The global machine tools market is poised for significant growth due to the increasing adoption of robotics for enhanced automation and human-machine interaction. The rapid expansion of smart factories, driven by the need for real-time connectivity, is a prominent trend.

According to a report, the machine tools market is expected to expand from $113.26 billion in 2021 to $164.92 billion in 2028, registering a CAGR of 5.5 per cent during the forecast period. In 2020, the market recorded a size of $111.36 billion.

These insights are derived from a report by Fortune Business Insights titled "Machine Tools Market, 2021-2028."

MACHINE TOOLS MARKET DYNAMICS

Drivers: The increasing additive manufacturing activities across the globe is anticipated to propel the machine tools market growth in the upcoming years. Nowadays, manufacturers are inclining towards rapid and cost-effective production processes, leading to higher usage of additive manufacturing.

Restraints: Shifts in global economic conditions are posing challenges to the market, particularly affecting expenditures in the manufacturing industry, which are closely linked to the sales of these tools. Consequently, a slowdown in the global economy is anticipated to directly correlate with a decline in machine tool revenue. Similarly, trends within the automotive industry wield a substantial influence on the tools sector due to the industry's widespread adoption of machinery.

Opportunities:  The machine tools market is poised for significant opportunities driven by the escalating demand for advanced machining solutions in the aerospace and automotive industries. As these sectors increasingly embrace precision engineering and efficient manufacturing processes, the need for cutting-edge machine tools is on the rise. The trend towards smart factories and Industry 4.0 is creating avenues for the integration of innovative technologies, such as IoT-enabled machine tools, offering real-time data insights and process optimisation.

Regional Analysis: Regionally, Asia Pacific held $58.83 billion in 2020 in terms of revenue. The rising government initiatives to enhance a large number of industries would drive growth in this region. The 'Make in India' campaign, for instance, is aimed to provide tax benefits and foreign direct investments (FDI) to the manufacturing sector in the country. China is expected to showcase the highest growth in the forthcoming years on account of the expansion of the manufacturing sector. In North America, the market is likely to exhibit considerable growth, fueled by the surging R&D activities occurring in the U.S.

Market Segmentation: Based on the application, the precision engineering segment generated 14.9 per cent of the machine tools market share in 2020. This growth is attributable to the high demand from a wide range of industries, such as marine, medical, and semiconductors.