Machine Tooling Market Estimated to Surpass $94.42 Billion Marks by 2026

Machine Tooling Market Estimated to Surpass $94.42 Billion Marks by 2026

“Machine Tooling Market”
Increasing Demand for High Efficiency in Complex Machining Products is Expected to Drive the Machine Tooling Market

The global Machine Tooling Market is estimated to surpass $94.42 billion marks by 2026 growing at an estimated CAGR of more than 3.7% during the forecast period 2021 to 2026. Increasing demand for high efficiency in complex machining products is expected to drive the machine tooling market. Rise in demand for low operating cost and high precision, along with technological advancement in production processes, is further resulting in the popularity of CNC machine tools. Moreover, development and launch of next-gen, cutting-edge machine products and solutions are the central focus areas for key players in this market. These players are continuously investing in R&D to create enhanced and sophisticated offerings to strengthen their portfolio and further entrench their position in the market.

Machine Tooling Market Segment Analysis – By Type

CNC Machine Tools significantly dominate the Machine tool sector accounting for nearly 80% of the market. CNC Machine Tool systems are generally categorised into Milling, Lathe, Drilling, Plasma Cutter, Grinder, Others. The rising demand for high performance in complex machining products is expected to boost the CNC sector. The growth in demand for low running costs and high accuracy, along with technical advances in manufacturing methods, is further contributing to the popularity of CNC machine tools. In addition, the increase in demand across industries particularly in the electronics and automotive sectors contributes positively to the development of the market for CNC machine tools. The core focus areas for leading players in this business are the technical advancement and introduction of next-gen, cutting-edge CNC machine products and solutions. In order to build enhanced and advanced offerings to improve their portfolio and further entrench their position in the industry, these players are actively investing in R&D. Nearly every OEM provides maintenance services to the end users. These end users prefer OEM led maintenance services rather than third parties due to the discounted maintenance services typically offered as well as reliability and improved component procurement policies. This is changing the business model typically utilized in the market.

Machine Tooling Market Segment Analysis – By Product Type

The Milling segment held among the highest market share in 2020. Milling machines tools are primarily used in metal grinding processes across a variety of industries. The positive acceleration of the metalworking process industries in the world has ignited the market for milling machines tools. Milling machines tools are extremely flexible and can perform a wide range of functions, such as filling, spinning, chamfering, drilling, gear cutting, and so on. These devices can also render numerous incisions by using multiple cutters.

Moreover, Lathe segment is anticipated to witness significant market growth during the forecast period 2021-2026. Lathe is a tool that rotates every workpiece on its axis in order to execute a wide variety of operations. Automation is the key factor likely to fuel the expansion of the global demand for lathe machines tools. Manufacturers have begun to simplify their manufacturing procedures in order to improve efficiency. The incorporation of the Internet of Things (IoT) into manufacturing (Smart Manufacturing) is one of the latest market trends that will give the business sufficient momentum in the years ahead.

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Machine Tooling Market Segment Analysis – By Geography

APAC accounted for the largest share of the Machine tool market. The significant demand from automotive and aerospace sector in China, India and South-East Asia, in particular, is driving market growth. Geographically, RoW (Middle East and Africa) region is anticipated to witness the significant market growth during the forecast period 2021-2026 with a CAGR of 5.22%. The market growth is due to the rising demand of the CNC machine tools from the end-users including automobile, food & beverage, aerospace, construction and others. Growing automotive production primarily in Kuwait, Jordan, and others is projected to boost the market growth. Israel is home to robust mining and manufacturing sector. The country’s manufacturing sector is booming with effective diamond cutting/polishing technologies, aviation and space products, and food processing. These provide promising growth prospects for the machine tool market in the country.

Machine Tooling Market Drivers

Rising Adoption of Internet of Things (IoT) Technologies to Fuel Growth

One of the most prominent machine tools market trends is expected to be the increasing uptake of IoT in the manufacturing sector. This will be a result of escalating demand for information and access to information. Furthermore, producers are looking to bring down their production costs, streamline processes, and raise the safety quotient in their units. As a result, there is growing investment in IoT by manufacturers for improved management and control, which is propelling the machine tool market, especially CNC Machine tools. For instance, it is predicted that by 2020, the manufacturing sector will receive an investment of USD 267 billion for IoT integration. Studies have shown that close to 31% of manufacturing operations are already IoT-enabled, which augurs well for this market.

Adoption of CNC Machine Tools in Medical Sector

The medical industry greatly benefits from the efficiency, speed, and accuracy of CNC machining. According to a report by Teton Machine, the number of Americans aged 65 and older is projected to double between 2019 and 2060 95 million. Due to the growth of aging population, the need for precision machining services in the medical industry is growing as well. CNC machines are capable of producing sophisticated surgical instruments, tiny screws and everything in between. In addition medical machined parts for the most complex devices require tight tolerances, which is capable through CNC machine tools. Adding to this, multi-tool and multi-axis machines, such as CNC Swiss turning centers, improve the manufacturing of medical parts with shorter cycle times and owing to the features allowing versatility during production. Moreover several medical equipment manufacturers such as Pulse systems, are focusing on adopting CNC machine tools for advancements in manufacturing. In 2019, Pulse Systems acquired additional CNC (computer numerical control) machine tools to support the company’s rapid growth, and has expanded its facilities space to accommodate the newly-added capital equipment. Hence these rising adoption will drive the market growth in the forecast period 2021-2026.

Machine Tooling Market Challenges

High Maintenance Costs and Lack of Training to Hinder Growth of the Market

Generally, CNC machines are costlier than the manually-operated machines. However, with time, the cost is estimated to reduce effectively. Furthermore, to maintain the proper functioning of the machines, regular maintenance of the high-tech pieces is essential by the manufacturers. Apart from this, the focus in the current market is on deploying cheaper machine tools, especially in developing nations. While this saves on initial investment, these machine tools have higher long-term maintenance, parts replacement and other costs, apart from the limited functionality. Besides that appropriate training and machinists need to get acquainted with the professional skills necessary to operate these machines. Hence high maintenance costs and lack of skilled workers will restrict the market growth in the forecast period 2021-2026.

Machine Tooling Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Machine Tooling Market. Dalian, Amada, JTEKT, Trumpf, Shenyang Machine Tool (SMTCL), Philips Machine Tools, KRC Machine Tool Services, Optimation Technology Inc., Troy Industrial Services, MIC Group and others are considered to be the key players of the Machine Tooling Market.

Acquisitions/Technology Launches/Partnerships

In December 2019, DMG MORI, a leading machine tool manufacturer launched LASERTEC 125 3D hybrid, a new hybrid additive manufacturing system. The LASERTEC 125 is a 5-axis laser deposition welding (LDW) system designed for the maintenance, repair and production of significantly larger parts

IN February 2019, Okuma America Corporation, a world-leading builder of CNC machine tools, partnered with Jergens, a superior manufacturer of workholding solutions for machine tools. This partnership was aimed to provide the best possible integrated solutions to the end-user. Such partnerships and Product launches positively impacts the market growth.

Key Takeaways

End users in this market, typically prefer OEMs to provide maintenance support rather than going through a third party. Thus, driving a change in the market model prevalent in this segment.

CNC has various advantages over conventional machines. the various advantages of CNC machines, including high accuracy, safety, time efficiency, flexibility, and low maintenance, is further expected to drive the CNC machine tools market demand.

The core focus areas for leading players in this business are the technical advancement and introduction of next-gen, cutting-edge CNC machine products and solutions. In order to build enhanced and advanced offerings to improve their portfolio and further entrench their position in the industry, these players are actively investing in R&D.

Related Reports :

A. CNC Machine Tool Market

B. Automation Market

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