Global Machine Tools Market

Global Machine Tools Market Size (2023 to 2028)

The global machine tools market size is expected to be worth 85.68 billion USD in 2023. It is expected to grow at a CAGR of 7.10% during the forecast period and reach a value of 120.73 billion USD by 2028.

There is a wide assortment of machine devices accessible in the market, extending from little workbench-mounted instruments to enormous gadgets that are utilized in present-day businesses. They play out a scope of activities, for example, cutting, shaping, boring, granulating, scraping, and nibbling, which helps to improve item consistency and lessen the human connection required in various strides of the procedure. Modern divisions that use automation for an enormous scope, for example, aerospace, vehicle, defense, clinical gadgets, electrical and hardware, sustainable apparatus, and mechanical hardware, will all assume a key job in the development of this market. The trend towards reduction of carbon footprints by utilizing eco-friendly machines is set to create huge growth opportunities for the market soon. Government rules and regulations to curb the carbon emissions released by the manufacturing industries are an additional advantage to adopting new technologies that reduce carbon emissions. Machine tools use less energy and emit low wastage, which is highly attracting investors to adopt these tools in manufacturing industries.

Industry 4.0 is enhancing the demand for the launch of customized products. Industry 4.0 can give real-time data and analytics that enhance productivity as it includes internet connectivity and cloud deployment. People nowadays are more likely to have customized products, which is possible with the adoption of machine tools that are highly accurate and precise. The machine tools market is anticipated to have a robust growth rate in the coming years with the growing investments from both private and public organizations. The adoption of the industrial Internet of Things leveraged the performance of productivity.  

Global Machine Tools Market Drivers:

Technological advancements in manufacturing industries are majorly prompting the growth rate of the market. Penetration of artificial intelligence in industries aims to give a high level of accuracy and make the work easier. This advanced technology reduces human error by performing specific tasks using specially designed machines. Market key players are seeking partnerships with other top companies in order to offer the latest technologies, such as AI and IoT, to expand their company’s production rate. The automation technologies in the manufacturing industries comprise various aspects like improving quality and accuracy. These innovations help in real-time manufacturing processes as they allow remote control over the operations performed in the manufacturing process. Growing prominence for these tools in manufacturing industries is fuelling the demand for the machine tools market. According to the recent survey report by Cap Gemini Digital Transformation Institute, around 33% of companies across the world are ready to adopt autonomous in the next few years, whereas 43% of manufacturing industries are already using smart technologies. For instance, an automatically controlled tool was launched to incorporate a cutting process that can be monitored through a camera. These developments are greatly influencing the market growth positively.

Growing demand for electric vehicles across the world is positively impacting the growth rate of the global machine tools market. Key automobile companies are focusing on increasing productivity and reducing downtime using these machine tools, which is accelerating the demand for the market. The easy availability of alternate tools with low-quality outcomes is imposing challenging things for the market key players. Difficulty in importing raw materials due to stringent rules and regulations by trading authorities is likely to limit the market growth rate to some extent. Also, frequently changing technologies and upgrades of the software are hampering the demand for the machine tools market.

Global Machine Tools Market Restraints:

However, the high cost of the installation and maintenance of the machine tools is slowly degrading the demand for the market. Small and medium-scale industries cannot afford high-level automated tools due to less affordability, directly impeding the machine tools' market share. The demand for machine tools relies on the sales of the products, which hinders the growth rate of the market. Along with this, the rising economic crisis around the world is to restrain the market value. The lack of skilled professionals to monitor and maintain the tools is additionally to limit the growth rate of the market.

Impact of COVID-19 on the Global Machine Tools Market: 

The COVID-19 pandemic showed a negative impact on various industries like automotive, which plays a crucial role in contributing to the strongest growth opportunities. Lockdown restrictions and supply chain disruptions completely reduced the sales of the products, which devastated the growth rate of the machine tools market. As the world is getting into a COVID situation, all activities were resumed at the end of 2020. To provide high-level assistance to the end user, the key companies took certain measures to close the pre-existing orders. Also, sales of electric vehicles are rising enormously, which is creating growth opportunities for the market in the coming days.

