Report Synopsis
Global machine tools market is estimated to generate a revenue of US$ 114.3 Bn by 2031 from US$ 75.2 bn in 2022, registering a CAGR of 4.7% over the period 2023-2031.
In recent years, the machine tools market has experienced steady growth due to increasing demand from developing countries, particularly in Asia. Rapid industrialization in these countries has led to an increase in manufacturing activities, which has driven demand for machine tools. Additionally, the need for precision manufacturing and automation in industries such as automotive, aerospace, and medical devices has also contributed to the growth of the market.
The trend towards Industry 4.0 and the use of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) is expected to further drive demand for machine tools. These technologies require the use of advanced manufacturing equipment and tools, which is likely to increase demand for advanced machine tools.
However, the machine tools market is also subject to certain challenges such as high initial costs and the need for regular maintenance and upgrades. The market is also highly competitive, with a large number of players vying for market share. Additionally, the ongoing trade disputes and geopolitical tensions are expected to impact the demand for machine tools in the short term.
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Market Dynamics
Driver: Increasing demand for automation and Industry 4.0
One of the major drivers of the machine tools market is the increasing demand for automation and Industry 4.0. Industry 4.0 is the fourth industrial revolution that involves the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics into manufacturing processes. The goal is to create smart factories that are highly efficient, flexible, and adaptive to changing market demands.
This trend has led to an increasing demand for advanced machine tools that can support automation and digitalization of manufacturing processes. For instance, machine tools with built-in sensors can collect real-time data on machine performance and provide insights into production processes, enabling operators to make adjustments and optimize performance. Moreover, the use of machine learning algorithms can help predict maintenance needs and optimize tool life, reducing downtime and increasing productivity.
Trend: Additive manufacturing
Additive manufacturing, also known as 3D printing, is a trend that is driving the machine tools market. Additive manufacturing is a process that involves building objects layer by layer using a digital model. The process is highly flexible and enables the production of complex shapes that would be difficult or impossible to produce using traditional machining methods.
This trend is driving demand for machine tools market that can support additive manufacturing, such as 3D printers, laser cutters, and CNC milling machines. Moreover, the use of additive manufacturing is expanding beyond prototyping and into production, with companies using the technology to produce small batches of high-value parts and components. As a result, machine tool manufacturers are developing new solutions to support additive manufacturing, such as hybrid machines that combine additive and subtractive processes.
Segmental Analysis
By Industry
The machine tools market is segmented by industry, with the automotive industry being the dominant market, followed by aerospace and defense. This is because both the automotive and aerospace industries require high precision and complex machining operations for manufacturing their products. In the automotive industry, machine tools are used for operations such as drilling, milling, turning, and grinding, while in the aerospace industry, machine tools are used for operations such as drilling, boring, and milling. The defense industry also uses machine tools for manufacturing various equipment and weapons systems.
The automotive segment is expected to see the highest growth rate followed by the aerospace and defense industries. This is due to increasing demand for electric and hybrid vehicles, which require precision manufacturing, as well as increasing demand for aircraft and defense equipment.
In terms of volume, the automotive industry is the largest contributor to the sales of machine tools, followed by the industrial segment. These two industries collectively account for 48% of all equipment sales. This is because the automotive industry is a high-volume industry, with a large number of parts and components that require machining. The industrial segment, on the other hand, includes a wide range of manufacturing sectors, such as machinery, construction, and consumer goods, that require machine tools for various operations.
By Sales Channel:
The machine tools market is also segmented by distribution channel, with dealers and distributors being the largest contributor to all equipment sales. This is because machine tools are typically sold through specialized dealers and distributors who have the technical expertise to provide customers with the right tools and solutions for their needs.
In terms of growth rates, the events and exhibitions segment is forecast to grow at a CAGR below the global CAGR of 4.7%. This segment includes trade shows and exhibitions where manufacturers and suppliers of machine tools showcase their products and solutions. However, this segment is expected to grow at a slower rate compared to other distribution channels due to the impact of the COVID-19 pandemic, which has resulted in the cancellation or postponement of many trade shows and exhibitions.
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Competition Landscape
The machine tools market has long been characterized by stiff competition between global players and regional players with strong local market footprints. However, as industries increasingly transition to digital tools and embrace robotics, a robust product mix and service support are becoming critical factors for firming one's position in the market. Achieving this requires a strategic R&D plan and significant investment margins, a challenge for mid-scale manufacturers operating in an industry with thin margins.
