Machine Tools Market Opportunities and Strategies to 2033

This report describes and explains the machine tools 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 machine tools market reached a value of nearly $60.63 billion in 2023, having grown at a compound annual growth rate (CAGR) of 3.20% since 2018. The market is expected to grow from $60.63 billion in 2023 to $82.74 billion in 2028 at a rate of 6.42%. The market is then expected to grow at a CAGR of 5.82% from 2028 and reach $109.77 billion in 2033.

Growth in the historic period resulted from growth of manufacturing activities, growth of the renewable energy sector, increasing automotive production, rising construction activities. Factors that negatively affected growth in the historic period include high maintenance costs and a lack of training.

Going forward, the increasing industrialization, infrastructural development, growing demand for air travel, favorable government support and high disposable income will drive the market. Factors that could hinder the growth of the machine tools market in the future include shortage of skilled workforce and rise in interest rates.

The machine tools market is segmented by product type into metal cutting tools and metal forming tools. The metal forming tools market was the largest segment of the machine tools market segmented by product type, accounting for 55.40% or $33.59 billion of the total in 2023. Going forward, the metal cutting tools segment is expected to be the fastest growing segment in the machine tools market segmented by product type, at a CAGR of 7.50% during 2023-2028.

The machine tools market is segmented by automation type into CNC machine tools and conventional machine tools. The CNC machine tools market was the largest segment of the machine tools market segmented by automation type, accounting for 84.07% or $50.97 billion of the total in 2023. Going forward, the CNC machine tools segment is expected to be the fastest growing segment in the machine tools market segmented by automation type, at a CAGR of 6.54% during 2023-2028.

The machine tools market is segmented by sales channel into direct and indirect. The direct market was the largest segment of the machine tools market segmented by sales channel, accounting for 76.65% or $46.47 billion of the total in 2023. Going forward, the indirect segment is expected to be the fastest growing segment in the machine tools market segmented by sales channel, at a CAGR of 7.00% during 2023-2028.

The machine tools market is segmented by industry into automotive, aerospace and defense, construction equipment, power and energy, industrial and other industries. The automotive market was the largest segment of the machine tools market segmented by industry, accounting for 36.48% or $22.12 billion of the total in 2023. Going forward, the automotive segment is expected to be the fastest growing segment in the machine tools market segmented by industry, at a CAGR of 7.68% during 2023-2028.

Asia-Pacific was the largest region in the machine tools market, accounting for 32.41% or $19.65 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the machine tools market will be the Middle East and Africa, where growth will be at CAGRs of 12.03% and 11.82% respectively. These will be followed by Eastern Europe and Western Europe, where the markets are expected to grow at CAGRs of 6.68% and 6.59% respectively.

The global machine tools market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 18.61% of the total market in 2023. The market fragmentation can be attributed to the presence of small players in different geographies. Trumpf SE + Co. KG was the largest competitor with a 5.08% share of the market, followed by DMG Mori Aktiengesellschaft with 2.47%, JTEKT Corporation with 2.24%, Georg Fischer AG with 1.69%, Fanuc Corporation with 1.52%, Nidec Corporation (Takisawa Machine Tool Co. Ltd) with 1.33%, Komatsu NTC Co., Ltd. with 1.29%, Makino Milling Machine Co. Ltd with 1.14%, Hyundai WIA Corporation with 1.06% and Amada Co,. Ltd. with 0.60%.

The top opportunities in the machine tools market segmented by product type will arise in the metal cutting tools segment, which will gain $11.78 billion of global annual sales by 2028. The top opportunities in the machine tools market by sales channel will arise in the direct segment, which will gain $16.41 billion of global annual sales by 2028. The top opportunities in the machine tools market by industry will arise in the automotive segment, which will gain $9.89 billion of global annual sales by 2028. The top opportunities in the machine tools market by automation type will arise in the CNC machine tools segment, which will gain $18.99 billion of global annual sales by 2028. The machine tools market size will gain the most in the USA at $3.96 billion.

Market-trend-based strategies for the machine tools market include focus on developing next-generation solutions, such as machine tool probes, introducing high-speed vertical machining for modern manufacturing, focus on advanced control features in new computerized numerical controllers (CNCs) and launching innovative products to deliver high accuracy and quality cutting tools.

Player-adopted strategies in the machine tools market include focus on enhancing operational capabilities through new launches, expanding portfolio and market presence in heavy-duty machining by acquisitions and expanding market presence and product offerings through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the machine tools companies to focus on developing next-generation machine tool solutions, focus on high-speed vertical machining solutions, focus on advanced control features in CNC technology, focus on innovative high-precision cutting tools, focus on metal cutting tools market growth, focus on CNC machine tools market growth, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on indirect market growth and focus on automotive market growth.