Machine Tools Market Size, Share & Trends Analysis Report By Type (Metal Cutting, Metal Forming), By Technology, By End-use (Automotive, Mechanical Engineering), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global machine tools market size was estimated at USD 87.94 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 5.7%  over the forecast period. Technological advancements, such as multi-axis arms & robotics and the growth in the manufacturing industry have been contributing to the growth of industry. Apart from this, the growing focus on augmenting productivity and reducing downtime is further promoting the market growth.The presence of well-established automobile manufacturers such as General Motors, Nissan, Tesla, and Ford, suitable infrastructures for producing electric vehicles, and high disposable income are expected to fuel the growth of the electric vehicle market in North America over the forecast period, which in turn is likely to augment the demand growth during the projected timeframe. Furthermore, the growing demand for automotive components from the region has increased the demand in North America.

The companies operating are focusing on implementing the latest technologies to bring in features such as connectivity of the computers to CNC machines and software that allows distant monitoring of the machines through PCs. Companies operating in the market are offering enhanced technologies such as artificial intelligence and IoT in their products and seeking partnership strategies to enhance their offerings.

Machine tools are used across various industries and industry verticals, including automobile, and aerospace, among others, to manufacture various components with precision and speed while ensuring adequate flexibility. Aerospace companies use CNC machine tools to manufacture parts, such as fuel access panels, landing gears, engine mounts, turbines, and wheels, among others, as well as lightweight parts with tight tolerance.

Reducing the operating costs has been a major challenge for business owners worldwide. Moreover, it has been observed that it is relatively easy to lower the manufacturing costs than to increase the price of the end product to increase profit margins in the manufacturing industry. Time is considered as one of the key factors for manufacturing, and the number of jobs produced in the stipulated amount of time determines the productivity of the plant. The machining time required for each component is one of the factors while reducing the operating cost of a unit. The latest machines are equipped with 3D printing, CAD, CAM, and CNC technologies to allow manufacturers to help reduce the machining time significantly.

Incumbents of the automotive industry are increasingly adopting CNC machine tools for higher precision, efficiency, and higher stability in manufacturing complex parts. Automotive companies are also taking effective measures to shorten the product life cycle and enhance the efficiency of products to gain a competitive edge. This is subsequently driving the demand for machine tools capable of rapid prototyping and manufacturing of complex automotive parts as well as machine tools integrated with CNC technology to support flexible manufacturing and virtual manufacturing.

Industry 4.0 is particularly encouraging digital transformation across the entire automotive industry, spanning automotive OEMs, dealers, and suppliers, among other industry stakeholders, which bodes well for the growing demand for CNC machine tools. The motorsport industry is particularly using CNC machine tools to reduce manufacturing time and to ensure that components are manufactured flawlessly. As such, various racing car manufacturers are striking partnerships with CNC machine tools providers to manufacture precision components.

Type Insights

The metal cutting type segment led the market and accounted for 77.1% of the global revenue share in 2022. The segment is further bifurcated into machining centers, turning machines, grinding machines, milling machines, eroding machines, and others. Metal cutting machines are used to remove excess material from a work pieces by cutting or grinding. There are various different types of metal cutting machines such as drilling machines, machining centers, gear cutting machines, lathe machines, grinding machines, and others.

Metal cutting machines are widely utilized in many end-use sectors, such as automotive, mechanical engineering, metal working, and aerospace to produce finished tools with the desired geometry by cutting various types of ferrous and non-ferrous metals. It offers the finished goods a variety of benefits, such as surface texture or finish, greater dimensional precision, complex shape, and desired size. Market expansion is expected to be benefitted by the increasing demand for sophisticated automated metal-cutting tools.

Metal forming machines are used in a variety of industries, including aerospace, automobile, appliance, energy, construction, metal building products, electronics, and others. The segment is further divided into bending machines, presses, punching machines, and others. Metal forming machines are used in a variety of procedures, including shearing, bending, pressing, shaping, and forming. The use of press brake machinery is expected to drive the segment. This is due to the widespread usage of press brake metal forming machines as sheet bending tools in industries, such as agriculture, aerospace, shipbuilding, automotive, and petroleum machinery. The market for the metal-forming machine tools process is currently moderately fragmented. The key players of metal-forming machine tools manufacturers are developing cutting-edge technologies to give superior goods to the end-user industries.

Technology Insights

Computer Numerical Control (CNC) segment accounted for 85.8% of the global machine tools machines revenue share in 2022. CNC machines, often known as "computer numerical controlled" tools, are advanced metalworking equipment that can make the complex parts needed by contemporary technology. The use of CNCs as milling machines, lathes, abrasive jet cutters, laser cutters, press brakes, punch presses, and other industrial tools has been expanding quickly with the development of computers.

CNC machines take orders from computer-aided design software. The two primary categories of CNC systems are point-to-point and continuous pathways. Lathes, routers, mills, and plasma cutters are some examples of CNC machinery. Manufacturers of CNC machines are Esskay International Machine Tools, Gedee Weiler, Gurmeet Machinery Corporation, and Jinagoudra Machine Tools Pvt. Ltd. The incorporation of programmable B axis into CNC machines, including CNC automatic convertible from Swiss-type machines to fixed machines, allows material cost savings and Swiss machines have left a remnant of an expensive ground bar. This results in an increasing demand for these machines.

The most common type of conventional machine tools is turning, knurling, screw cutting, facing operations on a lathe machine, drilling holes using a drill machine, and surfacing, external & internal keyway on a shaper machine. Both conventional and CNC machining techniques aim to produce high-quality tools, but CNC technology has various benefits over conventional machining. For large-scale projects requiring high standards of quality and consistency, CNC machining techniques are excellent owing to better product quality.

End-use Insights

The automotive end-use segment accounted for 41.9% of the global machine tools revenue share in 2022. The usage of machine tools in the production of automotive components has increased significantly. Although the automotive industry employs a variety of manufacturing methods, machine tools are frequently utilized for metal cutting and the production of small machine parts owing to advantages including increased accuracy, dependability, and efficiency.

The usage of machine tools such as CNC machining technology & conventional machine tools that are widely used in mechanical engineering. The four elements of mechanical engineering which uses CNC machining technology are CNC equipment, programmable controllers, machine control units, and data input and output devices. The use of CNC machining in mechanical engineering allows for computer-based process control over the manufacturing of machine tools.

The electrical industry segment is likely to grow at the fastest CAGR of 7.3% over the forecast period. The electrical and electronics industry is one of the world’s largest industrial industries. It includes a broad range of goods, from bulky consumer electronics to tiny electrical parts. The increasingly fierce competition in the semiconductor industry demands for smaller, more precise package designs, thereby driving up the demand in the forecast period.

Metalworking is used to create many large-scale projects, such as oil rigs, ships, bridges, minor engine components, and even jewelry. In metal working industry, conventional machining process are also utilized to drill holes in the work piece. Turning machines, lathe machines are other machines employed in this industry owing to the advantages such as lower costs of conventional machines as compared to CNC machines, and moreover, CNC machines are more effective and efficient for small jobs, thereby driving the demand for metal working.

In terms of major part accuracy and process dependability, the aircraft industry demands extraordinarily high levels of precision. In this industry, reliable lightweight yet durable parts can be produced owing to the enhanced accuracy offered by manufacturing components on a CNC machine. This, in turn, has benefited the CNC machine sector, thereby increasing demand for machine tools over the forecast period.

Regional Insights

Asia Pacific market accounted for a 55.0% share of global machine tools revenue in 2022. Rapid urbanization, increased investments by governments, and rising consumer spending have boosted the Asian economy, thereby propelling infrastructure development in the construction industry. Emerging economies such as China, India, and Japan are the key countries driving the development of the oil & gas, automotive, aviation, and building & construction industries in this region. The competition among Chinese capital markets and a few other Asian economies is generating lucrative growth opportunities for industries, which has, in turn, created a favorable environment for investments in the market.

Significant growth is seen in the information technology (IT), construction, and mining sectors in North America. North America is the world's largest and most influential economy, and it is seeing significant expansion as a result of its countries' industrial dynamics and commodities availability. Furthermore, the pandemic in North America caused an economic depression, prompting governments to announce a variety of economic stimulus. This effort is projected to fuel growth in the construction, automotive, and energy industries. The ongoing Russia-Ukraine situation, on the other hand, may impede economic activity to some extent due to inflation and raw material price instability, which is anticipated to damage the region's machine tools market.

Europe is one of the largest producers of automobiles across the globe and attracts maximum foreign direct investment (FDI) in automotive sector. Process innovation, improving R&D, and expansion of automobile production in countries such as Germany, the U.K., and France are expected to fuel the growth of automotive sector over the forecast period. Furthermore, the region is marked by the presence of global automobile manufacturers including Volkswagen, BMW, and Mercedes, which focus on increasing the production volume every year, thereby strengthening the demand for machine tools in the region. For instance, Renishaw offers process control equipment, metrology devices, and systems for CNC machine tools, their manufacturers, and their users.

Central & South America has been witnessing an inflow of new companies, particularly from North America in the region. Most of the manufacturing and construction companies based in North America are strategically orienting their investments in this region, specifically in Costa Rica and Brazil, owing to the presence of excellent engineering, manufacturing, and servicing facilities in Central & South America. Significant manufacturing clusters and special economic zones (SEZs) are being developed in the region for its robust economic growth.

Key Companies & Market Share Insights

The global market is characterized by the presence of a large number of players, with established players leading the market trends. The majority of these companies focus on forward integration by providing their products directly to end-users across different industry verticals. Some of these companies also use an established distribution and sales network to connect with their customers across regions easily.

For instance, CHIRON Group purchased HSTEC, a fixture and spindle specialist in Croatia. The CHIRON Group is strengthening its three areas of expertise and expanding its capabilities with the acquisition of the main components, motor spindles, and turning spindles for the Group's machining centers. In addition, Komatsu Ltd, Komatsu NTC has converted YIDA NIPPEI MACHNE TOOL (a joint venture with YIDA Group and production base in China) into a wholly owned subsidiary in order to strengthen its business strategy in China. Additionally, NTC will bolster its backup system from Japan and work to expand its operations in China. Some prominent players in the global machine tools market include:

• Amada Machine Tools Co., Ltd.

• CHIRON GROUP SE

• DMG MORI. CO., LTD.

• DN Solutions

• Georg Fischer Ltd.

• HYUNDAI WIA CORP

• JTEKT Corporation

• Komatsu Ltd

• Makino

• Okuma Corporation

• Hurco Companies, Inc.

• Dalian Machine Tool Group (DMTG) Corporation

• Amera Seiki

• Haas Automation, Inc

• Datron AG

Machine Tools Market Report Scope

Global Machine Tools Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global machine tools market report based on type, technology, end-use, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Metal Cutting

    • Machining Centers

    • Turning Machines

    • Grinding Machines

    • Milling Machines

    • Eroding machines

    • Others

  • Metal Forming

    • Bending Machines

    • Presses

    • Punching Machines

    • Others

• Technology Outlook (Revenue, USD Billion, 2018 - 2030)

  • Computer Numerical Control (CNC)

  • Conventional

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • Mechanical Engineering

  • Metal Working

  • Aerospace

  • Electrical Industry

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Switzerland

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Taiwan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia