Industrial Machinery Market Size - By Operation, By Application, By Distribution Channel, Analysis, Share, Growth Forecast, 2025 - 2034

Industrial Machinery Market Size

The global industrial machinery market size was estimated at USD 714.5 billion in 2024. The market is expected to grow from USD 743.1 billion in 2025 to USD 1.61 trillion in 2034 at a CAGR of 9%.
 

Smart packaging is increasingly adopted, and this is driving the industrial machinery market, as it means further deployment of automated and sophisticated packaging equipment. Food & beverage, pharmaceuticals, e-commerce, and many more industries are progressing towards intelligent and sustainable packing, thus manufacturers are investing in machines that can provide accuracy, efficiency, and real-time tracking.
 

Smart Packaging Technology Used includes RFID tags, QR codes, sensors, and temperature-control systems. Specialized machines are then needed to embed them into production lines. For instance, businesses are focusing on automated packaging equipment & AI-enabled packaging equipment as it can help in meeting regulatory standards thereby ensuring the safety of the product along with reducing the amount of waste during the packaging process. The e-commerce sector, for instance, witnessed a 7.8% growth in 2023, as reported by the U.S. Census Bureau, which has increased the need for advanced packaging solutions.
 

Industry 4.0 and IoT-enabled packaging lines are commonplace as manufacturers can manage operations wherever they are, reduce material wastage, and eliminate downtime via predictive maintenance. Another factor contributing to the growth of the packaging machinery market is the increasing investment in packaging machinery that can handle recyclable and biodegradable materials owing to the growing emphasis on the use of eco-friendly materials. The EPA revealed that 32% of municipal solid waste was recycled in 2022, which shows how urgent the need is for more sustainable packaging methods.
 

Industrial Machinery Market Trends

The industrial machinery landscape is now undergoing a paradigm shift towards the incorporation of smart factories and industry 4.0 initiatives, where automation, IoT, AI, and real-time data analytics emerge as fundamentals of the manufacturing schema. These advances are a response to a powerful demand for better efficiency, cost reduction, and greater data-driven decision-making within the industry.
 

Smart factories use next-gen tech, including robotics, cloud computing, and IoT-powered predictive maintenance to enable machines to run with minimal human supervision. Manufacturers can use sensors with the Internet of Things (IoT) ability to gather and analyze data at scale to optimize functionality, prevent equipment downtime, and improve quality control. This transition to the digital isn’t a novelty, but a pathway for companies to boost efficiency and minimize waste and Overall Equipment Effectiveness (OEE).
 

Manufacturing is key to flexibility and customization, and smart machinery can now adjust production on the fly. Virtual twins of industrial machines we simulate and optimize soon are coming of age. Moreover, new cybersecurity technologies are making connected industrial machinery resistant to cyber-attacks.
 

With governments and corporations pouring big money into Industry 4.0, there’s a push for manufacturers to upgrade their machinery. We are also witnessing the increasing adoption of AI-driven automation, Edge Computing, Blockchain for transparent Supply Chains, etc. Well, the anticipated consonance of Industry 4.0, IoT, and smart factory initiatives is a fitting portent — as the manufacturing and industrial automation continuum is indeed being revolutionized as industrial establishments strategize toward smart, data-centric, and autonomous production.
 

Industrial Machinery Market Analysis

Based on operation, the industrial machinery market is segmented as automated machinery, semi-automated machinery, manual machinery, and robotic machinery. In 2024, the automated machinery segment generated revenue of USD 311.6 billion and is expected to grow at a CAGR of around 9.3% during the forecast period.
 

• The increasing use of automated equipment in several industries is driving the progress of the industrial machinery market to lower labor costs, raise efficiency, and boost accuracy across various businesses. As companies increasingly face pressure to do more, lead time approaches a minimum, and downtime goes down, robotics, AI systems, and more are also becoming more prevalent. This allows measurement for real-time tracking, predictive maintenance, and optimal process management which contributes to better-performing equipment.
   
• Industries like automotive, construction, aerospace, and food & beverage follow specific patterns that necessitate increased speed, customized production, and superior quality outputs. This need is pushing additional businesses to implement automation. Furthermore, in the rapidly dwindling pool of skilled labor, with rising pay, firms will be forced to transition to automated systems to maintain production efficiency and lessen dependency on human labor. The average hourly wage for manufacturing workers increased by 4.3% in 2023, according to the U.S. Bureau of Labor Statistics (source: U.S. Bureau of Labor Statistics), which, in turn, led to further automation.
   
• Government programs,  including Industry 4.0 and smart factory programs, are also encouraging companies to spend on tools, including autonomous systems, artificial intelligence (AI) tools, and cloud-based data analytics. For better-designed processes, process automation allows for better utilization of resources, enables higher standards of working conditions, since there is no risk of an injury occurring in the dangerous environment, and eventually leads to an increase in health and safety in the workplace.
   
• For example, about workplace injuries, you might say: "In a study commissioned by the Occupational Safety and Health Administration (OSHA) in 2023, it was determined that workplace injuries in automated facilities were reduced by 15% compared to non-automated facilities.
   

Based on applications, the industrial machinery market is segmented into agriculture, construction, packaging, food processing, mining, semiconductor manufacturing, and others. In 2024, the construction segment accounted for over 43.2% and is expected to grow at the rate of 9.4% till 2034.
 

• There is growing demand for excavators, bulldozers, loaders, cranes, and concrete mixers, and governments and private companies are providing significant funds for that with the rising number of residential, commercial, and industrial construction projects. As an example, if we look at the U.S. Census Bureau, we can find that construction spending in the United States was about USD 1.9 trillion in 2023 (source).
   
• The demand for construction equipment is being driven by the constant need for advanced infrastructure such as smart cities, transportation networks, and renewable energy projects. At the advanced machinery level using these technologies, the companies can raise efficiency and minimize costs, and thus such equipment has become an indispensable part of their projects.
   
• Stringent Worker Safety and Environmental Requirements are also encouraging organizations to invest in modern construction equipment that meets energy efficiency and emissions requirements. The growing trend of prefabrication, modular construction, and sustainable building materials is also driving demand for automated and precise equipment. For example, The European Commission said for the EU in 2023, construction equaled 9% of GDP (source), a concrete example of the importance of economic growth in construction.
   

Based on the distribution channel, the market is segmented as direct and indirect. The indirect segment is expected to hold a major share of 70.5% in 2024.
 

• The industrial machinery market is growing due to indirect sales because they reach more customers, have established distribution networks, and offer additional services. Many industrial machinery manufacturers partner with dealers, distributors, and third-party vendors to reach the market without having to maintain their own direct sales enrichments. These partners have in-depth local knowledge, established good customer relationships, and streamlined logistics, allowing manufacturers to expand into global and local markets.
   
• After-sales support, maintenance, and financing options are some of the important services these sales channels provide. These services matter for buyers of industrial machinery who must have reliable long-term support. Moreover, many distributors build and implement machinery to meet specific customer requirements. This setup reduces costs for the manufacturers and allows customers to purchase systems from trusted partners in their local area.
   
• Industrial buyers like one-stop shops, where they can see brands, get expert advice, and negotiate better prices. With the rise in e-commerce platforms and the growth of B2B marketplaces, it has been possible to sell indirectly which further solidified the position of indirect sales helping businesses discover machinery easily. According to the U.S. Census Bureau, e-commerce shipments of the manufacturing sector reached USD 5.7 trillion in 2021 and represented 67.1% of all manufacturing shipments. This underscores the increasing importance of online platforms in industrial sales. Consequently, the industrial machinery market is still dominated by indirect sales channels, as these channels are improving accessibility to and support for customers while reducing supply chain wastage.
   

• In 2024, North America dominated the industrial machinery market, accounting for around 45.2% of the global market share, and generated around USD 322.7 billion in revenue in the same year. A vast number of major manufacturers and innovators within the industrial machinery industry are founded in this country, which is a contributing factor for constant growth and competitive edge. These factors have led to favorable conditions for producing machinery in the United States,  which also has an established supply chain and distribution network.
   
• There is a lot of demand being created by major industries, including automotive, aerospace, and construction, which is helping to spur demand for technologically advanced industrial machinery. Moreover, supportive policies and initiatives by the United States government to boost manufacturing capacity and drive automation further strengthen the market's dominance. A robust focus on embracing advanced technologies such as Industry 4.0 and IoT by the well-trained workforce establishes the U.S. as a leader in the North American industrial machinery market.
   
• In Europe, the UK is home to a diverse industrial base covering many areas including automotive, aerospace, pharmaceuticals, and food processing – all of which require sophisticated industrial machinery. The pedigree of industrial innovation and engineering excellence that the country is known for has laid the groundwork for the development and production of machinery.
   
• Furthermore, the United Kingdom is also strategically located at the crossroads of Europe and its various well-established infrastructures such as transportation channels, harbors, and airways make trade and logistics smooth with premier access to the European and other markets. A skilled workforce & world-class research institution will only further improve the competitive advantage that the UK has over the rest in developing new technologies or adopting them. Additionally, favorable government policies and initiatives, coupled with strong investment in research and development, promote innovation and growth in the industrial machinery sector, establishing the UK as a leader in the European market.
   
