Machine Tool Market

Machine Tool Market Outlook (2024 to 2034)

Worldwide sales of machine tools are expected to reach US$ 71.6 billion in 2024. The global machine tool market has been forecast to expand at a 5.1% CAGR and ascend to a valuation of US$ 117.74 billion by the end of 2034.

Machine tools are equipment used to handle and machine metal or other hard materials. Milling machines are extremely adaptable and assist in a wide range of tasks such as drilling, gear cutting, filleting, turning, and chamfering, among others. They also come with a few cutting and shaping tools. Simply put, machine tools are devices that make human labor easier.

Machine tool market growth is being driven by technological improvements in machine tools, such as robotic and multi-axis arms, as well as manufacturing industry expansion. The Industry 4.0 movement is gaining traction in the manufacturing sector, and it is also influencing the market to become a component of smart systems. Industry 4.0 has the potential to enhance machine tool utilization in manufacturing operations by reducing idle time, which is boosting demand for these products.

Key Market Growth Drivers

• Machine tools aid in abrading, molding, grinding, sculpting, cutting, drilling, and nibbling metal or other hard materials.
• Machine tools also aid in reducing the amount of human labor necessary while cutting and increasing overall production.
• Another primary factor that is driving market expansion is the growing need for industrial automation. The market is being positively impacted by rising demand for high quality, great productivity, and shorter cycle times.
• Rising demand for mass production across various industries such as aerospace & defense, automotive & transportation, electrical & electronics, and many others.
• The market is growing steadily as a result of the increasing demand for metal-cutting tools brought on by the use of metals in various industries.
• Various uses of machine tools, such as drilling, cutting, planning, surface finishing, and manufacturing parts production, are boosting their adoption.
• The machine tool market size is expanding at a steady pace as products such as numerical control are making it easier to produce consistent goods.
• Growing demand for high-volume and precisely engineered items is driving the need for machine tools.

Report Attribute	Detail
Machine Tool Market Size (2024E)	US$ 71.6 Billion
Forecasted Market Value (2034F)	US$ 117.74 Billion
Global Market Growth Rate (2024 to 2034)	5.1% CAGR
East Asia Market Share (2024E)	29.9%
North America Market Value (2024E)	US$ 16.25 Billion
Metal Cutting Segment Value (2034F)	US$ 92.55 Billion
Automotive & Transportation Segment Value (2034F)	US$ 48.98 Billion
Key Companies Profiled	Trumpf; Schuler AG; Makino; Mitsubishi Heavy Industries Machine Tools Co., Ltd.; Doosan Machine Tools Co., Ltd.; Yamazaki Mazak Corporation; Hyundai WIA; Okuma Corporation; Chiron Group SE; DN Solutions; Amera Seiki.

Why is Adoption of Machine Tools Gaining Traction in Various Industries?

“Integration of CNC, AI, and IoT in Machine Tools”

Machine tools are becoming more precise, versatile, and high-performing due to constant advancements in technology, especially the combination of CNC (computer numerical control), IoT (Internet of Things), and AI (artificial intelligence). Highly precise and automated machining operations are made possible by CNC technology, and real-time data analysis and monitoring for increased productivity and preventive maintenance are made possible by IoT.

AI improves process optimization and decision-making, resulting in industrial systems that are more intelligent and adaptable. With consideration of all these aspects, these are improving machine tools' capabilities to the point where they are essential to contemporary manufacturing and raise consumer demand.

What are the Main Issues Seen in This Market Landscape?

“Continuous Maintenance Expenditure and High Cost of Part Replacements”

For machine tools to continue operating at excellent efficiency and precision, they require regular maintenance costs and experienced operators. The continuous expenses of maintaining the machine tools are hampering their adoption in various industries and companies, especially start-ups. Other than maintenance expenses, the high cost of labor and replacement parts is further negatively impacting machine tool market growth. These additional costs increase the overall cost of ownership of the machine tool, which is becoming a key restraint in adoption, especially for small and medium-sized enterprises (SMEs) with more limited funding.

Country-wise Insights

East Asia is poised to hold 29.9% of the worldwide machine tool market share in 2024. Sales of machine tools in the North American region are forecast to rise at a 5.2% CAGR through 2034. The defense, aerospace, and automobile sectors in North America have been the primary drivers of demand for metal-forming machine tools, as the need for fabricated metal products is significant in these industries.

Why are Machine Tool Manufacturers Focusing on the United States?

“Well-Established Automotive, Electronics, and Aerospace Sectors”

Attribute	United States
Market Value (2024E)	US$ 13.23 Billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 21.87 Billion

The manufacturing sector in the United States is strong and encompasses important industries such as electronics, automotive, and aerospace & defense. These industries mostly rely on advanced and accurate machine tools for their manufacturing operations. High-quality machinery is essential to these industries' ongoing expansion and innovation to maintain competitive advantages and satisfy rising production demands. This is a key machine tool market trend in the country.

The market is also driven by the rising demand for fabricated metals in the United States. Increased demand for electric vehicles (EVs), self-driving cars, and trucks is boosting the use of these products in the country.

• In March 2023, to increase its footprint throughout the United States, Yasda Precision Machining Tools entered into a partnership with Methods Machine Tools as a provider for precision machining centers.

What Makes South Korea a Key Market for Machine Tool Suppliers?

“Dependability on Machine Tools to Produce Products That Meet International Standards”

Attribute	South Korea
Market Value (2024E)	US$ 4.58 Billion
Growth Rate (2024 to 2034)	5.6% CAGR
Projected Value (2034F)	US$ 7.87 Billion

The strong export-oriented economy of South Korea, particularly in the heavy and high-tech sectors, is driving the need for superior machine tools. South Korean industries rely on excellent machining capabilities to produce accurate and reliable products that meet international standards and sustain competitiveness. To achieve the high quality demanded in export markets and maintain products' competitiveness in the international arena, superior machine tools are necessary in the country. Demand for advanced machine tools in South Korea is supported by this emphasis on quality and precision.

Category-wise Insights

Based on end use, the market is segmented into automotive & transportation, electrical & electronics, machinery, general manufacturing & other end uses. Utilization of machine tools in electric and electronics is projected to increase at 5.2% CAGR from 2024 to 2034.

Which Type of Machine Tool Accounts for High Revenue Streams?

“Machine Tools for Metal Cutting Facilitating Production of Precise Components”

Attribute	Metal Cutting
Segment Value (2024E)	US$ 56.13 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 92.55 Billion

Machine tools for metal cutting are in increased demand due to their important role in precision manufacturing and industrial production. Some examples of metal cutting machine tools are lathes, milling machines, and CNC machines, which are crucial for producing complicated and precise components utilized in various industries such as automotive, aerospace & defense, electrical & electronics, and others. To fulfill tight quality and performance criteria, these sectors require high levels of accuracy and efficiency when cutting and shaping metal parts.

Why are Machine Tools Extensively Used in Automotive & Transportation?

“Machine Tools Supporting Efficient Production of Engine Parts and Transmission Systems”

Attribute	Automotive & Transportation
Segment Value (2024E)	US$ 29.71 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 48.98 Billion

Requirement for machine tools is rising in the automotive & transportation industries as they require precise and efficient machining methods to produce complicated components such as engine parts, transmission systems, and chassis components. Machine tools are crucial in producing the tight tolerances and high-quality finishes required for these components.

The automotive and transportation industries are distinguished by large production volumes and short product development cycles. Machine tools help manufacturers optimize production processes, shorten lead times, and respond rapidly to changing market needs. Also, advancements in vehicles, such as electric and autonomous cars, require innovative machining solutions to produce specialized components, driving the demand for machine tools.

Competitive Landscape

The global market for machine tools is highly fragmented with the presence of a large number of local and regional players. Key players in the machine tool market are focusing on launching new products as per the dynamic industry needs as a key strategy to strengthen their footprint and better serve the needs of consumers.

• In February 2024, Nidec Machine Tool introduced a compact, powerful universal head, a light, thin, short, and small product capable of fulfilling various machining needs.
• In February 2024, SMBXL, a prominent technology business assisting MSMEs, created the first online B2B machine tools expo in India. The expo features over 1250 machine tool companies from 106 Indian locations, representing more than 35 different machine tool categories. The event is anticipated to draw 500,000 manufacturers, prospective clients, dealers, and business associates.
• In August 2023, Okuma America Corporation unveiled next-generation machine control for CNC machine tools, offering an improved user experience and high-speed operations for end users.
• In September 2022, DMG MORI CO., LTD developed a blue laser for LASERTEC machines and improved the features of the AM assistant, focusing on showcasing solutions for additive manufacturing.

Fact.MR provides detailed information about the price points of key manufacturers of machine tools positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Machine Tool Market Research

• By Product Type :

  • Metal Cutting
    • Machining Centers & Related
    • Laser, EDM, & Related
    • Lathes
  • Metal Forming
    • Presses
    • Punching & Shearing Machines
    • Bending & Forming Machines

• By End Use :

  • Automotive & Transportation
  • Electrical & Electronics
  • Machinery
  • General Manufacturing & Other End Uses

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa