Global Machine Tools Market Manufacturers, Size, Share, Analysis, Report, 2030

[262 Pages Report] The global machine tools market size was valued at USD 78.6 billion in 2023 and is expected to reach USD billion by 2030, at a CAGR of 4.2% during the forecast period 2023-2030. The rising demand for manufactured goods across diverse industries catalyzes the growth and evolution of the global machine tools market. This demand fuels the development of more advanced, efficient, and specialized machine tools capable of meeting the intricate and diverse needs of the modern manufacturing process. As the demand for precision, customization, and high-volume production continues to surge, the machine tools market is propelled forward, fostering innovation and technological advancements.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Market Dynamics:

Driver: Increasing demand for precision and efficiency

Industries such as automotive, aerospace, electronics, and healthcare sectors have stringent demands for high-precision components. Machine tools need to meet these requirements to ensure the production of intricate parts with minimal error margins. As product designs become more complex and sophisticated, the need for tight tolerances and impeccable quality standards rises. Machine tools with cutting-edge technologies, such as computer numerical control (CNC), provide the precision necessary to meet these exact specifications.

Precision in manufacturing directly correlates with minimized waste and rework. High-precision machine tools ensure that parts are manufactured accurately the first time, reducing material wastage and the need for costly reworking processes. Integrating digital technologies and data-driven solutions in machine tools also allows for predictive maintenance, real-time monitoring, and adaptive control. This integration enhances precision and efficiency while minimizing downtime.

The global machine tools market responds to these demands by continually innovating and developing cutting-edge technologies. Manufacturers invest in research and development to create more precise, efficient, and adaptable tools capable of meeting the evolving needs of modern manufacturing. The focus on precision and efficiency remains a key driver, guiding the market towards advancements that push the boundaries of what is achievable in manufacturing processes.

Restraint: High initial investment costs

The cost of buying advanced machine tools is high. This is a major factor impeding the global machine tool market's expansion. Depending on the brand and model, brand-new CNC lathes and routers can cost thousands of dollars. The expenses incurred by organizations that use CNC machines are subsequently raised by these investments, which also include shipping, installation, operating, and maintenance expenditures. CNC machines have a large weight range of 100 pounds to several tons. Purchase agreements typically cover transportation expenses; if not, customers may have to pay hundreds of dollars in additional fees.

Additionally, CNC machines can be tailored to meet the needs and specifications of final customers. The applications for which CNC machines are intended vary in their requirements. In addition, CNC machines need to be updated, when the manufacturing process or products undergo significant modifications that result in elevated expenses. These high costs associated with the overall operation of CNC machines are the key factors considered in making purchase decisions. They are expected to hinder the adoption of CNC machines, especially across cost-sensitive regions and industries. Therefore, high installation and maintenance costs about machine tools are expected to prove to be a restraining factor for the growth of the global machine tools market.

Opportunity: Increasing adoption of CNC technology

The adoption of computer numerical control (CNC) technology in machine tools has been transformative in the manufacturing industry. CNC technology has revolutionized machining processes by offering precision, efficiency, and automation. CNC technology allows for incredibly precise and accurate machining operations. Machines controlled by computer programs ensure consistent quality, reducing errors and improving the overall precision of manufactured parts.

CNC machines operate continuously and can run multiple tasks without manual intervention, leading to higher productivity. Automated tool changes, faster cutting speeds, and reduced setup times contribute to increased efficiency in production. CNC technology enables the production of intricate and complex parts that might be challenging or impossible to manufacture using conventional methods. This capability is especially crucial in industries like aerospace, automotive, and medical devices. CNC machines are often integrated with Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) software. This integration allows for seamless translation of design specifications into machine instructions, optimizing the manufacturing process. Manufacturers are developing new products. For instance, in April 2023, Okuma Corporation developed the LB3000 EX? CNC lathe and MB-46V ? vertical machining center, which are world-class Green-Smart Machines with high precision and energy-saving performance.

The adoption of CNC technology in machine tools continues to grow as manufacturers seek ways to improve precision, increase productivity, and stay competitive in a rapidly evolving market. The ongoing advancements in CNC technology will likely drive further innovation and expansion of its applications in the manufacturing industry.

Challenge: Absence of standardization in industrial communication protocols and interfaces

There is no single dominant protocol or interface for machine tool communication. Instead, many options exist, including MTConnect, OPC UA, Siemens Sinumerik, Fanuc, and Heidenhain. This variety creates incompatibility issues, making it difficult for different machines and devices to talk to each other. Moreover, integrating new machines and devices into existing systems becomes a complex and time-consuming task due to the lack of standardization. This hinders the potential for creating smart factories and interconnected production lines.

The incompatibility between protocols restricts data exchange and limits the ability to collect and analyze valuable production data. This impedes process optimization and informed decision-making. The lack of standardization also necessitates custom adapters and gateways to bridge the communication gap between different machines. This adds to the overall cost and complexity of implementing industrial automation solutions.

The absence of standardization in industrial communication protocols and interfaces for machine tools presents a significant challenge, but the ongoing efforts towards establishing common ground promise a brighter future for the industry. By embracing open standards and collaborative approaches, the machine tool sector can unlock new levels of efficiency, innovation, and competitiveness in the age of Industry 4.0.

Market Ecosystem

CNC machine tools holds the largest market during the forecast period.

CNC machine tools have the largest market share in the global machine tools market. Consumers increasingly demand customized products, which require flexible and agile manufacturing processes. CNC machines can be easily programmed to produce different product variations, making them ideal for meeting customization demands.

Depending on the machining operation, these machines use various cutting tools, including end mills, drills, lathes, and specialized tools. These tools are attached to the machine's tool holder and can be automatically changed during operations. There are various types of machines, such as milling machines, turning machines, electrical discharge machining (EDM) machines, grinding machines, and drilling machines. These machines benefit industries with increased precision, productivity, versatility, and efficiency. Manufacturers are also developing models with advanced features. For instance, in June 2023, Makino Milling Machine Co., Ltd. introduced a horizontal machining center a91nx. This horizontal machining center’s spindle lineup can handle various work materials, such as cast iron and aluminum. Such developments will further drive the demand for CNC machine tools during the forecast period.

Milling machines hold the largest market share during the forecast period.

The milling machine segment is expected to lead the global machine tools market during the forecast period. Industries like aerospace, medical devices, and electronics rely heavily on components with tolerances measured in microns. Traditional machining methods often struggle to achieve such precision, but milling machines excel in this area. Their ability to deliver intricate details and consistently high quality makes them the go-to choice for manufacturers in these demanding sectors. Also, the growing focus on sustainability is shaping the milling machine market. Manufacturers seek machines offering features like reduced energy consumption and minimized waste generation. Modern milling machines are increasingly designed with these factors, incorporating features like optimized cutting paths and eco-friendly coolants, making them more attractive in a sustainability-conscious world. In Addition to this, Manufacturers are developing new products. For instance, in 2023 in India, Lakshmi Machine Works Limited (India) launched the JD I vertical milling machine that is designed for heavy-duty milling with a maximum travel of 1250 x 800 x 760 mm and a table load capacity of 1,500 kg. Such product developments will help various sectors, including manufacturing, automotive and transportation, capital goods, and energy and power, to increase their productivity and accuracy.

Asia Pacific is the largest market for machine tools during the forecast period.

China, Japan, and South Korea lead the Asia Pacific global machine tools market. The region is considered significant in the growth of the global market, both in production and sales. China is the largest machine tools producer and user globally, dominating the market in the region. The aging population in China and Japan has resulted in rising labor costs, leading to the growing adoption of automation. The increasing population is also attracting companies to invest in the Asia Pacific. Some of the most prominent players in the market space are present, such as DMG MORI (Japan) and Okuma Corporation (Japan). Makino Milling Machine Co., Ltd. (Japan), JTEKT Corporation (Japan), DN SOLUTIONS (South Korea), and others are other major factors driving the market in this region. Manufacturers in the Asia Pacific region are investing in building manufacturing plants. For instance, in June 2023, Nidec Machine Tool launched a new cutting tool factory in India to meet the growing demand for automotive and related components by increasing the production capacity by 1.5 times. Such developments are expected to propel the market growth.

Moreover, all the leading players in the global machine tools market are generating the majority of their revenues from the Asian region only. China, Japan, India, and South Korea have a large customer base. These nations are home to companies prioritizing research and development, further contributing to the industry’s potential. Additionally, this region’s demand for advanced machine tools in sectors such as automotive, aerospace, energy, semiconductors, and medical industries is notably high.

Key Market Players

The machine tools market is dominated by established players such as Makino Inc. (Japan), JTEKT Corporation (Japan), Okuma Corporation (Japan), DMG MORI Co., Ltd. (Japan), DN Solutions (South Korea), and others. These companies manufacture machine tools and develop new technologies. These companies have set up R&D facilities and offer best-in-class products to their customers.

Want to explore hidden markets that can drive new revenue in Global Machine Tools Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the global machine tools market based on product type, automation, sales channel, end-user industry and region.

Based on Product Type:

• Milling Machines
• Drilling Machines
• Turning Machines
• Grinding Machines
• Electrical Discharge Machine

Based on Automation:

• Conventional Machine Tools
• CNC Machine Tools

Based on Sales Channel:

• Events and Exhibitions
• Dealers and Distributers
• Direct Sales

Based on End-User Industry:

• Aerospace
• Medical
• Semiconductor
• Automotive and Transportation
• Capital Good
• Energy and Power
• Sheet Metals
• Others

Based on the Region:

• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Taiwan
  • Vietnam
  • Malaysia
  • Rest of Asia Pacific
• North America
  • Canada
  • US
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Switzerland
  • Turkey
• Rest of the World
  • Russia
  • Brazil

Recent Developments

• In December 2023, DMG MORI partnered with Wilhelm Blessing GmbH & Co. KG and Walter AG for holistic tool solutions, innovative clamping devices, and data-based quality prediction.
• Makino Inc. developed a 5-axis machining center, DA500. It improves the productivity of manufacturing equipment parts that require complex three-dimensional shapes, smooth curved shapes, and high machined surface quality.
• In October 2023, DN Solutions launched 4th-generation vertical machining centers (DNM 4500, DNM 5700, and DNM 6700) with enhanced productivity and reliability. The new DNM Series features thermal displacement compensation as standard to ensure that the machining results never vary regardless of the machine’s environment.
• In August 2023, Okuma Corporation partnered with EMUGE-FRANKEN for a technology program. The new partnership strategically combines high-performance cutting tool solutions and applications expertise from EMUGE-FRANKEN with leading machine tool technology from Okuma.
• In June 2023, Makino Inc. introduced a horizontal machining center, a91nx. This horizontal machining center’s spindle line-up can handle various work materials such as cast iron and aluminum.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst