Press Release

The global machine tools market revenue surpassed US$ 82.4 billion in 2024 and is predicted to attain around US$ 124.5 billion by 2033, growing at a CAGR of 4.7% during the forecast period from 2025 to 2033.

The machine tools industry is undergoing a remarkable transformation, largely fueled by the increasing adoption of Industry 4.0 technologies and advanced automation solutions. This shift is characterized by the integration of digital technologies such as artificial intelligence, the Internet of Things (IoT), and robotics, which are fundamentally changing manufacturing processes and significantly enhancing operational efficiency. As manufacturers embrace these innovations, the concept of smart factories is becoming more prevalent, with investments in connected and automated manufacturing equipment on the rise.

Recent data highlights the positive impact of these advancements on global industrial production. In July 2024, industrial production outside the United States saw an increase of 1.5% compared to the previous year, while advanced economies, excluding the US, experienced a modest growth of 0.2%. Additionally, industrial and industrializing economies reported approximately 1% growth quarter-over-quarter in manufacturing. These figures indicate a robust recovery in the sector and a growing demand for advanced manufacturing machinery solutions, underscoring the importance of technological evolution in driving industry growth.

Machine Tools Market Key Takeaways

• The machine tools market is projected to generate an impressive revenue of US$ 124.5 billion by 2033, reflecting a compound annual growth rate (CAGR) of 4.7% from 2025 to 2033.
• In terms of product type, machining centers are leading the market, capturing over 20.7% market share. Their dominance can be due to their integrated capabilities for milling, drilling, and turning, which provide high efficiency and versatility.
• When considering automation types, CNC machine tools have emerged as the preferred choice, holding over 65.2% market share. The popularity of CNC tools can be linked to their ability to deliver repeatable precision and ease of programming, along with a reduced reliance on manual labor. 
• The automotive industry continues to be the largest end-user of machine tools, accounting for more than 29% of the market revenue. This position is primarily driven by the increasing need for efficient fabrication of critical components such as engine parts, transmission housings, and chassis components.
• The sales channel landscape indicates that dealers and distributors remain the primary access point for machine tool acquisitions, holding over 81% market share. These intermediaries play a crucial role by connecting end-users with a diverse range of cutting-edge technologies while providing essential localized support. 

Asia Pacific Emerged as a Prominent Region, Capturing More Than 50% of Revenue Share

Asia Pacific has firmly established itself as the leading region in the global machine tools market, holding an impressive market share of over 54.1%. This dominance can be attributed to a remarkable surge in manufacturing output, significant infrastructural developments, and a robust demand across various industrial sectors. 

The region's growth is particularly noteworthy in countries such as China, Japan, South Korea, and India, where more than 600 specialized machine tool production facilities are concentrated. These facilities are dedicated to high-tech innovations, focusing on advancements like multi-axis CNC solutions and automated assembly lines that enhance efficiency and precision in manufacturing processes.

The demand for machine tools in Asia Pacific is primarily driven by key industries, including automotive, construction equipment, and general industrial sectors. These industries not only consume a substantial volume of machine tools but also contribute to the creation of a vibrant ecosystem comprised of suppliers and end-users. For instance, in India, the automotive sector is experiencing a transformation, with at least 50 new automotive component plants adopting 5-axis machining centers. This implementation aims to improve part consistency and quality, catering to domestic needs and export markets.

Moreover, the support from governmental initiatives plays a crucial role in fostering this growth. The region has seen significant government backing in the form of research grants, which is evident from the launch of 80 newly funded collaborative projects focusing on advanced tooling technologies. These initiatives are designed to stimulate innovation and enhance the capabilities of the machine tools industry, further solidifying the Asia Pacific region's leading position in machine tool adoption and utilization. 

Market Overview

Machine tools are precision mechanical devices designed to cut, shape, and form metals or other rigid materials. They are widely used across various industries for tasks such as milling, drilling, turning, and grinding. In 2024, the market is set to see the commercial release of over 480 new CNC milling models globally, highlighting a robust wave of innovation in product types, including lathes, milling machines, and grinders.

In the aerospace sector, companies utilize CNC machine tools to manufacture a range of critical parts, including fuel access panels, landing gears, engine mounts, turbines, and wheels. These tools are essential for producing lightweight components that meet stringent tolerance requirements. 

The growing demand for air travel is driving the need for more efficient aircraft, which in turn positively influences the growth of the machine tools market. As the aerospace industry expands, the reliance on advanced machining capabilities will continue to increase, further underscoring the importance of machine tools in modern manufacturing.

Market Growth Factors

Driver

Rising Demand for Precision Machine Tools: The rising demand for precision machine tools in the electric vehicle (EV) component manufacturing sector is driven by the rapid growth of the electric vehicle market and the need for high-quality, reliable components. As global demand for electric vehicles continues to rise, manufacturers are ramping up production to meet this demand.

Increased Adoption of Lightweight Machine Tool Materials: The increased adoption of lightweight machine tool materials is another trend reshaping the manufacturing landscape, necessitating specialized machining technologies. The machining of lightweight materials often necessitates the use of advanced technologies, such as high-speed machining, laser cutting, and waterjet cutting.

Restraint

Difficulty in Adapting Legacy Systems: The difficulty in adapting legacy systems to new machine tools and automation capabilities poses a significant challenge that could hinder the growth of the machine tools market. Many manufacturers still rely on older equipment and production processes that were established before the advent of advanced automation technologies. 

High Costs of Advanced Multi-Axis Machines: The high costs associated with advanced multi-axis machines represent another significant barrier that could hinder the machine tools market, particularly for smaller manufacturers. Beyond the purchase price, multi-axis machines require regular maintenance and often necessitate specialized parts and skilled technicians for repairs. 

Top Trends

Growing Use of Hybrid Additive-Subtractive Machining: The manufacturing landscape is witnessing a growing trend toward hybrid additive-subtractive machining, which combines both additive and subtractive processes into a single system. This innovative approach allows for the production of complex parts that would be challenging to create using traditional methods alone.

Advancements in Machine Tools Automation: The field of machine tools is experiencing remarkable advancements in automation, particularly through the integration of robotic-assisted workflows. These improvements are driving higher efficiency and productivity in manufacturing processes.

Recent Advancements

• In January 2025, Siemens unveiled MACHINUM at IMTEX 2025, a comprehensive digitization portfolio aimed at enhancing the speed, agility, and endurance of the Indian machine tool industry. This innovative portfolio has the potential to reduce setup time by up to 20% and cycle times and energy consumption by up to 18%.
• In December 2024, TaeguTec India formed a partnership with Machine Maker, the leading voice of manufacturing, to introduce its inaugural Cutting Tool Knowledge Series titled “PRECISION UNLOCKED.”
• In October 2025, Nidec Machine Tool expanded its product lineup with the launch of the ZI25A, a mass-production-type internal gear-grinding machine. This new machine is expected to significantly enhance the internal surface accuracy of mid-size gears with an external diameter of up to 250mm.

Global Machine Tools Market Major Players:

• Ace Micromatic Group
• Amada Co. Ltd.
• CHIRON Group
• Dalian Machine Tool Group Corporation (DMTG)
• DMG MORI
• Doosan Machine Tools Co. Ltd.
• Electronica Hitech Engineering Pvt. Ltd.
• Georg Fischer Ltd
• Gleason Corporation
• GROB-WERKE GmbH & Co. KG
• Haas Automation Inc.
• Hyundai WIA
• JTKET Corporation
• Komatsu Ltd.
• ​ MAG IAS GmbH
• Makino​
• Okuma Corporation​
• Schuler AG
• Spinner Machine Tools
• Yamazaki Mazak Corporation
• Other Prominent Players

Key Segmentation:

By Product 

• Milling Machine
• Lathe Machine
• Laser Machine
• Drilling Machine
• Turning Machine
• Grinding Machine
• Electrical Discharge Machine
• Machining Centers

By Automation Type

• CNC Machine Tools
• Conventional Machine Tools

By Industry

• Automotive
• Aerospace and Defense
• Construction Equipment
• Power and Energy
• Industrial
• Others

By Sales Channel

• Dealers and Distributors
• Events and Exhibitions

By Geography

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa (MEA)