The European machine tools market is expected to grow at a CAGR of 6.28% from 2024 to 2029 and the European market size is predicted to grow from USD 27.6 billion in 2024 to USD 37.43 billion by 2029.
The growth of the European machine tools market is driven by the rising demand for sophisticated and precise machine tools. Also, growing investment in the development of energy-efficient and environmentally friendly machines is boosting the regional market growth. Moreover, the European machine tool market has made sustainability and energy consumption the major concerns. For instance, Faccin Group, an Italian company, makes plate bending machines such as the 4HEL series, which is designed to have a lower environmental effect and use less energy. The strong manufacturing industry is fueling the growth rate of the Europe machine tools market. Manufacturing is the primary force behind industrial innovation, employment creation, and economic growth in Europe. It produced around one-sixth of the gross value added in the EU in 2021. In the European Union, 31.5 million individuals, or sixteen percent of the total population are still employed by industrial enterprises.
The application of artificial intelligence will open new prospects for the European machine tools market, such as quality control, predictive maintenance, and supply chain management in manufacturing. It has the potential to bring forward highly automated smart factories that will be able to adjust to shifting production needs. AI with machine learning can further augment the market growth of machine tools by increasing operational efficiency and solving sudden machinery breakdowns or faults. Additionally, machine tools can be programmed to function independently with little to no human intervention because of artificial intelligence. This can lower staff expenses and increase efficiency.
The economic uncertainty is restricting the growth of the Europe machine tools market. The eurozone is likely to find it difficult to expand by more than 1 percent even in the event of a good recovery due to the severe economic obstacles that will make the coming year equally difficult. Though manufacturing has been a strength of Europe, this trend is gradually decreasing. The GVA share of the manufacturing sector dropped from 20 percent in 1995 to over 16 percent in 2021. Also, de-industrialization could damage the European economy of Europe as its industry currently accounts for more than half of all research and development expenditures in the private sector and about three-fifths of all EU exports.
The energy crisis due to the Ukraine-Russia conflict is a major challenge for the European machine tools market. It has particularly affected German manufacturing which contributes roughly one-third of all value added by manufacturing in Europe. This is because natural gas from Russia was crucial to Germany's energy mix as a bridging technology for the country's transition to a more climate-neutral economy. High upfront costs are another factor derailing the market expansion. Owing to the significant startup cost, smaller businesses and new companies are finding it difficult to compete and innovate in the market.
The European machine tools market and other sectors associated with industrial machinery have been severely impacted by COVID-19. The pause in global trade and production stoppages in the first and second quarters of 2020 had a major adverse impact on the machine tools sector. The effects of the UK’s exit from the EU and the trade war between the U.S. and China can still be seen, and coupled with the economic crisis, the market is deeply affected. Moreover, the reduction in automotive, defense, and aerospace demand and subsequent production stoppages have also decreased the demand for machine tools in the region.
Based on product type, the milling machines segment is the dominant segment and held 40.1% of the European market share in 2022. The increasing demand for complicated parts provides a significant growth potential for the segment. The advantages and demands of 5-axis and multi-axis machines are greatly expanded by technological developments. Their versatility in handling diverse machining tasks makes them crucial across various industries, including aerospace, automotive, medical, and general metalworking.
Based on automation type, the CNC machine tools segment is estimated to hold the maximum share of the European market during the forecast period. They serve various markets and uses for high levels of automation, efficiency and precision. They represent the future of the market, which is constantly evolving with new controllers, software, and integrations.
Based on the sales channel, the distributor sales segment had 65% of the European market share in 2022. It offers cost-effective solutions and regional expertise to small and medium-sized enterprises, which offer a wider reach, financing options, and local expertise. However, the direct sales segment still grows steady pace. It benefits large enterprises and high-value projects by offering customization, technical expertise, and stronger relationships through close communication and collaboration.
Based on the end-user, the automotive segment accounted for the major share of the European market and is expected to grow promisingly during the forecast period owing to the growing demand for high-precision and innovative machines in electric vehicle production and technological advancements.
The market is primarily driven by the adoption of cutting-edge technologies. Its machine tools face intense competition from the US and Japan. Advanced manufacturing is anticipated to offer exceptional export potential in the coming years to machine tools along with other industries like robotics, process control instruments, electronic industry, etc.
Italy is one of the major markets that holds a significant share of the Europe machine tools market. Italy is famous for its key expertise in machine tools for the textile and automotive industries and also for its exquisite design and workmanship. The Italian manufacturing sector of machine tools, robotics and automation systems had a highly profitable year in 2022. Its production of machine tools and other two climbed by 15 percent in 2022 against 2021 while consumption increased by 26 percent to 6311 million euros which led to a rise in imports and local deliveries.
France is predicted to have an average growth rate of around 7 percent during the forecast period. The aggressive investments in digital solutions and advanced automation for machine tools are driving the French machine tools market after the U.K., Germany, and Italy, France comes in fourth place in the additive manufacturing sector. However, it is a small market compared to Germany and Italy and also adoption of modern technologies is slow.
The UK is estimated to grow further at a considerable rate in the coming years. It is renowned for using innovative technologies to help specialized customers in industries like additive manufacturing and laser cutting. The UK ranks ninth globally in terms of manufacturing output. Currently, the manufacturing sector in the UK supports 2.7 million jobs and adds 11 percent of GVA, 45 percent of exports and 13 percent of business investment.
Spain is expected to propel at a higher CAGR in the coming years. It is rated ninth in the world and is the third largest producer and exporter of machine tools in the European Union. The market in Spain is expanding significantly because of investments made in the aerospace and automotive industries.
A few of the notable companies in the European machine tools market are Komatsu, Chiron Group SE, Spinner Machine Tools, Schuler AG, DMG Mori Aktiengesellschaft, Georg Fischer Ltd., Trumpf Group, Gleason Corporation, Flow International and Gebr and Heller Maschinenfabrik GmbH.
Frequently Asked Questions
Electrical discharge machines are expected to witness a high growth rate in the Europe machine tools market.
The rapid automation and increase in advanced technologies in Machine tools.
Komatsu, Gleason Corporation, Chiron Group SE, and others.
The Europe machine tools market is expected to grow at 4.5 % during the forecast period.
The economic downturn in the Europe region is degrading the demand of the European machine tools market.
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