Machine Tools Market Size - By Machine Type, By Operating Technology, By Application, By End Use, By Distribution Channel, Analysis, Share, Growth Forecast, 2025 - 2034

Machine Tools Market Size

The global machine tools market was estimated at USD 97.1 billion in 2024 and is expected to reach USD 196 billion by 2034, growing at a CAGR of 7.5% from 2025 to 2034, driven by rising demand in the automotive and aerospace industries.
 

The automotive market has for example evolved and pushed high-precision machining for electric vehicles (EVs), lightweight designs, and updated components. Machine tools play a critical role in producing engine parts, transmission systems, chassis structures, and complex components for conventional and electric vehicles. Moreover, increasing automation and robotics in automobile production lines will boost the demand for CNC (Computer Numerical Control) machines, as they can provide high precision, efficiency, and scalability.
 

Also in the aerospace field, sophisticated machining solutions with extraordinary accuracy and longevity are required for advanced materials such as titanium, composites, and superalloys. Aircraft makers use high-precision machine tools to make vital parts, such as turbine blades, fuselage sections, and landing gear and engine parts. As commercial air travel, defense spending and space exploration programs expand, aerospace manufacturers are investing heavily in new machining technologies such as multi-axis CNC machines and additive manufacturing.
 

Due to this, both industries demand accuracy and automation — and maximize material use within a process — which drives manufacturers to adopt speed machining trends, hybrid manufacturing techniques, and Industry 4.0-compliant smart machine tools. The rising demand for high performance & such machining solutions will increase the overall sales of complete machine tools.
 

Machine Tools Market Trends

Industry 4.0 and smart manufacturing are also transforming the machine tools industry through enhanced automation, digitalization, and efficiency. Traditional machining has become more advanced, automated, and connected thanks to real-time data analytics, the Internet of Things (IoT), and artificial intelligence (AI). IoT sensors and AI analytics make smart machine tools that predict maintenance needs and reduce unexpected downtime while improving operations. Real-time data monitoring by cloud platforms and digital twins enables optimization of machine performance,  tool wear, and energy consumption, leading to better open-loop and closed-loop decision-making.
 

With more machine tools connecting to cloud networks and factory systems, cyber security is making strides toward securing data and preventing cyber threats. Similarly, Industry 4.0 technologies also promote sustainability by making way for less power consumption, greater material efficiency, and lower carbon footprints. According to the U.S. Department of Energy, the manufacturing sector uses approximately 25% of the country’s energy, and smart manufacturing technologies can help achieve reductions in energy use that are as much as 20%. Smart manufacturing can potentially double production efficiency through resource management and automation (NIST 2023), with production efficiency improved by 15-20% due to smart manufacturing.
 

Manufacturers now have every reason to adopt smart manufacturing. Industry 4.0: This is being developed and introduces an overall revolution in the machine tools sector in terms of efficiency, precision, and cost-effectiveness because when this process is complete the whole production becomes an integrated-dependent environment
 

Machine Tools Market Analysis

Based on machine type, the market is segmented into cutting machines and forming machines. In 2024, the cutting machine segment generated a revenue of USD 66 billion and is expected to grow at a CAGR of around 8.1% during 2025 to 2034.
 

• The tool-making division is expected to have a high market demand and it's due to the growing need for precise metal fabrication and the high adoption of cutting machines in industries. Automotive, aerospace, defense, construction, and electronics industries depend on precise metal cutting to produce components within tight tolerances.
   
• Laser-cutting, water jet, and plasma cutting are CNC cutting and shaping machinery that allow metalworking to a quicker, more cost-effective, and more accurate. Furthermore, automation and Industry 4.0 have brought clean-cutting machines with intelligent AI, IoT sensors, and real-time monitoring, which help manufacturers increase their productivity and have less extra material.
   
• Moreover, the growing production of electric vehicles (EVs), renewable energy projects, and innovations in aerospace have only intensified the need for precision-cut parts. The manufacturing industry's need for advanced machinery coincides with a shipment value of $6.8 trillion in 2023, according to the U.S. Census Bureau. Likewise, the European Commission recorded an increase of 3.8% in industrial production in 2023, signaling more application of cutting machines. With increasing industrial growth in Asia-Pacific, North America, Europe, etc., these cutting machines stand as crucial for meeting the present manufacturing needs.
   

