Machinery Global Market Opportunities and Strategies to 2033

This report describes and explains the machinery market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global machinery market reached a value of nearly $3.5 trillion in 2023, having grown at a compound annual growth rate (CAGR) of 4.2% since 2018. The market is expected to grow from $3.5 trillion in 2023 to $4.9 trillion in 2028 at a rate of 7.3%. The market is then expected to grow at a CAGR of 6.4% from 2028 and reach $6.7 trillion in 2033.

Growth in the historic period resulted from the rising urbanization, growth in the manufacturing industry, rising home renovation projects and increasing mining activities. Factors that negatively affected growth in the historic period were high capital and maintenance costs and fluctuating metal prices.

Going forward, expansion of the automotive industry, rising road and bridges construction, the increasing number of drilling activities, government initiatives and infrastructure investments and the rising demand from the agricultural industry will drive the market. Factors that could hinder the growth of the machinery market in the future include a rise in interest rates and skilled labor shortages.

The machinery market is segmented by type into automatic, semi-automatic and manual. The semi-automatic market was the largest segment of the machinery market segmented by type, accounting for 45.7% or $1.6 trillion of the total in 2023. Going forward, the automatic segment is expected to be the fastest growing segment in the machinery market segmented by type, at a CAGR of 8.3% during 2023-2028.

The machinery market is segmented by capacity into small, medium and large. The medium market was the largest segment of the machinery market segmented by capacity, accounting for 51% or $1.8 trillion of the total in 2023. Going forward, the large segment is expected to be the fastest growing segment in the machinery market segmented by capacity, at a CAGR of 7.9% during 2023-2028.

The machinery market is segmented by vertical into agriculture, construction and mining machinery, industrial machinery, commercial and service industry machinery, ventilation, heating, air-conditioning and commercial, refrigeration equipment, metalworking machinery, engine, turbine and power transmission equipment and other general-purpose machinery. The agriculture, construction, and mining machinery market was the largest segment of the machinery market segmented by vertical, accounting for 20.6% or $717 billion of the total in 2023. Going forward, the engine, turbine, and power transmission equipment segment is expected to be the fastest growing segment in the machinery market segmented by vertical, at a CAGR of 8.4% during 2023-2028.

Asia-Pacific was the largest region in the machinery market, accounting for 40.8% or $1.4 trillion of the total in 2023. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the machinery market will be the Middle East and Africa, where growth will be at CAGRs of 15.2% and 14.5% respectively. These will be followed by South America and Western Europe, where the markets are expected to grow at CAGRs of 10.3% and 7.4% respectively.

The global machinery market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 10.65% of the total market in 2022. Deere & Company was the largest competitor with a 1.89% share of the market, followed by Caterpillar Inc. with 1.83%, EXOR Group with 1.51%, Volvo AB with 1.45%, Komatsu Ltd. with 0.77%, CNH Industrial NV with 0.73%, Mitsubishi Heavy Industries Ltd. with 0.71%, Hitachi Ltd with 0.68%, Kubota Corp. with 0.64% and AGCO Corporation with 0.44%.

The top opportunities in the machinery market segmented by type will arise in the semi-automatic segment, which will gain $677.8 billion of global annual sales by 2028. The top opportunities in the machinery market segmented by capacity will arise in the medium segment, which will gain $792.4 billion of global annual sales by 2028. The top opportunities in the machinery market segmented by vertical will arise in the agriculture, construction and mining machinery segment, which will gain $320.3 billion of global annual sales by 2028. The machinery market size will gain the most in the USA at $212.2 billion.

Market-trend-based strategies for the machinery market include focus on developing and offering robotic excavators, focus on developing innovative solutions, focus on directing efforts towards the development of AI (artificial intelligence)-powered systems for heavy equipment, focus on transforming packaging processes through innovative multi-track and pick-fill-seal machines, focus on developing recycling machines, focus on prioritizing efforts towards connected manufacturing and focus on expansion of manufacturing facilities into new geographic areas.

Player-adopted strategies in the machinery market include focus on expanding operational capabilities through strategic acquisitions, focus on enhancing business capabilities through the launch of new products and focus on enhancing business operations through strategic collaborations and partnerships.

To take advantage of the opportunities, the analyst recommends the machinery companies to focus on robotic excavators, focus on precision CNC machinery, focus on AI-powered systems for heavy equipment, focus on innovative packaging machinery, focus on automated punch-laser machines for connected manufacturing, focus on automatic and semi-automatic segments, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, focus on engine, turbine, and power transmission equipment and agriculture, construction, and mining companies and focus on automobile manufacturers.