Metal Machining Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 2024-2028

Metal Machining Market Market Forecast 2024-2028

The metal machining market size is forecast to increase by USD 18.43 billion, at a CAGR of 4.03% between 2023 and 2028. The market's growth rate is influenced by several key factors, including the increasing demand for metal machining in the oil and gas sector, the expansion of production facilities dedicated to metal machining, and increased investments in infrastructure projects. These elements collectively drive the market's growth trajectory, highlighting the crucial role of metal machining across various industrial applications. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Moreover, the market in APAC is poised for substantial growth due to the surge in construction projects across emerging nations and augmented government investments in infrastructure development are anticipated to propel APAC's metal machining market expansion. AMADA Co. Ltd. is a key player in this landscape, providing a range of metal machining tools including the Hyper saw, Pulse Cutting Band Saw Machines, and Semi-Automatic General Purpose Band Saw Machines.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

The market is driven by robust demand from key sectors such as the aerospace and electronics industries. Machinists leverage advanced tools and equipment, including CNC machines and specialized machines, to meet precise requirements. Automation, driven by the Internet of Things (IoT), enhances productivity in production facilities. However, challenges such as fluctuating profitability and the need for skilled machinists persist. Additionally, emerging trends like 3D printing and Industry 4.0 adoption are reshaping the landscape, requiring manufacturers to adapt to new technologies and market dynamics to stay competitive. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver - Expansion of production facilities for metal machining

To cater to the growing demand for machinery products worldwide, companies are focusing on expanding their production capabilities. An increase in production capacity ensures that a company is well-positioned to cater to the needs of customers across the globe. For instance, in March 2022, Okuma Corp. announced the opening of a new facility to serve as a product showroom and technical center to display CNC machine tools and related equipment. The facility comprises spaces for both office and showroom to house Okuma machine tools and other manufacturing-supportive technologies.

Moreover, with the increasing expansion of manufacturing facilities, the demand for machining is bound to rise. As these products are integral parts of manufacturing processes and are extensively used for turning, boring, sawing, shaping, broaching, drilling, milling, and grinding, their demand in the market is significant. Thus, the expansion of manufacturing facilities by various companies is expected to fuel the growth of the market during the forecast period.

Significant Market Trends - Integration of IoT into industrial machinery

Several industrial machines, such as compressors, pumps, industrial robots, and machine tools, are being introduced with IoT features. The integration of IoT allows industrial machines to transmit data related to critical operating parameters, such as temperature, pressure, stress, and health and performance, over IP to a control room or device. Such data helps increase the efficiency of industrial machinery, reduce its downtime, and increase useful life and process safety. Thus, the increasing adoption of IoT-enabled industrial machinery will positively influence the market. Real-time data collection is a strength of IoT solutions across the entire metal fabrication process.

Further, people can assess whether components of the workflow are producing the expected or intended results and where there is an opportunity for improvement, making the workflow more efficient overall. The industrial IoT can also prevent issues where machines suddenly fail and disrupt the workflow. Companies might miss deadlines or have to reduce the number of specialists working particular shifts as a result of broken metal fabrication machines. IoT sensors can avoid these challenges by capturing operational information that indicates abnormalities or that a machine needs maintenance to avoid issues. Thus, the advent of IoT in the metal fabrication industry is expected to drive the growth of the market during the forecast period.

Major Market Challenge - Fluctuations in raw material prices of metal machining

Instability in raw material prices affects the cost of production of metal machining. Thus, many key metals machining service providers enter long-term contracts with suppliers to reduce the negative impact of raw material price fluctuation on their businesses. Moreover, the global metal machining market comprises a large number of small and mid-size enterprises (SMEs) and small metal fabricators that use metal machining equipment and are unable to enter into such long-term contracts owing to the uncertainty in order quantity. Fluctuations in the prices of raw materials such as iron, steel, aluminum, magnesium, copper, and brass, which are the major raw materials used in the metal fabrication business, have been significant for market growth.

