manufacture bolts, screws, rivets, taper roller heading, and others. Moreover, the expansion of automotive and constructional industries is estimated to boost the cold heading machine market.

COVID-19 Impact

The outbreak of COVID-19 companies operating in the market has experienced irregularity in demand. The companies have witnessed a moderate influx of demand for applications such as repairing and operations and general industrial services. Automotive manufacturing facilities had also faced a shutdown during COVID-19 with the consumers focusing on essential products, and services, the demand for automobiles declined. The effect of the pandemic on the aerospace industry was catastrophic. The dramatic drop in air transport due to the pandemic and containment measures threatened air transport feasibility. However, with the commencement of vaccinations and adoption of the new normal, the automotive, construction, and other key end-user sectors have started getting back on their feet since the last quarter of 2020.

Report Coverage

The “Cold Heading Machine Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Cold Heading Machine Industry.

By Type: Single-Die, Two-Die Three-Header, Multiple Header, and Others
By Tooling Type: Punches and Dies
By Distribution Channel: Direct and Indirect
By Techniques: Upsets and Extrusions (Forward Extrusions and Backward Extrusions)
By Operation: Sizing, Piercing, Trimming, Thread rolling, Blank rolling, Pointing, and Others
By End-Use Industry: Aerospace & Defense, Automotive (Ball Studs, Piston Pins, Sparkplug Shells, Valve spring Retainers, Engine Poppet Valves, Transmission Shafts, and Others), Building and Construction, Electrical (Appliances, Others), Infrastructure (Bridges, Dams, and Others), and Others
By Geography: North America (USA, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and Rest of the world (Middle East and Africa)

Key Takeaways

• Asia- Pacific dominates the cold heading machine market owing to a rapid increase in the automotive industry.
• The region has a reputation as being inland to certain of the world's most esteemed vehicle manufacturers like Toyota, Honda, Hyundai, Kia, Tata, and others with a production of 44.2 million in 2020, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA).
• Increasing demand from the construction and electronics sectors are the key driving factors mentioned in the market report
• The growing demand for cold-headed machines in the aerospace industry is another factor that is driving the major factors of the cold heading machine market.
• Decreasing automotive production and sales are likely to have a negative impact on the demand for the market.

 Figure: Asia-Pacific Cold Heading Machine Market Revenue, 2021-2027 (US$ Million)

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Cold Heading Machine Market Segment Analysis - By Operation

Thread rolling held the largest share in the cold heading machine market in 2021 and is estimated to rise at a CAGR of 3.7% in terms of revenue during the forecast period from 2022-2027. The demand for Thread rolling operation to produce fasteners like internally threaded which are likely to use in construction, railways, and, automotive manufacturing. It is mostly preferred by most of the contractors as internal thread cuts trenches in the material and supports to pull fastened materials together and avoid pull-out. These fasteners are self-tapping in and require a pre-drilled hole. Innovations in the designs to provide better performance and vibration resistance are projected to have a positive impact on the market. Stainless steel is commonly used to manufacture internally threaded fasteners. Alloy steel and aluminum are the other materials used to manufacture these fasteners. Thus, it is expected to have a positive impact on cold heading machine growth over the forecast period.

Cold Heading Machine Market Segment Analysis - By End-Use Industry

The automotive segment held the largest share in the cold heading machine market in 2021 and is estimated to rise at a CAGR of 5.6% in terms of revenue during the forecast period 2022-2027. The automotive industry is expanding at a steady pace. The need for metal terminals, such as rivets and bolts, is rising in the industry. Besides, some of the measures taken by the government in different regions to overcome the pandemic loss, for instance, France committed to making clean vehicles, i.e., to increase the output of electric and hybrid cars to more than one million per year over the next five years and for the US$ 9.7 billion rescue plan has been announced to the car industry. Thus, indicating growth in the automotive sector.

The automotive industry is likely to expand with a substantial increase in sales. The rise in the sale of leading motor vehicles is anticipated to propel the global cold heading machine market during the forecast period. With the exponential development in the sector, for instance, the United States has one of the largest automotive industries in the world, with light vehicle sales reaching 17.2 million units in 2018. Besides, the Indian automotive industry is expected to reach US$251.4-282.8 billion by 2026, which market report is expected to boost the cold heading machine market in the forecast period.

