Machine Tools Market to Hit $80.7 Billion by 2015, Research Finds

The sheer diversity of application areas for machine tools, will help ensure a quick recovery, according to the study.

A new research study predicts that the global machine tool industry is in the first stage of a rebound that will lift it to a market capitalization of $80.7 billion by 2015. Titled "Machine Tools: A Global Strategic Business Report," the report by Global Industry Analysts Inc. reviews market trends, drivers, product overview, competition, product introductions/innovations, and recent industry activity.

The report traces the machine tool market’s recent weakness through the global economic recession. “Changes in production capacity utilization, capacity expansions, and the level of business confidence strongly influence demand in the marketplace,” the researchers state. “Therefore, not surprisingly, machine tools industry confronted its toughest challenge ever thrown up by the financial crisis induced world economic recession.”

Because the recession has been so widely felt, the impact on capital goods markets has been profound. Beyond the weak financial conditions, machine tool builders been hampered by slowness in the markets that need machined parts, such as manufacturing, automobile and housing.

“The world’s machine tools industry is sensitive to changes in the economic and financial climate,” according to the report. Demand responses to economic ups and downs are typically amplified in this industry highlighting the level of sensitivity to the broader economy. Changes in production capacity utilization, capacity expansions, and the level of business confidence strongly influence demand in the marketplace.”

Thus, with the global recession nearing an end, resurgence in growth fundamentals will aid in steady recovery for the machine tools sector. “The sheer diversity of application areas for machine tools, ranging from aerospace, automobiles, process industries, wind power generation to mining, and oil exploration industries, will help ensure a quick recovery,” the report states.

The sector’s recovery will be led by emerging markets like China and India, though Europe and Asia-Pacific together will continue to account for the majority of the global machine tools market. North American machine tools demand has shown signs of gradual strengthening, with production and demand moving higher in recent months.

In addition to global market conditions and demand, the report studies most of the major suppliers of CNC machines and cutting tools.

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