Industrial Machinery Market Size - By Operation (Automated Machinery, Semi-Automated Machinery, Manual Machinery, Robotic Machinery), By Application (Agriculture, Construction, Packaging, Food processing, Mining), By Distribution Channel & Forecast, 2024 – 2032

Industrial Machinery Market Size

Industrial Machinery Market was valued at USD 693.7 billion in 2023 and is anticipated to register a CAGR of 7.5% between 2024 and 2032, due to the increasing adoption of automation and smart technologies, which significantly enhance productivity and efficiency. Key sectors fueling this growth include material handling and robotics, which are integral to modern industrial processes. The Asia-Pacific region is at the forefront of this expansion, led by rapid industrialization in countries like China and India. Investments in Industry 4.0 and IoT technologies are transforming the industrial landscape, offering advanced solutions that streamline operations and boost competitiveness for manufacturers worldwide. 
 

The increasing mechanization of farming operations is boosting demand for advanced agricultural machinery, enhancing productivity and efficiency in the agriculture sector. Escalating infrastructure spending, particularly in developing regions, is spurring the need for construction machinery and related equipment. The rising adoption of smart packaging solutions is driving growth in the packaging machinery sector, as industries seek more efficient and sustainable packaging methods. Surging globalization is triggering expansion in the food processing sector, necessitating sophisticated machinery to meet global food safety and production standards.
 

The lack of skilled labor and technicians poses a major challenge; the advanced nature of modern industrial machinery requires specialized knowledge for installation, maintenance, and operation. The Manufacturing Institute estimates a skills gap of 4.6 million jobs in the U.S. manufacturing sector by 2030. This skills gap can lead to inefficiencies, increased downtime, and higher operational costs for companies struggling to find and retain qualified personnel. Addressing these issues is critical for sustaining the growth business development.
 

Industrial Machinery Market Trends

Industrial machinery is getting smarter thanks to the Industrial Internet of Things (IoT). Machines are being equipped with sensors that collect data on performance, which can then be used for predictive maintenance and optimization of processes. This trend is expected to continue as manufacturers look to improve efficiency and reduce downtime.  Automation is no longer a new concept in manufacturing, but we're seeing a move towards hyper automation. This involves using a combination of technologies, such as robotics, artificial intelligence, and machine learning, to automate a wider range of tasks. This trend is being driven by the need to improve productivity and reduce costs.
 

Consumers are increasingly demanding customized products, which is putting pressure on manufacturers to be more flexible. This is leading to a rise in demand for industrial machinery that can be easily adapted to produce different products.
 

Industrial Machinery Market Analysis

The automated machinery segment was crossed USD 302.3 billion in 2023 and is expected to reach USD 569.9 billion by 2032, driven by the increasing demand for efficiency, precision, and productivity in various industries, where automated machinery significantly reduces operational costs and enhances output quality. The rising integration of advanced technologies such as AI and IoT in automated systems further propels this segment's growth, enabling real-time monitoring and control. While semi-automated and manual machinery still play crucial roles, particularly in less technologically advanced sectors or regions, the shift towards full automation is evident as companies strive for higher efficiency and competitiveness. Robotic machinery, a subset of automation, is also experiencing rapid growth, contributing to the industrial machinery market expansion.
 

Based on application, the construction segment accounted for over 43.3% market share in 2023, attributed to the high demand for construction equipment driven by significant infrastructure development and urbanization projects worldwide. The construction segment is expected to grow further, projected to reach USD 569.8 billion by 2032. This growth is fueled by ongoing investments in residential, commercial, and industrial infrastructure, particularly in emerging economies. Additionally, advancements in construction machinery, such as automation and IoT integration, are enhancing operational efficiency and productivity, further solidifying the sector's leading position in the industrial machinery market.  
 

Based on the distribution channel, the indirect sales segment held approximately 69.8% of the market share in 2023 and are projected to hit USD 887.5 billion by 2032, due to the extensive reach and established networks of intermediaries such as distributors, dealers, and resellers, which provide comprehensive market coverage and customer support. Indirect sales channels offer several advantages, including localized expertise, efficient logistics, and after-sales service, which are critical in catering to diverse industrial needs and enhancing customer satisfaction. Additionally, indirect sales facilitate access to a broader customer base, particularly in regions where direct sales infrastructure may be limited or less effective.
 

North America region dominated 45% share of the industrial machinery market in 2023. The region boasts a highly developed industrial base with significant investments in advanced manufacturing technologies and automation, driving demand for sophisticated machinery. Strong economic stability and substantial capital expenditure by industries across sectors such as automotive, aerospace, and construction further fuel market growth.
 