• In Asia Pacific, China is highly industrialized and urbanized, this results in huge demand for industrial machinery in industries such as automotive, electronics, construction, etc. With the country's ambitious plans for economic growth, the government is also rolling out initiatives like "Made in China 2025” to modernize and upgrade industrial infrastructure while promoting innovation and driving demand for advanced machinery and automation solutions.
   
• China has a huge domestic market, and it allows manufacturers to scale, achieving economies of scale and cost efficiencies. Additionally, well-educated and low-cost labor favors local production/assembly of industrial machinery, aiding competitiveness in domestic and foreign markets. Moreover, forward-looking investments in R&D and collaboration with foreign tech powerhouses are reinforcing China's position at the vanguard of emerging technologies, including AI and robotics.
   

Industrial Machinery Market Share

• The industrial machinery industry globally is very fragmented and there are various market players such as Deere & Company, Caterpillar Inc., Komatsu Ltd., ASML, and Sandvik AB. All of them combined account for a 2 to 3% share of the market. From this small description, is clear that the market involves a lot of machines and industries such as construction, metal working, kitchens, textiles, etc. This diversity fosters specialization, and many manufacturers specialize in a particular type of machinery.
   
• The market is crowded with a multitude of players, ranging from global behemoths to regional and niche specialists. This makes for a competitive landscape without a few dominant players.  
   

Industrial Machinery Market Companies

Major players operating in the industrial machinery industry are:

• AGCO
• Alfa Laval
• ASML
• Atlas Copco
• Brandt Industries
• Caterpillar
• CNH Industrial
• Deere
• ESCO
• GEA
• Gerdau
• Hitachi Construction Machinery
• Honeywell International
• Illinois Tool Works
• Ingersoll Rand
   

These companies supply industrial machinery for sectors such as agriculture, construction, manufacturing, mining, and automation. AGCO is an agricultural machinery company. Its brands such as Fendt, Massey Ferguson,  and Valtra produce modern equipment. Likewise, CNH Industrial and Deere & Company (or John Deere) manufacture construction and road equipment including tractors and excavators. In the field of fluid handling and processing, Alfa Laval offers pumps, valves, and tank-cleaning devices and offers automation systems, brewing equipment, centrifuges, and bioreactors.
 

In semiconductors, ASML leads in lithography and metrology, and they're needed for chip making. Atlas Copco provides assembly tools, bolting solutions, and material removal equipment for industrial needs while Illinois Tool Works (ITW) serves a range of industries with welding, food equipment, and special products. Caterpillar, Hitachi Construction Machinery, and ESCO are all focused on construction/mining heavy equipment like dozers, loaders, hydraulic excavators, and wear-resistant mining components. Gerdau, a steel producer,  makes parts used in agricultural and construction equipment.
 

Honeywell International – Sensors, Automation Systems Facade,  and Protective Equipment Brandt Industries, meanwhile, offers professional industrial machinery, but specific product details were not available. Specializing in furnishing machinery for all facets of industrial operations, from construction and agriculture to manufacturing and technology, these companies are instrumental in enabling progress in industrial operations wherever they can offer a solution.
 

Industrial Machinery Industry News

• In March 2025, Komatsu is set to debut a 4-tonne skid steer loader and a 5-tonne compact track loader at Bauma 2025. The new models are part of the "dash 8" butch and sit between the small and large end of the loader spectrum and are designed for value in the loader segment. Both loaders, designed for the European market, feature increased operator capacity and hydraulic characteristics. It is powered by a low-emission, low-maintenance Stage V engine. It features a Stage V engine with a diesel particulate filter rated at 53.7 kW. The two models have an all-up capacity exceeding 1.6 tonnes, and the symmetrical design allows for good weight balance and stability.
   
• In April 2023, Bosch BASF Smart Farming and AGCO Corporation together announced that they will integrate and commercialize Smart Spraying technology on Fendt Rogator sprayers, and jointly develop additional, new features.
   
• In November 2022, Ingersoll Rand launched a new 135MAX heavy-duty air hammer. It is an ergonomic tool designed for tasks in the auto shop. The hammer's feather-touch trigger, which offers technicians the accuracy required for precise pin driving and sheering, allows effective control. The feather-touch trigger is used in tasks that require light handling as well as powerful & effective performance in demanding applications.
   

The industrial machinery market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and Volume in Thousand Units from 2021 to 2034, for the following segments:

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Market, By Operation

• Automated machinery
• Semi-automated machinery
• Manual machinery
• Robotic machinery

Market, By Application

• Agriculture
• Construction
• Packaging
• Food processing
• Mining
• Semiconductor Manufacturing
• Others

Market, By Distribution channel

• Direct sales
• Indirect sales

The above information is provided for the following regions:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia