Saudi Arabia Machine Tools Market is Expected to Register a 7.10% CAGR Through 2030
Expansion of the Manufacturing Sector and Government’s
Vision 2030 & Economic Diversification are likely to propel the market during
the forecast period.
According to
TechSci Research report, “Saudi Arabia Machine Tools Market – By Region,
Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Machine Tools Market was valued at USD 440
Million in 2024 and is expected to reach USD 670 Million by 2030 with a CAGR of
7.10% during the forecast period.
The automotive and aerospace sectors in
Saudi Arabia are experiencing significant growth, and this is driving a surge
in demand for specialized machine tools. With the government’s Vision 2030
initiative pushing for diversification of the economy, Saudi Arabia is making
substantial investments in sectors beyond oil, particularly in automotive and
aerospace manufacturing. As these industries grow, the need for advanced
machine tools to support precision manufacturing and production of
high-performance parts is becoming more pronounced.
In the automotive sector, Saudi Arabia
aims to establish a local production base for both traditional and electric
vehicles (EVs). This includes attracting international automotive manufacturers
to set up production plants within the country, as well as fostering local
startups and companies in the automotive supply chain. The manufacturing of
vehicle components such as engines, transmission systems, chassis, and body
parts requires highly specialized machine tools for metalworking, CNC
machining, and finishing. Additionally, the rise in demand for electric
vehicles brings a need for more advanced technologies in the production of
battery components, which also requires precision machining.
The aerospace sector is also on the
rise, with Saudi Arabia focusing on increasing its domestic production of
aircraft parts and components. The Kingdom has also been positioning itself as
a key player in the aviation industry through partnerships with global
aerospace giants. As the demand for high-precision and lightweight components
grows, the need for advanced machine tools capable of handling materials like
titanium, composites, and specialized alloys increases. This trend will drive
the demand for machine tools that can work with these advanced materials,
ensuring high precision and optimal performance.
Both industries require the latest in
machining technologies, such as multi-axis CNC machines, high-speed machining
centers, and robotic automation systems, to ensure precision, speed, and
cost-effectiveness in production. As the automotive and aerospace sectors in
Saudi Arabia continue to expand, the demand for specialized machine tools to
support these industries is expected to grow rapidly.
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Based
on End User, Automotive workshops hold a dominant position in the Saudi Arabia
machine tools market due to several interconnected economic, infrastructural,
and demographic factors. The Kingdom has one of the largest automotive
aftermarkets in the Gulf region, fueled by a high vehicle ownership rate, a
growing population, and the presence of aging vehicles that require consistent
servicing and maintenance. This sustained demand for automotive repairs, part
replacements, and maintenance services makes automotive workshops a key
consumer of machine tools.
One
of the primary reasons for their dominance is the large number of vehicles on
the road. Saudi Arabia's vast geography, limited public transportation options,
and reliance on private vehicles contribute to a strong demand for repair
services. Automotive workshops require a variety of machine tools such as
turning machines, drilling equipment, grinding tools, and CNC machines to
service engines, transmissions, and other mechanical components efficiently and
accurately. Moreover, government policies aimed at industrial localization and
job creation have encouraged the development of small and medium-sized
enterprises (SMEs), including automotive service centers. These workshops are
increasingly adopting advanced machine tools to improve efficiency, meet customer
expectations, and comply with evolving safety and quality standards.
The
push toward electric vehicles (EVs) and hybrid models also contributes to the
evolving needs of automotive workshops. As the automotive landscape modernizes,
workshops are investing in newer machine tools capable of handling EV
components such as electric motors, battery casings, and specialized cooling
systems. Additionally, the growing number of industrial training centers and
vocational institutes has led to an increase in technically skilled
professionals, making it easier for workshops to operate advanced equipment.
Based
on region, Dammam has emerged as the fastest-growing region in Saudi Arabia's
machine tools market, driven by a confluence of strategic initiatives,
industrial expansion, and infrastructural advancements.
Situated
in the Eastern Province, Dammam benefits from its proximity to key industrial
cities like Jubail and Khobar. The region's infrastructure has seen significant
investments, notably the development of a fully integrated logistics park at
King Abdulaziz Port, spanning over one million square meters with an investment
nearing USD 266 million (SAR 1 billion). This enhances Dammam's capacity to
handle industrial goods and machinery, facilitating the import and export of
machine tools and related equipment.
Dammam's
industrial sector is expanding rapidly, aligning with Saudi Arabia's Vision
2030, which aims to diversify the economy beyond oil. The establishment of new
manufacturing hubs and the adoption of advanced technologies, such as additive
manufacturing, are transforming the production landscape. For instance, the
opening of the first private-sector industrial-grade additive manufacturing
center in the Kingdom by Immensa in Dammam signifies a shift towards high-value
production methods.
The
Saudi government has introduced initiatives to bolster Dammam's manufacturing
sector, including tax incentives, low-interest financing, and relaxed
regulations for foreign investors. The establishment of Special Economic Zones
(SEZs) and Industrial Cities has attracted global companies to set up
manufacturing facilities in Dammam. These policies have been instrumental in
attracting significant foreign direct investment (FDI) in manufacturing and
other non-oil sectors.
Manufacturing
companies in Dammam are increasingly adopting advanced technologies to improve
efficiency, reduce costs, and enhance product quality. Automation, artificial
intelligence (AI), and the Internet of Things (IoT) are being integrated into
manufacturing processes, allowing companies to optimize production, monitor
equipment in real-time, and reduce waste. This focus on innovation has not only
helped local companies remain competitive on a global scale but has also
attracted foreign companies looking for partners in Saudi Arabia’s growing
industrial sector
Major companies
operating in the Saudi Arabia Machine Tools Market are:
- DMG Mori Co., Ltd.
- Yamazaki Mazak Corporation
- Haas Automation, Inc.
- Makino Milling Machine Co., Ltd.
- Okuma Corporation
- CNC Systems Inc.
- Trumpf SE + Co. KG
- FANUC Corporation
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“The Saudi Arabia machine tools market
presents significant opportunities driven by the country's Vision 2030
initiative, which aims to diversify the economy and reduce dependence on oil.
Key opportunities lie in the expanding manufacturing sectors, including
automotive, aerospace, and construction, which demand advanced machine tools
for precision and automation. Additionally, the shift toward Industry 4.0
technologies, energy-efficient machinery, and localization efforts creates a
growing need for advanced solutions. Foreign investments, government
incentives, and a focus on infrastructure development further enhance the
market potential for both domestic and international machine tool manufacturers
and suppliers.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“Saudi Arabia Machine
Tools Market, By Type (Turning Machines, Milling
Machines, Drilling Machines, Grinding Machines, Electrical Discharge Machines,
Forming Machines, Others), By Material (High-Speed Steel, Carbide, Ceramic,
Diamond), By End User (Job Shops, Manufacturing Enterprises, Repair &
Maintenance Workshops, Automotive Workshops, Aerospace & Defense,
Electronics & Electrical, Others) By Region, Competition, Forecast &
Opportunities, 2020-2030F”,
has evaluated the future growth potential of Saudi Arabia Machine Tools Market and
provides statistics & information on Market size, structure and future Market
growth. The report intends to provide cutting-edge Market intelligence and help
decision-makers make sound investment decisions., The report also identifies
and analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the Saudi Arabia Machine Tools Market.
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