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The global machine tools market size was USD 112.78 billion in 2019 and is projected to reach USD 151.90 billion by 2027, exhibiting a CAGR of 4.5% during the forecast period.
Production of machine tools has been influenced by its demand across the automotive, industrial, and transportation machinery. Moreover, the suppliers are focusing on digital transformation of the machinery owing to the increasing shift from conventional to CNC machines. This transformation is the result of the high demand for productivity, quality, and reduced cycle time across the end-user industry. For instance, in August 2020, TGM Ltd. invested USD 1.43 million for launching CNC technologies in order to target the major aerospace defense firms. With the implementation of these new technologies, the company is expecting to double its sales in just two years. Likewise, over the period of time, growth of CNC machines is expected to grow significantly across the end-use industries.
Partial Slowdown in the Production is Expected in 2020, Yet May Recover Steadily over the Forecast Period
The emergence of COVID-19 pandemic has resulted in the economical dent across all the industrial sectors globally in 2020. Furthermore, the manufacturers are facing challenges of this contraction, which has ultimately resulted in the slowdown of the production and sales in 2020. Besides, the sudden lockdown has resulted in the total shutdown of the manufacturing plants, supply chain disruptions, scarce availability of laborers and raw materials.
Despite the occurrence of the global strain due to novel coronavirus, suppliers are focusing on resuming their production activities, by adhering to the government norms in order to complete their pre-existing orders and provide assistance to the end-users. Apparently, with the implementation of the government measures for worker’s safety, the Mazak Corporation is serving existing orders to its customers and is actively providing support to the healthcare and power generation industry. Besides, in 2020, Australian Numerical Control and Automation Pty Ltd (ANCA), a CNC machine tools manufacturer, introduced a massive production of ventilators in Australia to fulfil its rising need in the country. Therefore, the market is expected to stabilize during the forecast period.
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Increasing Demand for Smart Machine Tools is Expected to Spur Market Growth
Technological advancements such as increasing adoption of robotics and human-machine interaction are leading to the market growth. The real-time connectivity requirement is further giving rise to the trend of smart factories enabled with cloud. Thus, these tool is becoming a vital part of smart systems and is expected to result in product popularity. These smart tools come with sensors to optimize machine time and schedule maintenance. This data can be analyzed and aid in improving productivity.
Sensors can perform predictive analysis about these tool parts and their lifecycle. This is expected to reduce down time and address the idle time issues significantly. The growing adoption of smart functions such as reduced power usage in these tools is further expected to contribute to the growth of the market in terms of revenue.
Growing Adoption of Additive Manufacturing & Hybrid Machine Tools to Surge Demand
Manufacturers shifting towards cost-effective and rapid production processes are resulting in the increasing adoption of additive manufacturing. Furthermore, the rise in popularity of heterogeneous material manufacturing owing to their capability such as reduced operating costs and flexibility in design is expected to lead to the growth of the market.
The CNC manufacturers are planning to bring in additive manufacturing into their business. For example, Okuma is planning to introduce new Laser EX machines in future, which would include laser hardening for carbon steel material along with heating by laser emission and hardening by self-cooling. Such innovative combination of technologies is further expected to favor this market growth in the forthcoming years.
Uncertainty Related to Social and Economic Factors is Hindering the Market Growth
The changes in the global economic conditions are resulting in the hindrance of the machine tool market. The expenditures in the manufacturing industry are directly proportional to the sales. Hence, if the global economy slows down it is expected to directly result in the decline of these tools revenue.
The trends in the automotive industry have a larger impact on the tools sector owing to the high adoption of machinery in the industry. In addition to this, the machine tool market trends related to capital expenditure in the automotive manufacturing sector too have a significant impact on the market revenue. Furthermore, the unexpected changes in the economic, political or social circumstances and regulations of a country can impact the growth of the market revenue.
Digital Transformation across Machine Tools is Harnessing the Demand for CNC Tools
Based on technology, the market is segmented into CNC (Computerized Numerical Control) and Conventional tools.
CNC tools are expected to drive the market in the near future owing to the increasing demand from the process automation across industries. The rising automation of production processes owing to the increasing demand for improved precision and short lead time is further expected to result in the growth of market sales. The key players are thus, focusing on the development of CNC systems to cater to the various industrial requirements.
Conventional tools are expected to exhibit steady growth in the near future. However, the lack of skilled labor is limiting the growth of conventional tools.
Metal Cutting Tools Are Driving the Growth of the Machine Tool Market
Based on product type, the market is segmented into metal cutting and metal forming.
Metal cutting tools is expected to remain the dominating segment owing to the increasing demand from various industries such as automobiles and construction sectors during the forecast period. The increasing advancements in management and production systems have positively contributed to the growth of the automotive industry. Besides, the rising demand for commercial spaces and residential housing has resulted in the growth of the construction industry. The increasing demand from the aerospace sector owing to the affordability in costs is further expected to drive the market.
Metal forming machines are used across processes such as forming, bending, shaping, pressing, and shearing. Press brake machinery is expected to drive the metal forming tools segment. This is attributed to the extensive use of press brake metal forming machines as a sheet bending tool in various manufacturing industries such as aerospace, automotive, shipbuilding, petroleum machinery, and agriculture.
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Precision Engineering Application is Expected to be the Fastest-Growing Segment
Based on application the market is divided into automotive, general machinery, precision engineering, transport machinery, and others.
Automotive segment holds the major market share owing to the application of different tools in the automotive manufacturing sector. For instance, through milling different automotive parts are manufactured including engine locks, piston rods, wheels, and gearbox cases.
Precision engineering is expected to exhibit the highest growth as a result of increasing demand for high accuracy in complex product manufacturing. The surge in demand from semiconductors, medical technology, and marine industries is resulting in the growth of precision engineering. Furthermore, the increasing opportunity in advanced materials, sensors, laser & optics is contributing to the growth of the precision engineering industry.
The increasing demand for general machinery and transport machinery is expected to result in the growth of the market.
Asia Pacific Machine Tools Market Size, 2019 (USD Billion)
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Asia Pacific holds the major market share of the market. The surge in demand from various industries such as automotive, manufacturing, construction, and aerospace is resulting in increased demand for these tools. The evolving government initiatives are boosting the market revenue. For instance, the Make in India campaign encourages FDI (foreign direct investments) and tax benefits for the manufacturing sector in India. Besides, the Automotive Mission Plan 2016-26 and the National Electric Mobility Mission Plan that promotes the adoption of electric vehicles is further expected to drive the market in the forthcoming years.
North America is expected to experience a considerable growth owing to the increasing demand from the manufacturing industry.
Latin America is expected to showcase a steady growth owing to the difficult scenario in Brazil. For instance, according to the National Statistics Agency of Brazil, the Brazil production fell by 0.2% from April 2019 after 0.3% increase in the previous month.
Europe is expected to contribute to the growth of the market owing to the increasing adoption of these tools from countries such as Spain, Italy, and Germany. Machinery & Equipment is the second largest sector in Germany and its value was USD 251.33 billion in 2018. In addition to this, Europe has a strong presence of leading automobile manufacturers such as Mercedes, Audi, Volkswagen, Porsche, Ferrari, Bentley, BMW, Opel, Fiat, Aston Martin, and Jaguar. Thus, the automobile sector is further expected to contribute to the growth of the market.
The Middle East & Africa is anticipated to grow steadily during the forecast period. The growth in the region would be influenced by the demand for precision engineering across the industrial sector.
Market Leaders are focusing on R&D Development to Brighten their Market Prospects
The companies are focusing on the fourth Industrial Revolution and thus, are continuously upgrading their products through innovative developments. These companies are aggressively investing in R&D, infrastructure, and manufacturing industries to capture the global market.
Moreover, key players are focusing to enhance product efficiency through merger & acquisition and expansion of production management systems. Prominent players are further partnering with regional players to possess technical capabilities in these tools in manufacturing operations.
For instance, Hyundai WIA’s have machine tool laboratories in Uiwang, Changwon, and Europe, where they focus on high speed, high precision, and extensive research on technology.
An Infographic Representation of Machine Tools Market
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The machine tools market research report provides a detailed market analysis and focuses on key aspects such as leading companies, product types, and leading application of the product. Besides this, the report offers insights into the market based trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth in the recent years.
Value (USD Billion)
Fortune Business Insights says that the market size was USD 112.78 billion in 2019 and is projected to reach USD 151.90 billion by 2027.
In 2019, the Asia Pacific market value stood at USD 59.41 billion.
Growing at a CAGR of 4.5%, the market will exhibit steady growth during the forecast period (2020-2027).
The CNC machines sub-segment is expected to be the leading segment in this market during the forecast period.
Additive manufacturing along with innovative hybrid tools is gaining popularity around the globe is the major factor driving the growth of the market.
Okuma Corporation, FANUC Corporation, JTEKT Corporation (Toyoda), Makino, and Yamazaki Mazak Corporation are major players in the global market.
Asia Pacific dominated the market share in 2019.
Uncertainty related to social and economic factors is hindering the market growth and is expected to hamper the adoption of these tools.
Precision Engineering application is expected to drive the adoption of these tools.
The adoption of smart tools is the current market trend.
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