World Machine Tools to 2009

Global demand to grow 5.2% per year through 2009

Global demand for metal cutting and metal forming machine tools and related machine tool accessories is projected to increase 5.2 percent per year in current value terms to exceed US$84 billion in 2009. This will represent a significant recovery from an extended period of weakness that encompassed most of the latter 1990s through the initial years of the new millennium. That period was characterized by sluggish demand from most of the major machine tool-using industries and sectors, including automaking, aerospace equipment, industrial machinery, primary metals and electrical/ electronic equipment. By 2003, a recovery process began to take hold in the world machine tool market, which picked up further momentum in 2004, on the strength of an expanding global economy and firming demand in the developed nations.

Asia/Pacific region to dominate

Further growth in world machine tool demand is expected through the latter part of the decade, with emerging Asian powers such as China, South Korea and Taiwan raising their global profiles as both producers and consumers of machine tool products. Prospects are favorable in Eastern Europe as well. The developed world powers -- the US, Germany, Japan, etc. -- will continue to do significant business in the world machine tool industry, but their relative importance will wane in the face of rising competition from industries and markets in developing nations.

Adept toolmakers to benefit from market changes

Increasingly, end users of machine tool products are demanding process-based solutions that require less in the way of physical product than has been typical historically. Concomitant with these trends is the development of highly sophisticated, durable machine tools requiring less frequent replacement. This will enhance the competitive advantage of toolmakers able to supply such solutions, and will prompt further restructuring of the world machine tool industry, following the extensive amount of consolidation that occurred during the late 1990s/early 2000s global downturn and prior periods.

Study coverage

This new Freedonia industry study, World Machine Tools, analyzes global supply and demand for machine tools with an emphasis on cyclical dynamics, growth markets and industry restructuring. Priced at $5200, the study presents historical demand data through 2004 and forecasts to 2009 and 2014 by machine tool type (e.g., metal cutting, metal forming, machine tool accessories); by major application (e.g., industrial machinery, transportation equipment, fabricated metal products); and for 30 countries and regions.

The study also considers technological developments, macroeconomic trends and other supply/ demand dynamics, pricing and international trade flows. A detailed industry structure examines the key variables driving competition in the global machine tool business, evaluates producer market share and profiles selected industry competitors.