Precision Engineering Machines Market Size, Share & Trends Analysis Report By End-use (Automotive, Non-automotive), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), And Segment Forecasts, 2021 - 2028

Report Overview

The global precision engineering machines market size was valued at USD 11.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028. The rising demand for advanced machining solutions and emphasis on reducing downtime to increase production efficiency, boost accuracy, and optimize machining processes are the key factors driving the market growth. Advanced machining processes help to reduce machining time, which can offset material costs, setup costs, and bespoke machining costs. As such, manufacturing companies are widely deploying precision engineering machines in their manufacturing sites.

Precision engineering incorporates precision machine tool design and assessing machine design, construction, precision valuation and procedure, R&D, and production and measurement of products and parts with high accuracy. The requirements for extremely fine detail and mass production can be met with the help of precision engineering machines. The latest and advanced precision engineering machines provide higher quality-controlling power with less labor involvement, allowing suppliers to increase their profit margins. Newer precision engineering machines are modular and smaller in size compared to older machines, which also contributes to their increasing demand.

Machining solutions offer computerized accuracy, which helps in significantly minimizing repetitive work and machining time, thus improving the efficiency of manufacturing processes. Moreover, advancements in technology have resulted in the development of software and applications that allow managers to track machining operations carried out on the shop floor in real-time and make informed decisions. The growth of the urban population and expansion of commercial and residential sectors are also increasing the demand for precision engineering machines as manufacturers strive to meet the needs of the growing urban population with efficiency and speed.

The COVID-19 pandemic has negatively impacted the market by stifling innovation, suppressing profitability, and drying up cash flow and financial reserves. Lockdowns across the world resulted in the closure of factories, offices, and stores and led to restrictions on distribution, travel, and manufacturing facilities, all of which impacted the market. Revenue streams have been directly affected due to the adverse impact caused by supply chain and trade disruptions on overall operations. The plans to upgrade technology are likely to be delayed due to efforts made toward reducing non-critical and CAPEX investments.

Several prominent market participants are introducing technologically improved precision engineering machines. However, the inadequate number of experienced operators is emerging as a major hindrance to the market expansion. Untrained operators may find it challenging to control precision engineering machines and may cause damage to the machinery, subjecting the production unit's investments to risk. Another market barrier is the considerable costs involved in training existing operators in smoothly running modern precision machinery.

Precision Engineering Machines Market Trends

Precision engineering encompasses precise machine tool design and evaluating machine design, construction, precision valuation and process, R&D, as well as the manufacture and measurement of very accurate products and components. With the aid of precision engineering machinery, the criteria for exceedingly fine detail and mass manufacturing may be satisfied. The most recent and innovative precision engineering equipment give more quality control with less manpower, enabling suppliers to expand their profit margins. Modern precision engineering machines are modular and smaller than earlier devices, which contributes to their rising demand.

Sales are growing due to the rising demand for sophisticated machining solutions and the emphasis on decreasing downtime to enhance production efficiency, boost precision, and optimize machining processes. In addition, industry 4.0 encourages the integration of manufacturing facilities with other processes in order to construct holistic and adaptable automation system designs utilizing precision engineering machinery for production and manufacture. With the arrival of industry 4.0 in the upcoming years, therefore, the market has several potential.

The COVID-19 epidemic has negatively impacted the market by inhibiting innovation, decreasing profitability, diminishing cash flow, and causing an economic imbalance. The COVID-19 pandemic also led to the cancellation of several events in 2020, which hindered the promotion of new products and innovations by firms. On the other side, untrained employees may struggle to operate precision engineering machinery, resulting in machine damage and putting at risk the manufacturing unit's investments. As a result, a dearth of seasoned operators is a key obstacle to industry progress.

End-use Insights

The non-automotive segment held the largest market share of over 78% in 2020. This segment includes aerospace and defense, engineering and capital goods, power and energy, and others. The aerospace industry has observed increased demand for advanced materials such as nickel alloys and titanium alloys in recent years, leading to the increased use of machine tools and cutting tools. In Germany, the demand can be attributed to the fact that precision engineering machines produce components with higher accuracy and better finish in non-automotive industries. In the capital goods industry, heavy equipment and shipbuilding are expected to experience high demand for precision engineering machinery due to the growing production of heavy equipment in APAC countries such as Japan and China.

