Robotics to Play a Significant Role in the Machine Tool Industry

01 April 2021

The revolution of industries is modernizing the equipment used in the production and manufacturing activities. The emerging concept such as ‘Industry 4.0’ is combining production, information technology, and internet. The rising emphasis on these technologies, players in the machine tool industry are revolutionizing their factory process by opting for automated manufacturing systems. The increasing focus on automation is pushing the companies to come up with innovative machine tools. In the recent years, the players in the machine tool industry are witnessing intense competition, owing to the new product launches and pricing. The market for machine tools is starting to adopt quick changes to provide time relevant product to the end-users. For instance, KUKA AG is one of the leaders of the global robotics market is developing solutions which offers working of robotics and CNC machines together. The usage of semiconductor and microelectronics in the machine tool industry increased the scale and scope of many players. The market is witnessing various innovations, the introduction of collaborative robots (co-bots) being one of them, that are used integration with machine tools.

As per the geographical analysis, the North American market is witnessing demand only for new installations and replacements. The established market in Europe and North America, replacement demand for machine tools is significantly high. To cater the replacement demand in these markets, players need to have strategic deals and offer existing users promotional programs. The emerging market in APAC, MEA and Latin America exhibits high demand for new installations. Players can focus in developing strategic partnerships with the large players in these untapped market. The rapid digital transformation in industrial sector in APAC adding over USD 1 billion to GDP. Machine tools has several applications in healthcare settings as well. Healthcare is expected to witness large scale innovation and incorporation of machine tools, this is turn, is driving the demand in the market. The machine tool market by consumption value for technology is estimated to reach over USD 119 billion by 2026. adobe photoshop activated

Read: Machine Tools Market Global Outlook and Forecast 2021-2026

Trends in the Global Machine Tools Industry

Machine tools industry is always an investment-driven market. The market witness an intense amount of investment due to the growth of industrialization across the globe. China holds close to 41% share in the machine tool industry. The market in China was slowed down owing to the pandemic, but relaxation implemented in the restriction is pushing the machine tool industry towards the normalization. China is expected to remain important market for machine tools. In terms of the investment and demand the market is likely to rebound by 5% and 25% in 2021, respectively. Even though the market has observed weaker investment in 2020, but there is still a scope of development with regard to the Chinese market.

To adopt automation, various companies especially in the developed region are implementing advanced machines in their industrial activities. The ongoing transformation in several end-user industries to adopt automation is likely to push the purchase of the machine tools across the regions. Developing region such as Europe and North America are the major adopter of advanced machines. Players can estimate lucrative opportunities for machine tools in these regions. Vendors can rebuild their product portfolio and create innovative sales approaches to increase the sale of machine tools by benefiting the end-user segments. A series of programs was developed by the EU under the European Digital Agenda. EU focuses on strengthening innovation and investment in ICT-based services to improve services and quality of life. The ICT based services is encouraging the development of the production line among companies operating and in turn, driving the utilization of machine tools in the industries. solidworks serial key

ReadServo Motors and Drives Market Global Outlook and Forecast 2021-2026

Impact of COVID-19 in the Machine Tool Industry

The global trade war has escalated between US and China which is impacting adversely to the global economy. Emerging markets slowed down in the economic growth owing to the pandemic. Many economies will take time to recover from the impact of pandemic. Automotive sector is one of the major shareholders among consumption industries in the machine tool industry to witness hardest hit after World War II. Weakness in global manufacturing was observed in the first half of 2020. This has caused huge loss in the production and consumption of the machine tools in 2020. For instance, the travel tourism and transport industry were drastically impacted due to COVID-19. This in turn, reduced the demand for automotive and caused slowdown in machine tools utilization worldwide. Italy and Spain are one of the worst hit nation in Europe imposed lockdown which derailed the demand and supply in the region for machine tools. According to the research, before COVID-19 outbreak, the global air passenger traffic grew at an average growth rate of 4.5%. It was also expected that there would be demand for more than 25,000 jet airlines and aircrafts to comply with the growing demand in 2020. But due to pandemic outbreak the aviation industry has been greatly impacted thereby, contributing to a drop in consumption of machine tools in 2020.

Going forward, the present fragmented market can be transformed into a concentrated market, as players are targeting to explore in the untapped market. Players are adopting merger and acquisition as a strategy to develop their growth opportunities in the market. Since the market is shifting from conventional to long-term & cost-effective solutions, players can focus on alignment of their product development with end-user specific demand. In 2021, the investment in Malaysia for machine tools is likely to rise as the demand is expected to increase in the market. The overall machine tool industry in the APAC region is likely to grow and offer numerous opportunities for the players to cater in the region.  The machine tool market in APAC by consumption value is expected to reach over USD 56 billion by 2026.

Read: Industrial Motors Market Global Outlook and Forecast 2021-2026

FAQs about the Machine Tool Industry:

Q. What is the market size of the machine tool?

A. The global machine tool industry size is expected to reach over USD 122 billion by 2026.

Q. What is the market growth of machine tool?

A. The global machine tool industry is projected to grow at a CAGR of around 8.5% during the forecast period.

Q. What is the market segmentation of the machine tool?

A. The global machine tool industry is segmented by tools type (machine cutting and metal forming), technology, end-user, and geography.

Q. What is the market insight of the machine tool?

A. In terms of production and consumption values, the APAC machine tools market is expected to reach over USD 64 billion and over USD 56 billion, respectively, by 2026.

Q. What are the major regions in the machine tool?

A. The leading regions in the global machine tool industry include Europe, North America, APAC, Latin America, and Middle East & Africa.

ReadGeared Motors Market Global Outlook and Forecast 2021-2026

Jun 25, 2021

Is Consumables Gaining the Largest Share in the Next Generation Sequencing Market?

The rising incidence of cancer among the population is driving the demand for next generation sequen...

Jun 24, 2021

Demand for Greenery is Propelling Growth in Outdoor Power Equipment Market

Most households in developing countries are likely to spend heavily in the outdoor power equipment m...

Jun 24, 2021

Innovation & Use of Advanced Liquid Silicone Rubber in Automobile Industry

The rise of various trending activities such as micros molding, classroom molding, and dominance of ...