Dublin, Feb. 23, 2021 (GLOBE NEWSWIRE) -- The "Machine Tools Market - Global Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.
The global machine tools market by revenue is expected to grow at a CAGR of around 8.5% during 2021-2026.
In terms of investment, the market is likely to rebound by 5% in 2021. Vendors catering to this industry will witness a sudden rise in demand. The global machine tools market has been immensely affected by the outbreak of the COVID-19 pandemic.
Activities in the manufacturing production line have witnessed the sharpest contraction since the last decade. In 2020, machine tools production and consumption went for a toss, with industrial production decreasing by 5% worldwide. Europe was one of the most adversely affected regions. The production and supply orders reduced drastically in Q2 2020 across the world. However, the market is likely to rebound during 2021 due to the restoration of economic activities and industrial processes.
The machine tools industry has witnessed massive investment owing to the growth in industrialization. However, the investment witnessed a slow down due to the outbreak of the pandemic. In 2021, rebalancing of the machine tools consumption is expected. The consumer spending and demand toward the discretionary spending on manufactured goods and services per capita income is likely to grow during the forecast period.
Global Machine Tools Market Segmentation
Owing to the rise in automation, shift toward digitalization, and the advent of industry 4.0, the demand for automated machine tools has witnessed significant growth in the last few years. Computer numerical control (CNC) machines hold over 60% of the market share and are expected to witness substantial growth during the forecast period.
The machine tools market demand is expected to increase due to expansion and increased investments by private and public players in automotive, industrial equipment, metal industries in Europe, APAC, and North America. Thus, the demand for machine tools in various industrial applications is anticipated to grow. However, the current uncertainty over the macro-outlook of the global economy and the decreased demand for machine tool products due to the recent COVID-19 outbreak, has affected the market, thereby developing a short-term market growth challenge.
The automotive industry is the largest end-user segment for machine tools. However, with the outbreak of the COVID-19 pandemic, vehicle production witnessed a drastic slowdown due to imposed lockdown. With the decline in production, the use of machine tools has also decreased. However, since the lockdown has been lifted partially in several countries and production activities have resumed, the demand for machine tools is expected to accelerate.
INSIGHTS BY GEOGRAPHY
The APAC machine tools market size is expected to reach USD 65 billion by 2026, growing at a promising CAGR of over 9%. The resumption of economic and infrastructural activities post-COVID-19 has a crucial factor contributing to market growth. China and India are the leading markets for machine tools to restore economic development activities in Q3 2020. Taiwan, Malaysia, and South Korea are likely to emerge as the potential industry for machine tools manufacturers. Taiwan has witnessed decent economic growth despite the trade tension between China and the US.
The country has tackled the COVID-19 virus and maintained the supply of manufacturing units with minimum disruptions. In 2021, the market is likely to revive and record a GDP of close to 3.5%. The investment in Malaysia is expected to increase in 2021. The region's market is likely to grow and offer numerous opportunities for vendors catering in the region. Also, vendors can emphasize strategic partnerships to boost market position.
INSIGHTS BY VENDORS
Trade wars and the imposition of tariffs are the significant concerns confronted by vendors operating in the market. The recent trade war between the US and China affected the machine tools market immensely. Vendors could expect intense competition across regions. With upswings and downswings in the global economy, vendors could consider cost-cutting measures or create a sense of nostalgia for significantly pushing their products across challenging markets. The COVID-19 pandemic has also adversely hit the market potential.
The market is slowly becoming concentrated, with Doosan and Amada occupying significant shares of the market. Although North America, APAC, and Europe are the key markets for vendors, Latin America and MEA are also expected to witness considerable growth in the coming years.
Prominent Vendors
- Doosan
- AMADA Group
- Makino Milling Machine Co. Ltd.
- JTEKT
Other Prominent Vendors
- GF Machining Solutions
- DMG Mori Seiki Co.
- Komatsu
- OKUMA Corporation
- HYUNDAI WIA
- Schuler AG
- CHIRON Group SE
- 600 Group PLC
- Falcon Machine Tools Co. Ltd.
- MAG IAS GMBH
- GROB-WERKE GmbH & Co. KG
- Spinner Precision Machine-Tools
- Haas Automation Inc.
- Gleason Corporation
- Dalian Machine Tool Group Corporation
- Yamazaki Mazak Corporation
- Electronica Hitech Machine Tools Pvt. Ltd.
- Ace Micromatic Group
- TRUMPF GmbH + Co. KG
For more information about this report visit https://www.researchandmarkets.com/r/9svy8w