Machine Tools Market to grow by USD 9.7 Million (2024-2028), driven by Infrastructure growth,with AI driving market transformation - Technavio

The global machine tools market is expected to grow by USD 9.7 million, registering a CAGR of 1.91% from 2023 to 2028. The market is witnessing steady expansion due to rising machine tools demand, increasing adoption of CNC machines, and advancements in precision machining. The surge in industrial automation is further driving the need for tooling equipment and manufacturing technology, particularly in sectors such as automotive, aerospace, and industrial machinery. Additionally, growing emphasis on metal cutting tools, production machinery, and evolving automation trends are shaping the market landscape. Continuous tooling innovations are also enhancing operational efficiency and expanding application areas across various industries.AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Market Segmentation

By End-User

• Automotive
• Industrial Machinery
• Precision Engineering
• Transportation
• Others

By Geography

• APAC

  • China
  • India
  • Japan
• Europe
  • Germany
  • France
• North America
• Middle East & Africa
• South America

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Market Dynamics

Drivers

• Rising Industrialization in Developing Countries
  • Infrastructure growth, especially in Asia, is increasing demand for metalworking processes.
  • Expansion in automotive, aerospace, electronics, and consumer goods sectors is fueling market growth.

Trends

• Adoption of 3D Printing Technology
  • Additive manufacturing is transforming traditional machining by reducing material costs and enhancing customization.
  • Increasing investments in metal and polymer 3D printing technologies.

Challenges

• High Initial Investment and Operational Costs
  • SMEs face financial barriers due to the high purchase, installation, training, and maintenance costs of advanced machine tools.
  • Energy consumption and tooling expenses add to the overall cost of ownership.

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Key Market Segments

The market is evolving with the integration of CNC machines, robotics, and smart factories, optimizing metal cutting and forming processes. Advancements in AI, IoT, and cloud-based monitoring are enhancing efficiency.

Key applications include:

• Precision Engineering
• Metal Cutting Tools
• Metal Forming Machines
• Automation & Robotics
• Smart Factories & IoT

Industries such as automotive, aerospace, electric vehicles, and general machinery are adopting high-precision machining solutions to improve productivity. Technologies like self-cooling machines, laser-induced heating, and laser hardening are further driving innovation.

Regional Market Trends

APAC (37% Market Growth Contribution)

• China, India, and Japan are driving regional demand.
• Growth in automotive and electronics industries is boosting the adoption of advanced machine tools.

Europe

• Strong presence of automotive and industrial machinery sectors in Germany and France.
• Adoption of automation and smart manufacturing technologies is accelerating.

North America

• Increasing investments in advanced CNC machining and robotics.
• Aerospace and automotive industries driving demand for high-precision tools.

Key Players

• 600 Group Plc
• Allied Machine and Engineering Corp.
• ALZMETALL GmbH and Co. KG
• AMADA Co. Ltd.
• DMG MORI Co. Ltd.
• DN Solutions Co. Ltd.
• FALCON MACHINE TOOLS Co. Ltd.
• FANUC Bulgaria EOOD
• FFG European and American Holdings GmbH
• General Technology Group Dalian Machine Tool Corp.
• Georg Fischer Ltd.
• Haas Automation Inc.
• Hardinge Inc.
• Hyundai Wia Corp.
• JTEKT Corp.
• Kennametal Inc.
• Komatsu Ltd.
• Makino Inc.
• Okuma Corp.
• Otto Bihler Maschinenfabrik GmbH and Co. KG

Future Insights

The machine tools market is set for gradual growth, driven by technological advancements, Industry 4.0 adoption, and increasing demand from manufacturing industries. The expansion of 3D printing technology and automation solutions will continue reshaping the industry landscape. However, high capital investment costs may pose challenges for SMEs entering the market.