Machine tools market, after reaching the global valuation of around US$75 Bn in the year 2020, will most likely pursue its stable growth through the next few years.
Demand for Smart Tools to Complement Global Machine Tools Market Growth
Several industries underwent significant transformations with continual advancements in technology. With the advent and increasing adoption of robots alongside human and machine interface, the machine tools market is expected to gain significant momentum in the coming years. Moreover, with the proliferation of cloud technology, real time connectivity has given an impetus to the trend of smart factory, and automation. This has further led to an increase in demand for smart machine tools as they become a crucial part of smart systems influencing productivity.
Smart machine tools include advanced sensors that facilitate optimisation of machine time along with scheduling maintenance. The data obtained from the tool can be analysed to discover gaps in efficiency, thus complementing productivity. Additionally, smart sensors can also enhance predictive analytics thus reducing the possibility of downtimes in turn addressing idle time issues. In addition, these tools do not consume excess power resulting in optimum power utilisation. These factors are expected to fuel demand for smart tools, consequently contributing towards growth of the machine tools market.
Ascending Demand for Advanced Tools from Automotive and Aerospace Industries Warrant Bright Prospects of Machine Tools Market
The demand for various types of machine tools from the automotive sector is expected to increase at a significant pace in the forthcoming years. This is mainly owing to increasing dependence on machine tools in the manufacturing of different parts on the back of their high precision and cost effectiveness. For instance, milling tool is used to manufacture various automotive parts such as wheels, engine locks, gearbox cases, and piston rods. In addition, demand for advanced machine tools is likely to remain high in vehicle assembling activities as well as in development of auto parts. This in addition to a stable rise in the automotive sector is expected to pave the way for the growth of machine tools market.
Furthermore, machine tools are widely used in aerospace industry. Aircraft manufacturers are focusing on enhancing efficiency of component production for aircrafts on a continuous basis. Also, they are putting efforts in improving flight safety along with reducing environmental damage. The industry being a hotbed in the manufacturing space, a strong demand for advanced machine tools is expected to be witnessed, particularly for tools with the 5-axis capability for machining of parts in the aerospace industry. Moreover, low price point of the 5-axis technology has fuelled its use in part machining that requires high precision. This factor remains instrumental in driving the need for machine tools in aircraft production, thus auguring well for the growth of machine tools market.
Upswing in CNC Technology to Influence Growth of Machine Tools Market
From the technology standpoint, the use of computerised numerical control (CNC) machine tools is expected to increase at a significant pace on the back of growing digital transformation. Rising need for precision in complex machine products, demand for high efficiency and low operating costs across industries continue to influence the adoption of CNC tools. In addition, by using CNC technology, human intervention is minimised, thus eliminating the possibility of human errors. High accuracy of CNC machines assures an improved and a consistent product quality, in turn enhancing speed of production. Furthermore, rise in the automation of processes in production facilities on the back of rising demand for short lead times and high precision is expected to drive the adoption of CNC technology. This factor coupled with growing manufacturing sector is poised to offer new avenues for CNC technology, in turn aiding the growth of the machine tools market on the global front.
Stronghold of Asia Pacific Prevails in Global Machine Tools Market
Developing countries in Asia Pacific are expected to showcase high growth potential with regards to adoption of machine tools. This can be attributed towards rising metal cutting industries in Asia Pacific. Moreover, the region is considered as the manufacturing hub and has attracted several companies to establish their manufacturing facilities across the region. This is mainly due to favourable business environment coupled with rising customer pool and cheap availability of land and labour. Emerging economies such as China, and India are likely to reflect high market lucrativeness. Rising automotive sector, construction activities and infrastructure development coupled with government initiatives are likely to emboss a positive impact on the Asia Pacific machine tools market.
Moreover, according to India Brand Equity Foundation (IBEF), machine tools sector in India is a critical aspect of the manufacturing space in the country. The momentous growth in the manufacturing sector in the country has triggered demand for sophisticated CNC technology across segments such as consumer goods, automobiles, auto components, and aerospace. In addition, increasing thrust on the research and development activities and innovation to maintain a stable technological parity with multinational players is expected to further drive the machine tools market in India. Likewise, growth in precision engineering, transportation equipment industry and industrial machinery in China has fuelled the demand for machine tools. Overall, the machine tools market scenario in Asia Pacific remains optimistic and manufacturers can expect a volley of opportunities in the forthcoming years.
Machine Tools Market: Competition Landscape
Major players in the machine tools market are involved in acquisitions, mergers, and collaborations to strengthen and maintain their position. For instance, in 2021, Methods Machine Tools announced its plan of acquiring Koch Machine Tool. With this acquisition, Method’s continued growth would be ensured, in turn giving it a competitive advantage. Similarly, same year, Nidec Corporation planned for a stock acquisition of Mitsubishi Heavy Industries Machine Tool Co. Ltd. thus complementing its business. Post the acquisition, Nidec announced its plan to further expand the machine tools business with Mitsubishi by using their respective brand strengths, technological capabilities, and customer bases.
A few of the major players in machine tools market include Trumpf Group, Falcon Machine Tools Co. Ltd., Amada Co. Ltd., Shenyang Machine Tool Group, DMG Mori Seiki Co. Ltd., Mitsubishi Heavy Industries Machine Tool Co. Ltd., Schuler AG, and Yamazaki Mazak Corporation.
The Global Machine Tools Market Is Segmented AsBelow:
Key Elements Included In The Study: Global Machine Tools Market
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