REPORT COVERAGE:

This research report on the global machine tools market has been segmented and sub-segmented into the following categories.

Global Machine Tools Market - By Tool Type:

• Metal Cutting
• Metal Forming
• Accessories

The metal-cutting segment will hold 77% of the machine tools market revenue share in 2022. Metal cutting tools are highly accurate in cutting ferrous or non-ferrous metals with the desired geometry. The demand for this segment is growing with the increasing popularity of automated metal-cutting tools.

The metal-forming segment is deemed to hit the largest CGAR by the end of 2028. Metal forming tool has a significant role in aerospace, automotive, mechanical engineering, and others. Increasing focus on the development of superior goods by using high-precision tools in bending, forming, pressing, and shaping is ascribed to bolster the demand of this segment.

Global Machine Tools Market - By Technology Type:

• Conventional
• CNC (Computerized Numerical Control)

The computerized numerical control segment is ruling with the 85.6% revenue share with the growing need to manufacture complex parts needed by contemporary technology. Computer-aided design software passes orders for the CNC machines, which enhances the demand for this segment.

The conventional segment is next in having the dominant share of the market. Conventional technology also has distinct applications and aims to produce high-quality products.

Comparing CNC and conventional technology, CNC technology has high benefits in producing high standards required by large-scale companies.

Global Machine Tools Market - By End-Use Industry:

• Automotive
• Aerospace and Defense
• Electrical and Electronics
• Consumer Goods
• Precision Engineering
• Others

The automotive machine tools market is gaining traction over the shares of the market with the rising demand to leverage the productivity of electric vehicles at affordable prices. The demand to increase production rate in less time is elevating the demand for the market.

The electrical and electronics segment is anticipated to have the highest growth rate during the forecast period. The semiconductor industry is focusing on manufacturing highly precise package designs that can be achieved through these machine tools.

Global Machine Tools Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Asia Pacific is leading with the dominant shares of the market with the rising number of end-user industries like automotive, aerospace, oil & gas, and others. Along with this, growing per capita income and increasing efforts to build proper infrastructure in the construction field are boosting the demand for the market in Asia Pacific. Emerging countries like India, China, Japan, South Korea, and other countries are eventually enhancing the market growth rate by investing huge amounts in automobiles and aerospace industries.

North America is likely to hit the highest CAGR during the forecast period. Growing disposable income and increasing expenditure on the automotive sector are accelerating the demand for the market in North America. Huge investments by the top companies in developed countries like the US and Canada are setting up growth opportunities for the market.

The European machine tools market is anticipated to have a potential growth rate in the coming years. The increasing scale of the automobile companies and huge investments in research and development activities are greatly influencing the market demand in this region. Top companies like BMW, Volkswagen, Mercedes, and others are set to launch luxurious cars with innovative technology that requires highly automated tools with accuracy and precision. This factor is showcasing the growth opportunities for the market in the coming years.

Latin America is expected to have significant growth opportunities with the increasing focus on investing huge amounts in Brazil by top companies. Collaborations with key players are attributed to propel the market growth rate in this region.

The Middle East & Africa machine tools market is esteemed to have the strongest growth rate in the foreseen years.

KEY MARKET PLAYERS:

Allied Machine & Engineering, AMADA Holdings, Dalian Machine Tool Group, DMG MORI, Falcon Machine Tools, 600 Group, Yamazaki Mazak, Trumpf, Komatsu, and JTEKT are some of the key players in the global machine tools market.       

Recent Developments:

• In 2023, CHIRON GROUP SE introduced a MICRO5 in a very short amount of time. This is a high-precision 5-axis machining with high-speed cutting. Micro5 just requires o.5kW/h and showcases a high level of autonomy. This tool leveraged the product portfolio of the company due to its distinct features. With the launch of this product, the company has become one of the best sellers of energy-efficient machines in the world.
• In 2022, CHIRON GROUP SE announced the acquisition of the HSTEC, a Croatian engineering company. With this acquisition, the CHIRON GROUP SE is expected to benefit from the engineering expertise provided by HSTEC that expands the company’s capacities in development, production, and assembly.