Machine Tools Market

Report Overview

The Global Machine Tools Market size is expected to be worth around USD 10.60 Billion by 2032 from USD 6.6 Billion in 2022, growing at a CAGR of 5.00% during the forecast period from 2023 to 2032.

Major industry propelling factors include technological advances in machine tools such as growth in robotic and multi-axis arms and manufacturing.

The emergence of the COVID-19 pandemic had a global economic impact across all industry sectors in 2020. Machine tool manufacturers are also facing problems as a result of the crisis, leading to a slowdown in production and sales. Post-pandemic growth will be fueled by changes in supply chain requirements and increased demand for digital services.

These tools are useful for grinding, shaping, grinding, engraving, cutting, drilling, and nibbling metals and other hard materials. It also helps reduce the amount of labor required while increasing or decreasing overall production.

The U.S. defense, aerospace, and automotive sectors have driven the demand for metal-forming machine tools due to the great demand for fabricated metal products in these industries. Therefore, the expansion of the above industries is expected to boost product demand over the forecast period.

The market is also boosted by increased demand for fabricated metals in the United States, with high demand for electric vehicles (EVs), driverless vehicles, and trucks driving the use of these products domestically. This may lead to increased demand for the product during the forecast period.

The Industry 4.0 movement is gaining momentum in the manufacturing sector, influencing the industry to become part of intelligent systems. Industry 4.0 is likely to improve the utilization of machine tools in manufacturing operations by reducing idle time, leading to increased demand for these products during the forecast period.

Key Takeaways

• Technological Advancements: The machine tool industry continues to adapt and change with advances like CNC (Computer Numerical Control), IoT (Internet of Things), and automation technologies being integrated. These advancements enhance precision, productivity, and the ability to produce complex parts.
• Industrial Automation: Machine tool demand is directly tied to industrial automation and the expansion of the manufacturing sector. As more industries turn to automated processes, demand for cutting-edge machine tools that improve efficiency and accuracy has skyrocketed.
• Global Market Expansion: The global machine tools market is expanding worldwide, with emerging economies taking an important part in this expansion. As manufacturing and industrial activities expand in regions like Asia, there is an increased demand for machine tools to support production.
• Sustainability and Efficiency: With more emphasis being placed on environmental responsibility in manufacturing, energy-efficient and eco-friendly machine tools are becoming more in demand in order to reduce company emissions as well as operating costs.
• Customization and Specialization: Machine tools have evolved over time to meet the specific requirements and production challenges faced by various industries. This trend allows manufacturers to address specific requirements efficiently.

Driving Factors

Increased Adoption and Demand for Additive Manufacturing and Hybrid Machine Tools

The rise of additive manufacturing is boosting this machine tools market. Manufacturers are moving to lower cost and faster production processes, resulting in increased adoption of additive manufacturing.

Additionally, the increasing popularity of heterogeneous material manufacturing capabilities is expected to lead to further growth of the market. A CNC manufacturer plans to introduce additive manufacturing into its premises.

For example, Okuma plans to launch a new Laser EX machine in the future, including laser hardening, laser radiation heating, and self-cooling hardening of carbon steel materials. Therefore, such an innovative combination of technologies is expected to further upsurge this market growth in the future.

Restraining Factors

Uncertainties Related to Social and Economic Factors Hamper Market Growth

Changing global economic conditions lead to market disruptions. Manufacturing spending is directly proportional to the sales of these tools. Therefore, if the global economy slows down, it is expected to lead directly to a decline in sales of machine tools.

Likewise, trends in the automotive industry are having a greater impact on the tooling sector due to the wider acceptance of machines in the industry. However, the machine tools market trends associated with investing in the automotive industry have a significant impact on market revenue.

Moreover, unexpected changes in a country’s economic, political, or social conditions and regulations can affect market revenue growth.

Latest Trends

A prominent trend is a rising demand for smart machine tools.

It has been observed that technological advancements such as the growing use of robotics and human-machine interaction have an impact on market expansion right now. The demand for real-time connectivity is further fueling the trend toward cloud-enabled smart factories.

As a result, the tool is expected to gain popularity as it becomes an essential component of smart systems. Sensors are included in these intelligent tools to schedule and optimize machine time. Analyzing this data can help increase productivity.

In addition, predictive analysis of these tool parts and their lifecycles can be enhanced by the sensors. It is anticipated that this will significantly assist in addressing idle time issues and reduce downtime. In addition, it is anticipated that the rapid adoption of smart functions, such as lowering power consumption, will also contribute to revenue growth in this machine tools market.

Type Analysis

The metal-cutting segment dominated this industry

The metal-cutting segment dominated this industry, accounting for the largest share of revenue in 2022, with over 77.00%. Turning Machine tools in the metal-cutting segment accounted for a large proportion of 2022 sales.

With the ability to turn machine tools to produce a variety of items such as aircraft parts, electric motor parts, nuts, crankshafts, train parts, pistons, wood shells, sleeves, screws, pump parts, etc., demand for them will increase. Expected.

Milling is a common manufacturing process used in workshops and industries to create high-precision products and parts of various shapes and sizes. Demand for milling machines is expected to grow due to benefits such as reduced human error, precise cutting, high precision, and the ability to manufacture small or large series of individual components. Demand for metal-forming machines is expected to grow at a significant CAGR during the forecast period.

Metal forming machines are used in a variety of industries, including aerospace, automotive, consumer electronics, energy, construction, metal fabrication products, and electronics. Forming machine manufacturers include PMF Industries, Inc., Paramount Roll & Forming, Inc., and Corrugated Metals, Inc.

Metal forming machines are used in various processes such as shearing, bending, pressing, forming, and forming. The use of press brakes is expected to drive the segment. This is because press brake metal forming machines are widely used as sheet metal bending tools in industries such as agriculture, aerospace, shipbuilding, automotive, and petroleum machinery.

Technology Analysis

CNC is dominating this market

This machine tools market category for Computerized Numerical Control Machines (CNC), which accounted for the highest revenue share globally in 2022, generated more than 84.3% of that sum. A greater need for more precision and efficiency in complex machining products, as well as decreased operational expenses in industries such as aerospace, automotive, and defense, can all be attributable to an increase in the use of CNC machines.

A number of interconnected Programmable Logic Controller (PLC) drives, sensors, and controllers make up the automated control system for CNC machines. Due to a surge in demand for shorter lead times and higher precision outcomes, this sector is slated to be bolstered by the increasing automation of production processes over the forecast period.

The accuracy of a CNC machine ensures consistent product quality and increases manufacturing machine tools market growth rates. Demand has grown substantially, especially for CNC machines, due to strong expectations for productivity gains from manufacturing companies and the expansion of the industrial sector as a whole.

Traditional machines are more in demand in bulk production industries, including paper, textiles, and pharmaceuticals, due to their low initial cost, simplicity of setup, and versatility to process a variety of materials.

Drilling machines, milling, lathes, boring machines, and other sharp-cutting instruments are examples of machine tools that must be managed and steered by a human operator in traditional machinery.

Conventional machine tools are frequently less expensive and used for jobs with lower production volumes. The need for conventional methods is, however, declining due to a lack of a qualified workforce.

End-User Analysis

The Automotive Industry is propelling this market

The automotive end-user segment dominates the industry, accounting for the largest share of approximately 42.00% of global sales in 2022. The automotive sector is expanding with the introduction of various machine tools used in the automotive industry. Milling machines are widely used in the automotive industry to manufacture parts such as gearbox housings, engine locks, wheels, and piston rods.

The aircraft sector is a major consumer of machine tool products. In the aerospace sector, efforts are constantly being made to improve the production efficiency of aircraft parts, increase flight safety, and reduce potential environmental damage.

Increased demand in the aerospace industry for advanced materials such as nickel alloys and titanium alloys is expected to further stimulate the use of these products. Metalworking includes manufacturing activities that produce industrial machinery and tools that supply parts to other related industries such as mining, agriculture, and construction.

Increased use of these products in the metalworking industry is expected to drive the growth of the segment over the forecast period. The field is also driven by the widespread use of multi-shaft systems by manufacturers of hydroelectric turbines and generators.

For example, Canyon Industries, Inc. uses its 7-axis CNC milling machine that can produce 16-foot diameter Francis and Pelton hydroelectric turbines.

