Automation Is Transforming the Global Machining Market
Automation Is Transforming the Global Machining Market
Blog Article
The machining market includes a variety of products such as lathes, mills, grinders, drilling machines, and others that are used to remove unwanted material from metal or plastic workpieces to give them a desired shape and size. Machining offers precision and improved surface finish compared to other metalworking techniques. Machines enable highly accurate and complex manufacturing of parts for various end-use industries.
The machining market is estimated to be valued at USD 402.56 Bn in 2024 and is expected to reach USD 625.55 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
The automotive industry accounts for the largest share of Machining Market owing to continuous product innovation and replacement of ageing vehicles. Machined components are used in engines, transmissions, braking systems, steering systems, and other components. Precise machining is required to manufacture critical high-tolerance auto parts. Furthermore, aircraft components demand complex contour and tight dimensional control, propelling demand in the aerospace industry.
Key Takeaways
Key players operating in the machining market are DMG Mori Co Ltd, TRUMPF Group, Dalian Machine Tool Group, Amada Co Ltd, and Makino Milling Machine Co. Ltd.
The global machining market is expected to grow rapidly owing to growing demand from the automotive industry. Machined components are indispensable in manufacturing internal combustion engines, transmissions, brake systems and other critical components. Precision machining allows miniaturization of auto parts for better performance and fuel efficiency.
Advancements in computer numerical control (CNC) machining centers have increased productivity and reduced manufacturing lead times. Multi-tasking machines enable complete machining of complex parts on a single platform. Industry 4.0 technologies such as IoT, AI and 3D printing are influencing machining processes.
Market Trends
Increasing Adoption of AI and 3D Printing - AI and 3D printing help improve process control, reduce cost, enhance productivity and minimize scrap in machining operations. AI is used for tool condition monitoring, quality inspection, process optimization etc. 3D printing aids rapid prototyping of complex parts before mass production through CNC machining.
Growing Demand for Multi-Tasking Machines - Multi-tasking CNC machines that combine milling, turning, grinding and other operations save floor space and lead time compared to separate machines. They are suitable for small batch manufacturing across industries like automotive, aerospace and electronics.
Market Opportunities
Opportunity in Electric Vehicles - EVs have more number of precision-machined components compared to ICE vehicles owing to their complex architecture involving batteries, motors and power electronics. This will drive demand for high-accuracy CNC machines in coming years.
Outsourcing of Machining by OEMs - Rising labor costs are pushing automotive and electronics OEMs to outsource non-core machining operations to specialized contract manufacturers. This opens opportunities for machining service providers across developing nations.
Impact of COVID-19 on Machining Market Growth:
The global outbreak of COVID-19 has adversely impacted the machining market growth in 2020. During the initial lockdown phases imposed by governments worldwide to curb the spread of the virus, machining industry operations were suspended. This led to disruption in supply chains and decline in demand from end-use industries like automotive, aerospace and others. Though essential industries continued operations with restricted workforce, downturn was felt across manufacturing activities.
With gradual lifting of lockdowns and resumption of economic activities, the machining market has started recovering from late 2020. However, challenges of subdued demand persist due to economic uncertainty. Strategies adopted by machining companies include cost optimization, efficient resource allocation and digitization initiatives to engage customers. Adapting to new safety protocols and work environments has also been a major focus. While recovery is underway, full-scale growth to pre-pandemic levels will take longer depending on overall macroeconomic conditions and pace of revival across customer industries. Ensuring workforce safety, demand stability and flexibility to respond to disruptions will be important aspects for machining businesses going forward.
Concentration of Machining Market by Geographical Region:
The Asia Pacific region contributes the major share of the global machining market in terms of value. Within Asia Pacific, China dominates as one of the leading manufacturing and exporting countries for machined components and parts. Other countries such as India, Japan, South Korea and Taiwan are also significant markets. The large production base of machinery and equipment as well as high concentration of end-use industries like automotive, electronics and industrial machinery have supported market growth. Growing manufacturing output, industrialization programs and exports have augmented demand. Labour cost competitiveness has further boosted regional dominance. North America and Europe are other traditional strongholds while developing regions show rising potential.
Fastest Growing Region in the Machining Market:
The developing regions of Latin America, Middle East & Africa are witnessing comparatively faster machining market growth rates. Latin American countries led by Mexico and Brazil have emerged as global outsourcing destinations, driving foreign investments and industrial expansions. Ongoing initiatives towards regional integration have augmented intra-regional trade. Infrastructure developments coupled with expanding manufacturing and mineral extraction industries present opportunities. Middle East experiences growth on the back of diversification drives away from oil dependence into other sectors such as machinery, chemicals, aerospace etc. Government reforms and investments in industrial parks attract global OEMs. Africa remains largely untapped but pockets of growth are visible across countries striving to develop local manufacturing ecosystems.
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About Author: Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)