Europe Machine Tool Market Outlook to 2023: Ken Research
The report titled “Europe Machine Tool Market Outlook to 2023 – by Type of Machine (Cutting and Forming), By End Users (Automobile Industry, Aerospace, Energy, Engineering, Electrical and Electronics and Others) and by Sales Channel (Distributor and Direct)” provides comprehensive information on the Europe Machine Tool Market by Type of Cutting Tools (Machining Centres and Flexible machines, Turning Machine, Laser and electric discharge machine, Milling machines, Grinding, honing, lapping and polishing machines, Transfer machines, Gear cutting, and finishing machines, Drilling machines, boring machines and boring-milling machines, Sawing and cutting-off machines), by Forming tools (Forging machines and hammers (including presses), Wire working machines, Bending, folding and straightening machines, Shearing, punching, notching machines), by end users (Automobile Industry, Aerospace, Energy, Engineering, Electrical and Electronics, and Others) and by sales Channel (Distributor and Direct).
The report also covers value chain analysis, competitive landscape, trends and developments, issues and challenges, detailed snapshot on demand for machine tools in Germany, France, Switzerland and Italy. The report concludes with future outlook of Europe machine tools market and certain recommendations highlighting the success factors for entering and expanding the market.
Europe Machine Tools Market Size and Overview
Europe Machine tools market is in the mature stage and has been the market leader for centuries before the shift happened to Japan and the US market. Chinese products are gaining market due to their competitive pricing. The European market has registered growth in the last five years registering a positive CAGR during the period. Growth was mainly driven by demand from Italian and German-made products which are in high demand across European and Global market. Switzerland and Spain are other significant countries which have focused on the export of machine tools.
Europe Machine Tool Market Segmentation
By Type of Machine: Cutting machine tools largely dominated the market accounting for more than one-third of the total consumption by revenue in 2018. CNC based cutting machine tools accounted for the majority of the sales in the European the market as all new investments are targeted at automation and numerical control due to its better precision and efficiency in terms of energy and metal removal. Forming tools are used in wire manufacturing which accounts for the majority of the sales in the electric industry.
By Type of End Users: Automobile industry is the largest consumer segment for machine tools in the European market. Investments in setting up and modification of existing manufacturing units to manufacture electric and hybrid vehicles has driven the demand for efficient machine tools in the region. Metalworking is the largest sector contributing to the engineering segment. It is expected to register significant growth in the years to come due to a rise in the number of SMEs. Electric and Electronic product manufacturing units and Aerospace are other major end-users of machine tools accounting.
By Sales Channel: Standard machines are widely used by SMEs and distributors act as a source for supplying these materials. Germany, Spain, and Italy have a much higher number of machine tool distributors as compared to other countries. Eastern European countries have very few distributors of machine tools as industrial development is concentrated into few towns and cities. Limited expansion of new manufacturing capacity is the key reason for low demand from direct selling.
Snapshot on Major Countries
Italy: Machine tool market is on a constant increase in Italy. The growth was largely driven by increased production and imports along with increased domestic consumption. Robotic machinery is in high demand accounting for 15-20% of the total machine tools sales.
France: The market has largely remained positive except 2014 when a decline was registered. CICE Tax credit system was introduced in 2012 to the manufacturers and other entities paying corporate tax in France. Value added by manufacturing accounted for 11.1% of Gross Value Added (GVA) in 2018. The French government launched the ‘Industrie du Futur’ initiative in 2015 to take advantage of Industry 4.0 initiative in the EU.
Germany: Germany is the largest machine tool market in the entire European region both in terms of domestic consumption and production. The market is in a mature stage and is largely driven by the acceptance of innovative technology. Japan and the US are strong competitive markets giving tough competition to Germany made machine tools.
Switzerland: The domestic consumption of machine tools is on the decline in the country. The decline was highest in 2016 due to poor domestic production and reduced imports. Starrag and Chiron are among the two major machine tool companies operating in Switzerland. Other than this there were many international players having their offices in Switzerland.
Future Outlook to Machine Tool Market in Europe
Machine tools market in Europe is expected to register a decline in growth due to poor manufacturing scenario. The sustainability in demand will be largely from the industry to adopt Industry 4.0 goals. Setup of new manufacturing locations in Eastern Europe, and promotion of domestic SMEs in the Western Europe region will drive some demand especially for a single machine.
Key Segments Covered:-
By Type of Machine Tools
Cutting Machine Tool (Machining Centres and Flexible machines, Turning Machine, Laser and electric discharge machine, Milling machines, Grinding, honing, lapping and polishing machines, Transfer machines, Gear cutting and finishing machines, Drilling machines, boring machines and boring-milling machines, Sawing and cutting-off machines)
Forming Machine Tool (Forging machines and hammers including presses, Wire working machines, bending, folding and straightening machines, Shearing, punching, notching machines)