MACHINE TOOLS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Machine Tools Market Size and Trends

Global machine tools market is estimated to be valued at USD 107.30 Bn in 2025 and is expected to reach USD 130.27 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 2.8% from 2025 to 2032.

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Key Takeaways

• Based on Product Type, Milling Machines segment is projected to account for 30.6% of the global market in 2025, owing to their wide range of applications across industries
• Based on Material Type, Metal segment is expected to capture 64% share of the market in 2025, due to large scale metal production across manufacturing industries. 
• Based on Application, the Automotive segment is projected to command 38.4% share of the market in 2025, due to its extensive reliance of the automotive industry on machine tools
• Based on Region, North America is set to dominate the global machine tools market with a 40.8% share in 2025.

Market Overview

The steady growth of the automotive, industrial machinery, and metalworking industries is driving demand for machine tools for precision manufacturing and component fabrication. The machine tools market is expected to witness positive growth over the forecast period supported by ongoing investments in advanced manufacturing technologies across developing economies. Additionally, the trends towards additive manufacturing and computer numerical control machine tools will support more automation in production lines. The adoption of smart factory solutions that incorporate robotics, IoT, and data analytics will promote greater efficiency.

Current Events and their Impact on the Machine Tools Market

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Robot in Machine Tools industry

Robots are revolutionizing the machine tool industry by enhancing automation, precision, and efficiency. They streamline tasks such as loading, unloading, tool changes, and part handling, significantly boosting productivity and reducing manual labor. Advanced systems now enable robots to perform high-precision machining tasks traditionally done by CNC machines.

In August 2025, Siemens launched the Sinumerik Machine Tool Robot (MTR), a breakthrough that merges industrial robotics with CNC machine tool precision. Featuring advanced control functions and broad robot compatibility, the MTR enables robots to perform high-precision tasks traditionally limited to CNC machines, setting new standards for accuracy and expanding applications in manufacturing.

AI in Machine Tools Market

The machine tools industry is experiencing a profound transformation as artificial intelligence reshapes traditional manufacturing processes. From predictive maintenance to autonomous machining operations, AI is becoming the cornerstone of modern industrial production, driving unprecedented levels of efficiency and precision.

Leading manufacturers are increasingly embedding AI into their core operations to optimize production capabilities. Mazak, a prominent machine tool manufacturer, has pioneered the integration of AI through its Smart Manufacturing concept.

The company has developed AI-powered systems that analyze real-time production data to automatically adjust machining parameters, reducing setup times by up to 50% and improving overall equipment effectiveness. This strategic implementation demonstrates how traditional machine tool companies are evolving into technology-driven enterprises that leverage data analytics to enhance their competitive advantage.

Similarly, in June 2025, Hexagon’s Manufacturing Intelligence Division unveiled ESPRIT EDGE, its industry-leading computer-aided manufacturing (CAM) software, addressing productivity and skills challenges with extensive user-friendly swiss machining support and the first AI services powered by Hexagon’s cloud based Nexus platform.

Market Driver

Increasing demand for precision machining in various industries

The need for precision machining has seen a marked rise across industries in recent years. Manufacturers are consistently pushing to develop components and parts with tighter tolerances and improved dimensional accuracy that can withstand higher stresses. This has increased the requirement for machine tools that can deliver micron-level precision in machining of materials.

Industries such as aerospace, defense and automotive have been at the forefront of this trend where components need to meet stringent quality standards. Aircraft engine manufacturers, for instance, demand extremely high precision in milling of turbine blades and vanes that can operate reliably in varying stress conditions at high speeds. Similarly, automotive OEMs expect tight tolerances and surface finishes in crankshafts and connecting rods to optimize efficiency of engines.

In November 2024, Precision Engineering Technologies (PETECH), a subsidiary of Phillips Machine Tools, introduced three new machining solutions as part of its Performance Series: Rotary Tables, Probing Systems, and Horizontal Lathes.

