Machine Tools Market Size, Share & Trends Report

Machine Tools Market Size, Share & Trends Analysis Report By Type (Lathe, Milling, Laser, Grinding, Welding, Winding), By Technology (CNC, Conventional), By Sales Channel, By End Use, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-841-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The global machine tools market size was valued at USD 77.21 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027. The strong emphasis on achieving higher productivity and reducing downtime in the industrial sector is expected to drive growth. The increasing demand for mass production in the aerospace and defense industry, among other industries and industry verticals, is also expected to drive the adoption of machine tools. The growing demand for metal cutting tools in line with the increasing use of metals in various industries also bodes well for market growth. The integration of Computer-Aided Manufacturing (CAM) in machine tools to reduce the time required for manufacturing workpieces and to ensure hassle-free production of micro components is emerging as a major trend in the market.

U.S. machine tools market size

Industry 4.0 envisages focusing on cutting the idle time and improving the utilization of machine tools. Analyzing the data related to tool changes and program stops can particularly help in determining the cause of the idle time and addressing it, thereby ensuring more efficient use of machine tools. At the same time, various bearing manufacturing companies, such as The Timken Company and NSK Ltd., are focusing on the development of bearings for machine tools. For instance, in October 2019, The Timken Company introduced a new line of precision cylindrical roller bearings that are designed to maximize the speed and efficiency in high-demand applications.

Advances in machine learning and automation have resulted in the development of Computer Numerical Control (CNC) systems. CNC systems allow operators to feed the assembly code to a computer and perform various operations on the same device without any significant loss of time. On the other hand, various lubricant manufacturers are partnering with the market players, such as DMG MORI, and Komatsu, Ltd., among others, for the development of lubricants for their devices. For instance, in September 2017, DMG MORI and FUCHS PETROLUB SEsigned a collaboration contract, which envisages the two companies jointly developing new lubricant solutions and services for machine tool applications.

Manufacturers such as MC Machinery Systems, Inc. and DynaPath Systems, Inc. are trying to enhance the functionality of machine tools by developing machine tools with automatic tool changing capabilities. For instance, in January 2019, DynaPath Systems Inc. launched a new CNC knee mill with an automatic tool changer. The automatic tool changer, which consists of four tools in independent tool stations positioned around the spindle, is capable of performing a complete tool change within three seconds. At the same time, various governments are pursuing Initiatives, such as Blue Philosophy, Blue Competence, and DEMAT. These initiatives are aimed at developing lightweight structures for machine tools and are expected to play a decisive role in driving the growth of the market.

Various companies, such as Honeywell International, Inc.; Robert Bosch LLC; and Siemens AG are also developing CNC software for machine tools. For instance, in August 2017, Siemens AG launched the Sinumerik Edge CNC software at the EMO 2017 trade show convened in Hanover, Germany. The software provides options for compensating unwanted axis-nodding movements. While such developments bode well for the growth of the machine tool market, the high costs associated with purchasing and installation of CNC machines are expected to restrain the growth of the market over the forecast period. Besides, operators of CNC machines need to be trained properly before they can operate the latest machine tools. This is also emerging as another potential market restraint.

Several countries, including the U.S., the U.K., Spain, Italy, South Korea, and India have closed their borders for imports and exports in the wake of the outbreak of the COVID-19 pandemic, which has taken a significant toll on the market. The Taiwan Machine Tool & Parts Association cited the exports of machine tools dropping over the year in Q1/2020 and Q2/2020. The lockdowns implemented by the Singaporean government from 07 April 2020 to 04 May 2020 significantly affected the manufacturing capacity of manufacturers, such as AMADA Co., Ltd., and Makino, among others, operating in Singapore. Most workplaces, except for essential services, remained closed during the lockdown period in the country.

Type Insights

The lathe machines segment dominated the market in 2019 with a market share of over 25%. This can be attributed to the rising adoption of lathe machines for applications, such as chamfering, fillet making, turning, and slot cutting. The adoption of lathe machines has been growing lately owing to the capabilities of the latest lathe machines to reduce human intervention and increasing the accuracy of the machining processes. Manufacturers such as Georg Fischer Ltd.; and Haas Automation, Inc.; are responding to the trend by focusing on the development of innovative lathe machines, thereby contributing to the growth of the segment.

The laser machines segment is anticipated to exhibit the highest CAGR owing to the potential ability of the laser technology to ensure higher precision and finer cuts on the surface of the workpieces. Laser cutting systems are being used in a myriad of applications, where parts need to be machined with higher precision for better edge quality. A significant advantage of the laser cutting technology is that the laser beam does not wear during the machining process. The development of novel process lasers to optimize the production of customized three-dimensional glass components and the looming shift from conventional semiconductor lasers to quantum cascade lasers are some of the other factors that are expected to drive the growth of the segment.

Technology Insights

The CNC segment dominated the market in 2019 with a market share of more than 80%. This can be attributed to the growing need to reduce the operating costs, manpower, and errors in the components manufactured in industries, such as aerospace & defense, and automotive, among others. The rising levels of venture funding being received by companies developing software for CNC machines bode well for the CNC segment. For instance, in June 2018, CloudNC announced receiving funding worth USD 10 million from European venture capital firm Atomico. The funding allowed CloudNC to boost the development of its software that can potentially automate the programming of CNC milling machines. Manufacturers are focusing aggressively on the latest technological advances in the field of CNC software to enhance the connectivity between machines and operators while improving flexibility within the shop floor, which is emerging as another notable trend in the market.

The rise in demand for bulk manufacturing in industries, such as pharmaceuticals, paper, and textiles, among others, is driving the growth of the conventional segment. The increasing adoption of conventional systems, such as drills, saws, and bores, among others, in the construction sector is also driving the growth of the segment. 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.

End-use Insights

The automotive segment accounted for a market share of more than 12% in 2019. This can be attributed to the rise in the adoption of machine tools for the fabrication of transmission housings, engine cylinder heads, gearbox cases, and brake drums, among other automobile components. The growing demand for CNC machines from automotive manufacturers has also been driving the growth of the segment. However, the outbreak of the COVID-19 pandemic has disrupted the exports of Chinese parts. The closure of assembly plants in various countries, including Germany, India, and South Korea, among others, is also taking a toll on the adoption of machine tools by automakers.

The power and energy segment is anticipated to exhibit a significantly high CAGR over 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, bearings, rotors, and gearbox housings. 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 market. 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.

Sales Channel Insights

The direct sales segment held the largest revenue share of over 60% in 2019 and is expected to expand at a significant CAGR over the forecast period. There are various distributors of machine tools, such as Ellison Technologies and Absolute Machine Tools, Inc.; selling machine tools in the North American region. The presence of such distributors is driving segment growth. For instance, Champions Machine Tool Sales, Inc. is responsible for the distribution of Haas Automation, Inc.’s machine tools in the U.S. state of Texas. On the other hand, various companies, including Heller Machine Tools L.P. and Coherent, Inc., are establishing partnerships with distributors of machine tools, thereby further driving the growth. For instance, in September 2019, Heller Machine Tools L.P. established a partnership with Ellison Technologies for the distribution of its products in the U.S. states of Delaware, Illinois, Mississippi, Alabama, North Carolina, and Tennessee, among others.

Europe machine tools market share

The growth of the direct segment can be attributed to companies, including DMG MORI and Georg Fischer, Ltd., among others, which are focusing on the development of the online sales channel. The growing preference for procuring machine tools through e-commerce platforms, such as Alibaba.com and Machine Tools Online, among others, is also driving the growth of the direct segment.Meanwhile, manufacturers, such as Okuma Corporation and DMG MORI, have developed their online stores to promote direct sales of their machine tools. However, the outbreak of the COVID-19 pandemic is adversely affecting the delivery of products through e-commerce websites, which may take a toll on the growth of the segment in the short term.

Regional Insights

Asia Pacific dominated the market in 2019 with a revenue share of more than 35%. This can be attributed to the initiatives, such as “Make in India” and “Made in China 2025”, being pursued by the governments in the region to encourage indigenous manufacturing. For instance, to boost investments in the manufacturing, the Indian government announced in September 2019 that manufacturing companies incorporated on or after 01 October 2019 will be allowed to pay corporate tax at the rate of 15%. Furthermore, countries in the region, such as China, India, and South Korea, happen to be 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 expanding construction sector in the Asia Pacific would also boost the demand for machine tools in the region.

The North America regional market is anticipated to exhibit the highest CAGR over the forecast period on account of rising demand for machine tools from incumbents of the aerospace and defense, automotive, and oil and energy, among other industries and industry verticals. 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. won a number of orders from the 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 were valued 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 in launching 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 the expansion of their production and sales capacity. For instance, in October 2019, Georg Fischer Ltd. opened its new headquarters in Biel, Switzerland, which houses 450 employees and has a capacity of producing 65 machine tools per month. The expanded manufacturing capacity would allow the company to serve its customers in the European region. In addition, at the same time duration the company also opened a 75,000-square-foot facility in Nuevo Leon, Mexico. The new facility would serve as a sales and service support office for its machining and piping business. Some of the prominent players in the machine tools market include:

  • AMADA Co., Ltd.

  • CHIRON Group SE

  • DMG MORI

  • Doosan Corporation

  • Georg Fischer Ltd.

  • HYUNDAI WIA CORP.

  • JTEKT

  • Komatsu Ltd.

  • Makino

  • Okuma Corporation

Machine Tools Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 79.46 billion

Revenue forecast in 2027

USD 104.86 billion

Growth Rate

CAGR of 4.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million, volume in thousand units and CAGR from 2020 to 2027

Report coverage

Revenue forecast, volume forecast, company ranking, 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

Customization scope

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

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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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global machine tools market report based on type, technology, sales channel, end-use, and region:

  • Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

    • Lathe Machines

    • Milling Machines

    • Laser Machines

    • Grinding Machines

    • Welding Machines

    • Winding Machines

    • Others

  • Technology Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

    • Computer Numerical Control (CNC)

    • Conventional

  • Sales Channel Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

    • Direct

    • Indirect

  • End-use Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

    • Automotive

    • Aerospace & Defense

    • Construction Equipment

    • Power & Energy

    • Industrial

    • Others

  • Region Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • The Middle East & Africa

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