Metalworking Equipment Market Size, Share, and Industry Analysis, By Type (Milling Machines, Drilling Machines, Lathe Machines, Grinding Machines, Cutting Machines, and Others), By Application (Automotive, Aerospace & Defense, Construction, Electronics, and Others), and Regional Forecast till 2032

The global metalworking equipment market is experiencing considerable growth owing to rapid industrialization, technological advancements, and government initiatives and investments. Government initiatives and investments in the manufacturing sector support the market growth for metalworking equipment.  

• According to the India Brand Equity Foundation (IBEF), The manufacturing sector in India is anticipated to reach USD 1 trillion by 2025-26 owing to the robust investments in various end-user industries and government initiatives, such as Make in India and Production Linked Incentives (PLI) schemes.  


• UAE announced USD 6.3 billion in May 2024 to boost its domestic manufacturing sector and expand industrial capabilities. 

Metalworking Equipment Market Driver

Rapid Industrialization across the Asia Pacific Region to Drive the Market Growth 

The rapid industrialization in China, India, Taiwan, Singapore, Malaysia, Thailand, Japan, and Vietnam has been achieved through extensive support of governments to develop domestic production capabilities, ensure competitiveness through harnessing scale economies and technological innovation, and create national champions and global brands. Rapid industrialization increases the demand for metalworking equipment in various end-user industries, such as automotive, electronics, construction, and heavy machinery.

• In 2021, Singapore announced various initiatives to develop advanced manufacturing capabilities. These initiatives include a new training program to develop a manufacturing workforce with emerging skills and capabilities.       

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Metalworking Equipment Market Restraint

Skilled Labor Shortage in Europe to Limit the Market Growth

A shortage of skilled labor in European Union (EU) countries capable of operating metalworking equipment is expected to limit the market growth in this region. European manufacturers have limited production capacity due to the shortage of skilled workers. The workforce shortage in the EU is majorly attributed to the aging workforce, competition from other regions, and lack of continuous training.  

• According to the EURES (European Employment Services) 2023 Labor Shortages and Surpluses Report, in 2023, around 21 EU countries were struggling to find skilled welders.


• In addition, as per the Heidelberger Druckmaschinen AG 2023 report based on skilled and workforce shortages among German SMEs, 92% of respondents noted that they are affected by the skills and workforce shortage.

Metalworking Equipment Market Opportunity

The Rise of Smart Manufacturing and Industry 4.0 to Maximize the Demand for Metalworking Equipment

Smart manufacturing involves big data analytics, robotics, and technology integration. It enables the machine to turn itself off and determine what part requires to be replaced before it causes any damage. Smart manufacturing provides insights into what workforce and equipment can do. With these insights, companies can adapt their production processes to include different or specialized product lines. The rise of smart manufacturing and Industry 4.0 offers opportunities for manufacturers to develop metalworking equipment that supports these advancements.  

• According to NASSCOM, the Indian Trade Association, digital technologies are estimated to contribute 40% of all manufacturing tech spend by 2025.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Consolidated SWOT Analysis of Key Players

Analysis by Type

By type, the market is segmented into milling machines, drilling machines, lathe machines, grinding machines, cutting machines, and others.

Metalworking equipment, such as milling machines, drilling machines, lathe machines, grinding machines, and cutting machines, play pivotal roles in various end-user industries. These machines are often versatile and can handle various materials, such as copper, steel, and alloys, allowing the production of diverse products. Rapid advancements in metalworking technology result in manufacturing facilities' high-quality production, efficiency, and productivity. 

• In February 2023, Mills CNC unveiled advanced lathe machines: Puma DNT 2100 and Puma DNT 2600. These machines offer component manufacturers high power, speed, flexibility, and process reliability.

Analysis by Application

By application, the market is segmented into automotive, aerospace & defense, construction, electronics, and others.

The automotive segment accounts for the highest revenue market share owing to the rise of electric vehicles (EVs), stringent safety and quality standards, and technological advancements. Strict safety standards increase the demand for high-precision metalworking equipment, which increases the reliability of automotive parts. In addition, the rise of EVs augments the adoption of cutting-edge metalworking machines.

• According to the International Energy Agency (IEA), EV sales reached around 14 million units in 2023 worldwide. 95% of these sales are generated in China, Europe, and the U.S.

Regional Analysis

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific accounted for the largest global metalworking equipment market share in 2023. The market growth in Asia Pacific is attributed to the increasing manufacturing activities, the presence of developing economies, infrastructure development, and government initiatives. The growth of the automotive industry in this region increased the investment in metalworking machines to cater to the increasing demand for vehicles.    

• Asia Pacific’s Light Vehicle (LV) production in 2023 expanded by around 10% year-on-year (YoY) to 51.8 million units due to the strong demand in China, India, and Japan.    

North America is the second-largest market based on the demand for metalworking equipment. The South American region shows steady growth due to increasing investment and supportive regulatory policies.

• For instance, in March 2024, Toyota, a Japanese automotive company, announced a USD 2022 billion investment in Brazil by 2030.

Key Players Covered

The global metalworking equipment market is highly competitive, and a significant number of players in the market. In the U.S., the top 5 players account for only around 25% - 30% of the market.

The report includes the profiles of the following key players:

• Haas Automation, Inc. (U.S.)


• Komatsu (Japan)


• Phillips Machine Tools India Pvt. Ltd. (India)


• FPS Werkzeugmaschinen GmbH (Germany)


• Maschinenfabrik Berthold HERMLE AG (Germany)


• TOHO CHIKAKOKI (Japan)


• Shandong Luzhong Machine Tool Co., Ltd.  (China)


• United Grindin（Shanghai) Ltd. (China)


• JAINNHER MACHINE CO., LTD (Taiwan)


• KOYO Machinery (U.S.)

Key Industry Developments

• In May 2024, United Grinding announced the expansion of its grinding and measuring equipment range with seven new products. It includes two cylindrical grinding machines and one surface and profile grinding machine.


• In April 2024, Tormach announced the launch of 1500MX CNC for milling. This machine can be paired with Tormach’s ZA6 industrial robot arm for light machine tending.