Investment in industrial and heavy machinery is expected to grow over the forecast period, thereby accelerating the demand for precision engineering machines in Israel, Saudi Arabia, and other Middle Eastern countries. Furthermore, the rising trend of integrating advanced technologies in products to increase the productivity of machinery at drilling locations with newer depths and pressure requirements is expected to have a positive impact on the European and MEA markets.

Regional Insights

APAC dominated the precision engineering machines market in terms of market share in 2020 at over 32.9%. Precision engineering equipment are rapidly gaining importance in China's manufacturing sector. China is seeing profitable growth prospects in products and services including CNC manufacturing systems and optimized manufacturing service centers in order to meet the growing demand for advanced manufacturing and CNC machining services. Japan is also home to almost 200 machine tool makers, making it one of the leading nations for precision engineering tools. Countries like India and South Korea are also experiencing a growth in demand for precision engineering machinery in end-use industries like the automotive and power & energy industries.

In terms of market share, Europe is anticipated to emerge as the second-largest regional market. The region's manufacturers are utilizing technological developments and incorporating the most advanced automation technologies into their machinery. Europe is followed by North America, where advances in robotics, design, and manufacturing processes have led to a significant rise in automation for overall vehicle design and performance enhancement. The importance of CNC machining in the modernization of numerous sectors is growing.

North America is the world's third-largest market for electric vehicles. Factors such as the presence of well-established automobile manufacturers such as General Motors Company, Nissan, Tesla and Ford and suitable infrastructures for producing electric vehicles, as well as the high disposable income of the masses in the region, are anticipated to drive the growth of the metals in electric vehicle charging infrastructure market over the forecast period. Favorable government rules and initiatives in the form of tax refunds and subsidies have accelerated the development of electric vehicles, consequently increasing demand for precision engineering machinery.

Different governments in Latin America encourage the use of electric cars, particularly for public transit. With favorable regulations to establish an electric car network, goals to reduce vehicle emissions, and rising sales of electric vehicles, the area is anticipated to increase electric vehicle production. This is expected to enhance the need for precision engineering machines used in the mass production of different car components in Latin America throughout the projected period.

Key Companies & Market Share Insights

Strategic mergers and acquisitions and partnerships are estimated to be the most effective ways for market players to gain quick access into emerging markets. In February 2020, DMG Mori Co., Ltd. acquired GLOphotonics SAS, a manufacturer of femtosecond laser delivery technology. This acquisition is expected to expand the application of femtosecond to create additional surface quality and process large components. Similarly, in April 2017, Dalian Machine Tool Group Corporation and Gazdevice set up a joint venture in Moskovskaya Oblast for high precision machine tools. The new venture is expected to manufacture NMC machine tools and vertical and horizontal machining centers. Product differentiation and upgrades are also anticipated to pave the way for company expansions in the market. In October 2020, DMG Mori Co., Ltd. developed AI Chip Removal, which automatically removes chips generated during machining with the use of AI. This initiative has helped the company to maximize the production performance of automation systems. Additionally, in May 2017, Okuma Corporation inaugurated its new smart DS2 parts factory with a focus on smart machines and unmanned operations to increase its production capacity. Some of the prominent players operating in the global precision engineering machines market are:

• Amada Machine Tools Co., Ltd.

• Amera-Seiki

• DATRON AG

• Dalian Machine Tool Group (DMTG) Corporation

• DMG Mori Co., Ltd.

• FANUC Corporation

• Haas Automation, Inc.

• Hurco Companies, Inc.

• Okuma Corporation

• Shenyang Machine Tool Co., Ltd.

• Yamazaki Mazak Corporation

Precision Engineering Machines Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global precision engineering machines market report based on end-use and region:

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • Automotive

  • Non-Automotive

    • Aerospace & Defense

    • Engineering & Capital Goods

    • Power & Energy

    • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • Greater China

    • Japan

    • India

    • South Korea

  • Latin America

  • Middle East & Africa