AUSTIN, TX, UNITED STATES, February 17, 2025 /ennovaterz/ — The SNS Insider report indicates that the Machine Tools Market Size was estimated at USD 106.55 billion in 2023 and is expected to reach USD 189.44 billion by 2032 at a CAGR of 6.65% during the forecast period of 2024-2032.
The dominance of Metal Cutting, CNC Technology, and Automotive End-Use in 2023
By Type: The metal-cutting type segment is the dominant segment, accounted for over 77.4% of the market share in 2023. Metal cutting machines such as turning machines, grinding machines, and milling machines play a crucial role in various sectors such as automotive, aerospace, and manufacturing, where they are used to remove excess material and shape workpieces according to specific dimensions. Technological advancements such as automation and the adoption of CNC systems lead to increased productivity and operational efficiency, therefore demand for metal cutting machines increases. These innovations are crucial to increasing quality control and output, especially as industries implement more intelligent technologies.
By Technology: The Computer Numerical Control (CNC) segment held the largest market share at over 86.2% in 2023. CNC technology is vital to creating high-precision, complex parts with high fidelity. CNC machines are used in various manufacturing processes such as milling, lathes, and laser cutting, making them essential for industries like automotive, aerospace, electronics, etc. CNC machines are increasingly being adopted due to the rise of automation and the need for more accurate and faster production processes. The CNC technology will not only bring numerous advantages but will also enhance the accuracy and speed of manufacturing, a primary factor determining overall productivity in the Industry 4.0 era, leading to further demand for its use.
By End-Use: The automotive segment dominated the Machine Tools Market, captured over 41.9% of the market share in 2023. Advancements in vehicle designs, including the move towards electric and hybrid vehicles, have driven demand for precision in automotive components. In the automotive industry, machine tools are an essential process as they enable the manufacturing of essential components with high precision and complexity. Rising automotive demand for enhanced quality standards and increased production volumes continue to fuel the adoption of machine tools in automotive manufacturing.
Regional Dynamics of the Machine Tools Market: Asia Pacific Dominance and North America’s EV-driven Growth in 2023
The Asia Pacific region is a leading player in the Machine Tools Market which held over 55.80% of the market share in 2023. This stronghold is a result of the rapidly growing automotive production in nations such as China and India and a rise in budgets for defense and commercial airplane manufacture. In China, the machine tools market is poised for robust growth, expected to grow at a 7.0% CAGR. The use of advanced manufacturing technologies, including automation and smart systems, as well as the high demand for intelligent products, are major powers of market growth in various industries, such as automotive, aerospace, and electronics.
In North America, the Machine Tools Market is expected to experience notable growth due to the booming electric vehicle (EV) sector. Demand for precision machine tools used in vehicle manufacturing is being driven by the presence of large automotive manufacturers such as General Motors, Nissan, Tesla, and Ford. Government incentives promoting sustainable transportation have combined with growing consumer demand for electric vehicles to accelerate the region’s adoption of advanced manufacturing tools. Moreover, traditional manufacturing is going under transformation leading to an increase in the market of machine tools through automation trends.
