Machine tools Global Market Report 2024

The machine tools market size has grown strongly in recent years. It will grow from $92.21 billion in 2023 to $97.26 billion in 2024 at a compound annual growth rate (CAGR) of 5.5%. Historical growth can be attributed to the industrial revolution and the expansion of manufacturing, globalization and industrialization, growth in the automotive and aerospace industries, advancements in precision engineering and quality standards, and increased demand from the military and defense sectors.

The machine tools market size is expected to see strong growth in the next few years. It will grow to $122.06 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. The anticipated growth in the forecast period can be attributed to several factors, including a shift towards lightweight materials, global infrastructure projects, requirements in the medical and healthcare industry, demands in the renewable energy sector, and expansion in the aerospace and defense sector. Major trends expected in this period include the integration of automation and robotics, digitalization and Industry 4.0 technologies, a growing demand for multi-functionality, an emphasis on sustainable manufacturing practices, and an increased adoption of 5-axis machining.

The machine tools market is poised for growth, driven by the expanding manufacturing industry. Machine tools are power-driven devices crucial for processing workpieces and play a vital role in the manufacturing of mechanical parts. These machines are utilized for tasks such as forming, cutting, and joining tools. Consequently, as the manufacturing industry grows, there is a heightened demand for machine tools. For example, in September 2021, the India Brand Equity Foundation (IBEF), a government agency based in India, reported that India received $30 billion in foreign direct investments, marking a 15% increase compared to previous years. Additionally, in the same year, the Indian government approved a production-linked incentive (PLI) scheme worth $3.53 billion aimed at bolstering the manufacturing capabilities of the automotive and drone industries. These developments underscore the significant growth potential of the manufacturing sector in India, which, in turn, is driving the expansion of the machine tools market.

The increasing demand in the automotive industry is expected to drive the growth of the machine tools market in the future. The automotive industry encompasses the design, development, manufacturing, marketing, and sales of vehicles. Machine tools play a crucial role in this industry by shaping raw materials, creating precision components, and ensuring the efficient and accurate assembly of vehicles. For example, in May 2023, the European Automobile Manufacturers Association reported that global motor vehicle production reached 85.4 million units in 2022, showing a significant increase of 5.7% compared to 2021. Additionally, in February 2022, Brand Finance PLC, a UK-based brand valuation company, noted that the automobile sector achieved approximately 78 million unit sales, marking a substantial 10% increase. Therefore, the rising demand in the automotive industry is a key driver behind the growth of the machine tools market.

A prevailing trend in the machine tools market is the emergence of new product innovations, which has become a key driver of popularity. Major companies operating within this sector are directing their focus towards pioneering new product innovations to maintain and strengthen their market positions. For instance, in June 2022, LMW Machine Tool Division, an India-based company specializing in automation machinery manufacturing, unveiled two new machines at the INTEC 2022 exhibition held in Coimbatore. These machines include the JG 50 Vertical Machining Center and the LF20C Twin G Twin Turret Chucker, alongside showcasing three of their latest machines and machining solutions. The JG 50 Vertical Machining Center distinguishes itself through its remarkable features, including a very high acceleration rate of over 1G and a spindle speed reaching up to 16,000 rpm. On the other hand, the LF20C Twin G Twin Turret Chucker stands out with its dual spindles and dual turrets, essentially combining the functionalities of two CNC Turning Centers into a single machine. These innovative introductions underscore LMW's commitment to pushing the boundaries of technological advancement within the machine tools market.

Major players in the machine tools market are directing their efforts toward developing cutting-edge solutions, including machine tool probes, to bolster their profitability within the market. A machine tool probe refers to a sensor affixed to a CNC machine tool, utilized for gauging the position, dimensions, and characteristics of a workpiece or cutting tool. For instance, in May 2023, Renishaw PLC, a UK-based engineering and scientific technology company, introduced the RMP24-micro, a wireless probe designed for machine tools. With dimensions of 24 millimeters in diameter and 31.4 millimeters in length, this probe caters to applications where space is limited. The RMP24-micro's high accuracy and repeatability play a crucial role in ensuring the precise manufacture of parts according to specifications, mitigating the risks of scrap and rework. Its automation of tasks previously performed manually contributes significantly to reducing setup times and cycle durations.

In April 2021, EMAG Group, a German company specializing in cutting-edge manufacturing solutions, acquired Samputensili Machine Tools for an undisclosed sum. This strategic acquisition expands EMAG's technological offerings to encompass gear production processes, including shaving, tooth flank grinding, gear shaping, profile grinding, and generating grinding. Samputensili Machine Tools, based in Italy, is recognized for its expertise in manufacturing top-quality gear cutting tools.

Major companies operating in the machine tools market report are Robert Bosch GmbH, The Black & Decker Corporation, Stanley Black & Decker Inc., Techtronic Industries Co. Ltd., JTKET Corporation, Makita Corporation, Hilti AG, Hyundai WIA Corporation, TRUMPF Group, EBARA CORPORATION, Georg Fischer AG, Lincoln Electric Holdings Inc., Makino Milling Machine Co. Ltd., OKUMA Corporation, GROB-WERKE GmbH u. Co. KG, Shenyang Machine Tool Co. Ltd., Haas Automation Inc., Falcon Machine Tools Co. Ltd., Ace Micromatic Group, Amada Co. Ltd., Chiron Group SE, Yamazaki Mazak Corporation, MAG IAS GmbH, MC Machinery Systems Inc., Spinner Tooling Technologies, Doosan Machine Tools Co. Ltd., Hitachi Koki Co. Ltd., Dalian Machine Tools Group Corporation, Komatsu NTC Ltd., Electronica Hitech Engineering Pvt. Ltd., Husqvarna AB, Atlas Copco AB, Sandvik AB, Kennametal Inc., OSG Corporation.

Asia-Pacific was the largest region in the machine tools market share in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the machine tools market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the machine tools market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of machine tools include milling machines, drilling machines, turning machines, grinding machines, electrical discharge machines, and others. Milling machines are versatile tools capable of both milling and turning materials. They feature multiple cutting edges arranged symmetrically and are used for flat and irregularly shaped surfaces, as well as drilling, boring, and cutting gears. These tools are available in both CNC and conventional forms and are used across various industries such as automotive, aerospace and defense, construction equipment, power and energy, and industrial sectors.

The machine tools market research report is one of a series of new reports that provides machine tools market statistics, including machine tools industry global market size, regional shares, competitors with a machine tools market share, detailed machine tools market segments, market trends and opportunities, and any further data you may need to thrive in the machine tools industry. This machine tools market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The machine tools market consists of sales of lathes and boring mills, shapers and planers, drilling machines, power saws, and presses. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.