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Global Industrial Equipment Manufacturing Industry

The industrial equipment manufacturing industry makes activities across many other industries possible, supplying companies with highly specialized products and services such as maintenance and repair. The market is very competitive, with manufacturers seeking to anticipate demand to deliver products to reduce production time and offer increasing services. Challenges to the industry include climbing costs for raw materials and environmental regulations such as emission control.

Machinery manufacturing made the industrial revolution possible and continues to fuel advances in economic and technological development. Machines and parts produced by the industry are used in other sectors, for example industrial turbines and mining equipment. The industry also produces parts for consumer products, such as lawn mowers and refrigerators. The industry’s workforce is skilled, needing some form of higher education to attain their expertise. Around 50% of workers in the industry are production workers.       

Key Market Segments

The global electrical equipment market is expected to expandat more than 4% per year from 2010 to 2015, at which time it will be worth almost $220 billion, according to MarketLine. In 2010, power cables topped this market segment, reaching in excess of $45 billion or over a quarter of overall market revenue.

The worldwide market for transformers is expected to reach almost $54 billion, or 9.7 million units of electricity by 2017, according to research from Global Industry Analysts. Growing demand for electricity in developing nations is fuelling the market, along with rising demand for voltage transformers and higher government spending in the power sector. Urbanization across the world will continue to grow demand, with gas-insulated transformers proving particularly lucrative.

The global machine tools market is expected to be worth more than $165 billion by 2017, according to Global Industry Analysts. Machine tools are used to fabricate the majority of today’s products and are central to manufacturing in industries such as automotive, IT and construction. Demand is showing marked growth in developing economies like India, Brazil, Thailand and Taiwan.

The global construction mechanics market is expected to grow at 6.5% yearly to reach an overall worth of over $170 billion in 2015, according to Freedonia. North American equipment demand is expected to expand at almost 7% yearly over the five-year period ending 2015. Expansion is forecast to slow through 2015 in Central and South America, Asia-Pacific, and Africa-Mideast due to a falling off in construction and mining.

The world bearings market is expected to be worth over $63 billion by 2015 according to Global Industry Analysts. Growth is being fuelled by industries reliant on the bearings market, including construction equipment, automotive and agriculture. Demand will be especially strong in China.

The global industrial valves market has a forecast worth of $72 billion in 2015 says Global Industry Analysts. The market is fuelled by state legislation regarding emission control and rising demand for electricity and water. Demand is expected to be particularly strong in developing nations such as Latin America and Asia.

Regional Market Share

The US commercial and service industry for machinery manufacturing was worth almost $12 billion in 2010, according to Supplier Relations. The market grew close to 30% in 2010, with imports worth almost $487 million from 50 countries. Exports for the industry were worth around $0.8 billion, spanning 155 countries. Total domestic demand exceeded $11.5 billion in 2010.

U.S. Industrial Machinery Manufacturing, Seasonally Adjusted Value of Shipments, *In US$ Bn

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