CLEVELAND, Feb. 24, 2016 /PRNewswire/ -- Worldwide demand for machine tools is projected to climb 5.5 percent per year through 2019 to $181 billion. Gains at the global level will be largely driven by market growth in China and other developing nations, where demand for durable goods is expected to post the strongest increases. This will result in additional investment in new manufacturing capacity and related machine tools in the Asia/Pacific region, the Africa/Mideast region, Eastern Europe, and Central and South America. China alone is expected to account for more than two-fifths of all new product demand through 2019. These and other trends are presented in World Machine Tools, a new study from The Freedonia Group, a Cleveland-based industry research firm.
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Through 2019, machine tool demand in Western Europe, the second largest regional market worldwide, is expected to grow nearly six percent per annum. Growth will be in line with the average worldwide pace, and Western Europe will account for 18 percent of product demand gains through 2019. Market conditions in numerous regional countries are expected to improve as both overall economic growth and gross fixed investment accelerate. Analyst Gleb Mytko notes, "Growth will also be supported by the introduction of more expensive machine tools." In order to develop the next generation of durable goods, manufacturers in the region will invest in machine tools that offer increased control and precision. In Japan, the world's fourth largest national market behind China, the US, and Germany, demand for machine tools is expected to rebound after several years of losses. Because many Japanese durable goods firms delayed making machine tool purchases in recent years, there is significant pent-up demand in the country.
North America is projected to see machine tool demand decline nearly one percent per year through 2019, due solely to weakness in the large US market. In contrast, Mexico will continue to experience rapid advances in machine tool sales, while the Canadian market is expected to grow at about the world average pace. Many durable goods companies in North America modernized existing facilities, built new plants, and purchased additional machine tools in recent years. As a result, there will be less new and replacement product demand in the region during the 2014-2019 period.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group