The global Machine Tools market is estimated to grow at a CAGR of 4.9% and reach approximately $158 billion by the end of 2026. After two years of moderation, the machine tools market witnessed rapid growth in 2017. The most important driving force behind the growth of the market is increasing industrial automation. Moreover, the increasing advancements in robotics and an increase in additive manufacturing will boost the growth of the market. The evolution of 3D printing and its increasing application will also contribute to the Machine Tools market globally.
Machine Tools Market Segmentation
The Machine Tools market is segmented based on product type, end-use and geographical regions. Based on product type the market is classified into drilling machines, grinding machines, machining centers, electrical discharge machines, milling machines, lathe machine and turning machines. By end-use, the market is segmented into Aerospace and Defense, Automotive, Consumer Goods, Electrical and Electronics, Fabrication and Industrial Machinery Manufacturing, Marine, Machine Tools & arts Manufacturing, Precision Engineering, Ship Building, and Others. By geographical regions, the Machine Tools market is classified into North America, South America, Europe, APAC and Middle East & Africa.
Machine Tools Market Challenges
Globally the Machine Tools market is growing and the growth is leveraged by leading players and emerging companies, but the competition in the market is very dynamic. As far as the automation is concerned the industry is still in its transition phase. Also, most of the companies are yet to reach a stage where they can adopt artificial intelligence in all their operations. As a result, machine tool manufacturing is still time-consuming. While Machine Tools business is attractive, it needs high investment and returns require a strong customer base. As a result of industrial development, the Machine Tools market is expected to experience immense growth. This will help companies in creating their customer base and sustain their position in the market..
The Automotive Sector and Aerospace & Defense Sector to Boost Growth
Automotive industry contributes the highest revenue to the Machine Tools market. Rapidly increasing usage of various tools in the automotive manufacturing sector and increasing demand for wheels, gearbox cases, piston rods and engine locks will boost the growth of the market. As per the International Organization of Motor Vehicle Manufacturers more than 9,50,00,000 vehicles were manufactured in the year 2018. Moreover, the production is estimated to increase in future. The evolution of electric vehicles will also contribute to the growth of the Machine Tools market. Apart from the Automotive sector, the Aerospace & Defence sector is also expected to boost the growth of the Machine Tools market as a result of large amounts of air-crafts and weapons manufactured worldwide.
Increasing R&D Investment to Expand Machine Tools Market
The increasing attention of the companies towards the industrial revolution is expected to boost the growth of the Machine Tools market. The up-gradation of products through innovations will also contribute to the growth of the Machine Tools market. Moreover, the increasing investment in R&D by the companies will generate opportunities for the market.