Cold Heading Machine Market Segment Analysis - By Geography

Asia-Pacific had accounted for the largest share of 39% in 2021 and is estimated to grow with a CAGR of 4.1% during the forecast period 2022-2027. Rapid industrialization coupled with economic improvement in the region has resulted in high demand. The development and investment in the growing end-use like automotive, construction, and others are escalating the market growth. For instance, according to Invest India, by 2021, India is projected to emerge as the third-largest market for passenger vehicles in the world. Also, passenger vehicle sales rose by 2.70% in FY 2018-19 as compared to FY 2017-18. The growing construction industry in China, Japan, India, Thailand, and Taiwan is further expected to fuel market growth. According to International Trade Administration, China is the world’s largest construction market, recently launched a new Infrastructure campaign to offset the economic impact of the COVID-19 pandemic and boost sustainable growth. Besides, the infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. Such continual expansion of these sectors is anticipated to drive the need for cold heading machines over the forecast period in Asia-Pacific.

Cold Heading Machine Market Drivers

Increasing Demand from Construction and Electronics Sectors

The electrical industry uses cold heading machinery for making cold-headed electrical contact rivets. The most popular ones are solid and bi-metallic. In special occasions, electrical appliances also require custom cold-headed parts, such as rivets and fasteners. Screws, rivets, bolts, and taper roller heading are basic mechanical terminal parts needed in various industries. Expansion of the construction industry is projected to boost the use of cold heading machines. Cold heading machines are employed to produce fabrication terminals, which are extensively used in the construction industry. Thus, investment and development in the sector will boost the cold heading machine market growth. For instance, according to Statistics Canada, in April 2021, the investments made in the residential, industrial, commercial, institutional and governmental sectors were US$12,241.4 billion, US$770.59 billion, US$2,456.7 billion, and US$1,123.8 billion, as compared to the investments made in March 2021 i.e. US$10,412.41 billion, US$762.78 billion, US$2,475.46 billion, and US$1,110.55 billion, respectively

Growing demand in the Aerospace industry

A cold heading machine which is professional equipment supporting the automatic thread rolling machine in the whole plant of the fastener industry is extensively used during the manufacturing process of aircraft, as they hold the ability to affix critical structural components together and high tensile strength. Considering the requirement for fuel-efficient and lightweight aircraft, there is a huge demand for lightweight, and high-performance fasteners. The escalating claim for comfortable, fast traveling solutions, and cost-effective along with boosted international air travel, are some of the basic factors that assist the growth of industrial fasteners in the aerospace and aircraft industry. The uprising air traffic in some regions, such as the Asia Pacific, North America, and others are constantly boosting the market. According to Invest India, Indian airlines to satisfy the projected rise in demand for commercial air travel, have placed large orders for aircraft which is projected to quadruple in size to approximately 2500 airplanes by 2038. Besides, the growing aircraft modernization programs in North America, for instance, according to Select USA foreign direct investment (FDI) into the U.S. aerospace industry totaled nearly US$22 billion. And followed by Europe are driving the market during the forecast period. Innovations in research and development in the aerospace sector will drive the cold heading machine market in the forecast period.

Cold Heading Machine Market Challenges

Fluctuation in the automotive sales and production

Decreasing automotive production and sales in the different regions are likely to have a negative impact on the demand for the market studied. Fluctuation in the Automobile’s sales graph, for instance, the worldwide passenger vehicles have seen a strip downfall of 14% in 2020 compared to 2019 and along with those unstable economies may hamper the overall growth. Besides, fasteners require holes, which weaken the components, leave visible bond lines and add extra weight. Although, the growing availability of industrial fasteners will neutralize and build new avenues in the global industry.

Cold Heading Machine Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Cold Heading Machine Market. Cold Heading Machine top 10 companies include:

1. Asahi Sunac Corporation
2. Carlo Salvi S.p.A.
3. Chun Zu Machinery Industry Co., Ltd.
4. Hatebur Umformmaschinen AG
5. Komatsu Ltd.
6. Sakamura Machine Co., Ltd
7. Samrat Machine Tools
8. Sijin Intelligent Forming Machinery Co., Ltd.
9. Wrentham Tool Group LLC

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