Machine Tool Market Overview:
According to the International Trade Center (ITC), total trade of machine tools was evaluated at $3.43 billion in 2018. Machine tools are an indispensable part of engineering & construction projects, and intermittently used in operational manufacturing units for maintenance purposes. Owing to prevalent applications of machine tools in various industries, machine tool market had a valuation of $62.6 billion in 2018. Furthermore, machine tool market is expected to escalate with a CAGR of 6.60% during the forecast period 2019-2025.
APAC has been observing a continuous growth in various industries such as energy, construction, and automotive. Machine tools are commonly used in these industries for various purposes such as grinding, turning, boring, and broaching. The growth of these industries is leading to an augmented demand for machine tools, which happens to be the reason machine tool market had made greater revenues as compared to other regions. The energy industry also makes use of machine tools, which has further driven the machine tool market in the region. In 2018, APAC had the maximum machine tool market share of 54.80%.
Machine Tool Market Outlook:
Machine tools are used in various industries such as automotive, aerospace/defense, primary & fabricated metals, electrical & electronic equipment, and others for shaping metals and other rigid materials.
According to the World Steel Association (WSA), total crude steel production accounted as 1,343,429 tons in 2018,  this high production is attributable due to its high industrial applications. Evidently, steel undergoes cutting for usage in manufacturing equipment, pipes, and other industrial entities, hence, creating opportunities for metal cutting machine tools. Owing to widespread use of metals in industries, metal cutting application segment of machine tool market is expected to observe a growth in terms of revenue at a CAGR of 3.20% through 2025.
Machine Tool Market Growth Drivers:
Growth prospects in the automotive industry –
Automotive industry cover a major part in market revenue of machine tool market. According to the International Organization of Motor Vehicle Manufacturers (OICA), 95,634,593 units of vehicles were manufactured in 2018. Furthermore, the future foresees an increase in the number of vehicles, and the emergence of electric vehicles, self-driven trucks, and semi-autonomous & autonomous vehicles will be further boosting the demand for metals that are used in automobiles, in turn will boost the growth of machine tool market.
Aerospace & defense and energy sector supporting the market –
There is a discernible growth in aerospace & defense sector across the globe [PN5] with a substantial amount of aircraft and weapons manufactured yearly that uses metals in large amount. This resonates with the growth prospects in the aerospace material market. The production of airplanes for aerospace and weapons for defense require machine tools, which supports the machine tools market.
The energy sector is observing a tectonic shift with the explosive growth of the wind power market. [PN6] This growth is leading to an enhanced requirement of wind turbines with increased size of wind turbine casting that lead to boost the demand of machine tools by the industry.
Machine Tool Market Trends –
Artificial Intelligence (AI) Poised to Disrupt the Metal Cutting Segment –
In future, AI will be incorporated in metal cutting segment of machine tools market. This will lead to precision in metal cutting, and improve the efficiency of these machine tools.
Acquisitions in Machine Tool Market –
· In June 2017, Allied Machine & Engineering acquired Superion Inc. of Xenia, OH, a cutting tool manufacturer. This acquisition was initiated by the company to diversify its machine tool portfolio.
· In August 2018, AMADA Holdings Co. Ltd. acquired the U.S. metal cutting machine manufacturer named Marvel Manufacturing, Inc. This will position the AMADA holdings Co. Ltd. in the metal cutting segment of the machine tools market.
Machine Tool Market Challenges –
Even though the market trade is on rise, and the growth was leveraged by major players and emerging enterprises in the market, the competition is very dynamic, and the industry is still in its transition phase in terms of automation. Furthermore, the market players are yet at the stage to adapt AI in all the operations. This means that machine tools manufacturing is still time-consuming.
While the machine tool business is said to be lucrative, the investment is hefty, and the returns warrant a robust customer base. The future foresees further expansion in the machine tool market size with industrial development, and the vendors will have more customers. This will help the vendors to have a consistent customer-base to supply machine tools, and so, they will be able to sustain their position in the machine tools market.
Machine Tool Market Key Players Perspective –
The major players striving to capitalize on machine tool market are DMG Mori Seiki Co., Amada Holdings Co. Ltd., Dalian Machine Tool Group Corporation, Falcon Machine Tools Co., Ltd., and Allied Machine & Engineering Corporation.
Machine Tool Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the machine tool market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The machine tool market research report also analyses the application of the machine tools in various industries such as automotive, aerospace/defense, primary & fabricated metals, electrical & electronic equipment, and others.
Machine Tool Market Report: Industry Coverage
This report also documents the machine tool market based on product type that includes metal cutting tools, metal forming tools, and special machine tools.
The machine tool market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
Key Questions Addressed in the Machine Tool Market Report
Is the market demand for machine tool growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market?
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the machine tool market?
A Few Focus Points of this Research are Given Below: