Study: World demand for machine tools to reach $181 billion

Worldwide demand for machine tools is projected to climb 5.5 percent per year through 2019 to $181 billion, according to a new study from Freedonia Group ─ a Cleveland-based industry research firm ─ while North American demand is expected to decline nearly one percent per year through 2019.

According to the study, gains at the global level will be largely driven by market growth in China and other developing nations where demand for durable goods is expected to post the strongest increases. This will result in additional investment in new manufacturing capacity and related machine tools in the Asia/Pacific region, the Africa/Mideast region, Eastern Europe and Central and South America.

In contrast to other nations, the study says North America is projected to see machine tool demand decline nearly one percent per year through 2019, due solely to weakness in the large U.S. market. But Mexico will continue to experience rapid advances in machine tool sales, while the Canadian market is expected to grow at about the world average pace.

Many durable goods companies in North America previously modernized existing facilities, built new plants and purchased additional machine tools in recent years. As a result, there will be less new and replacement product demand in the region during the 2014-2019 period. 

Through 2019, machine tool demand in Western Europe, the second largest regional market worldwide, is expected to grow nearly six percent per annum. Growth will be in line with the average worldwide pace, and Western Europe will account for 18 percent of product demand gains through 2019.

“Growth will also be supported by the introduction of more expensive machine tools,” said Analyst Gleb Mytko. He adds that in order to develop the next generation of durable goods, manufacturers in the region will likely invest in machine tools that offer increased control and precision.