However, in most cases, metal fabricators pass on the cost to end-users. Fluctuating prices directly affect contracts for vendors, and such volatility in the cost affects the new contracts and the overall fabrication costs. For instance, in 2022, steel production in China reduced by around 40% as compared to the previous five years. Due to the growing tariffs on imports by the US government, demand for steel is likely to outweigh supply. This, in turn, may negatively impact the growth of the market during the forecast period. 

Market Segmentation by Application, Type and Geography

The market serves diverse sectors such as the aerospace and electronics industries, requiring precision components for their operations. Skilled machinists utilize tools and equipment ranging from handheld devices to specialized machines like saws, grinders, and milling machines to manufacture intricate metal components. With the advent of Industry 4.0 and Automation, CNC technology has become integral, enhancing efficiency and accuracy in production. Moreover, the Oil and Gas sector relies on metal machining for E and P activities. 3D printing further revolutionizes the industry, enabling rapid prototyping and customized component manufacturing. Ensuring Profitability amidst fluctuating raw material costs, companies optimize production facilities and adopt advanced metal cutting tools and lathes. Internet of Things (IoT) integration facilitates real-time monitoring and optimization, contributing to a comprehensive market landscape. The synthesis of these factors drives the evolution of the metal machining industry, reflecting a summation of data indicating continued growth and innovation.

Application Segment Analysis: 

The automotive segment is estimated to witness significant growth during the forecast period. is estimated to witness significant growth during the forecast period. The automotive industry is one of the leading end-user segments of the global metal machining market, as a significant number of metal parts are used in the automotive industry. These metal parts, which include bus bars, electrical contacts, terminals, lead frames, and shields and clips, have applications in a wide range of vehicle components, including the chassis of vehicles and fuel delivery systems. 

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The automotive segment was the largest and was valued at USD 24.09 billion in 2018. In addition, major automotive manufacturers are expanding globally in terms of manufacturing capacity and sales, driving the growth of the automotive industry. For instance, in September 2023, Toyota Motors proposed to expand Toyota's existing manufacturing capacity in India by as much as 30% from the 4,00,00 units in 2023. Toyota has also begun the development of a new sport utility vehicle (SUV) for the Indian market, which will be launched in early 2026. The Volkswagen Group vehicle delivery figures increased by around 12 percent year-on-year to around 9.24 million units in 2023. The increasing demand for electric vehicles is expected to surge the growth of the automotive industry. The increasing demand for vehicles and subsequent efforts of manufacturers toward enhancing their businesses will, therefore, fuel the demand for metal machining products required to produce vehicle parts and components, which in turn is expected to drive the growth of the market during the forecast period.

Type Segment Analysis: 

Based on the type, the market has been segmented into laser cutting machine, plasma cutting machine, flame cutting machine and waterjet cutting machines. The laser cutting machine?segment will account for the largest share of this segment.?A laser cutting machine is a highly advanced and versatile tool used for precision cutting and profiling of metal sheets, plates, tubes, and other workpieces. For precise cutting and designing tasks, a variety of sectors use laser cutting machines. Robots are used to enhance the efficiency of the laser-cutting process. The laser cutting machine segment is expected to witness stable growth during the forecast period, mainly led by the growing demand from end-user industries, such as automotive, aviation, electrical and electronics, and aerospace and defense. Lasers have helped to bring a new level of flexibility to many industries, allowing for new capabilities, such as the ability to work with many metals that had previously been almost impossible. In addition, other noticeable factors, such as technological advances such as industrial automation, and growing industrial applications, are expected to contribute to market growth during the forecast period.

Regional Analysis

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APAC is estimated to contribute 43% to the growth by 2028.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC held a significant share of the global metal machining market in 2023 and is expected to grow significantly during the forecast period. The increasing number of construction activities in emerging countries and the rising government spending on the development of infrastructure will drive the growth of the metal machining market in APAC. The regional market is expected to grow steadily during the forecast period owing to the growing need for new residential and commercial infrastructure for the expanding urban population base. Metal machining is essential for bending, cutting, and molding steel structures to create beams, columns, and steel members.

In addition, the smart cty mission of the Government of India has spurred infrastructure development in the country. Some of the mega infrastructure projects that are currently under construction in India include Project HIMANK, Chenab rail bridge, Mumbai to Delhi expressway, Mumbai Trans Harbour Link Project, and Navi Mumbai International Airport (NMIA), among others. These projects are expected to drive the demand for metal machining in the country during the forecast period. These infrastructure projects rely on structural metal fabrication to make various structural metal products. Metal machining allows the easy fabrication of mezzanines, access platforms, columns, trusses, beams, industrial stairs, and handrails. Such factors are expected to drive the regional market growth during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Atlas Copco AB, - The company offers metal machining tools such as Crowfoot Nutrunner LTC, Angle High Torque Nutrunner LTV and Angle Hold and Drive Nutrunner LTV.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including: AMADA Co. Ltd., Atlas Copco AB, Bystronic Laser AG, DMG MORI Co. Ltd., DN Solutions Co. Ltd., Guangzhou Komaspec Mechanical and Electrical Products Manufacturing Co. Ltd., IPG Photonics Corp., Jet Edge Inc., JTEKT Corp., Matsu Manufacturing Inc., Messer Cutting Systems Inc., Okuma Corp., Otter Tail Corp., Sandvik AB, Shenyang Yiji Machine Tool Sales Co. Ltd., TRUMPF SE Co. KG, Yamazaki Mazak Corp., FANUC UK Ltd, Mayville Engineering Co. Inc., and Jenoptik AG. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • Automotive
  • Construction
  • Aerospace
  • Others

• Type Outlook 
  • Laser cutting machine
  • Plasma cutting machine
  • Flame cutting machine
  • Waterjet cutting machines

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa 

Market Analyst Overview 

The market is propelled by diverse industries such as the aerospace industry, electronics industry, and automotive, driving demand for precision metal components. Advancements in technology, including CNC lathes and CNC laser machines, offer enhanced machining capabilities. Innovations in metal cutting tools, including smart cutting tools and 3D printing, enhance performance and reduce waste. However, challenges such as high initial cost and fluctuating raw material prices impact profitability, particularly for small and medium-sized businesses. Despite this, sectors like automotive and aerospace continue to drive growth, necessitating the use of precision machining solutions for mass production and ensuring quality in metal components across various applications in transport machinery, military equipment, and more.

Moreover, in the market, skilled machinists utilize advanced technologies like CNC laser machines integrated with platforms such as FlexiumPro CNC and Codesys V3 PLC to achieve precision. With the adoption of big data analytics and predictive analytics, manufacturers ensure reliable data for quality assurance and real-time assurance in industrial manufacturing. The industry focuses on waste reduction and product quality improvement through innovative cutting tools, enhancing performance optimization and accuracy improvement. This market serves various sectors including automotive, aerospace & defense, and food & beverage, with small & medium-sized businesses benefiting from solutions tailored to the lathe machines segment. Competition drives company selection to meet the demands of an accurate market and cross-border trade considerations.

Market Scope
Report Coverage	Details
Page number	177
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.03%
Market Growth 2024-2028	USD 18.43 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	3.71
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 43%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AMADA Co. Ltd., Atlas Copco AB, Bystronic Laser AG, DMG MORI Co. Ltd., DN Solutions Co. Ltd., Guangzhou Komaspec Mechanical and Electrical Products Manufacturing Co. Ltd., IPG Photonics Corp., Jet Edge Inc., JTEKT Corp., Matsu Manufacturing Inc., Messer Cutting Systems Inc., Okuma Corp., Otter Tail Corp., Sandvik AB, Shenyang Yiji Machine Tool Sales Co. Ltd., TRUMPF SE Co. KG, Yamazaki Mazak Corp., FANUC UK Ltd, Mayville Engineering Co. Inc., and Jenoptik AG
Market dynamics	Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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