Precision Parts Market Report 2026

The precision parts market size has grown strongly in recent years. It will grow from $231.83 billion in 2025 to $251.46 billion in 2026 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to growth in automotive component manufacturing, expansion of aerospace production programs, rising adoption of cnc machining, increasing electronics miniaturization, demand for high quality industrial equipment.

The precision parts market size is expected to see strong growth in the next few years. It will grow to $347.24 billion in 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to electric vehicle component demand, increased aerospace defense spending, higher demand for medical devices, shift toward high precision automation, growth in advanced manufacturing facilities. Major trends in the forecast period include miniaturization of precision components, tighter dimensional tolerances in critical assemblies, growing use of multi axis cnc machining, rising demand for high durability materials, increasing customization of precision parts.

The increasing vehicle production is expected to drive the growth of the precision parts market going forward. Vehicle production refers to the process of manufacturing automobiles by assembling various components such as engine parts, transmission systems, suspension systems, and braking systems to create a fully functional vehicle. Several factors contribute to the rise in vehicle production, including the growing adoption of electric vehicles, increasing demand for fleet renewal, and higher investments in transportation infrastructure. Precision parts support vehicle production by ensuring the quality, functionality, and reliability of the components used in vehicles. These parts are designed to fit seamlessly together, minimizing friction and wear while optimizing overall vehicle efficiency. For example, in April 2024, according to the International Organization of Motor Vehicle Manufacturers, a France-based trade association, global automobile production significantly rebounded in 2023, reaching 94 million vehicles, up from 85 million in 2022, marking a year-on-year increase of 9 million units. Therefore, increasing vehicle production is fueling the growth of the precision parts market.

Major companies in the precision parts market are focusing on developing advanced solutions, such as multitasking CNC machines, to improve manufacturing accuracy, reduce setup times, and boost operational efficiency. Multitasking CNC machines are advanced tools capable of performing multiple machining operations, including turning, milling, and drilling, on a single platform, enabling manufacturers to create complex components with high precision. For instance, in August 2024, DN Solutions, a South Korea-based machine manufacturer, introduced its next-generation multitasking machine series at IMTS 2024 and AMB 2024. Designed for complex, high-precision component production, the new machines offer simultaneous turning and milling, improved positional accuracy, and automation features that enhance throughput and lower operational costs. These innovations help manufacturers produce intricate parts for industries such as aerospace, automotive, and medical devices with consistent quality and efficiency.

In January 2024, Deilh Defense, a Germany-based weapon manufacturer, completed the acquisition of Allweier for an undisclosed amount. Through this strategic move, Deilh Defense aimed to harness synergies, enhance capabilities, and drive strategic growth in the fiercely competitive defense market. Allweier GmbH, a Germany-based manufacturing company, specializes in producing high-precision parts for various industrial sectors.

Major companies operating in the precision parts market are Precision Castparts Corp. (PCC), Linamar Corporation, Martinrea International Inc., Barnes Group Inc., Mecachrome Group, ARC Group Worldwide, Sigma Components Ltd., Tessa Precision Products, Precision Products Group Inc., Doncasters Group Ltd., Senior plc, Howmet Aerospace Inc., GKN Aerospace, Triumph Group Inc., Bodycote plc, Ametek Inc., Nemak S.A.B. de C.V., Ryerson Precision Manufacturing, ThyssenKrupp Aerospace, Allegheny Technologies Incorporated (ATI), Nippon Steel Precision Components, Sumitomo Precision Products Co., Ltd., Misumi Group Inc. (manufacturing divisions), Sandvik Precision Components, Schaeffler Group.

North America was the largest region in the precision parts market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the precision parts market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the precision parts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The precision parts market consists of sales of bearings, gears, valves, pistons, and housings. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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