Key Market Segments

By Type

• Metal Cutting
  • Turning Machines
  • Machining Centers
  • Grinding, Honing, Lapping Machines
  • Eroding Machines (Laser, Electrical Discharge, Ultrasonic, etc.)
  • Others
• Metal Forming
  • Bending, Folding, & Straightening Machines
  • Presses
  • Punching Machines
  • Others

By Technology

• Conventional
• CNC

By End-Use

• Automotive
• Metal Working
• Mechanical Engineering
• Electrical industry
• Aerospace
• Other End-Uses

COVID-19 Impact Analysis

COVID-19 has hampered the growth of this industry, limiting sales activities in many parts of the world and costing product manufacturers. Early pandemic lockdowns, to varying degrees, adversely affected global manufacturing by impeding or temporarily halting the movement of finished goods and raw materials.

The outbreak of COVID-19 is impacting the global economy. Due to the lockdown situation, most of the major players in the global machine tools market have had to close their manufacturing facilities.

Additionally, both vehicle sales and production have come to a halt, directly impacting industries in the target market. Critical sectors such as automotive and energy have been impacted by distribution in supply chains and global lockdowns.

However, the COVID-19 situation is slowly resolving, with most industries running factories at full capacity. Also, key supplies in the target market are back to work to fulfill previous orders as per government standards.

Regional Analysis

APAC accounted for the largest share in 2022

Asia Pacific accounted for the largest share, accounting for over 53.00% of global sales in 2022. Increasing demand for these products in India in certain sectors such as construction, manufacturing, and automotive is expected to drive growth in the region. Ongoing government initiatives are also boosting growth in the region.

This can be attributed to initiatives such as Make in India, pursued by local governments to boost manufacturing in the country. Product demand in the Asia-Pacific region is expected to increase due to the expanding manufacturing sector, especially in transportation, equipment, and other industries.

As the trend toward higher-quality products continues, machining centers should contribute to the growth of the regional machine tools market during the planning period. North America is also expected to grow at a significant CAGR during the forecast period owing to increased product demand in industries such as aerospace & defense, automotive, oil & energy.

Sales of electric cars and vans increased dramatically in 2022, according to the European Environment Agency (EPA). Therefore, increased investment in the EV sector is projected to benefit the electric vehicle market, thereby boosting product demand.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Vietnam
  • Japan
  • Indonesia
  • South Korea
  • India
  • Australia & New Zealand
  • Singapore
  • Thailand
  • Malaysia
  • Philippines
  • Rest of APAC
• Latin America
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • United Arab Emirates
  • Saudi Arabia
  • Kuwait
  • Nigeria
  • Israel
  • South Africa
  • Turkey
  • Rest of the Middle East and Africa

Market Share & Key Players Analysis

Manufacturers are pursuing multiple strategies such as acquisitions, mergers, joint ventures, new product development, and geographic expansion to increase machine tools market penetration and diversify from diverse applications such as automotive, metalworking, electronics, and aerospace. Meet the changing technology needs of The COVID-19 pandemic has hampered the expansion of the industry.

Product manufacturers have suffered losses due to reduced sales activity in several locations around the world. Various lockdowns imposed internationally in the early stages of the pandemic impacted the global manufacturing sector by impeding or temporarily halting the movement of finished goods and raw materials.

Market Key Players

Listed below are some of the most prominent Machine Tool industry players.

• DMG MORI
• Doosan Machine Tools Co. Ltd.
• CHIRON Group SE
• Hyundai Wia Corp.
• Georg Fischer Ltd.
• JTEKT Corporation
• Okuma Corporation
• Makino
• Komatsu Ltd.
• Other Key Players

Recent Developments

• September 2022: Sandvik’s acquisition of Frezite, a company founded in Portugal, has been completed, as previously reported. The majority of Frezite’s product range consists of custom-designed polycrystalline diamond (PCD) tools for Metal and wood intended for the aerospace, automotive, and general engineering industries. A division of Sandvik Manufacturing and Machining Solutions named Walter will report to the business.
• April 2022: Massey Capital, a private investment firm, has completed a transaction to acquire SMS Machine Tools Limited (“SMS”), its leading distributor and service provider of CNC tools and machines in Ontario and Quebec. The transaction is WeirFoulds’ tenth acquisition completed for Massey Capital.
• February 2022: TRUMPF acquires an 80% stake in the German-based Jena-based Active Fiber Systems GmbH (AFS), a fiber laser specialist. AFS develops and manufactures ultrashort pulse lasers and fiber laser systems primarily for use in science and research.

Report Scope