GVR Report cover Precision Engineering Machines Market Size, Share & Trends Report

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 ID: GVR-4-68039-810-4
  • Number of Pages: 100
  • Format: Electronic (PDF)

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.

U.S. precision engineering machines market size, by end use, 2018 - 2028 (USD Billion)

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.

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.

Global precision engineering machines market share, by end use, 2020 (%)

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 with a revenue share of over 32% in 2020. CNC machining is quickly becoming a key production process for many industries in China. To fulfill the increased demand for sophisticated manufacturing and CNC machining services, China is witnessing lucrative growth opportunities in products and services such as CNC manufacturing systems and optimized manufacturing service centers. Moreover, Japan is home to nearly 200 machine tool manufacturers and is one of the key countries in precision engineering machines. Countries such as India and South Korea are also witnessing an increased demand for precision engineering machines in end-use sectors such as automotive and power & energy. The extensive applications of precision engineering machines in the automotive, aerospace, and electronics sectors and the rising trend of industrial automation, together with the escalating demand for precise production, are driving the growth of the Asia Pacific market.

Europe is expected to emerge as the second-largest regional market in terms of revenue share. Manufacturers in the region are leveraging advances in technology and integrating the latest automation technologies in machines. Europe is followed by North America, wherein advancements in robotics, design and manufacturing processes have resulted in a considerable increase in automation for complete vehicle design and performance improvement. CNC machining is becoming increasingly crucial in the modernization of various industries.

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

Report Attribute

Details

Market size value in 2021

USD 12.33 billion

Revenue forecast in 2028

USD 19.27 billion

Growth rate

CAGR of 6.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

End-use, region

Regional scope

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

Country scope

U.S.; Canada; U.K.; Germany; Greater China; India; Japan; South Korea

Key companies profiled

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.

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 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

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