Machine Tools Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Machine Tools Market Data

Machine Tools Market Trends & Drivers

Usage of Automation and Robotics

• The increase in the usage of automation and robotics in machine tools can be attributed to the lack of skilled labor in the manufacturing industry of developed countries and the rising popularity of these approaches in the aerospace, defense, medical device, marine, and other industries.
• Industry 4.0 has nourished innovations including AI, big data, robotics, and automation, to enhance efficiency, productivity, and flexibility across numerous sectors.
• The rise in the pressure on manufacturers to deliver top-quality products with sustainability and efficiency is a major reason for the rise in the usage of machine tools in the metal fabrication and industrial manufacturing industries to enhance output and reduce errors.
• For instance, the automotive industry uses automated visual inspection systems, which have substantially reduced PPM defects in their yields.
• In October 2023, cutting tool consumption in the U.S. reached USD 213 million, according to the U.S. Cutting Tool Institute (USCTI) and the Association for Manufacturing Technology. The sales in 2023 were up by 7.9% from the same period in 2022.

Increasing Adoption of CNC Technology

• A CNC machine takes input from the CAD software and performs operations with precision, to minimize errors in the design. These tools are widely used in the aerospace industry for manufacturing engine mounts, wheels, wings, landing gear, turbines, and other components from lightweight materials, such as carbon fiber, aluminum, and titanium.
• They also have particular applications in the motorsports industry, being used to quicken the manufacturing process and promise accurate and quality components. Several vehicle manufacturers that field teams in motorsports are forming alliances with the suppliers of CNC machine tools to create lightweight yet powerful and high-speed motorcycles and cars.
• At present, the production of injection molds is gaining increasing attention in the medical device industry, which itself continues to grow rapidly.
• The benefit of a CNC machine is that it can operate continuously without any fatigue and is able to perform countless tasks, thus leading to higher productivity.
• The technological advancements in these machines, tailored to different applications across industries, will drive the expansion of this market over the forecast period.

Lack of Skilled Labor

• The manufacturing sector lacks skilled labor. As the adoption of automation and robotics has increased in the machine tool industry, so has the need for skilled labor with specialized skills, inclusive of automation, robotics, engineering, programming, and other technicalities, to operate these machine tools.
• The dynamics of the global economy are a big obstruction to the growth of the manufacturing industry, which is directly responsible for the growth of this market. If the growth of global markets slows down, it directly results in the decline of the revenue for machine tool suppliers.
• The lack of standardization in industrial communication protocols and interfaces results in incompatibility issues, making it tough for different devices and machines to connect with each other.
• This lack of standardization is responsible for the emergence of custom adaptors and gateways to assist the communication between machines, thus increasing the cost of operation and the final product.
• Amidst the Fourth Industrial Revolution, the use of standards and a collaborative approach can help in achieving higher precision and fostering useful innovations.

Segmentation Analysis

Type Insights

• The metal cutting category held the larger market share, of around 70%, in the global market share in 2023.
• Metal cutting machine tools are utilized in various industries, such as automotive, aerospace, defense, mechanical engineering, and medical devices, to produce precise and suitable designs from different metals and alloys, such as iron, steel, aluminum, titanium, and copper.
• This category can be further divided into machining centers, turning machines, grinding machines, milling machines, electrical discharge machines, and others.
• Milling machines hold the largest share of the market since it is difficult to achieve metal cutting precision with conventional methods. Their capacity to deliver high-quality work makes them the first choice of manufacturers.
• On the other hand, metal forming machines are used for bending, shaping, punching, and other purposes.
• The idea of sustainability and efficiency is boosting the growth of the overall market, as manufacturers prefer machines with reduced electricity consumption and minimum waste generation.

Below are the types of machine tools that were analyzed in the report:

• Metal Cutting (Larger and Faster-Growing Category)
  • Milling machines (Largest Category)
  • Electrical discharge machines (Fastest-Growing Category)
  • Grinding machines
  • Lathe machines
  • Turning machines
  • Machining centers
  • Others
• Metal Forming
  • Bending machines
  • Punching machines
  • Presses
  • Others

Automation Insights

• The CNC category held the larger share, of around 75%, in the global machine tools market in 2023, and it is also the fastest growing in the automation segment. CNC machines are capable of reducing the time and error rate during the manufacturing process.
• They use CAD and CAM software to take design instructions from a computer. CNC machines are capable of performing multiple tasks with the help of single-line commands, thus reducing the time required for guiding and instructing someone. They are also perfect for end-time customization.
• Different types of machines, such as milling, grinding, turning, lathing, drilling, and electrical discharge machines, can be integrated with the CNC technology.
• The most-common type methods for using conventional tools are turning, knurling, face operations on a lathe machine, and drilling with a hand-held machine.
• Conventional tools have a downside in that they need to be handled by skilled laborers; otherwise, the result obtained will not meet the design requirement.
• Both CNC and conventional machine tool techniques aim to generate superior results. But, for their higher and more-precise production, the CNC technology is preferred over conventional machine tools.

The automation types studied under this segment are:

• Computer Numerical Control (CNC) (Larger and Faster-Growing Category)
• Conventional  

End User Analysis

• The automotive industry holds the largest share of the global machine tools market due to these machines’ application in the manufacturing of gears, crankshafts, pistons & piston rods, wheels, engine locks, and other vehicle components.
• The electrical industry is the fastest-growing category as it makes use of both CNC and conventional tools.

The end users analyzed during this report are:

• Automotive (Largest Market)
• Electrical (Fastest-Growing Market)
• Metal Fabrication and Industrial Machinery
• Precision Engineering
• Aerospace and Marine
• Energy and Power
• Medical Devices
• Others

Asia-Pacific Holds Largest Revenue Share

• APAC was the largest shareholder of the global machine tools market revenue in 2023. The increasing rate of industrialization and growing population in countries such as China and India are the biggest drivers for the tools market.
• Furthermore, the growth in the APAC market is due to the competition among the emerging economies to become a manufacturing powerhouse. This, combined with the government initiatives, such as Make in India, Made in China 2025, and Making Indonesia 4.0, creates a favorable environment for investment in the market.
• In addition, significant growth is being observed in the IT sector of North America, thus boosting the demand for precision-engineered semiconductors and electronic components.
• Europe is a key producer of automobiles, thus attracting hefty investments in manufacturing. Countries such as Germany, the U.K., and France are improving their automotive production capabilities using CNC machines to meet the growing demand for luxury cars.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K.
  • Germany (Largest Country Market)
  • France (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

At present, the metal tools market is a little fragmented. Key industry players are trying to implement new technologies to allow users to create high-quality parts.

There are many players in the machine tools industry all over the globe, with the well-established ones generally in the lead. Most of the industry players focus on forward integration, i.e., selling their goods directly to customers in various industries. Some of these companies have a well-established supply chain to distribute their product across various nations.

Machine Tools Companies News

• In January 2024, Renishaw plc announced that its modeling software FixtureBuilder 3D can perform the fast creation and documentation of CAD designs. This eliminates the setup for repeatable and productive part inspection.
• In January 2024, ModuleWorks announced a partnership with DN Solutions to develop machine tool software for automated machining cycles and user-assisted solutions.
• In December 2023, GenSwiss announced its merger with Utilis AG for the production of more CNC Swiss-type machining products.
• In January 2024, DN Solutions announced the receipt of the ISO 50001 certification in international energy management certification, along with ISO 9001 quality management system certificate, ISO 14001 environmental management system certificate, and ISO 45001 health and safety management system.
• In December 2023, FFG inaugurated a technology center, where it carries out demonstrations of its CNC equipment and horizontal and vertical milling and turning solutions for multitasking and high-volume operations.
• In October 2023, Rego-Fix announced its proposal to build a new technical hub, thus expanding its facility in Whitestown, Indiana.