The global machine tools market size stood at USD 106.60 billion in 2018 and is projected to reach USD 158.06 billion by 2026, exhibiting a CAGR of 4.9% during the forecast period.

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The machine tools industry has observed significant growth over the past few years as a result of increasing demand from the end-use industries such as automotive, industrial and, transportation machinery. Besides, increasing industrial automation is expected to drive the market in the near future. Rising demand for high productivity, high quality and reduced cycle time are expected to result in increased penetration of machine tools across industries. Furthermore, technological advancements are driving the machine tool industry. This is attributed to the increasing robotics; human-machine interaction is resulting in the machine tools market growth.

The real-time connectivity requirement is further giving rise to the trend of smart factories enabled with cloud. Thus, the machine tool is becoming part of smart systems and is expected to result in product popularity. These smart machine tools come with sensors to optimize machine time and schedule maintenance. This data can be further analyzed and result in improved productivity. In addition, the sensors can improve predictive analysis about the machine tool parts and their lifecycle. This is expected to reduce down time and address the idle time issues significantly. Furthermore, the smart function, such as reduced power usage, is further expected to result in the growth of machine tool market revenue.

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Increasing demand for high speed and efficiency is expected to drive the machine tools market. The surge in demand for high accuracy and productivity in machining complicated parts on one machine is driving the demand for multifunctional machine tools. The key players are thus focusing on the development of a multifunctional machine tool. For instance, Doosan’s Multi-Function Mill Turn Center (PUMA SMX series) offers high precision control and powerful multitasking capacity. Furthermore, increasing user-friendly functions and operations of machine tools is further expected to drive the machine tool industry in the near future.

KEY MARKET DRIVERS

“Incorporation of the Fourth Industrial Revolution (Industry 4.0) is Driving the Market”

The fourth industrial revolution focusing on creating optimal manufacturing and production scenarios through streamlining of the value chain and information exchange is resulting in smart factories' development. According to the multiple sources, smart factories reached approximately USD 246 billion in 2018 and are further expected to exhibit significant growth. The developed nations such as the U.S. and Germany are resulting in the growth of smart factories to alleviate the crisis.

Furthermore, the evolving government initiatives and policies are further expected to drive the smart factories in near future. For instance, since 2016, UK government had additionally invested USD 7.70 billion in R&D which includes Made Smarter Initiative to support manufacturing transformation through digitally-enabled technologies including virtual reality and IoT (Internet of Things). In addition, the U.S. is also focusing on advanced manufacturing.

“Advancements in Software Technology is Further Expected to Result in the Greater Adoption of Machine Tools”

As per the current machine tools market trends, the metal processing industry has witnessed significant changes over the period of time. The metal processing sector is increasingly shifting towards machinery equipped with smart technology capable of performing human-machine interactions, as well as unmanned operation. Thus, the increasing operational time and flexibility provided by these machines are further expected to result in the increased demand for the machine tool industry. Thus, manufacturers are focusing on advanced networking features in machine tools so as to provide optimized operational time, high efficiency and transparency. The key players including Doosan Machine Tools, launched the Smart Factory Team in 2015. Furthermore, Doosan Machine Tools had developed ‘al doo CONTROL’ an artificially intelligent smart factory platform.

SEGMENTATION

By Technology Analysis

“CNC Holds the Highest Market Share of the Machine Tools Market”

Based on technology, the machine tools market is segmented into CNC (Computerized Numerical Control) and Conventional

CNC machine tools are expected to drive the machine tools 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 machine tools market revenue. The key players are thus, focusing on the development of CNC systems to cater to the various industrial requirements. For instance, in 2015, Doosan Machine Tools launched D300 a next-generation CNC model. The technological developments in robotics and additive manufacturing is further expected to drive the market. The increasing application of 3D printing in various sectors including medical, defense and automotive is expected to result as one of the driving factors of the machine tools market.

Conventional machine tools are expected to exhibit steady growth in the near future. However, the lack of skilled labor is limiting the growth of conventional machine tools.

By Product Analysis

“Metal Cutting Tools are Driving the Machine Tool Market”

Based on product type, the machine tools market is segmented into metal cutting tools and metal forming tools.

Metal cutting machine tools is expected to remain the dominating segment over the forecast period. Owing to the increasing demand from various industries such as automobiles and construction sectors. The increasing advancements in management and production systems has 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. Also, the increasing demand from the aerospace sector owing to the cost advantages is further expected to drive the machine tool market. According to the sources, the developing economies have 20 to 25% lower manufacturing cost is resulting in aerospace manufacturing. The trends mentioned above are further expected to drive the metal cutting industry.

Metal forming machines tools are used across processes, including forming, bending, shaping, pressing and shearing. Press brake machinery is expected to drive the metal forming tools market. 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. Furthermore, the increasing popularity of CNC metal bending and forming is further expected to result in the growth of the market.

By Application Analysis

Based on application the machine tools 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 manufactures including engine locks, piston rods, wheels, and gearbox cases. The increasing demand for disc brakes has given rise to the specialized brake lathes. Thus, the manufacturing of product-specific requirements is expected to drive the popularity of machine tools in the automotive sector. Furthermore, the increasing demand for electric vehicles is expected to result in the machine tool market growth.

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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 machine tools market.

REGIONAL ANALYSIS

Geographically, the scope of the study is segmented across five major regions, such as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America, which is further categorized into countries.

Asia Pacific holds the major market share of the machine tools. The surge in demand from various industries such as automotive, manufacturing, construction, aerospace is resulting in increased demand for machine tools. The evolving government initiatives are boosting machine tools 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 is further expected to drive the market in the near future.

Asia Pacific Machine Tools Market, 2018 (USD Billion)

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North America is expected to witness lucrative growth as a result in demand from the manufacturing industry. However, Latin America is expected to witness steady growth owing to the difficult scenario in Brazil.

Europe and Middle East & Africa are further expected to contribute to the growth of the machine tools market owing to the increasing consumption from countries such as Spain, Italy and Turkey respectively.

INDUSTRY KEY PLAYERS

“Leading players such as Doosan and Hyundai are focusing on R&D Development “

The companies are focusing on the fourth Industrial Revolution and, thus, are continuously upgrading their product through innovations. Thus, companies are focusing on R&D activities. 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.

List of Key Companies Profiled:



Yamazaki Mazak Corporation



Doosan Machine Tools Co., Ltd.



Trumpf



Amada Machine Tools Co., Ltd



JTEKT Corporation



MAG IAS GmbH



Schuler AG



Makino



Hyundai WIA



Komatsu Ltd.



Okuma Corporation



REPORT COVERAGE

The report offers an elaborative analysis of numerous factors affecting the global machine tools market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as technology, product, and application. It strategically analyzes several strategies, such as product innovations, joint ventures, and acquisitions adopted by players in the industry.

Report Scope and Segmentation









ATTRIBUTE





DETAILS









Study Period





2015-2026









Base Year





2018









Forecast Period





2019-2026









Historical Period





2015-2017









Unit





Value (USD billion)









Segmentation





By Technology



CNC (Computerized Numerical Control)



Conventional











By Product



Metal Cutting



Metal Forming











By Application



Automotive



General Machinery



Precision Engineering



Transport Machinery



Others (Energy, Electrical and etc.)











By Region



North America (U.S. and Canada)



Europe (Germany, UK, Russia, Italy, and Rest of Europe)



Asia Pacific (Japan, China, India, Southeast Asia, and Rest of Asia Pacific)



Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa)



Latin America (Brazil, Mexico, and Rest of Latin America)











INDUSTRY DEVELOPMENT: