Machine Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Machine Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Machine Tools Market is anticipated to register a CAGR of more than 5% over the forecast period.

• The growth of the global motion control market has triggered a substantial demand for motion control products, particularly in the robotics, electronics assembly, semiconductor, machine tool, and renewable energy industries. Advancements are being made in control components and have aided the simplification of machine design.
• To be more exact, production climbed from USD 73 billion to USD 85 billion on the path to recovering from dips in 2020, while overall machine tool consumption increased from USD 70 billion in 2020 to USD 80 billion in 2021. Production worldwide outstripped consumption by USD 5 billion. This discrepancy might be caused, at least in part, by machine tool manufacturers seeking to anticipate supply chain problems. Machine tool prices may be under pressure due to the consequent surplus of tools, but they are more likely to be under pressure due to interruptions in the global supply chain.
• With some jockeying for position, the top six producers; China, Germany, Italy, Japan, South Korea, and United States; remain the same as in 2020. Due to a USD 2 billion rise from 2020, U.S. production reached USD 7.5 billion in 2021. Due to increased production in Japan and a modest decline in output in Germany, Japan overtook Germany as the world's second-largest economy. Italy's output increased, but the U.S.'s increase was more significant, allowing it to overtake Italy and move to the number four spot.
• Despite being overshadowed by the recent impact of the pandemic, the movement toward e-mobility remains a significant point of focus for machine tool producers and other traditional automotive part suppliers, as automotive firms are increasingly focusing on developing and producing electric vehicles (E.V.s).

By 2030, India might be a global leader in shared transportation, opening doors for electric and driverless vehicles. To cut pollutants, electric vehicles are becoming more popular. By 2030, the electric car industry is anticipated to generate five crore employment. Between April 2000 and March 2022, the automobile industry attracted cumulative equity FDI inflows of around 32.84 billion USD. By 2023, the Indian government anticipates that the vehicle industry will draw 8–10 billion USD in domestic and foreign investments.

Around the world, 79.1 million automobiles were produced in 2021, a 1.3% rise from 2020. The number of motor vehicles produced globally in 2020 and 2021 may be found in this infographic. The European Automobile Manufacturers' Association (ACEA) urges policymakers to create an environment that will allow the market to recover and transition to zero-emission vehicles, as the EU car market is anticipated to contract by more than a quarter in 2019 compared to pre-pandemic 2019 levels.

ZEV new registrations reached a significant milestone in 2021, accounting for 5.2% of all newly registered motor vehicles. In Canada, 1.6 million new cars were reported in 2021, a 6.5% increase from the previous year. Together, the three largest provinces in Canada accounted for 93.4% of new zero-emission vehicle registrations in 2021; 42.8% were in Quebec, 27.7% in British Columbia, and 22.9% in Ontario.

Computer numerical control (CNC) machines streamline operational processes by reducing production time and minimizing human error. The growing demand for automated manufacturing in the industrial sector has resulted in the increasing usage of CNC machines. Also, the establishment of manufacturing facilities in Asia-Pacific has spurred the use of computer numerical controls in the sector.

Many manufacturers focus on efficient manufacturing techniques to try and gain a competitive advantage. They redesign their facilities, which contain CNC machines. Also, the integration of 3D printing with CNC machines is becoming a common addition to some new production units, which is expected to offer better multi-material capability and little resource wastage.

Furthermore, with the rising concerns over global warming and the depletion of energy reserves, CNC machines are actively being used in power generation, as this process requires wide-scale automation.

The Machine Tools Market is relatively fragmented, with significant global and small and medium-sized local players. Some considerable players include TRUMPF Group, Shenyang Machine Tool Group, Amada Co. Ltd, DMG Mori Seiki Co., Ltd, Falcon Machine Tools Co. Ltd, and many others. The regional hubs in the market include China, Germany, Japan, and Italy. Companies are also focusing on developing more automated solutions with an increasing preference for automation. Furthermore, the industry is witnessing a trend of consolidation through mergers and acquisitions. These strategies help the companies enter new market areas and gain new customers.

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