The global machine tool market size was worth USD 77.90 billion in 2021 and is estimated to grow to USD 92.47 billion by 2028, with a compound annual growth rate (CAGR) of approximately 2.90 percent over the forecast period.
Machine Tool Market
The global machine tool market size was worth USD 77.90 billion in 2021 and is estimated to grow to USD 92.47 billion by 2028, with a compound annual growth rate (CAGR) of approximately 2.90% over the forecast period. The report analyzes the machine tool market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the machine tool market.
Machine tools are quite flexible and can carry out several tasks, including filleting, turning, chamfering, drilling, and gear cutting. Machine tools are the instruments used for handling machining metal or other hard materials. They also contain a few cuttings and shaping tools. Machine tools, to put it simply, are devices that make people's jobs easier. All machine tools have some method of limiting the workpiece and the guided movement for the components. Machine tools are driven by electricity or hydraulics rather than human muscles. Machine tool manufacturers focus on producing products with minimal maintenance requirements. There are essentially two types of machine tools: CNC and conventional. Due to their great efficiency, productivity, and precision, CNC machine tools are now favored by consumers or end users more than other types of equipment. One of the popular product types for cutting metal is the milling machine. A milling machine is capable of a wide range of operations, including turning, chamfering, cutting gears, and filleting. Additionally, the rise of the global metalworking process sectors has stimulated a need for milling machines, which in turn has fueled the global machine tool market's expansion. The need for automated machine tools has increased due to the expansion of the manufacturing industry, and this demand is anticipated to drive the market for CNC machine tools. On the other hand, high-end machine investment costs and trade restrictions between nations are anticipated to limit market expansion. In the next years, the machine tool market is expected to face challenges due to the high maintenance costs of this equipment.
Nearly every continent on earth has been affected by the terrifying COVID-19 epidemic. The pandemic has significantly influenced the imports and exports of machine tools in several important nations. Prominent manufacturers are simultaneously deciding how best to address a potential interruption to the supply chain in the global machine tools industry. It is anticipated that the external shock caused by this worldwide pandemic would accelerate the current downward trend in demand for machine tools. Due to limited sales activity in several countries throughout the world, machine tool makers suffered income losses. The pandemic significantly negatively impacted the machine tools industry's main market, the automotive and auto component industry. Global supply chains have faced considerable hurdles as a result of the epidemic.
Machine Tool Market: Growth Drivers
Increasing use of hybrid machine tools and additive manufacturing is driving the market growth
A growth in additive manufacturing is driving the global machine tool market. Businesses are using additive manufacturing more frequently as they embrace efficient and quick production methods. The market is also anticipated to grow as a consequence of the growing need for the capacity to generate heterogeneous materials. As a result, the manufacturers of CNC materials aim to include additive manufacturing in their operations.
Machine Tool Market: Restraints
Market expansion is being hampered by social and economic uncertainty
Changes in the status of the global economy are impeding the market. The amount spent in the industrial sector is directly correlated with the sales of these tools. Therefore, a slowdown in the global economy is anticipated to directly impact the income of machine tools. The significant use of machinery in the industry means that changes in the automobile sector also greatly influence the machine tools sector. However, the developments in the automobile industry's capital spending greatly influence market revenue. Unexpected shifts in a nation's political, social, or economic conditions can also have an effect on the development of the market's income.
Machine Tool Market: Opportunity
The fully automatic CNC machine tools include tool changers that let them perform several jobs with only one machine
The characteristics of CNC machine tools improve their demand and positively impact the expansion of the global machine tools market. The demand for machine tools is anticipated to increase due to the expansion of existing production facilities and the construction of new factories in a number of end-use industries, including the automotive, railroad, aerospace, and defense sectors. This factor is expected to accelerate the market growth for machine tools throughout the course of the assessment period. Fixed and heavy-duty machine tool MRO (maintenance, repair, and operations) presents growth opportunities in terms of producing more sales revenue for machine tool vendors.
Industries that produce capital goods are vulnerable to global economic downturns
The capital goods industry is sensitive to global economic downturns. This is especially true for the machine tool sector, rendering it susceptible to changes in the economy because machine tools are primarily employed to generate other capital goods. Most machine tool market builders cited the current economic slowdown brought on by the epidemic and other negative repercussions as their major obstacles. Also, global economic growth slowed due to increased economic uncertainty brought on by geopolitical developments like the US-China trade war and Brexit. The industry for machine tools and the export of machine tools were impacted by import tariffs on machinery, metal components, and raw materials. At the same time, the market faced competition from an increasing number of low-quality category rivals, mostly from China.
Machine Tool Market: Segmentation
The global machine tool market is segregated on the basis of product type, automation type, industry segment, sales channel, and region.
Milling machines is expected to provide the largest sales revenue
Based on product type, the market is segmented into milling machines, drilling machines, grinding machines, and electrical discharge. Milling machines are primarily employed in the metal cutting process in many different sectors. The global development of sectors that deal with metalworking processes has sparked the need for milling machines. Milling machines are quite adaptable and can carry out a wide range of tasks, including filleting, turning, chamfering, drilling, and cutting gears. These devices are also capable of making several cuts with different cutters. These benefits make milling machines perfect for the railway, aerospace, and automobile sectors.
The global market is anticipated to be dominated by CNC machine tools
The market is divided into computerized numerical control (CNC) and conventional based on the type of automation. Of the two, CNC has the largest market share. Additionally, there is a daily rise in demand for CNC. The need for CNC is growing as additional manufacturing sectors, such as automotive, railroads, aerospace, etc., acquire impetus. The main factors boosting the development of this market are the demand for automation to shorten cycle times and improve product correctness. Modern CNCs are far more sophisticated and smaller. The entire machining procedure may be completed on a single machine.
|Historic Years||2018 - 2022|
|Forecast Years||2023 - 2030|
|Segments Covered||By Product Type, By Application, and By End Use|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Quantitative Units||Revenue in USD million/billion and CAGR from 2023 to 2030|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World|
|Countries Covered||U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others|
|Number of Companies Covered||10 companies with scope for including additional 15 companies upon request|
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.|
|Customization Scope||Avail customized purchase options to meet your exact research needs.|
Machine Tool Market: Regional Landscape
The expansion of industries that use metal cutting technology is projected to support Asia-Pacific dominate in the global market
Due to a growth in the number of industries involved in the metal cutting process throughout the area, Asia Pacific is predicted to dominate the global machine tools market. Most of the top machine tool makers are based in this area, which is expected to dominate the market. One of the biggest users of machine tools and the market leader in Asia Pacific is China. In the Asia Pacific, there has been significant expansion and investment in the automobile, oil, gas, and rail sectors. This region is home to major firms including DMG Mori, OKUMA Corporation, and Yamazaki Mazak Corporation.
Some of the main competitors dominating the global machine tool market include- AMADA Co., Ltd., CHIRON Group SE, DMG MORI, Doosan Corporation, Georg Fischer Ltd., HYUNDAI WIA CORP., JTEKT Corporation, Komatsu Ltd., Makino, Okuma Corporation.
Global machine tool market is segmented as follows:
By Product Type
By Automation Type
By Industry Segment
By Sales Channel
The need for high-quality end products, which may be produced by high precision machine tools, as well as rising manufacturing output across a variety of sectors, including automotive, fabrication, robotics, etc., are projected to propel the expansion of the worldwide machine tools market.
According to the report, the global machine tool market was worth 77.90 (USD billion) in 2021 and is predicted to grow to 92.47 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 2.90 percent.
In the Asia-Pacific region, there is a significant amount of growth. The main engine of this sector in East Asia. It can be linked to the swift expansion of manufacturing industries, including transportation, construction, shipbuilding, and others.
Some of the main competitors dominating the machine tool market include - AMADA Co., Ltd., CHIRON Group SE, DMG MORI, Doosan Corporation, Georg Fischer Ltd., HYUNDAI WIA CORP., JTEKT Corporation, Komatsu Ltd., Makino, Okuma Corporation.