GVR Report cover Machine Tools Market Size, Share, & Trends Report

Machine Tools Market Size, Share, & Trends Analysis Report By Type (Lathe Machine, Milling Machine), By Technology, By Sales Channel, By End Use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-841-1
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global machine tools market size was valued at USD 82.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030. Technological advancements such as robotic and multi-axis arms in machine tools and the growth of the manufacturing industry are the major factors driving the global market for machine tools. A strong emphasis of several industrial sectors on reducing downtime and increasing productivity has led to the increased adoption of automated machine tools. Moreover, the rising demand for high precision and high accuracy components is encouraging manufacturers across the globe to develop machine tools capable of handling complex and heavy parts with better flexibility and accuracy.

U.S. machine tool market size, by type, 2020 - 2030 (USD Billion)

 CNC machine tools offer finer cuts to metal workpieces, which helps improve product quality and reduce product wastage. Numerous manufacturers across the globe are focusing on developing automated machine tools, such as CNC lathe machines, to provide high precision metal cutting and reduce the cycle time in the manufacturing process.

For instance, Okuma Corporation, a CNC lathe machine provider, announced the launch of VT1000EX, a large vertical CNC lathe that achieves better productivity while machining difficult-to-cut materials. VT1000EX offers excellent machining capability owing to its highly rigid mechanical configuration, which helps reduce the cycle time for difficult-to-cut material.

Advances in machine learning and automation have resulted in the development of Computer Numerical Control (CNC) systems. The use of CNC machine tools for machining operations can help reduce the time required for machining the components by introducing automation across the process. These machines are also equipped with an automatic tool changer that aids the machine in conducting several operations using a single command. Tool magazines and automatic tool changers are the most commonly used parts in high-speed CNC machining centers.

Technological advancements in grinding machines help manufacturers perform various functions quickly, thereby reducing operating costs. For instance, the new grinding wheel technology in cylindrical grinding machines controls multiple functions, including dressing and material processing, and reduces human intervention in the machining process. The increased awareness about the potential of cylindrical grinders in manufacturing is encouraging many companies worldwide to enhance their products.

Grinding machine manufacturers across the globe are also partnering with CNC equipment dealers to increase their sales. For instance, in March 2020, UNITED GRINDING North America Inc. announced its partnership with Dynamic Machine, a CNC equipment dealer, to strengthen and enhance its application, sales, and service support in the Michigan area.

CNC machines offer a range of benefits, including increased capability, uniform product delivery, reduced labor, and reduced operating costs. CNC machine tools are integrated with advanced software that allows the user to seamlessly produce components in the desired shape, texture, and size. CNC machines are implemented with computer-aided design and computer-aided manufacturing in product design and prototyping, which helps provide better-finished components to their customers.

At the same time, government regulations such as the Occupational Safety and Health Administration (OSHA) requirements for machine guarding to ensure the safety of workers against mechanical hazards are also expected to play a decisive role in driving the growth of the market. However, the high costs associated with purchasing and installing CNC machines are expected to restrain the market growth during the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic adversely impacted the machine tools market growth. Machine tool manufacturers experienced revenue losses due to restricted sales activities in some areas worldwide. The pandemic also severely impacted the automobile/auto components sector, which primarily drives around 40% of the machine tools business.

The pandemic has posed significant challenges for supply chains worldwide. The varying degrees of lockdowns imposed globally during the early phase of the COVID-19 pandemic slowed down or temporarily stopped the flow of finished goods and raw materials, thus disrupting the manufacturing sector across the globe.

Type Insights

The lathe machines segment dominated the market in 2021 with a revenue share of over 27%. The large-scale adoption of lathe machines due to their vast applications, such as knurling, sanding, drilling, fillet making, and chamfering, in production and repair shops has triggered the demand for automated lathe machines. Manufacturers across the globe are focusing on adopting CNC lathes as they have a powerful axis drive and feedback control mechanism that maintains the tool position and provides higher speeds, thereby improving product quality and quantity.

The milling machines segment is anticipated to exhibit the highest CAGR during the projection period. Milling machines provide high-quality products in less production time and allow companies to reduce wastage. With an increase in manufacturing activities, companies are adopting milling machines to minimize the overall operational costs.

Meanwhile, various CNC machine manufacturers are focusing on developing automatic pallet towers for CNC milling machines to enhance the quality and productivity of their work by using the same tools. For instance, in November 2021, Fastems, a CNC machine provider, announced the launch of the Flexible Pallet Tower (FPT), a pallet automation solution for single CNC milling machines with 300 to 630 mm pallets.

Technology Insights

The CNC segment dominated the market in 2021 with a revenue share of more than 88%. Factors such as the rising demand for greater efficiency and precision in complex machining products, and reduced operating costs in industries such as aerospace, automotive, and defense have led to the increasing adoption of CNC machines. These machines follow an automated control mechanism, wherein various components such as sensors, controllers, and Programmable Logic Controller (PLC) drives are connected through a communication network.

The accuracy of CNC machines ensures consistent product quality, which leads to increased production speed. Moreover, CNC machines provide automation of machine tools, leading to the elimination of human error. All these factors bode well for the segment growth.

Factors such as low capital cost, easy setup, and the ability to process different materials have led to the increasing demand for conventional machines in bulk manufacturing industries such as paper, textiles, and pharmaceuticals. Conventional machines require a human operator to control and direct machine tools such as drilling, milling, and boring machines, lathes, and other sharp cutting tools. Conventional machining typically costs less and is used for projects involving smaller volumes. However, a looming lack of skilled labor is limiting the demand for conventional systems.

Sales Channel Insights

The direct segment held the largest revenue share in the market in 2021 at more than 60%. Trade shows, events, and exhibitions are major platforms for building brands, forging partnerships, providing education, and generating sales. Trade shows are one of the primary sales channels for machine tools. Numerous companies across the globe are establishing partnerships with distributors of machine tools for better visibility and geographical coverage.

For instance, in June 2018, GF Machining Solutions announced the expansion of its strategic partnership with Ellison Technologies, a machine tool distributor. GF Machining Solutions has named Ellison Technologies as its official distributor in Kentucky and Southern Ohio, including Dayton and Columbus.

The indirect segment is anticipated to exhibit the highest CAGR during the forecast period. Indirect sales channels depend on intermediaries to perform most of the distributed tasks. Several companies are focusing on developing online sales channels to offer a better customer experience.

For instance, companies such as Okuma Corporation and Georg Fischer, Ltd. have developed their online stores to promote direct sales. The growing preference of customers for e-commerce platforms such as Machine Tools Online and Alibaba.com to procure machine tools is expected to drive the growth of the segment in the coming years.

End-Use Insights

The industrial segment dominated the market in 2021, accounting for a revenue share of more than 31%. The industrial segment includes businesses that aid other companies in developing and maintaining machines for consumers and other companies. They also help companies in manufacturing and shipping products.

Additionally, machine tool manufacturers often face difficulties during activities such as loading and unloading CNC machines on the shop floor. As such, various collaborative robot and machine tool manufacturers across the globe are forming partnerships to provide improved CNC machine automation facilities to ensure the rapid deployment of collaborative robots. Such factors bode well for the growth of the segment.

Global machine tool market share, by end use, 2021 (%)

The power & energy segment is anticipated to exhibit a significantly high CAGR during the forecast period, on account of the rise in the adoption of machine tools for the machining of parts used in windmills, such as blades, and bearings, rotors, and gearbox housings, among others. The increasing adoption of wire cutting and turning centers from solar panel manufacturers, including Protolabs, for the fabrication of housing and frames also bodes well for the growth of the segment.

The growing adoption of multi-axis systems by the manufacturers of hydropower turbines and generators is also driving the growth of the segment. For instance, Canyon Industries, Inc. uses a 7-axis CNC milling system capable of fabricating Francis and Pelton hydroelectric turbines with a diameter of 16 feet.

Regional Insights

Asia Pacific dominated the market in 2021 with a market share of more than 35%. This can be attributed to initiatives, such as “Make in India” and “Made in China 2025”, being pursued by governments in the region to encourage the domestic manufacturing sector. Furthermore, countries in the region, such as China, India, and South Korea, are among the world’s largest automotive component manufacturers, and the adoption of machine tools in the production of automotive components in the region has been rising.

The promising growth of the construction sector in the Asia Pacific is also expected to boost the demand for machine tools in the region. The North America regional market is anticipated to exhibit a significant CAGR during the forecast period, on account of the rising demand for machine tools across industries such as aerospace & defense, automotive, and oil & energy. Aircraft manufacturers in the region are aggressively approaching various market players for the procurement of machine tools.

For instance, in November 2018, Georg Fischer Ltd. bagged several orders from various aircraft manufacturing companies operating in the North American region. The orders were valued at USD 100 million and are to be delivered by 2022. At the same time, market players such as Georg Fischer, Ltd., and Okuma Corporation are expanding their footprint in the region. For instance, in November 2019, Georg Fischer Ltd. opened a 67,000-square-foot facility in Ontario, Canada. The facility hosts a 4,800-square-foot demonstration center and houses sales and service support staff.

Key Companies & Market Share Insights

Market players, such as Okuma Corporation, Makino, and Georg Fischer, Ltd., are investing aggressively in R&D activities to develop innovative machine tools. Makino’s total R&D expenses stood at USD 50.7 million, USD 57.3 million, and USD 58.9 million in FY2017, FY2018, and FY2019 respectively, and the company utilized these investments to launch new products.

For instance, in June 2019, Makino announced the launch of the F5 Pro 6 vertical machining center to provide stiffness and rigidity for chatter-free cutting. The F5 system delivers positioning accuracies and repeatability in microns, while the spindle offers the capability to support a myriad of tooling and machining applications.

Market players such as Georg Fischer, Ltd., DMG MORI, and AMADA Co., Ltd. are putting a strong emphasis on product launches and the expansion of their production and sales capacity. In November 2021, Okuma Corporation announced the launch of the MA-8000H Horizontal Machining Center with a pallet size of 800 × 800 mm. The product is equipped with eco-friendly technologies and power-saving functions and operates autonomously without human intervention. Through this launch, the company expanded its product portfolio of horizontal machining centers. Some of the prominent players in the machine tool market include:

  • AMADA Co., Ltd.

  • CHIRON Group SE

  • DMG MORI

  • Doosan Corporation

  • Georg Fischer Ltd.

  • HYUNDAI WIA CORP.

  • JTEKT Corporation

  • Komatsu Ltd.

  • Makino

  • Okuma Corporation

Machine Tools Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 85.18 billion

Revenue forecast in 2030

USD 130.88 billion

Growth Rate

CAGR of 5.5% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Million, volume in thousand units, and CAGR from 2022 to 2030

Report coverage

Revenue, volume forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Type, technology, sales channel, end-use, region.

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil

Key companies profiled

AMADA Co., Ltd.; Okuma Corporation; DMG MORI; Georg Fischer Ltd.; Makino; CHIRON Group SE; Doosan Corporation; HYUNDAI WIA CORP; JTEKT Corporation, Makino

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global machine tool market report based on type, technology, sales channel, end-use, and region

  • Type Outlook (Revenue, USD Million; Volume, Thousand Units, 2017 - 2030)

    • Lathe Machines

    • Milling Machines

    • Laser Machines

    • Grinding Machines

    • Welding Machines

    • Winding Machines

    • Others

  • Technology Outlook (Revenue, USD Million; Volume, Thousand Units, 2017 - 2030)

    • Computer Numerical Control (CNC)

    • Conventional

  • Sales Channel Outlook (Revenue, USD Million; Volume, Thousand Units, 2017 - 2030)

    • Direct

    • Indirect

  • End-Use Outlook (Revenue, USD Million; Volume, Thousand Units, 2017 - 2030)

    • Automotive

    • Aerospace & Defense

    • Construction Equipment

    • Power & Energy

    • Industrial

    • Others

  • Region Outlook (Revenue, USD Million; Volume, Thousand Units, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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