List of Key Companies Profiled:
Market Segmentation for the Global Machine Tools Market
Regional Analysis
The Asia Pacific is the largest and fastest-growing machine tools market and is projected to grow at a CAGR of 5.2% during the forecast period 2023-2031. Geographically, China is the dominant player in the region, accounting for more than 20% of the global market for machine tools. The Chinese market is analyzed to retain an attractive growth trend, driven by strong demand from the automotive and aerospace industries. However, the Indian government's push to improve infrastructure investment and incentivize electric vehicle adoption is expected to create an attractive growth opportunity for machine tools, with India forecast to see the highest growth rate for machine tools among peer countries in the region.
Together, China and India are expected to account for more than 67% of the regional opportunity created for machine tools. This growth opportunity is being driven by factors such as increasing demand for high-precision machine tools, rising industrialization, and favorable government policies supporting the adoption of advanced manufacturing technologies. Apart from China and India, the ASEAN region has emerged as an attractive market for machine tools, accounting for more than 11% of market revenue share and are estimated to grow at a CAGR of 5.5%. The region is experiencing significant growth due to increasing demand from the automotive, construction, and electronics industries, as well as government initiatives to promote industrialization and boost economic growth.
The Asia Pacific region is expected to continue leading the global machine tools market in the coming years, with China and India maintaining their positions as dominant players. The growth potential in the region is significant, driven by the rapid industrialization of emerging economies and increasing demand for advanced manufacturing technologies.
However, the region is also highly competitive, with players facing challenges related to thin margins and the need for significant investment in R&D to stay ahead of the curve. Players that can successfully navigate these challenges and leverage the region's growth opportunities will be well-positioned for long-term success in this dynamic market.
By Product
By Automation Type
By Industry
By Sales Channel
By Region
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 72,109.8 Bn |
| Expected Revenue in 2031 | US$ 95,169.1 Bn |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD MBn) |
| CAGR | 4.7% |
| Segments covered | By Product, By Automation Type, By Industry, By Sales Channel, By Region |
| Key Companies | Ace Micromatic Group, Amada Co. Ltd., CHIRON Group, Dalian Machine Tool Group Corporation (DMTG), DMG MORI, Doosan Machine Tools Co. Ltd., Electronica Hitech Engineering Pvt. Ltd., Georg Fischer Ltd, Gleason Corporation, GROB-WERKE GmbH & Co. KG, Haas Automation Inc., Hyundai WIA, JTKET Corporation, Komatsu Ltd., MAG IAS GmbH, Makino, Okuma Corporation, Schuler AG, Spinner Machine Tools, Yamazaki Mazak Corporation, Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
This report provides an analysis of the global market for machine tools for the period 2018 to 2031.
Global Machine tools market is growing at a CAGR of 4.7% over the forecast period 2023-2031.
CNC milling, turning machine or the lathe machine, radial drill, cord drills and the pedestal drills and others.
Increasing manufacturing output in various industries as well as demand for superior quality end products that can only be achieved with high precision machine tools and favorable government policies for the manufacturing sector, are expected to propel the global machine tools market forward.
The high costs of purchasing and installing CNC machines, as well as a scarcity of trained and skilled CNC machine operators, may limit the market's growth.
The regulations/standards covered in the report include Occupational Safety and Health Administration (OSHA) regulations, SLAC - Anti-restart devices (ARDs), SLAC- authorization and training for machine and portable tools, ISO 230-3:2020 - Test code for machine tools and others.
Asia Pacific is growing at the highest CAGR of about 5.2% over 2023- 2031.
Global machine tools market is observed to have competitive nature and is projected to shift towards fragmented nature in the forecast period.
The report covers the following segments: product type, automation type, industry, sales channel and region.
Due to the increased adoption of machine tools for the fabrication of transmission housings, engine cylinder heads, gearbox cases, and brake drums, among other automobile components, the automotive category accounted for 29% of the global machine tools market in 2022.
Some key players operating in the machine tools market include AMADA Co., Ltd., CHIRON Group SE, DMG MORI, Doosan Corporation, Georg Fischer Ltd., Makino and Okuma Corporation.
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