World machine tools market to reach more than $68.8 billion by 2010

A report, "Machine Tools: A Global Strategic Business Report", published by Global Industry Analysts, Inc.,(www.strategyR.com) says the world market for machine tools is forecast to maintain an impressive compound annual growth rate (CAGR) of 7.20 percent over the years 2001-2010 and reach in excess of $68.8 billion by the end of the decade. With an estimated 2007 share of 58.53 percent metal cutting tools form the largest segment in the global Machine Tools market. The segment is also forecast to register the fastest CAGR of 7.60 percent over the years 2001-2010.

In terms of end use industry, automobiles account for the lion's share of the global machine tool consumption, with a share estimated at 42.78 percent in 2007. Fastest growth, however, is expected from the electronics/electrical machinery and equipment applications for machine tools that are expected to exhibit a CAGR of nearly 9 percent over 2001-2010.

The early part of the new millennium witnessed lethargy in business conditions, especially in the United States. Today, sedate demand patterns in the developed markets are being partially offset by sturdy gains in Asian economies and by the growing demand for machine tools. Rising production costs, and fierce competition from Asian imports, is leading manufacturers to shift production bases to low cost Asian countries, primarily China, in order to achieve price advantages. Significant growth opportunities lie in store for foreign players in most of the Asian markets.

Global market for machine tools has been experiencing a moderate growth over the last few years. Japan continues to be the largest manufacturer of machine tools with over 22 percent of the total global production, followed by Germany, China, and Italy. China is the largest consumer of machine tools constituting more than 20 percent of total machine tools consumption, followed by Japan, and the US. Strong demand from China and growing consumption across the Asian economies increased the volume and value sales of machine tools. However, the world market for machine tools is characterized by its extreme sensitivity to economic conditions. Turkey as well as Latin American countries, including Brazil, are expected to register sizable growth above the global average in the worldwide machine tools market. Consumption of machine tools in the U.S. gained 5 percent in 2006, retaining its position in the top three consumers of machine tools. However, the U.S. is losing on the production front, due to impressive gains registered by South Korean and Taiwanese markets.

Major companies covered in the report include Agie Charmilles Management Ltd, Allied Machine & Engineering Corp, Amada Group of Companies, Cincinnati Automation & Test, Doosan Infracore Co. Ltd, FANUC Ltd, Giddings & Lewis Machine Tools LLC, Gildemeister Aktiengesellschaft, Hardinge Inc, Kennametal Inc, Makino Milling Machine Co. Ltd, Mori Seiki Company, Ltd, Okuma Corporation, Otto Bihler Maschinenfabrik GmbH & Co. KG, Shanghai Machine Tool Works, Sodick, Inc, Spinner Werkzeugmaschinenfabrik GmbH, TAJMAC - ZPS, a. s., Trumpf GmbH + Co. KG, Walter AG and Yamazaki Mazak Corporation.

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