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Machine Tools & Equipment Market Analysis

Machine tools and equipment manufacturers provide the industrial equipment and technology for producing machines used by many other manufacturing and service industries.Their primary function is metal working. Examples include drill presses, lathes, grinding machines and multitasking machines that combine turning, milling, grinding and material handling. Most modern machine tools are automated. The USA is one of the world’s largest markets for machinery and also one of the largest suppliers of machine tools and equipment.

Key Market Segments

Important market segments for machine tools and equipment include:

Manufacturers of agricultural machinery used to grow, process, package, transport, and distribute food and beverages. Increasing demand for agricultural produce due to global population increase and technologically advanced machinery are likely to drive the global market for agricultural machinery to $122.9 billionin the short term and thus boost the market for machine tools for this industry.

Manufacturers of construction machinery include heavy trucks, road paving and earth-moving machinery, tractors, bulldozers and cranes. Caterpillar is one of the largest construction machinery manufacturers with more than $28 billion in sales.

Mining machinery includes bulldozers and backhoes, crushers, feeders and gravel pumps and other equipment for gold mining, gemstone mining, metal mining and mineral mining. Increasing mining activities in developing countries among other factors is likely to drive the market to more than $100billion in the foreseeable future and so to increase the market for machine tools and equipment.

Manufacturing machinery coverstools and equipment that find application in manufacturing industries such as automotive, aerospace and medical devices. It includes machine tools for cutting, stamping and forming metals, plastics and rubber manufacturing machinery and a wide range of cutting tools, dies and accessories.

Regional Market Shares

The world’s largest machine tool markets based on consumption are China, the USA, Germany and other Asian countries.

China is one of the world’s largest machine tool markets, both as a producing and consuming country. Purchases of machine tools in this country exceed $31 billion. Expansion in the country’s industrial machinery and transportation equipment industries is likely to drive the market for new machine tools in the short term.

In the USA machine tools area more than $8billion industry. The USA machine tools and equipment manufacturing industries are also strong and consistent exporters to neighboring markets like Canada and Mexico.

Germany, due to increasing purchases primarily from the automotive, plastic products, and aircraft and spacecraft industries is a more than $6 billion industry, making it one of the largest markets for machine tools.

The emergence of Asian countries in terms of economic growth and their keen interest in developing local manufacturing is fuelling investments in the development of their domestic machine tool industry. As a consequence, robust growth is seen in this industry in the developing countries, particularly in Taiwan and South Korea.

Market Outlook

Key trends in the machine tools and equipment business include:

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