Machine Tools Market Size, Share & Trends Analysis Report By Type (Metal Cutting, Metal Forming), By End-use (Automotive, Mechanical Engineering), By Technology, By Region, And Segment Forecasts, 2024 - 2030

Machine Tools Market Size & Trends

The global machine tools market size was estimated at USD 92.78 billion in 2023 and is anticipated to grow at a CAGR of 5.8% from 2024 to 2030. The market growth is attributed to advancements in technologies for machine tools, such as multi-axis arms & robotics, as well as the growth in the manufacturing industry. Apart from this, the growing focus on augmenting productivity and reducing downtime is further promoting 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 market growth of machine tools during the projected timeframe. Furthermore, the growing demand for automotive components from the region has increased the demand for the market in North America.

The companies operating in the market 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, 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, as well as lightweight parts with tight tolerances.

Reducing 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 one of the key factors considered during 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 considered when considering reducing the operating cost of a unit. The latest machines are equipped with 3D printing, CAD, CAM, and CNC technologies to allow manufacturers to reduce machining time significantly. The strong emphasis on reducing operating costs is driving the demand for the market.

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.

Drivers, Opportunities & Restraints

Machine tools are used across various industries and industry verticals, including automobile and aerospace, 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, as well as lightweight parts with tight tolerances.

Growing demand for air travel, which is subsequently driving the need for producing more efficient aircraft, bodes well for the growth of the market. Aerospace company Airbus expects the demand for aircraft worldwide to reach some 39,000 by 2040. Thus, aircraft manufacturers are gearing up to cater to this growing demand for aircraft and aggressively striking partnerships with aircraft component providers. For instance, in June 2021, FACC AG, a manufacturer of aircraft parts, announced the expansion of its partnership with Airbus. The expansion of the partnership envisages FACC AG producing empennage components for Airbus’ A220 airliner and subsequently supporting Airbus’ growth strategy for the future. FACC AG uses a 5-axis CNC milling machine for producing aircraft components.

A new CNC machinery often demands higher initial capital investments. The capital cost of new CNC machinery varies from hundreds of thousands of dollars to millions of dollars. Moreover, these machines can be high-risk, high-value investments that often require decision-makers to access numerous criteria before purchasing. Thus, the upper management in the CNC machine in the organization market considers the total cost of ownership (TCO) before making the purchase decision.

Market Concentration & Characteristics

The industry growth stage is medium, with an accelerating pace. The market is characterized by a high degree of innovation, which is attributable to the rapid technological advancements. Moreover, market players are adopting organic and inorganic growth strategies, such as product launches, geographical expansions, mergers & acquisitions, and collaborations, to strengthen their position in the global market.

Regulatory frameworks in various countries significantly impact the machine tools industry by setting safety, environmental, and technical standards. These regulations ensure the safety of operators and help in reducing environmental impacts, but they can also increase production costs and time to market due to compliance requirements. In regions with stringent regulations, such as the European Union, machine tool manufacturers often innovate to meet these norms, leading to advancements in technology and efficiency. However, in markets with less stringent regulations, manufacturers may face competitive disadvantages when exporting to countries with higher standards.

Computer-aided design (CAD) and computer-assisted manufacturing (CAM) software tools are used in advanced machining techniques to increase precision. The new era of digitalization and Industry 4.0 has given rise to the machine tool industry. The machine tool industry will undergo a full transformation due to digitalization in the upcoming years, and the fusion of these dynamic elements will increase productivity and process efficiency. Despite the fact that the market is overflowing with options, it is crucial to recognize the areas that need to be transformed and use the appropriate solutions. Innovative technology solutions are being used in the sector for all aspects of the processes.

The machine tools industry faces the threat of substitutes from alternative manufacturing technologies such as 3D printing and robotic automation. These emerging technologies offer advantages in terms of flexibility, waste reduction, and the ability to produce complex parts with fewer constraints. As these alternatives become more cost-effective and their capabilities expand, traditional machine tools could see a decrease in demand, especially in sectors prioritizing customization and small-batch production. Moreover, the rapid advancement in material science, enabling the use of lighter and stronger composite materials, may also shift manufacturing preferences away from conventional machine tools.

Type Insights

“The demand for metal cutting type segment is expected to grow at a significant CAGR of 5.9% from 2024 to 2030 in terms of revenue.”

The metal cutting type segment led the market and accounted for 77.2% of the global revenue share in 2023. 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 workpiece by cutting or grinding. There are 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 completed tools with the necessary 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 needed 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 growth. This is due to the widespread use 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

“The demand for CNC technology segment is expected to grow at a significant CAGR of 6.0% from 2024 to 2030 in terms of revenue.”

Computer Numerical Control (CNC) segment accounted for 86.0% of the global machine tools machines revenue share in 2023. 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.

Computer Numerical Control 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.

End-use Insights

“The demand for mechanical engineering end use segment is expected to grow at a significant CAGR of 6.8% from 2024 to 2030 in terms of revenue.”

The automotive end use segment accounted for 41.8% of the global machine tools revenue share in 2023. 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 use of machine tools such as CNC machining technology & conventional machine tools are widely used in mechanical engineering. The four elements of mechanical engineering that use 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. 

Metalworking is used to create many large-scale projects, such as oil rigs, ships, bridges, minor engine components, and even jewelry. Conventional machining processes are also utilized to drill holes in the workpiece in the metalworking industry. Turning machines and lathe machines are other machines employed in this industry owing to their advantages, such as lower costs compared to CNC machines. Moreover, CNC machines are more effective and efficient for small jobs, thereby driving the demand for metalworking.

Regional Insights

“China to witness fastest market growth at 7.0% CAGR”

The machine tools market in North America is expected to grow at a significant CAGR owing to various factors such as 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 electric vehicle market in North America over the forecast period, which in turn is likely to augment the growth of machine tools market during the projected timeframe.

U.S. Machine Tools Market Trends

The machine tools market in the U.S. is anticipated to witness a CAGR of 4.2% over the forecast period. The aerospace sector is a hub for innovative machine tool technology and production activities. Thus, the need for machine tools in the aircraft industry will be driven by the expanding aerospace industry. For instance, Air India bought 220 aircraft from Boeing in February 2023. The transaction was completed at the list price of USD 34.00 billion. Moreover, Mazak observes a significant trend of growing demand for machine tools with 5-axis capabilities for cutting aerospace parts.

The Canada machine tools market is anticipated to witness a CAGR of 5.3% over the forecast period, According to Statistics Canada, Canada has over 2,000 electronics and related manufacturing enterprises. 50% are in Ontario, 22% are in Quebec, 13.2% are in British Columbia, and 10.3% are in Alberta. Additionally, computer and electronic device exports are expected to reach USD 15.4 billion in 2021. As a result, the increasing electronics industry in Canada will fuel machine tool demand in the future years.

Asia Pacific Machine Tools Market Trends

Asia Pacific accounted for 55.5% of the global machine tools revenue share in 2023. The market in Asia Pacific boasts robust growth, fueled by several key factors, such as rising automotive production and increasing budget allocation for defense and commercial aircraft production. Moreover, automotive components require high precision to ensure that they meet all required quality and safety standards.

The machine tools market in China is estimated to grow at a significant CAGR of 7.0% over the forecast period. China's market for machine tools is experiencing robust growth, driven by advancements in manufacturing technology and increasing demand across various industries. According to the China Association of Automobile Manufacturers (CAAM), in 2022, China’s vehicle production increased by 3% compared to 2021. The government, as well as several major automobile companies, are increasingly investing in the country owing to the growing demand for vehicles. 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 India machine tools market is anticipated to witness a CAGR of 7.3% over the forecast period. Favorable government initiatives such as Make in India are expected to drive investments in various industries, including aerospace & defense, electronics, railways, automotive, etc. India is on the verge of becoming the global high-tech manufacturing hub, with several companies such as Lockheed Martin Corporation, Siemens, Boeing, Apple, Inc., and Panasonic Corporation setting up their manufacturing plants in the country. The flourishing manufacturing sector in the country is anticipated to contribute to the demand for machine tools over the forecast period, thereby leading to the growth of the market in India in the coming years.

Europe Machine Tools Market Trends

The machine tools market in Europe is expected to grow at a significant CAGR as it attracts maximum foreign direct investment (FDI) in the automotive sector. Process innovation, improving R&D, and expansion of automobile production in countries such as Germany, the UK, and France are expected to fuel the growth of the 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.

The Germany machine tools market is expected to grow significantly at a CAGR of 5.2% over the forecast period. Germany is witnessing a rapidly expanding infrastructure as the government is increasingly investing in the development of transport and broadband infrastructure. In the 2030 Federal Transport Infrastructure Plan, the government has planned to invest USD 147.6 billion in road construction until 2030 and allocated USD 74 billion for maintenance and replacement infrastructure. Positive trends promoting infrastructural development are anticipated to drive market growth over the forecast period.

The machine tools market in Italy held a significant share of 5.5% in the Europe region. The construction sector is a vital part of the country's economy. Moreover, investments in the construction sector are anticipated to grow in the coming years owing to the continuation of public works. The growth of the construction sector is expected to drive demand for machine tools in Italy over the forecast period.

Central & South America Machine Tools Market Trends

The machine tools market in Central & South America is estimated to grow rapidly over the coming years. The focus of governments of different countries in Central & South America is on the development of sustainable infrastructures related to railways, urban mass transits, energy and oil & gas production, renewable energy generation, etc., to meet the demands for machine tools of the growing population. This, in turn, fuels the demand for machine tools used in construction applications in the region.

The Brazil machine tools market is expected to grow significantly at a CAGR owing to growing investment in the construction industry. The programs of the government of the country, including Plano Decenal de Expansao de Energia 2026, National Education Plan, and Minha Casa Minha Vida (MCMV), are expected to support the growth of the construction industry in Brazil. This, in turn, is anticipated to drive the demand for machine tools in Brazil during the forecast period.

Middle East & Africa Machine Tools Market Trends

The machine tools market in the Middle East and Africa is expected to grow significantly at a CAGR over the forecast period. Under Vision 2030, Saudi Arabia plans to invest approximately USD 2 trillion in clean energy plants and infrastructural development projects to create a favorable environment for the growth of the electric vehicle market in the country and establish electric vehicle charging infrastructures. These aforementioned factors are expected to drive the demand for the market over the forecast period.

The South Africa machine tools market is expected to grow significantly at a CAGR of 4.8%. Through the South African Automotive Masterplan 2021-2035, the government intends to produce 1% of global vehicle production or 1.4 million vehicles annually in South Africa by 2035, considerably enhancing the country's position in the global vehicle production ranking. This program is anticipated to increase the demand for machine tools used in automotive manufacturing.

Key Machine Tools Company Insights

Some of the key players operating in the market include Amada Machine Tools Co., Ltd. and DMG MORI. CO., LTD., and Georg Fischer Ltd.

• Amada Machine Tools Co., Ltd. operates through its four major divisions, namely sheet metal, cutting and grinding, micro welding, and press automation solutions. Sheet Metal division is an integration of cutting, drilling, bending, and welding processes and provides sheet metal fabrication machines. Major products under the steel metal division are fiber laser machines with 3-axis linear drive technology and a high-accuracy bending robot system.

• DMG MORI. CO., LTD. is engaged in the designing and sale of machine tools such as 5-axis/multi-axis machines, machining centers, lathes, multi-axis machines, ultrasonic machines, milling machines, and laser metal depositions. The company offers CNC machines through its member, namely Taiyo Koki, which specializes in grinding machines such as vertical grinding machines. It also offers cutting-edge machine tools that support a wide range of industries such as automotive, die and mold, aerospace, semiconductor, and medical sectors.

CHIRON GROUP SE, DN Solutions, and Makino are some of the emerging market participants in the market.

• CHIRON Group SE is a technology company that specializes in providing mill-turn and CNC vertical milling machining centers and manufacturing solutions. The company has a global presence, with development and production sites, service and sales subsidiaries, and sales agencies across the world. CHIRON Group SE operates through brands such as CHIRON, STAMA, retrofit brand CMS, and FACTORY5 associated with the new machines. CHIRON and STAMA offer a wide range of CNC machine centers for the complete machining of components. CHIRON offers various product lines, from the compact 08 series through the 25 series, designed for large components. It provides high speed for drilling, milling, countersinking, turning, tapping, reaming, and sawing processes.

• Makino specializes in providing horizontal and vertical machining centers, Numerical Control (NC) machines, laser machines, and Electrical Discharge Machines (EDM). Makino offers its solutions through four categories, namely Machines, Automation, Software & Digital, and Engineering Services. The Machines category includes products such as Horizontal 4-Axis, Horizontal 5- Axis, Vertical 3-Axis, Vertical 5-Axis, Graphite Machining Centre, Wire EDM, Sinker EDM, Grinding, and EDM Hole Drilling.

Recent Developments

• In April 2024, DMG MORI acquired KURAKI Co., Ltd. to foster expansion. It is intended to rebrand the merged entity as DMG MORI Precision Boring Co., Ltd. KURAKI's portfolio, primarily consisting of CNC horizontal boring and milling machines, is a significant aspect of this acquisition. This move is expected to enable the company to embrace new technologies pioneered by KURAKI, thereby enhancing its offerings in the portfolio of CNC machining centers and turning centers.

• In January 2024, DN SOLUTIONS formed a strategic alliance with ModuleWorks, a premier software provider for the CAD/CAM sector, marked by equity investment and collaborative business endeavors. This partnership is set to cultivate a synergistic relationship, emphasizing collective efforts for the development of software for machine tools and the establishment of cohesive solutions aimed at propelling the digital evolution of the manufacturing sector. Moreover, this cooperation is expected to enhance the company's lineup in the CNC turning and machining centers domain.

Machine Tools Market Report Scope

Report Attribute	Details
Market size value in 2024	USD 97.92 billion
Revenue forecast in 2030	USD 137.43 billion
Growth Rate	CAGR of 5.8% from 2024 to 2030
Base year for estimation	2023
Historical data	2018 - 2022
Forecast period	2024 - 2030
Quantitative units	Revenue in USD million/billion and CAGR from 2024 to 2030
Report coverage	Revenue forecast, company market position analysis, competitive landscape, growth factors, and trends
Segments covered	Type, technology, end-use, region
Regional scope	North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
Country Scope	U.S.; Canada; Mexico; Germany; France; Italy; Switzerland; Spain; China; Japan; India; South Korea; Taiwan; Brazil; Argentina; South Africa; Saudi Arabia
Key companies profiled	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
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

Global Machine Tools Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of 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