Metalworking Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, By Type (Lathe Machines, Milling Machines), By Capacity (Small, Medium, Large), By End-use (Automotive, Manufacturing, Construction, Marine, Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 289.87 Billion
CAGR (2026-2031)	8.21%
Fastest Growing Segment	Lathe Machines
Largest Market	Asia Pacific
Market Size (2031)	USD 465.38 Billion

Market Overview

The Global Metalworking Equipment Market will grow from USD 289.87 Billion in 2025 to USD 465.38 Billion by 2031 at a 8.21% CAGR. Metalworking equipment comprises machinery and tools utilized to cut, form, and shape metals into precise components for diverse industrial applications. These systems serve as the foundation of manufacturing by enabling the creation of accurate parts for sectors such as automotive and aerospace. The market is primarily driven by the ongoing industrialization of emerging economies and the rising demand for electric vehicles which necessitates specialized tooling capacities. Strong requirements from the defense sector for durable structural elements also support steady demand for these heavy industrial goods.

However, the market faces a significant challenge regarding global economic instability which restricts capital expenditure. High interest rates and geopolitical tensions frequently prompt manufacturers to postpone investments in new machinery. According to 'CECIMO', in '2024', machine tool production output in member countries is projected to decline by 7.5 percent to approximately 25.6 billion euros. This data illustrates how macroeconomic headwinds can impede growth and force manufacturers to navigate an environment of cautious spending and fluctuating demand.

Key Market Drivers

Rapid expansion of automotive manufacturing and electric vehicle production acts as a primary catalyst for the metalworking equipment sector. As manufacturers transition from internal combustion engines to electric powertrains, there is a substantial need to retool facilities with advanced milling and turning centers capable of handling lightweight materials like aluminum and high-strength steel. This shift requires heavy investment in fabrication machinery to produce battery enclosures, motor housings, and structural chassis components. According to Honda Motor Co., Ltd., April 2024, in the 'Honda to Launch Comprehensive EV Value Chain in Canada' press release, the company plans to invest approximately CAD 15 billion to establish a comprehensive electric vehicle value chain, including vehicle and battery manufacturing plants. Such capital-intensive projects ensure sustained demand for high-performance metal forming and cutting tools to support mass production targets.

Widespread integration of Industry 4.0 and industrial automation further stimulates market activity by addressing labor shortages and operational efficiency requirements. Metalworking shops are increasingly adopting automated machine tending solutions and interconnected CNC systems to maintain continuous production cycles with minimal human intervention. This technological adoption allows fabricators to achieve tighter tolerances and higher throughput rates essential for modern supply chains. According to the International Federation of Robotics, September 2024, in the 'World Robotics 2024' report, the global operational stock of industrial robots reached a record high of 4,281,585 units, signaling a deep integration of automated hardware in manufacturing environments. Despite broader economic challenges, procurement of these systems continues in key export hubs. According to the Japan Machine Tool Builders’ Association, in 2024, the total amount of machine tool orders for September reached 125.3 billion JPY, reflecting the ongoing necessity for capital equipment in industrial operations.

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Key Market Challenges

Global economic instability represents a formidable barrier to the growth of the metalworking equipment market, primarily by restricting capital expenditure among manufacturers. When inflation remains persistent and central banks maintain high interest rates to restrict monetary supply, the cost of borrowing for heavy industrial machinery increases significantly. This financial pressure forces companies to prioritize liquidity and operational stability over expansion or technological upgrades. Consequently, manufacturers frequently delay or cancel planned investments in metalworking systems, viewing them as deferrable expenses during periods of fiscal uncertainty.

This hesitation is evident in recent industrial data, which highlights a sharp contraction in demand for new machinery. According to 'VDW' (German Machine Tool Builders' Association), in '2025', 'incoming orders for the German machine tool industry declined by 19 percent in 2024 compared to the previous year, with domestic orders dropping by 9 percent and foreign orders by 24 percent'. Such figures demonstrate that when economic confidence wanes, the direct result is a freeze on the acquisition of capital goods, thereby stalling revenue streams for equipment suppliers and hampering the overall market momentum.

Key Market Trends

Integration of Artificial Intelligence for Predictive Maintenance and Process Optimization is fundamentally reshaping machine tool capabilities by enabling systems to analyze vast datasets for real-time adjustments. This trend moves beyond simple automation, allowing equipment to self-diagnose potential failures before they occur and optimize cutting parameters dynamically to reduce waste. Manufacturers are embedding high-performance computing directly into control units to facilitate these complex cognitive tasks without latency, ensuring continuous precision during intensive fabrication cycles. According to Siemens, November 2024, in the 'Siemens drives AI adoption with Industrial Operations X and NVIDIA-accelerated Industrial PCs' press release, the company's new AI-integrated hardware and software offering is estimated to bring a 25-fold acceleration in AI execution to the shop floor. This surge in processing power allows for immediate reaction to operational anomalies, significantly enhancing overall equipment effectiveness.

Shift Toward Energy-Efficient and Eco-Friendly Machine Tool Designs is becoming a critical priority as industrial operators face stricter environmental regulations and rising utility costs. Builders are re-engineering spindles, hydraulic units, and coolant systems to minimize power consumption during both active and standby modes, effectively decoupling production growth from energy usage. This focus on sustainability extends to the entire lifecycle of the equipment, promoting carbon-neutral manufacturing environments and reducing the ecological footprint of heavy industry. According to DMG MORI, March 2024, in the 'Sustainability Report 2023', the company reported that its improved GREENMODE measures now incorporate up to 13 specific energy efficiency options, making energy savings of over 30% possible for its machine tools. Such advancements enable fabricators to lower their operational expenditures while complying with rigorous global sustainability mandates.

Segmental Insights

The Lathe Machines segment is recognized as the fastest-growing category in the global metalworking equipment market driven by escalated demand from the automotive and aerospace industries. This trajectory is supported by the increasing need for precise cylindrical parts and engine components which these machines uniquely produce. Manufacturers are prioritizing Computer Numerical Control integration to ensure high consistency and reduce operational downtime. Furthermore, the versatility of modern lathes in performing multiple turning operations allows fabrication facilities to adapt to varying production schedules. This functional adaptability makes lathe machinery a central element of capital investment strategies in the manufacturing sector.

Regional Insights

Asia Pacific leads the Global Metalworking Equipment Market, primarily due to its established role as a global manufacturing hub. The region benefits from extensive industrial activities in China and India, where the automotive and heavy machinery sectors create consistent demand for tooling and machinery. This market position is strengthened by strategic government support, such as mandates from China’s Ministry of Industry and Information Technology that encourage industrial modernization. Additionally, ongoing infrastructure projects and the expansion of domestic production capabilities ensure the region maintains its dominance in the global landscape.

Recent Developments

• In November 2024, United Grinding Group announced a strategic agreement to acquire the GF Machining Solutions division from Georg Fischer AG. The transaction, valued between CHF 630 and 650 million, aims to create a powerful global entity in the ultra-precision machining sector. This collaboration brings together complementary portfolios of grinding, eroding, and laser technologies to serve a broader industrial customer base. Executives at the company described the deal as a milestone that would strengthen their market position and drive future innovation. The acquisition is scheduled to close in the first half of 2025, pending standard regulatory approvals.
• In October 2024, Trumpf launched an innovative automated sorting solution for 2D laser-cut parts at the EuroBLECH exhibition in Hanover. The system utilizes the SortMaster Station and SortMaster Vision to separate and organize components independently of the cutting process. By integrating artificial intelligence, the technology allows the machine to recognize and sort parts without requiring extensive programming, significantly reducing manual labor. This development enables the laser cutting machinery to operate continuously, thereby increasing overall throughput. The solution targets sheet metal processors seeking to enhance efficiency and reliability in their automated manufacturing workflows.
• In October 2024, Sandvik Coromant introduced the CoroMill MS20, a double-edged shoulder milling tool designed for machining stainless steel and heat-resistant superalloys. The product features a strengthened body and optimized insert geometries that ensure high process security during roughing and finishing applications. Specifically engineered for the aerospace and oil and gas sectors, the tool delivers improved cost-efficiency and component quality. This launch was part of the company’s autumn product release, reinforcing its commitment to providing cutting-edge tooling solutions that drive productivity and reliability in demanding metalworking environments.
• In September 2024, DMG MORI premiered the NLX 2500|700 2nd Generation turning center at the AMB trade fair in Stuttgart. The new machine features extensive structural optimizations and enhanced control systems designed to support the Machining Transformation concept. With increased stability and spindle performance, the turning center allows for heavy-duty machining and greater flexibility in universal turning operations. The launch highlighted the company's focus on integrating automation and digital transformation to improve production autonomy. This advanced equipment addresses the needs of industries requiring high precision and reduced throughput times for complex workpiece manufacturing.

Key Market Players

• TRUMPF Group
• Amada Co., Ltd.
• Makino Milling Machine Co., Ltd.
• DMG Mori AG
• Okuma Corporation
• Hardinge Inc.
• Schuler AG
• KOMATSU NTC LTD.
• FANUC Corporation
• Doosan Machine Tools Co., Ltd.

By Type	By Capacity	By End-use	By Region
Lathe Machines Milling Machines	Small Medium Large	Automotive Manufacturing Construction Marine Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Metalworking Equipment Market, By Type:

• Lathe Machines
• Milling Machines

• Metalworking Equipment Market, By Capacity:

• Small
• Medium
• Large

• Metalworking Equipment Market, By End-use:

• Automotive
• Manufacturing
• Construction
• Marine
• Others

• Metalworking Equipment 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