The global machine tools market was valued at USD 66.51 billion in 2020 and is expected to grow at a CAGR of 3.9% during forecast period. The growing demand for mass production in various manufacturing industries and favorable government regulations and policies for promoting the manufacturing sector are the key forces that stimulate the market demand for the global market. Moreover, the rising adoption of automatic tools by various manufacturing industries is another term that enhances the growth of the market in the forthcoming period.
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Machine tools play a crucial role in the manufacturing sector by increasing machine utility, reducing manufacturing cycle time, being automatic or semi-automatic, and producing parts repetitively without operator assistance. Since favorable government norms regarding promotion of manufacturing sector across the globe is the factor escalating the global market demand for machine tools.
According to the India Brand Equity Foundation (IBEF), in 2014, the Government of India initiated ‘Make in India’, which aims to increase the share of the manufacturing sector to the country’s GDP to 25% by 2025. Also, machine tools comprise of various advantages out of which mass and hassle-free production is the major one. Thus, such advent benefits of machine tools and growing favorable government initiatives for the growth of the manufacturing sector is expected to boost the machine tools market growth over the forecast years.
The increasing number of smart factories and growing spending by manufacturers on new tools to maintain product quality and accurate measurements is expected to drive the adoption of automatic tools. As per Capgemini Digital Transformation Institute, around 43% of the world has operational smart factories, whereas 33% have plans ready to incorporate, remaining 8% are likely to go for smart solutions in the next few years. In metal and woodworking, an automatic tool with an automatically controlled cutting process also controls machine programs through a cam.
Moreover, automation has resulted in Computer Numerical Control (CNC) systems allowing several market players to rely on strategic alliances like a partnership which will create a lucrative opportunity for the market. In 2017, DMG MORI and FUCHS PETROLUB collaborated to enable both the companies to develop lubricant solutions for machine tools and other associated applications. Thus, advent of advancements along with the rise in adoption of automatic tools will augment the global market growth.
Industrial automation comprises various advanced technologies such as Industrial 4.0, robotics, industrial internet of thing (IIOT) and artificial intelligence etc., which play an essential role in improving quality, accuracy, and precision in manufacturing industries. Every stage of manufacturing process, such as technologies, generates gigabytes of valuable data. The machine tools work in real-time to provide control of various sections involved in the manufacturing process. The growing role of machine tools and rapid growth in industrial automation results in propelling the growth of market over the forecast years.
The market is primarily segmented on the basis of type, technology , sales channel, end-use and region.
By Sales Channel
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Lathe machine segment is projected to dominate the global market in 2020, owing to the rising adoption of lathe machines for fillet making, chamfering, slot cutting, turning, and many more. The growing technological advancements coupled with rising adoption of automation tools will further drive the market growth.
Whereas the laser machine segment is projected to grow with the fastest CAGR in the global machine tools market due to its higher precision and finer cuts on the surface of the workpieces. Also, laser machine plays a significant role in the customization of products in various manufacturing applications.
Based on the end-use segment, the automotive segment is expected to witness the highest share during 2020, as machine tools are widely used for the fabrication of gearbox cases, engine locks, engine cylinder heads, transmissions, transmission housings, aluminum drive housings, flywheels, piston rods, wheels, water pumps, and others equipment’s. Whereas the power and energy segment are estimated to witness a fastest CAGR in the global market growth during the forecast period due to the rise in market demand for machine tools in the parts used in windmills, such as rotors, bearings, blades, and gearbox housings.
Asia Pacific is projected to hold the highest revenue share in the global market owing to the fact that emerging countries like China, India, and others have become a hub for the manufacturing sector. This region is one of the largest exporters of goods & services considering the global scenario. The population is also enormous in the region, and the number is increasing at a steady rate.
To support this, the manufacturing sector has to maintain the growing requirement for products and services. Hence, smart technology is increasingly incorporated in manufacturing operations since it helps companies to increase their productivity, maximize their resources, and help them to innovate products. The integration of smart technology in the rural industry moved toward more sophisticated manufacturing. This transformation will allow rural industries to manufacture goods & render services digitally, which is expected to create a faster adoption for machine tools in the Asia Pacific region.
The machine tools players including Ace Micromatic Group, AMADA Co., Ltd., Chiron Group SE, DMG MORI, Doosan Corporation, Electronica Hitech Engineering Pvt ltd, Fanuc, Georg Fischer Ltd., Gleason Corporation, Haas Automation Iindia Pvt. Ltd, HYUNDAI WIA CORP., Jtekt, Komatsu Ltd., Makino, Okuma, Schuler AG, Spinner Machines Tools.
Market size value in 2020
USD 66.51 billion
Revenue forecast in 2028
USD 81.90 billion
3.9% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million and CAGR from 2021 to 2028
By Type, By Technology , By Sales channel, By End-Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Ace Micromatic Group, AMADA Co., Ltd., Chiron Group SE, DMG MORI, Doosan Corporation, Electronica Hitech Engineering Pvt ltd, Fanuc, Georg Fischer Ltd., Gleason Corporation, Haas Automation Iindia Pvt. Ltd, HYUNDAI WIA CORP., Jtekt, Komatsu Ltd., Makino, Okuma, Schuler AG, Spinner Machines Tools