Additionally, North America is home to numerous leading industrial machinery manufacturers and innovators, fostering a competitive and dynamic market environment. The region's well-established infrastructure, coupled with a skilled workforce and favourable regulatory landscape, supports the efficient production and distribution of industrial machinery. Furthermore, the emphasis on research and development, coupled with the rapid adoption of Industry 4.0 and IoT technologies, positions North America at the forefront of technological advancements in the industrial machinery sector.
 

Country Level Analysis

North America: In terms of country, US is dominating the North America Industrial Machinery market with revenue of around USD 246.5 billion in the year 2023 and expected to reach around USD 402.9 billion by 2032. This is due to its robust industrial infrastructure, significant technological advancements, and high levels of investment in research and development. The country is home to a large number of leading manufacturers and innovators in the industrial machinery sector, which drives continuous improvement and competitive advantage. Additionally, the U.S. benefits from a well-developed supply chain and distribution network, facilitating efficient production and delivery of machinery.
 

The presence of major industries, such as automotive, aerospace, and construction, generates substantial demand for advanced industrial machinery. Furthermore, the U.S. government’s supportive policies and initiatives aimed at enhancing manufacturing capabilities and promoting automation contribute to the market's dominance. The skilled workforce, combined with a strong emphasis on adopting cutting-edge technologies like Industry 4.0 and IoT, ensures the U.S. maintains its leadership position in the North American industrial machinery market. 
 

Europe: In terms of country, UK is dominating the Europe industrial machinery industry with revenue of around USD 37.4 billion in the year 2023 and expected to reach around USD 65.1 billion by 2032. the UK benefits from a highly diversified industrial base, encompassing a wide range of sectors such as automotive, aerospace, pharmaceuticals, and food processing, all of which require advanced industrial machinery. The country's historical leadership in industrial innovation and engineering excellence has established a strong foundation for the development and production of cutting-edge machinery.
 

Additionally, the UK's strategic geographical location and well-developed infrastructure facilitate efficient trade and logistics, enabling easy access to European and global markets. The presence of world-class research institutions and a skilled workforce further enhances the UK's competitive advantage in developing and adopting new technologies. Moreover, supportive government policies and initiatives, along with robust investment in research and development, foster innovation and drive growth in the industrial machinery sector, solidifying the UK's position as a leader in the European market. 
 

Asia Pacific: In terms of country China dominated with the overall market share of around 22.3% in the Asia Pacific market. As the world's largest manufacturing hub, China benefits from extensive industrialization and urbanization, driving substantial demand for industrial machinery across various sectors including automotive, electronics, and construction. The country's robust economic growth and government initiatives such as "Made in China 2025" aim to upgrade industrial infrastructure and foster innovation, further boosting demand for advanced machinery and automation solutions.
 

China's vast domestic market provides scale advantages for manufacturers, enabling economies of scale and cost efficiencies. Moreover, the availability of a skilled and relatively low-cost labor force supports the production and assembly of industrial machinery, enhancing competitiveness in both domestic and international markets. Additionally, strategic investments in research and development, alongside partnerships with global technology leaders, contribute to China's leadership in the adoption of cutting-edge technologies like artificial intelligence and robotics in industrial applications.
 

Industrial Machinery Market Share

edge technologies like artificial intelligence and robotics in industrial applications.
 

The global industrial machinery industry is highly fragmented in nature with prominent players operating in the market such Deere & Company, Caterpillar Inc., Komatsu Ltd., ASML, and Sandvik AB. These together hold a market share of 2 to 3%. The market encompasses a wide range of machinery for various industries, from construction and metalworking to food processing and textiles. This variety leads to specialization among manufacturers, with many focusing on specific machinery types. There are a large number of companies competing in the market, with a mix of global giants, regional players, and niche specialists. This creates a competitive landscape without a dominant few.
 

Industrial Machinery Market Companies

Major players operating in the Industrial Machinery industry include:

• AGCO Corporation
• ALFA LAVAL
• ASML
• Atlas Copco AB
• Brandt Industries Ltd.
• Caterpillar Inc.
• CNH Industrial N
• Deere & Company
• ESCO Corp.
• Gerdau S.A.
• GEA Group
• Hitachi Construction Machinery Co., Ltd.
• Honeywell International Inc.
• Illinois Tool Works Inc.
• Ingersoll Rand
• Komatsu Ltd.
• Mitsubishi Electric Corporation
• Sandvik AB
• ShawCor Ltd.
• Terex Corporation
• Volvo Construction Equipment
   

Industrial Machinery Industry News

• 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.
   

This industrial machinery market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2032, 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 and countries:

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