The machine tools market has been estimated to hit a total of US$154 billion by 2018, driven by the growth of the manufacturing industry in developing countries, and a rise in technological developments.
The machine tool industry will experience a steady demand so long as there is demand for manufactured durable goods such as automobiles, computers, and construction equipment.
As a key enabler of industrial revolution and as indispensable tools designed to mould, cut, shape, and fabricate almost all products under the sun, machine tools wield a major impact on productivity in the manufacturing industry.
The machine tools industry confronted its toughest challenge ever by the financial crisis induced world economic recession in the years 2008 & 2009. Machine tools being capital goods came under the yoke of the recession with freezing of capital expenditure in the manufacturing and industrial sectors negatively impacting sales.
Slowing levels of economic activity, complete collapse of global production & trade, fall in industrial production, commercial activity, plant closures, capacity idling, scaling back of operating capacity, and the resultant sputtering investments in industrial production resulted in broad based declines within the market.
After a temporary period of lull, the world market for machine tools staged a remarkable recovery in the year 2010, as mirrored by the growth in annual value sales.
An improvement in capital spending across key end-use industries, thanks to a strong resurgence in growth fundamentals such as the increased demand for end products, subsequent rise in production needs and improved manufacturer confidence, has revived market prospects for machine tools.
According to a recent market report, 'Machine Tools: A Global Strategic Business Report,' Asia-Pacific represents the largest as well as the fastest growing market worldwide. Growth in the region is led by healthy economic growth and infrastructure development in countries like China, Taiwan, South Korea, Thailand, Malaysia and India, among others.
China in particular, displays tremendous appetite for new machine tools, given the robust development in its industrial sector.
For more information on the machine tools market, see the latest research: Machine Tools Market
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