Machine Tools Market

Machine Tools Market Outlook (2022-2032)

The global machine tools market garnered a market value of US$ 66.15 Billion in 2022 and is expected to accumulate a market value of US$ 107.75 Billion by registering a CAGR of 5% in the forecast period 2022-2032.

Growth of the market can be attributed to technological improvements in machine tools, such as robotic and multi-axis arms, as well as the growth in the manufacturing industry. The market for machine tools registered a CAGR of 3% in the historical period 2017-2021.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 63 Billion
Expected Market Value (2022)	US$ 66.15 Billion
Projected Forecast Value (2032)	US$ 107.75 Billion
Global Growth Rate (2022-2032)	5% CAGR
Expected Market Share of Nort America Market (2032)	30%
Major Mechanic Tools Providers	DMG MORI CO., LTD Amada Holdings Co., Ltd AIDA ENGINEERING, LTD. Schuler Group JTEKT Corporation Okuma Corporation Makino Milling Machine Co., Ltd Hyundai Wia Corporation Komatsu Limited TRUMPF Group GROB-WERKE GmBH & Co. KG Doosan Machine Tools Gleason Corporation Yamazaki Mazak Corporation Chiron-Werke GmBH & Co. KG Haas Automation, Inc United Grinding Group Dalian Machine Tool Group Shenyang Machine Tool Co., Ltd

Revenue Analysis of Machine Tools from 2017-2021 Vs Market Projections for 2022 to 2032

The machine tools market registered a CAGR of 3% in the historical period 2017-2021. In the upcoming assessment period, the market for machine tools is expected to register a positive CAGR of 5% by accumulating a market value of US$ 107.75 Billion.

Although the COVID-19 pandemic affected the demand for machine tools owing to the non-functioning of various end user sectors, the demand is expected to surge due to the automotive sector. In addition, the cutting metals segment along with technological advancement is positively influencing the demand for machine tools.

Which are Some Prominent Drivers of Machine Tools Market?

Automotive & Transportation Segment to Remain Key End User, Electrical & Electronics Catching Up

The machine tools industry is currently growing steadily. Products such as numerical control is helping in aiding the production of uniform products. These tools aid in abrading, molding, grinding, sculpting, cutting, drilling, and nibbling metal or other hard materials.

They also aid in reducing the amount of human labor necessary while cutting and increasing overall production. The defense, aerospace, and automobile sectors in the U.S. have been the primary drivers of demand for metal forming machine tools, as the need for fabricated metal products is significant in these industries.

Thus, the expansion of the aforementioned industries is expected to drive product demand over the projection period. On the other hand Electrical & Electronics segment is foreseen to grow 1.8X faster as compared to machinery segment by 2032.

Manufacturing sectors influencing machine tools industry growth

The industry 4.0 movement is gaining traction in the manufacturing sector, and it is also influencing the industry to become a component of smart systems. Industry 4.0 has the potential to enhance machine tool utilization in manufacturing operations by reducing idle time, which is likely to boost demand for these products over the forecast period.

The market is also driven by the rising demand for fabricated metals in the U.S and the high demand for Electric Vehicles (EVs), self-driving cars, and trucks are boosting the use of these products in the country. This, in turn, is anticipated to propel the product demand over the forecast period.

What are the Challenges Faced by the Machine Tools Market?

Import duties affecting sales of machine tools market

Import duties on raw materials is a major factor hindering the growth of machine tools market. Exportation of metal components along machinery has affected the machine tool industry and the export of machine tools. In addition, growing number of competitors in the low?quality segment are affecting the growth of the market.

Comparative View of Machine Tools Markets

Machine tools Market :

Attributes	Machine tools Market
CAGR (2022-2032)	5%
Market Value (2032)	US$ 107.75 Billion
Growth Factor	Demand from automotive sector is bolstering the sales of machine tools.
Opportunity	Use of cutting metals machine tools from end user sectors across the globe is creating lucrative opportunities for machine tools market.

Portable Tools Market :

Attributes	Portable Tools Market
CAGR (2022-2032)	4.2%
Market Value (2032)	US$ 121.6 Billion
Growth Factor	Increasing demand for healthcare safety is creating lucrative opportunities for portable tools.
Opportunity	Technological advancements in healthcare safety kits is fueling the growth of portable tools market.

Data Automation Tools Market :

Attributes	Data Automation Tools Market
CAGR (2022-2032)	15.1%
Market Value (2032)	US$ 5.3 Billion
Growth Factor	Organizations are adopting the ‘do-it-yourself’ method which is expected to drive the market significantly during the forecast period.
Opportunity	Increasing penetration of AI and machine learning solutions in the healthcare sector can further augment the demand for data annotation tools in the coming time.

Region-Wise Insights

Growing Industrialization Propelling Sales of Machine Tools in Asia Pacific?

Low cost of machine tools creating lucrative opportunities for market

East Asia is estimated to hold 2/5th of the overall market value followed by Europe. Growth in industrialization coupled with high automotive demand after the recovery from the COVID-19 pandemic is foreseen to create a surge in consumption for machine tools. Optimistic industrial growth has been witnessed in emerging Asian countries such as China, India, and Indonesia among others.