Based on application, the machine tools market is segmented as metalworking, woodworking, plastic manufacturing, and others. In 2024, the metalworking segment accounted for over 73.5% revenue share and is expected to grow at the rate of 8% till 2034.
 

• Metalworking is the highest segment in the market, owing to increasing requirements for precision machining, increased industrial automation, and increasing demand for metal parts that are high quality and strong across various industries. Milling, turning, grinding, and drilling are common operations used by CNC machines to produce precise metal parts in industries such as automotive, aerospace, defense, construction, and heavy machinery.
   
• Emerging technologies such as 5-axis CNC machines, AI-powered automation, and high-speed metal cutting tools have revolutionized the metalworking industry and made it more resource-efficient and economical. Also, the growing manufacture of electric vehicles (EVs), renewable energy projects, and industrial automation has boosted the requirement for advanced machine tools for producing complex metal parts. The U.S. Bureau of Labor Statistics (BLS) reports the growing demand for the latest machinery and tools has contributed to a 3.5% increase in the manufacturing sector in 2023.
   
• Asia-Pacific holds major countries like China and India, which are expanding rapidly in industry and infrastructure leading to an increase in metalworking actions. One of the major examples is the Indian government’s "Make in India" initiative which has led to a profit increase in the manufacturing sector, which contributed 17.4% to the GDP in 2023, according to the Ministry of Statistics and Programme Implementation (MOSPI). Another reason the metalworking segment will continue to lead in the market is due to the use of lightweight, strong alloys and precise engineering in aerospace and medical industries.
   

Based on the distribution channel, the market is segmented as direct and indirect. The indirect segment held a major share of 70% in 2024.
 

• The machine tools market is dominated by indirect sales channels as they have a wider reach, better distributor networks, and provide better customer support. In places where starting a direct sales office is prohibitively expensive and complicated, many machine tool builders rely on distributors, dealers, and other third-party suppliers to build a global presence. This enables these partners to provide local expertise, after-sales support, and technical help, which is essential for businesses acquiring high-value equipment, including CNC machines, lathes, and milling centers.
   
• Indirect sales also assist manufacturers in utilizing existing supply chains and partnering up with specialized distributors for industries like automotive, aerospace,  and heavy engineering. Most buyers prefer established domestic distributors that provide financing, maintenance, and training. This lowers big investment risk.
   
• Indirect sales have only been reinvigorated in the age of e-commerce and B2B online platforms. These platforms facilitate the process by which companies can compare products, purchase them, and receive technical support, all from a distance. These advantages encourage a growing reliance on indirect sales channels. They provide manufacturers with a low-cost solution to access new markets while guaranteeing that customers receive reliable and efficient support.
   

• In 2024, the Asia Pacific region dominated 46.2% share of the machine tools market and generating around USD 44.8 billion revenue in the same year, on account of rapid industrialization, high growth in manufacturing, and growing automation in major sectors such as automotive, aerospace, electronics, and construction. The machine tool market is dominated by a few key nations, primarily China, Japan, South Korea, and India,  where China is the world's largest manufacturer and consumer of machine tools. Heavy investments in advanced manufacturing technologies and smart factories are being spurred by government initiatives like “Made in China 2025” and “Make in India.” Furthermore, the abundance of low-cost labor coupled with well-established supply chains and high demand for CNC machines and automation solutions makes the Asia-Pacific region a global hub for the production and consumption of various machine tools.
   
• Rising automation trends, and demand for high-precision machining across industries such as aviation, military, automotive, and medical equipment are driving the machine tools market across North America. One of the major drivers of demand for AI-enabled CNC machines and robotics is the advent of Industry 4.0, digital manufacturing, and smart factories. The US and Canada are players here too, taking advantage of strong R&D,  reshoring initiatives, and government incentives for advanced manufacturing. Furthermore, factors such as stringent industry regulations and a transition toward sustainable manufacturing practices are also driving the demand for customized, high-performance machining solutions.
   
• Europe's machine tools market possesses the attributes of innovation, precision engineering, and sustainability. The realm of high-precision, high-performance machine tools for the automotive, aerospace, and medical technology industries is dominated by countries like Germany, Italy, and Switzerland. My view here is the Region is heavily focused on energy-efficient and eco-friendly manufacturing solutions supported by government policies that promote automation & digital transformation. The presence of global giants such as DMG Mori, GF Machining Solutions, and Makino Europe ensures that there will be a steady investment in R&D, AI-driven machining,  and additive manufacturing technology. Furthermore, the focus on export-led growth and industrial automation in Europe gives them a competitive edge in the global market.
   

Machine Tools Market Share

• The top five companies in Amada Machinery, Dmg Mori, Makino, JTEKT Machinery, and Okuma America collectively hold a share of 12%-15% in the market.
  These companies continue to acquire and merge with others, expand facilities, and make various collaborations to increase their product offerings, access customer bases, and secure their market positions.
   
• Dalian Machine Tool will make full use of the function of the "national team" in the machine tool sector, optimize the industrial layout and product structure, enhance the scientific and technological innovation system, concentrate on promoting advanced industrial foundation and modernization of the industrial chain, realize high-level technological self-reliance, and contribute to building a new development pattern.
   
• Georg Fischer Machining Solutions leads the customer experience in smart machining solutions. The three thrusts of Strategy 2025 are the path for GF Machining Solutions to expand at a higher rate by emphasizing core segments with innovative & smart solutions, enhancing profitability by solving underperforming conditions and implementing best-in-class processes, and raising customer experience by increasing quality and building service business.
   

Machine Tools Market Companies

Amada makes sheet metal processing machines like laser cutters, press brakes, and turret punch presses. Amera-Seiki: Lathes & Bridge Mills for CNC Machining Chiron’s CNC milling machines have long been used in industries that require precision. DMTG, based in Dalian, produces computer-controlled lathes, milling machines, and grinding machines, mostly for heavy industries. Datron — High-Speed CNC milling machines for aluminum & small parts


Deutsche Gesellschaft für Motoren, Unmanned Aerial Systems, and Industry is a global leader in their CNC (computer numerical control), 3D printing (additive manufacturing), 5-axis machining centers, and more, common in the aerospace and medical industries. DN Solutions (formerly Doosan Machine Tools), turning centers, multitasking, and machining centers/automation. So, Georg Fischer (GF Machining Solutions) follows precision with electrical discharge machining (EDM), milling, and laser texturing. Haas Automation makes a name for itself among small and mid-sized manufacturers with its competitively priced CNC vertical and horizontal machining centers, lathes, and rotary tables. Hurco's 3-axis and 5-axis CNC machining centers have fast cutting and simple programming.
 

Major players operating in the machine tools market are:

• Amanda
• Amera-Seiki
• Chiron
• Dalian
• Datron
• DMG Mori
• DN Solutions
• Georg Fischer
• Haas
• Hurco
• Hyundai WIA
• JTEKT
• Komatsu
• Makino
• Okuma
   

Machine Tools Industry News

• In January 2025, DMG Mori unveiled five cutting-edge production platforms in its Machining Transformation (MX) strategy to transform the manufacturing sector by tapping into the newest technological innovations. The versatile multifunctional machining solution can be easily configured for various industrial processes. Intelligent automation solutions maximize machine usage day and night if needed.
   
• In February 2023, Amada Machinery started the “Amada Global Innovation Center (AGIC)”. The AGIC was newly established to solve the numerous issues faced by customers around the world. AGIC is equipped with a diverse range of environments and functions. This includes Innovation LABO, which is a laboratory space specifically for customers, and the Innovation SITE. This is a place for co-creating the future of metalworking.
   
• In October 2023, Amada Machinery unveiled the three-dimensional laser integrated system. It features a blue laser and fiber laser for high-speed, high-quality cutting, welding, and layered manufacturing.
   
• In July 2023, DMG Mori introduced the new Machining Transformation vision of groundbreaking technologies and solutions that will define the future of production at Hannover. DMG Mori exhibited overall production concepts and advanced machine tools for every field of technology from universal and production turning to 5-axis machining centers and turn & mill centers to additive manufacturing.
   

The machine tools 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 Machine Type

• Cutting machine
  • Milling machines
  • Turning machines
  • Grinding machines
  • Drilling machines
  • Others (threading, filling, etc.)
• Forming machine      
  • Presses
  • Bending machines
  • Punching machines
  • Others (rolling, forging, etc.)   

Market, By Operating Technology

• Computer Numerical Control (CNC)
• Conventional      

Market, By Application

• Metalworking
• Woodworking
• Plastic manufacturing
• Others (ceramics & glass fabrication, composites working, etc.)      

Market, By End Use

• Aerospace & Defense
• Automotive
• Energy & power
• Electronics & semiconductors
• Building & construction
• Others (healthcare, marine, etc.)     

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