Machine Tools Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Type of Machine Tool (Turning Machines, Milling Machines, Drilling Machines, Grinding Machines, Electrical Discharge Machines (EDM), Forming Machines (e.g., Press Brakes, Shears), Others (e.g., Laser Cutting Machines, Waterjet Cutting Machines)), By Tool Material (High-Speed Steel (HSS) Tools, Carbide Tools, Ceramic Tools, Diamond Tools) By End User (Job Shops. Manufacturing Enterprises, Repair and Maintenance Workshops, Automotive Workshops, Aerospace and Defense, Electronics and Electrical, Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.49 Billion
CAGR (2026-2031)	6.73%
Fastest Growing Segment	Carbide Tools
Largest Market	Asia Pacific
Market Size (2031)	USD 11.07 Billion

Market Overview

The Global Machine Tools Market will grow from USD 7.49 Billion in 2025 to USD 11.07 Billion by 2031 at a 6.73% CAGR. Machine tools are power driven devices designed to shape or machine metal and other rigid materials through cutting, shearing, boring, grinding, or deformation. The global market is primarily supported by the demand for industrial automation and precision components within the automotive and aerospace sectors. This growth is further bolstered by the adoption of smart manufacturing technologies that enhance operational efficiency across fabrication facilities. According to the Japan Machine Tool Builders’ Association, in 2025, total machine tool orders in November increased by 14.2 percent year on year to 136.3 billion yen, indicating a robust recovery in capital equipment investment.

The expansion of the manufacturing sector in emerging economies continues to stimulate demand for high performance machining centers and computer numerical control systems. Manufacturers are increasingly prioritizing energy efficient and multitasking machines to minimize lead times and operational costs. However, a significant challenge impeding market expansion is the substantial initial capital investment required for advanced machinery, which often restricts adoption among small and medium scale enterprises with limited financial liquidity.

Key Market Drivers

The Expansion of Global Aerospace and Defense Manufacturing Sectors serves as a primary catalyst for the machine tools market, driven by the increasing necessity for high-precision components and the replenishment of commercial aircraft fleets. As manufacturers ramp up production rates to address substantial order backlogs, there is a heightened requirement for multi-axis machining centers capable of processing complex materials like titanium and carbon fiber composites. This sector's resurgence is significantly outpacing other verticals, creating a sustained revenue stream for equipment suppliers who specialize in tight-tolerance aerospace applications. According to The Association For Manufacturing Technology, February 2025, in the 'U.S. Manufacturing Technology Orders Report', total orders from the aerospace sector increased nearly 32 percent in 2024 compared to the previous year, highlighting the sector's pivotal role in market performance.

Simultaneously, the Rise in Demand for Fabricated Metal Products and Heavy Machinery is bolstering market growth, largely fueled by infrastructure development and construction activities. This segment demands robust turning and milling machines to produce heavy-duty parts for earthmoving equipment, agricultural machinery, and structural components. The momentum in this vertical is evident in specific regional markets where capital investment in construction equipment is rebounding sharply. According to the Manufacturing Technologies Association, May 2025, in the 'Japanese Machine Tool Orders - 1st Quarter 2025' report, domestic orders from the construction machinery sector expanded by 66 percent quarter-on-quarter. This sectoral strength contributes to a broader positive trend; according to Metrology News, in 2025, U.S. metalworking machinery orders placed through July totaled $2.91 billion, marking a 14.4 percent increase over the first seven months of 2024.

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Key Market Challenges

The substantial initial capital investment required for advanced machinery constitutes a critical barrier impeding the broader expansion of the global machine tools market. Modern computer numerical control systems and smart manufacturing units command premium prices, creating a high entry threshold for small and medium-sized enterprises. These smaller entities often operate with restricted financial liquidity, making it difficult to absorb the heavy upfront costs associated with modernizing production lines. Consequently, this financial strain forces many manufacturers to extend the lifecycle of legacy equipment rather than upgrading to high-performance multitasking machines, thereby stifling the overall rate of technological adoption.

This hesitation to commit to large-scale capital expenditures directly reduces market momentum and leads to inconsistent procurement cycles. When businesses face liquidity pressures, they prioritize operational cash flow over long-term asset acquisition, resulting in immediate contractions in order volumes. According to 'AMT - The Association For Manufacturing Technology', in 2025, new orders of metalworking machinery totaled 493.1 million dollars in September, marking a 7.2 percent decline from the preceding month. Such volatility underscores how the burden of high capital costs directly restricts market activity and hampers steady growth within the sector.

Key Market Trends

The advancement in specialized tooling for electric vehicle production is fundamentally reshaping the sector as manufacturers pivot from internal combustion engines to battery electric powertrains. This transition necessitates high rigidity machining centers capable of handling lightweight aluminum alloys and performing complex processes such as gear skiving for silent e-drives. Unlike traditional automotive manufacturing which focused on heavy steel engine blocks, the new production lines require extreme precision for battery trays and motor housings to ensure thermal efficiency. According to the Japan Machine Tool Builders’ Association, August 2025, in the 'Monthly Machine Tool Orders' report, domestic orders from the motor vehicles sector rose by 15.9 percent month on month in July 2025, highlighting the intensified capital expenditure directed toward next generation mobility platforms.

Simultaneously, the integration of Industry 4.0 and smart manufacturing ecosystems is driving a structural shift toward automated production environments. To combat persistent skilled labor shortages, facility operators are prioritizing machine tools embedded with collaborative robotics, automatic pallet changers, and sensors that facilitate unattended operation. This digital connectivity allows for predictive maintenance and adaptive control, significantly reducing unplanned downtime and optimizing overall equipment effectiveness. According to DMG MORI AG, March 2025, in the 'Annual Report 2024', the company achieved an order intake of 2,256.6 million euros, a performance explicitly attributed to the rising customer adoption of process integration and holistic automation solutions designed to maximize shop floor productivity.

Segmental Insights

Based on comprehensive industry analysis, the Carbide Tools segment is identified as the fastest-growing component of the Global Machine Tools Market. This accelerated demand stems from the material's superior wear resistance and thermal stability, which are essential for maintaining performance during high-speed machining operations. Manufacturers, particularly in the automotive and aerospace sectors, increasingly rely on these tools to process abrasive superalloys and composites with exacting precision. Consequently, the widespread shift towards automated CNC processes favors carbide tooling for its ability to extend tool lifespan and minimize costly equipment downtime, thereby optimizing overall production output.

Regional Insights

Asia Pacific leads the global machine tools market primarily due to rapid industrialization in major economies like China and India. The region serves as a central hub for automotive and aerospace manufacturing, generating substantial demand for metal cutting and forming equipment. This expansion is supported by favorable government initiatives aimed at strengthening domestic production infrastructure. For instance, strategic investments aligned with objectives from agencies like the Ministry of Industry and Information Technology in China foster a conducive environment for manufacturing growth. Consequently, the availability of raw materials and low-cost labor solidifies the region's market dominance.

Recent Developments

• In January 2025, DMG MORI announced the launch of five innovative production platforms as part of its Machining Transformation strategy. The company revealed that the new machines, including the DMX 60 U and DMX 80 U universal milling centers, were developed for the 5-sided machining of complex workpieces weighing up to 350 kilograms. Additionally, the manufacturer introduced the second generation of the DMU 60 eVo, which features improved table kinematics for higher precision and dynamics. The lineup also included the third-generation ULTRASONIC 20 linear machine, specifically engineered for processing advanced materials such as glass and ceramics in the semiconductor industry.
• In October 2024, Trumpf launched the TruLaser Series 1000 Lean Edition at the EuroBLECH exhibition in Hanover to address the needs of manufacturers with smaller production volumes. This new laser cutting machine offers the same quality standards as the company’s high-end models but removes features necessary only for high-throughput environments to lower investment and operating costs. The system incorporates proprietary nanojoint technology, which secures components with minimal holding points to facilitate easy removal after cutting. The machine aims to provide flexibility and independence to companies that previously outsourced their sheet metal processing due to cost constraints.
• In October 2024, Nidec Machine Tool announced the development of the ZFA160 and ZFA260 gear grinders to meet the rising demand for high-precision gears in electric vehicles and robots. These machines feature a newly developed twin-table structure and enhanced high-speed rotary performance, which reduce non-machining time by approximately 50 percent compared to conventional models. The ZFA160 is capable of processing gears with an external diameter of up to 160mm, while the ZFA260 handles up to 260mm. The company designed these units to integrate with automated measurement and robot handling systems for efficient mass production.
• In September 2024, DN Solutions unveiled the DNX series of multitasking machines at the IMTS exhibition in Chicago and AMB in Stuttgart. Designed to compete in the global high-end market, the new DNX 2100SB and DNX 2100S models allow operators to perform complex turning and milling operations within a single setup. This capability eliminates the need to transfer workpieces between different machines, significantly reducing downtime and improving process stability. The series features a distinct new design identity with specific lighting elements and aims to make advanced multitasking technology more accessible to a broader range of manufacturing businesses.

Key Market Players

• AMADA HOLDINGS CO., LTD.
• DMG MORI CO., LTD.
• TRUMPF GROUP
• JTEKT Corporation
• Komatsu Ltd
• Okuma Corporation
• Doosan Machine Tools Co., Ltd
• Makino Milling Machine Co., Ltd
• HYUNDAI WIA CORP
• CHIRON Group SE

By Tool Material	By End User	By Region
High-Speed Steel (HSS) Tools Carbide Tools Ceramic Tools Diamond Tools	Job Shops. Manufacturing Enterprises Repair and Maintenance Workshops Automotive Workshops Aerospace and Defense Electronics and Electrical Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Machine Tools Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Machine Tools Market, By Tool Material:

• High-Speed Steel (HSS) Tools
• Carbide Tools
• Ceramic Tools
• Diamond Tools

• Machine Tools Market, By End User:

• Job Shops. Manufacturing Enterprises
• Repair and Maintenance Workshops
• Automotive Workshops
• Aerospace and Defense
• Electronics and Electrical
• Others

• Machine Tools Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE