Machining Market will grow at highest pace owing to increasing adoption of precision machined components
The machining market involves the removal of unwanted material from metal or other solid materials to produce parts of complex shapes and intricate designs. Precision machining offers tight tolerances and superior surface finishes for applications needing critical performance properties. Key machining processes include turning, milling, drilling and grinding. These are used to manufacture critical components for industries such as automotive, aerospace, defense and medical devices. Precision machining enables the production of high-strength and lightweight parts, thus improving performance and fuel efficiency of vehicles. The demand for machined components from the aerospace industry is also growing rapidly owing to increased aircraft deliveries and preference for additive manufacturing technologies.
The machining market is estimated to be valued at USD 402.56 Bn in 2024 and is expected to reach USD 625.55 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Key Takeaways
Key players operating in the machining market are DMG Mori Co. Ltd., Georg Fischer Ltd., Doosan Machine Tools Co. Ltd., Makino Milling Machine Co. Ltd., CHIRON Group SE. The demand for machined components is increasing from industries such as automotive, aerospace and medical devices due to stringent performance and quality standards. Additive manufacturing technologies are enabling machining of geometrically complex parts with improved material properties.
Growing demand: The automotive industry accounts for over 30% of the global Machining Market share driven by the need for high-precision machined components in engines, transmissions and other critical applications. The aerospace industry is also expanding at a rapid pace creating a surge in demand for aircraft parts made from advanced alloys that require precision machining treatments.
Technological advancement: Machining centers are increasingly integrated with automation, IoT, big data and AI capabilities to improve efficiency, reduce machining cycles and ensure process consistency for complex geometries. Multi-tasking machines that combine turning and milling allow machining of complete parts or job orders in a single clamping reducing setup times. Advanced tools and attachments enable hard to machine material removal.
Market Trends
Adoption of smart manufacturing practices: Leading machine tool builders are focusing on developing digital solutions for remote monitoring, predictive maintenance and automated decision making to enhance productivity, quality and reduce downtimes.
Increased outsourcing of technical machining: Medical device manufacturers, aerospace OEMs and tier players are outsourcing technical machining processes requiring specialized multi-axis capabilities to expert machining shops to offset capital expenditure on advanced equipment.
Market Opportunities
Growth in aerospace component sales: Global aerospace component sales are expected to rise at 6% CAGR through 2029 driven by rising commercial aircraft deliveries and expanded defense budgets creating opportunities for precision machining service providers.
Medical device manufacturing potential: Technical machining expertise is critical for manufacturing surgical equipment, implants and device components from difficult-to-machine metal alloys and polymers at stringent tolerance levels.
Impact of COVID-19 on Machining Market growth
The COVID-19 pandemic has posed unprecedented challenges for the machining market. During the initial months of the pandemic, when lockdowns were enforced strictly across nations, production and supply chain activities came to a halt. This led to a steep decline in demand for machining services from end-use industries such as automotive, aerospace, industrial machinery and others. However, as lockdowns eased, many players in the machining market adapted to the new normal by leveraging digital technologies and implementing new safety protocols.
While demand remained subdued through much of 2020, it started recovering gradually in the latter half backed by rising production in sectors deemed essential. Machining companies focused on cost optimization, remote working solutions, and automation to withstand disruptions. As vaccination drives progress globally in 2021, operations are normalizing. Though challenges persist due to new virus strains, outlook is improving supported by pent up demand and recovery in core sectors. In the coming years, the market is projected to trend upwards backed by rising investments in industrialization, infrastructure development and supply chain resilience.
Geographical concentration of Machining Market
In terms of value, the machining market remains most concentrated in Asia Pacific region. Countries like China, India, Japan and South Korea are major industrial hubs with a strong manufacturing sector. Their vast automotive, electronics and machinery production bases generate high demand for precision machining services. China, in particular, accounts for over 30% of global market value owing to its position as the world's leading manufacturer. Japan and South Korea are other important Asian markets that have well-established machinery and automotive industries.
Fastest growing region for Machining Market
Currently, the fastest growing regional market for machining globally is Southeast Asia. Countries such as Indonesia, Vietnam, Thailand and Malaysia are witnessing rapid industrialization to emerge as attractive manufacturing destinations worldwide. Their government policies promoting foreign investments and improving infrastructure have spurred huge investments from automakers and electronics/technology firms relocating facilities. This is translating to ever rising demand for high-quality, cost-effective machining services from the region. With continued economic expansion and manufacturing sector growth projected, Southeast Asia will likely sustain strong double-digit growth rates for machining market over the medium term. New machinery, tools and technology adoption will aid market expansion.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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