Machine tools market in 2024 and beyond

The machine tools market is projected to be valued at approximately US$103.57 billion in 2024, with expectations to reach US$119.58 billion by 2029, reports Mordor Intelligence. This signifies a compound annual growth rate (CAGR) of 2.92% during the forecast period from 2024 to 2029.

The expansion of the global motion control market has led to a significant surge in the demand for motion control products, particularly in sectors such as robotics, electronics assembly, semiconductor, machine tools, and renewable energy. Progress in control components has contributed to the streamlining of machine design.

In more precise terms, production escalated from US$73 billion to US$85 billion, rebounding from declines in 2020. Concurrently, the overall consumption of machine tools increased from USD 70 billion in 2020 to US$80 billion in 2021. Globally, production surpassed consumption by USD 5 billion, potentially influenced by machine tool manufacturers proactively addressing supply chain challenges. This surplus may exert pressure on machine tool prices, exacerbated by disruptions in the global supply chain.

Despite some shifts, the leading six producers—China, Germany, Italy, Japan, South Korea, and the United States—maintain their positions from 2020. U.S. production reached USD 7.5 billion in 2021, a US$2 billion increase from 2020. Japan surpassed Germany to become the world's second-largest economy due to increased production in Japan and a slight decline in output in Germany. Italy's production witnessed growth, but the more substantial increase in the U.S. allowed it to surpass Italy and secure the fourth position.

While the recent pandemic has cast a shadow, the transition towards e-mobility remains a focal point for machine tool producers and traditional automotive part suppliers. Automotive companies are increasingly directing their efforts toward the development and production of electric vehicles (E.V.s).