Machining refers to the removal of unwanted material from the workpiece to achieve desired dimensions, shape and desired properties using cutting tools like turning tools, milling cutters, grinding wheels and broaching tools. Machining gives a high degree of precision and surface finish which is important for automotive and electronic components. The global machining market is primarily driven by the increasing demand for highly precise components from the automotive industry. Motorsports and racing also create demand for high-performance engine and transmission parts that require intensive machining operations. Machining machines also find extensive applications in aerospace manufacturing where aircraft components need to meet strict dimensional and quality standards.
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.
Key Takeaways
Key players operating in the Machining Market are:
- DMG Mori
- TRUMPF
- Komatsu Ltd.
- JTEKT Corporation
The automotive industry is expected to provide major opportunities for the Machining Market players. Demand from the electric vehicles segment is driving significant investment in manufacturing capacity expansion which will require new machining equipment.
North America dominates the global machining market currently owing to strong demand from automotive, aerospace and defense industries. However, Asia Pacific is emerging as a major market driven by growing local manufacturing industries and shifting of production bases by global OEMs to countries like China and India.
Market Drivers
The rising demand and production of electric vehicles worldwide is a key growth driver for the machining market. Machining plays an important role in manufacturing EV components like motors, controllers and battery packs which require tight tolerances and high precision. According to estimates, EV production is set to grow at a CAGR of over 25% until 2030 which will translate into higher demand for CNC machine tools and machining operations in automotive component manufacturing.
PEST Analysis
Political: The machinring market is regulated by various government policies related to imports, exports and safety standards for machines.
Economic: Economic growth and industrialization is driving the demand for machined components from automotive and other manufacturing sectors. However, volatility in commodity prices can impact costs.
Social: Rising disposable incomes and changing lifestyles is increasing demand for machined parts across various end-use industries like consumer goods. Safety and environmental concerns also impact product adoption.
Technological: Advanced computer aided designing (CAD) and computer aided manufacturing (CAM) software is enabling higher precision and quality in machined components. Automation through robotics and 3D printing also presents new opportunities.
Geographical Concentration
The machining market in terms of value is highly concentrated in Asia Pacific and Europe region. Countries like China, Japan, Germany and India have large manufacturing bases for automotive, industrial machinery and other engineering sectors. This translates to substantial demand for machining services and equipment to produce intricate metal components with tight tolerances. The availability of low cost skilled labor and growing contract manufacturing activities in Asia also contributes to the large market size.
Fastest Growing Region
The machining market is witnessing most rapid expansion in the Central and Eastern European region. Countries like Poland, Czech Republic, Romania and Serbia are attracting manufacturing investments as companies look to set up nearshore production centres closer to Western European markets. Improving infrastructure, supportive government policies and relatively lower wages compared to Western Europe are driving the fast growth of machining capacity additions and outsourcing activities in the region. Machining companies are also increasingly targeting opportunities in industries like aerospace and defense.
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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.
