NEW DELHI, Sept. 27, 2021 /PRNewswire/ -- As per the report "Global Machine Tools Market – Industry Dynamics, Market Size, and Opportunity Forecast to 2027" published by Astute Analytica, the machine tools market is forecast to grow at compound annual growth of 4.7% during the forecast period, 2021-2027.
When processing or machining metal or other stiff materials, machine tools are typically used for cutting, drilling, grinding, shearing, or other forms of deformation. Machine tools have a variety of advantages, the most important of which is the ability to produce in large quantities with minimal effort. As a result of the benefits of machine tools and the growing favorable government measures for the manufacturing sector's growth, the machine tools market is expected to rise in the coming years.
In addition to automation, smart manufacturing methods incorporate big data capabilities, the Internet of Things, artificial intelligence, machine learning, and more. In a range of industries around the world, industrial automation is assisting in increasing efficiency and output. Because machine tools function in real-time to give control of various sections involved in the manufacturing process and other industrial requirements, the expansion of industries is proportional to the growth of the machine tool market.
The industrial sector's strong emphasis on increasing efficiency and decreasing downtime is projected to fuel the overall growth. Emerging countries like China, India, Argentina, Poland, Brazil and others has become a hub for the manufacturing sector. In the global context, the Asia-Pacific area is one of the greatest importers of machine tools; large share of population in the APAC region boost the continues growth of the manufacturing sector to meet the rising demand for goods and services. As a result, smart technology is becoming more prevalent in manufacturing operations, as it aids organizations in enhancing efficiency, maximizing resources, and developing new goods.
The growing demand for mass production in industries such as aerospace and military, and other industries is likely to increase machine tool usage. Metal cutting tool demand is increasing in tandem with the increased use of metals in numerous industries, which projects well for the market growth.
Furthermore, the manufacturing industry is benefiting from favorable government rules and policies, which is driving up the demand for machine tools. For example, in 2016, China's government simultaneously implemented "Made in China 2025" and "Industry 4.0." The goal of the effort is to minimize China's reliance on foreign technology imports while increasing investment in domestic inventions by 40% by 2020 and 75% by 2025. It also aspires to transform China's manufacturing capabilities into a more technologically advanced nation.
Machine tools have a number of advantages, the most important of which is bulk and hassle-free production. As a result, the machine tools market is predicted to increase in the coming years due to the increasing benefits of machine tools and the growing favorable government initiatives for the manufacturing sector's growth.
However, the high expense of installing CNC machines prevents small and medium-sized businesses (SMEs) from incorporating machine tools into their operations. The machines, including CNC milling machines, cost roughly US$ 35-40 per hour to run, according to Prototech Asia. As a result, worries about machine tool installation and the high cost of adopting machines within SMEs are limiting market expansion.
Rising adoption of automatic tools by various manufacturing industries generates profitable opportunities in the market
The use of autonomous tools is projected to be driven by the growing number of smart factories in the industrial sector, as well as increased spending by manufacturers on new equipment to maintain product quality and precise measurements. As per the secondary sources, 43% of the world's smart factories are operational, while 33% have developed a smart factory initiative. In the next 3-5 years, the remaining 8% will adopt smart factories.
As the Industry 4.0 concept gains traction across the manufacturing sector, it is having an impact on the machine tool market, which is attempting to integrate into smart systems. By reducing idle time, Industry 4.0 has the potential to improve the usage of machine tools in production operations.
Furthermore, industry participants are relying on strategic alliances such as partnerships to develop lucrative opportunities for the market. For example, in 2017, DMG MORI and FUCHS PETROLUB SE signed a collaboration agreement that will allow the two firms to collaborate on the development of novel lubricant solutions and services for machine tool applications.
With their manufacturing facilities, foreign players like as Trumpf and Amada have a strong presence in the country. Furthermore, there are a number of small and medium-sized domestic firms active in the production of machine tool parts and components. As a result, during the projection period, these factors will augment the growth of the machine tools market.
Asia Pacific dominates the global market of machine tools
Global market includes the following regions - North America, Europe, Asia Pacific, Middle East and Africa (MEA) and South America. Asia Pacific dominated the market in 2020, with a revenue share of more than 54.1%. This is owing to regional governments' attempts to promote local manufacturing, such as "Make in India" and "Made in China 2025." Middle-class customers' per-capita income has risen, resulting in increased expenditure on goods. Manufacturing businesses are investing in new production plants and machines to meet demand and seize opportunities in the Asian market. Furthermore, low-cost manufacturing competitiveness, such as lower labor costs, young populations, and low raw material costs, has led end-user industries to shift their businesses to Asian countries, resulting in a rapid increase in machine tool demand.
However, due to increased demand for machine tools from incumbents in the aerospace and defense, automotive, and oil and energy industries, among other industries and industry verticals, the North America regional market is expected to grow at the highest CAGR over the projected period. The US-China trade agreement, which might result in a major rise in Chinese agricultural imports from the United States, could lead to an increase in agricultural equipment investment. The USMCA's expected passage will likely expand trade across North America and lead to additional investment in capital-intensive industries.
Trumf, DMG MORI, General Technology, Amada Co. Ltd. and Okuma Corporation dominate the global machine tools industry, which is observed to possess competitive type of the market. In order to stay competitive among the top players, the corporations are using technological breakthroughs into their innovation and expansion initiatives. Market companies' primary strategies include new product development, agreements/partnerships, expansions, mergers, and acquisitions.
Market size analysis based on revenue and volume in several categories is included in the report's market segments. These include product type, automation type, industry, sales channel and region. The highest share of each segment is well illustrated in the report. For instance, in the product type category, milling machines are expected to expand at the fastest rate of 7.4% over the forecast period, while soluble type is expected to account for the largest proportion of nearly 20% in 2020.
Similarly, the CNC machine tools among the automation type dominated the market with more than 50% share in 2020 and is also projected to grow at a fastest CAGR of 5.1% during the forecast period.
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