Market scenario An insight into the global machine tool market
2018 is expected to be positive for the machine tool sector. Some of the leading countries in this sector such as Germany, China, Japan and Italy have made significant developments in the field.
The global machine tools market is predicted to exceed 120 billion dollars by 2020, according to a report by Technavio. The sector is upbeat, with many countries across the globe witnessing substantial as well as high growth. In terms of production output, China tops the chart followed by Germany and Japan while in the export scenario; Germany holds the first rank ahead of Japan and Italy.
To understand the current market scenario, one has to go through the latest happenings of some of the leading players in the machine tool industry:
The German Machine Tool Builders Association VDW has recently announced that last year the sector achieved a growth of 4 % and thus will reach a volume of around 15.7 billion euros. This year, VDW is expecting production output to increase by another 5 %.
In terms of exports, about 71 % of the country’s machine tools were sold outside the country and reached 10.1 billion euros, an increase of 8 %. About one-fifth of the rise in exports was from America while Brazil and Mexico reported significantly overproportional rises. In 2017, Germany’s export to Asia was significant (almost one-fifth), owing to the high demand from China. In the domestic market, orders declined during the same period by 3 %.
China has emerged as the world’s largest machine tools industry. It is currently in the phase of shifting from producing low-end machine tools to manufacturing mid to high-end products to meet the global demand. Industries such as aviation, marine, aircraft engines, and marine gas turbine engines are major markets that demand high-end machine tools.
In terms of machine tool consumption, the country witnessed 29.8 billion dollars in 2017 i.e an increase of 7.5 % from the previous year, according to a recent report from the China Machine Tool Builders Association.