Abstract
Demand for machine tools in China to increase 13% annually through 2012
Chinese demand for machine tools is projected to see annual gains of 13
percent through 2012 to ¥606 billion, supported by rapid growth in durable
goods production, especially for industrial machinery, transportation
equipment, primary and fabricated metals, and electrical and electronic goods.
In addition, the expansion and modernization of China' s infrastructure will
result in gains in ceramic, glass, stone and wood products demand, which will
stimulate machine tool demand. Moreover, a rise in demand for higher-value
computerized numerical control machine (CNC) tools will boost overall market
value.
Metal cutting machine tools to post healthy gains
Metal cutting machine tools will be the fastest growing product category
through 2012, benefiting from strong growth in investment by the manufacturing
sector and improving technological capabilities in CNC technology, which is
mostly employed in metal cutting machine tools such as machining centers.
Sales of machine tool accessories will also climb at an above-average rate,
driven by fast growth in metal cutting, metal forming and nonmetal machine
tool production in China. Sales of metal forming machine tools will grow at a
healthy pace, fueled by continued growth in manufacturing sector output and
further gains in fixed investment spending by both domestic and foreign-owned
enterprises. In addition, demand for nonmetal machine tools is projected to
grow at a respectable rate, driven by growth in wood, stone, glass and other
nonmetal durable goods production.
Industrial machinery market to remain dominant
Manufacturing of industrial machinery in China is expected to remain the
largest source for machine tool demand due to the wide range of applications
and significant machine tool requirements in many of these industries. The
fastest growth by far is expected in the electrical and electronic segment,
which in many cases requires high-precision, high-end tools to meet the
stringent tolerances involved in electronic product manufacturing.
Transportation will maintain the second largest machine tool market for the
foreseeable future, supported by continuing
Imports to maintain a sizeable share of demand
China' s imports of machine tools are expected to rise 12.2 percent annually,
and account for almost 30 percent of total product demand in 2012. Import
gains will be supported by domestic industrial manufacturers' demand for CNC
machine tools as well as continuous foreign invested manufacturers' demand for
imported machine tools. Despite recent advances in machine tool manufacturing
technologies, technical standards of machine tools made by domestic
manufacturers remain behind requirements in more sophisticated high-end
product categories, which will continue to support import growth for the
foreseeable future. On the other hand, exports are projected to climb at a
faster pace, driven by improved production standards, especially in CNC
machine tools and by increasing machine tool demand in other developing
countries such as India and some southeast Asian countries.
Study coverage
These and other findings are detailed in a new Freedonia industry study,
Machine Tools in China presents historical demand data (1997, 2002 and 2007)
plus forecasts for 2012 and 2017 by product, market, and region of China. In
addition, the study assesses market environment factors, evaluates company
market shares and profiles 30 leading competitors.
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