Segmental Insights

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Machine Tools Market Insights By Product Type: Rising Demand for Precision Machining Drives Growth of Milling Machines

In terms of product type, milling machines is expected to contributes 30.6% share of the market in 2025 owing to their wide range of applications across industries that require high precision machining capabilities. Milling machines excel at milling various shapes and profiles into workpieces through the powerful machining process of milling. Their spindle can exert high torque and rotational speed to remove material through rotating multi-tooth cutters. This enables milling machines to machine flat, contoured and even complex 3D surfaces with extreme accuracy depending on the type of milling machine.

The automotive industry is a key driver of milling machine demand as various engine, transmission and other precision metal components require milling for their detailed design and tolerances. Aerospace is another major industry that relies heavily on milling for aircraft structural parts and jet engine components.

General engineering across machinery manufacturing also utilizes milling to produce fittings, small parts and other machined components. As the level of automation and precision required across these industries increases through trends like Industry 4.0, the demand for versatile, high precision milling machines continues rising to meet tighter accuracy specifications.

For instance, Sandvik Coromant has introduced CoroMill® MR80, a versatile milling concept suitable for challenging roughing operations in steel and stainless steel applications. This innovative tool features a double-sided round insert design with increased insert count, enhancing productivity. 

Machine Tools Market Insights by Material Type: Metal Machining Dominates the Material Type Segment Due to Industrial Production Needs

In terms of material type, metal is expected to contributes 64% share of the market in 2025 primarily due to large scale metal production across manufacturing industries. Metals have been the most commonly used engineering materials owing to their desirable properties like strength, ductility and resistance to corrosion.

Steel, aluminum, titanium and other alloys form the structural basis of automobiles, aircraft, machinery, tools, ships and various heavy equipment. Mass production of these metal-intensive goods creates sustained demand for machine tools suitable for metalworking applications.

Metal cutting requires robust machine tools equipped to handle tough metal stock and apply cutting forces precisely. Lathes, milling machines, grinding machines and other specialized metal cutting equipment are designed to optimize metal removal rates while maintaining close tolerance finishing on metal surfaces.

For instance, in September 2024, Okuma America Corporation unveiled product addition to the company's line of CNC horizontal machining centers – the MA-4000H. The versatile MA-4000H joins Okuma's extensive line of machines designed for heavy, high-performance metal machining for both mass production and variable-volume production runs. 

Machine Tools Market Insights By Application: Automotive Sector Fuels Growth in Machine Tool Applications

In terms of application, automotive is expected to contributes 38.4% share of the market in 2025 due to extensive reliance of the automotive industry on machine tools. Manufacturing modern motor vehicles requires an immense level of precision part production that can only be achieved through CNC machine tools. Intricate engine components, transmission gears, chassis fittings and other structural automobile assemblies demand tight geometric specification holding within microns.

Most automotive OEMs and their large supply chains have built extensive in-house machine tool capabilities or collaborate closely with dedicated machining job shops to meet just-in-time production needs. Lathes, mills, grinders, and complex multi-tasking machines produce cylinder heads, connecting rods and other high-precision engine parts 24/7 to sustain automaker's worldwide assembly lines. Similarly, automotive body shops rely on highly automated machining centers to stamp panels, moldings and forged items within micron level flatness and intricate profiling.

For instance, Taiwan, and TAITRA (Taiwan External Trade Development Council) hosted the ‘Taiwan Excellence Smart Machine Tools for Automotive Manufacturing Online Products and Solutions Launch’ webinar.

Regional Insights

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North America Machine Tools Market Analysis & Trends

North America dominates the market and the region is expected to hold 40.8% of the market share in 2025, mainly driven by the U.S. After experiencing a slowdown post the 2008 recession, the machine tools market has witnessed renewed growth in recent years supported by resurgence in domestic manufacturing activities.

Growing capital expenditure on factory automation and adoption of new technologies by small and medium enterprises have significantly contributed to market expansion. Furthermore, reviving aerospace and automotive sectors have augmented domestic demand for high-precision machines.

For instance, in July 2024, the leadership team at  Such exhibitions are propelling the machine tools market demand.

Asia Pacific Machine Tools Market Analysis & Trends

The Asia Pacific region, led by China, is showcasing the fastest growth in the global machine tools market. China's machine tools industry has been growing rapidly over the past two decades, fueled by the country's rising manufacturing prowess and growing export domination in many industrial sectors.

With a strong presence of OEMs and component suppliers, China accounts for over half of the global demand for machine tools. Its leading position is primarily a result of strong government support towards manufacturing, availability of low-cost skilled labor, and massive supplier ecosystem for machine tools.

In September 2025, Precision Engineering Technologies (PETECH), part of the Phillips Machine Tools group, launched its Performance Series—an advanced line of high-performance CNC machines—during a dedicated Media Day. In just two years, PETECH has deployed over 500 units across India and Malaysia, reflecting strong market adoption and industry trust in its technology.

Machine Tools Market Outlook Country-Wise

The U.S. Machine Tools Market Trends

The U.S. machine tools market is experiencing steady growth, driven by advancements in automation, digital integration, and a resurgence in domestic manufacturing. Key trends shaping the market include the increasing adoption of Computer Numerical Control (CNC) technologies, which enhance precision and efficiency in production processes.

The automotive industry remains a significant driver of demand, accounting for a substantial portion of machine tool applications. Furthermore, the integration of artificial intelligence (AI) and the Internet of Things (IoT) is transforming manufacturing operations, leading to the development of smart factories and predictive maintenance systems.

India Machine Tools Market Trends

India's machine tools market is experiencing significant growth, driven by advancements in automation, digital manufacturing, and a strong push towards self-reliance in industrial capabilities. The sector is witnessing increased adoption of Computer Numerical Control (CNC) technologies, enhancing precision and efficiency in manufacturing processes.

For instance, in July 2023, Nidec Machine Tool Corporation announced that the company announced to construct a new factory for Nidec India Precision Tools Ltd., the company’s cutting tool manufacturers and seller in Ranipet of India’s Tamil Nadu State.

Market Concentration and Competitive Landscape

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Analyst Opinion (Expert Opinion)

The global machine tools market is poised to witness strong growth over the coming years. There are several factors that are expected to drive the demand for machine tools globally. Rapid industrialization and rising manufacturing output in developing economies such as China, India, and other Asian countries will be a key growth driver. These regions are expanding their manufacturing capacity significantly which will translate into greater demand for machine tools.

Additionally, strong capital expenditure on advanced manufacturing technologies by industrial operators across industries like automotive, aerospace, electronics will propel the machine tools market forward. Further, increasing complexities in design and production requirements are pushing manufacturers to invest in precision machinery to meet quality and efficiency needs.

However, the market may face some challenges. High initial investment costs associated with machine tools can act as a restraint, especially for small businesses and players in price-sensitive industries. Another factor hampering the market's potential is the severe talent crunch in advanced manufacturing domains globally.

On the other hand, there are also opportunities for machine tools providers. The growing adoption of Industry 4.0 technologies including automation, IoT, and data analytics presents a lucrative avenue for toolmakers. Introducing smart, connected machines integrated with advanced software will open new revenue streams. 

Machine Tools Industry News

• In June 2025, Nidec Machine Tool, a division of Japan’s Nidec, launched the GE25CF hobbing machine, designed to improve productivity, automation, and labor efficiency in high-precision gear manufacturing. This advanced model combines hobbing with chamfering and deburring of both gear ends in a single, integrated process.
• In April 2024, DMG MORI, acquired KURAKI Co., Ltd., a company specializing in CNC horizontal boring and milling machines. This acquisition aims to foster expansion and will result in the rebranding of the merged entity as DMG MORI Precision Boring Co., Ltd. By integrating KURAKI's advanced technologies, DMG MORI seeks to enhance its offerings in CNC machining centers and turning centers, thereby strengthening its position in the market.
• In January 2024, DN SOLUTIONS, formed a strategic alliance with ModuleWorks, a leading software provider for the CAD/CAM sector. This partnership, marked by equity investment and collaborative business efforts, aims to cultivate a synergistic relationship focused on developing software for machine tools and creating integrated solutions to drive the digital transformation of the manufacturing industry.

Market Report Scope

Machine Tools Market Report Coverage

Market Opportunity - Growth in the adoption of automation and Industry 4.0 technologies

The global machine tools market is set to witness new opportunities arising from the increased adoption of advanced automation and Industry 4.0 technologies by manufacturing companies. There is a rising inclination among automakers, electronics producers, and others toward incorporating smart, connected machines integrated with IoT, AI, and data analytics into their production lines. This helps improve productivity, reduce downtimes, optimize processes, and manufacture at a higher scale with more precision.

The implementation of robotics, 3D printing, predictive maintenance, decentralized control systems, and digital twins is bringing Industry 4.0 reality on the shop floor. The augmentation of machine tools with Industry 4.0 technologies makes them an intelligent investment for companies seeking competitive advantages. Hence, growing investment toward factory automation and manufacturing technologies modernization could create lucrative prospects for machine tools providers in the approaching years.

Market Segmentation

• Product Type Insights (Revenue, US$ Bn, 2020 - 2032)
• Milling Machines
• Lathes
• Grinding Machines
• Electrical Discharge Machines (EDM)
• Others
•  Material Type Insights (Revenue, US$ Bn, 2020 - 2032)
• Metal
• Plastic
• Composite
• Others
•  Application Insights (Revenue, US$ Bn, 2020 - 2032)
• Automotive
• Aerospace
• General Engineering
• Construction
• Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa
• Key Players Insights
• DMG Mori Seiki AG
• Haas Automation, Inc.
• Mazak Corporation
• Okuma Corporation
• FANUC Corporation
• Siemens AG
• Mitsubishi Electric Corporation
• Hyundai Wia Corporation
• Makino Milling Machine Co., Ltd.
• Trumpf GmbH + Co. KG
• JTEKT Corporation
• EMAG GmbH & Co. KG
• Kennametal Inc.
• Hardinge Inc.
• Schütte GmbH

Sources

Primary Research Interviews

• Machine Tool Manufacturers
• Industrial Equipment Distributors
• Manufacturing Industry End-users
• Technology Solution Providers
• Others

Databases

• Thomas Register Industrial Database
• Manufacturing Market Intelligence Database
• Global Trade Atlas
• Industrial Equipment Market Database
• Others

Magazines

• Modern Machine Shop
• Manufacturing Engineering
• American Machinist
• Production Machining
• Others

Journals

• International Journal of Machine Tools and Manufacture
• Journal of Manufacturing Processes
• CIRP Annals - Manufacturing Technology
• Others

Newspapers

• Financial Times
• The Wall Street Journal
• Industrial Distribution
• Manufacturing News
• Others

Associations

• Association for Manufacturing Technology (AMT)
• National Tooling and Machining Association (NTMA)
• International Association of Machinists and Aerospace Workers
• European Association of Machine Tool Industries (CECIMO)
• Others

Public Domain Sources

• U.S. Census Bureau Manufacturing Statistics
• International Trade Administration Reports
• World Trade Organization Trade Statistics
• National Institute of Standards and Technology Publications
• Others

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years

*Definition: The global machine tools market consists of companies involved in the manufacturing, distribution, and sales of various types of machine tools and equipment used for metal forming, cutting, grinding, welding, and other forming and fabricating applications across industries. Major product segments in this market include CNC metal cutting machines, metal forming machines, grinding machines, electrical discharge machines, and laser and water-jet cutting machines. The global machine tools industry caters to a diverse customer base involved in automotive, aerospace, mold and die making, electronics, mining, shipbuilding, and other manufacturing sectors.