This will pave way for significant opportunities for the machine tools manufacturers in the Asia Pacific region. Furthermore, China manufactures machine tools at a low cost as compared to the U.S., Germany and Japan. Therefore a significant number of customers are poised to import machine tools from China. Collectively, East and South Asia are projected to account for 3/5th of the overall absolute dollar opportunity created through 2032

Deployment of Electric Cars Favoring Market Growth in North America?

Presence of end user sectors and production of electric cars creating lucrative opportunities for machine tools

Machining centers in North America are anticipated to contribute to the regional market growth over the projected period as a result of the ongoing trend toward higher-value goods. In addition, the increased product demand in industries, such as aerospace & defense, automotive, and oil and energy.

Electric car and van sales augmented dramatically in 2020, according to the European Environment Agency (EPA). Thus, increased investments in the EV sector are predicted to benefit the electric car market, thereby driving the product demand. Thus, North America is expected to possess 30% market share for machine tools market.

Country-wise Forecast CAGRs for the Machine tools Industry

Country	CAGR
China	4%
U.S.	5%
India	3.5%
Canada	4%

Category-Wise Insights

Technological Advancements Fueling Growth of Machine Tools in Automotive Industry?

Increasing sales of passenger vehicles boosting sales of machines tools in automotive industry

Machine tools are widely used to fabricate gearbox cases, aluminum drive housings, flywheels, piston rods, wheels, water pumps, engine blocks, engine cylinder heads, transmissions, transmission housings, and other equipment. In addition, the technological advancements in the automotive sector is fueling the growth of the machine tools market.

With increasing demand for passenger and electric vehicles, the demand for machine tools is expected to increase. Based on the end-user segment, the automotive segment is expected to possess 35% market share by gaining US$ 7.5 Billion during the forecast period.

Metal Cutting – Most Desired Product Owing to High Demand from End User Industries?

Vast use of machine cutting tools increasing dependency on metal cutting

Turning machine tools in the metal cutting segment accounted for a significant revenue share in 2021. The ability to turn machine tools to make a variety of items, such as airplane parts, electric motor parts, nuts, crankshafts, train components, pistons, wooden bowls, sleeves, bolts, pump parts, and others is expected to enhance their demand.

Milling machining is a common production process used in machine shops and industries to create high-precision products and parts in a wide range of forms and sizes. The need for milling machines is predicted to increase due to benefits, such as reduced human errors, exact cuts, high precision, and the ability to make individual components in small or big batches. Thus, by type, metal cutting is expected to account for more than 80% in 2022.

Start-Ups for Machine Tools Market

Key start-up players in the machine tools market are Ioticiti, Minto, Elemental Machines, RoboticsX and Weeve

• Elemental Machines, a US-based startup, is focusing on providing M2M solutions for technology-based industries. The company’s product named Element-D, collects metadata from OEM devices and provide actionable insights about workflows.
• RoboticsX, a German startup is focusing on developing machine-to-machine solutions to empower digital factories.

Competitive Landscape

The global market for machine tools is highly fragmented with the presence of a large number of local and regional players. The industry players are focusing on launching new products as per the dynamic industry needs as a key strategy to strengthen their market footprint and better serve the needs of consumers. For instance,

Key players in the machine tools market are DMG MORI CO., LTD, Amada Holdings Co., Ltd, AIDA ENGINEERING, LTD., Schuler Group, JTEKT Corporation, Okuma Corporation, Makino Milling Machine Co., Ltd, Hyundai Wia Corporation, Komatsu Limited, TRUMPF Group, GROB-WERKE GmBH & Co. KG, Doosan Machine Tools, Gleason Corporation, Yamazaki Mazak Corporation, Chiron-Werke GmBH & Co. KG, Haas Automation, Inc, United Grinding Group, Dalian Machine Tool Group and Shenyang Machine Tool Co., Ltd

• In September 2022, DMG MORI CO., LTD developed blue laser for LASERTEC machines and has improbved features of the AM assistant. The company is focusing on showcasing solutions for additive manufacturing.
• In 2020, Doosan Machine Tools came up with MP 6500 series product with a high precision vertical machining center for mold machining. This machine features enhanced stability and spindle rigidity to boost user convenience and improved quality
• In 2020, Doosan Machine Tools introduced a new large-sized horizontal turning center. The newly developed product provides machining functions ranging from 2-Axis up to Y-axis machining which are suitable for machining large workpieces
• In 2019, Makino Milling Machine Co., Ltd. has introduced a new Wire EDM machine - U 6 H.E.A.T. Extreme. The new wire coated technology increases rough machining rates up to 300% without increasing manufacturing costs

Key Segments Profiled in the Machine Tools Industry Survey

• By Product Type :

  • Metal Cutting
    • Machining Centres & Related
    • Laser, EDM, & Related
    • Lathes
    • Other Metal Cutting Tools
  • Metal Forming
    • Presses
    • Punching & Shearing Machines
    • Bending & Forming Machine
    • Other Metal Forming

• By End Use :

  • Automotive & Transportation
  • Electrical & Electronics
  • Machinery
  • General Manufacturing & Other End Uses

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East & Africa