Precision Engineering Machines Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (CNC Machine Tools, EDM Machine Tools, Others), By End-use (Automotive, Non-Automotive), Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 16.76 Billion
CAGR (2026-2031)	6.98%
Fastest Growing Segment	CNC Machine Tools
Largest Market	Asia Pacific
Market Size (2031)	USD 25.12 Billion

Market Overview

The Global Precision Engineering Machines Market will grow from USD 16.76 Billion in 2025 to USD 25.12 Billion by 2031 at a 6.98% CAGR. The Global Precision Engineering Machines Market encompasses advanced manufacturing equipment, such as Computer Numerical Control systems and automated machining centers, designed to fabricate components with microscopic accuracy and strict tolerance levels. The primary drivers fueling market expansion include the escalating requirement for high-accuracy parts within the aerospace and automotive sectors, necessitated by the push for fuel efficiency and component miniaturization. Furthermore, the industrial imperative to reduce manual errors and enhance production throughput supports the steady adoption of these automated technologies across various manufacturing verticals.

Despite the positive long-term trajectory, the market encounters significant impediments regarding the substantial capital expenditure required for acquiring and maintaining such complex infrastructure. This financial barrier often causes hesitation among small and medium enterprises during periods of economic uncertainty. According to the Japan Machine Tool Builders' Association, in 2024, the total value of machine tool orders reached 1,485.1 billion yen, marking a slight decline of 0.1 percent from the previous year. This stagnation in order volume highlights how high initial investment costs and economic volatility can effectively dampen purchasing activities and impede broader market expansion.

Key Market Drivers

Miniaturization trends in semiconductor and consumer electronics are fundamentally reshaping the Global Precision Engineering Machines Market by necessitating equipment capable of achieving nanometer-level tolerances. As chipmakers race to support artificial intelligence and high-performance computing applications, the requirement for ultra-precise lithography and machining tools has intensified, driving significant capital inflows into the sector. This specific demand for high-end fabrication capacity remains robust even as other segments fluctuate. According to SEMI, September 2024, in the '300mm Fab Outlook Report to 2027', worldwide 300mm fab equipment spending is projected to grow by 4 percent to reach 99.3 billion US dollars in 2024.

Simultaneously, the escalating demand for high-precision aerospace and defense components serves as a vital pillar of market resilience, counteracting softer demand in general industrial segments. Manufacturers are ramping up the production of complex turbine blades and structural airframe parts, which require multi-axis machining centers with exceptional accuracy to meet rigorous safety standards. According to AMT - The Association For Manufacturing Technology, August 2024, in the 'U.S. Manufacturing Technology Orders Report', the aerospace sector increased orders in the first half of 2024 to the highest number of units recorded since the first half of 2018. Despite these pockets of growth, the overall industry faces headwinds from economic volatility and hesitancy in broader markets. According to the VDW, in 2024, the German machine tool industry forecasts an 8 percent decline in production, highlighting the uneven recovery across different manufacturing regions and verticals.

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Key Market Challenges

The substantial capital expenditure required for acquiring and maintaining precision engineering infrastructure constitutes a primary obstacle to market progression. High acquisition costs for advanced automated machining centers and CNC systems create a formidable financial barrier, particularly for small and medium-sized enterprises (SMEs) that often lack the liquidity to absorb such heavy upfront investments. This financial strain forces many manufacturers to delay critical technology upgrades, resulting in prolonged replacement cycles and a reluctance to expand production capacities during uncertain economic periods. Consequently, the market experiences dampened demand as companies prioritize capital preservation over modernization.

The impact of these cost-related impediments is evident in recent industrial performance metrics. When businesses face economic volatility combined with high interest rates, the justification for expensive machinery procurement weakens significantly. According to the German Machine Tool Builders' Association (VDW), in late 2024, the industry recorded a 16 percent decline in orders for the third quarter compared to the previous year, driven largely by investment reluctance among domestic manufacturers. This contraction underscores how capital intensity directly correlates with reduced market activity when financial confidence wavers.

Key Market Trends

Integration of AI and Machine Learning for Predictive Maintenance is fundamentally altering operational strategies within the Global Precision Engineering Machines Market by shifting maintenance from reactive intervals to data-driven proactive measures. Advanced algorithms now analyze real-time sensor inputs, such as vibration and temperature, to predict component failures or tool wear before they disrupt production. This capability is critical for manufacturers seeking to minimize unplanned downtime and optimize the lifespan of expensive CNC machinery without relying on manual scheduling. The momentum behind this digital shift is substantial; according to Rockwell Automation, April 2024, in the '9th Annual State of Smart Manufacturing Report', 83 percent of manufacturers expect to use generative AI in their operations in 2024, reflecting a widespread commitment to leveraging intelligent systems for operational resilience.

Simultaneously, the Proliferation of Collaborative Robotics (Cobots) for Machine Tending is addressing chronic labor shortages while enhancing process consistency in machine shops. Unlike traditional industrial robots requiring safety fencing, cobots operate safely alongside human technicians to automate repetitive loading and unloading tasks, thereby allowing skilled operators to focus on complex programming and quality control. This trend is particularly accelerating among high-mix, low-volume manufacturers who require flexible automation solutions that can be rapidly redeployed. According to Universal Robots, January 2024, in the 'Universal Robots Reports Strong End to 2023' statement, the company recorded a 21 percent increase in revenue for the fourth quarter compared to the previous year, driven significantly by the uptake of new heavy-payload cobot models suitable for handling larger metal components.

Segmental Insights

The CNC Machine Tools segment is identified as the fastest-growing category within the Global Precision Engineering Machines Market, fueled by the widespread adoption of Industry 4.0 and industrial automation. This growth is principally sustained by the rising demand for high-precision components in the automotive and aerospace sectors, specifically for electric vehicle production and aircraft assembly. Manufacturers are prioritizing these tools to ensure consistent quality and operational efficiency while reducing reliance on manual processes. Consequently, the capability of CNC systems to deliver exact specifications with minimal error is driving their rapid expansion across the global manufacturing landscape.

Regional Insights

Asia Pacific commands the Global Precision Engineering Machines Market, supported by its role as the world's primary manufacturing hub. The region’s dominance stems from accelerated industrialization in China, India, and Japan, which drives substantial demand for high-precision equipment across the automotive, aerospace, and electronics industries. Furthermore, strategic government mandates favoring infrastructure modernization and industrial automation have created a conducive environment for market expansion. The rising production of electric vehicles and semiconductors specifically necessitates the high-accuracy outputs that these machines provide, solidifying the region’s enduring leadership in the global landscape.

Recent Developments

• In July 2024, Trumpf entered into a strategic partnership with SiMa.ai to integrate artificial intelligence technology directly into its industrial laser systems. The collaboration focused on equipping laser welding, cutting, and marking machines with advanced AI chips capable of monitoring processing quality in real-time. This technological integration was intended to replace complex, separate testing procedures and increase efficiency in sectors such as electric vehicle production. By combining deep laser application expertise with powerful edge machine learning software, the companies aimed to create intelligent solutions that enhance the precision and reliability of complex material processing operations.
• In June 2024, GF Machining Solutions unveiled the LASER S 500 (U), a new laser ablation tool designed to advance micromachining and 3D surface processing capabilities. Launched at a trade event in Geneva, the machine was developed to machine challenging materials with high accuracy in both three- and five-axis configurations. The system offered manufacturers in the watchmaking and electronics industries a solution for complex tasks such as micro-engraving, texturing, and structuring. By delivering precise control over surface finishes and enabling rapid processing speeds, the new platform was positioned to meet the stringent requirements of high-precision component manufacturing.
• In March 2024, Yamazaki Mazak announced the launch of the FT-150 FIBER, a laser tube processing machine specifically developed for the high-speed cutting of small to medium-diameter pipes and tubes. This new equipment was integrated with the manufacturer's proprietary SmoothTUBE CNC control, which featured a graphical user interface designed to simplify production scheduling and programming. The machine demonstrated the capability to process a wide variety of materials, including copper, aluminum, and stainless steel, while performing multiple operations such as tapping and thermal drilling. This innovation aimed to enhance productivity in the precision engineering sector by minimizing the need for secondary finishing processes like deburring.
• In January 2024, DMG MORI premiered its new DMF 400|11 traveling column machine during the company's annual Open House event in Pfronten, Germany. This advanced machining center was engineered to handle the processing of large, demanding components such as structural parts and long beams utilized in tool and mold making. The machine featured a significant extension in the X-axis and Z-axis travel ranges compared to its predecessor, providing manufacturers with greater flexibility for universal machining tasks. At the same event, the company also introduced the PH Cell 500, a modular pallet handling system designed to support automated production and high-precision manufacturing by accommodating transfer weights of up to 500 kg.

Key Market Players

• DMG MORI CO., LTD.
• Makino Milling Machine Co., Ltd.
• Haas Automation, Inc.
• TRUMPF GmbH + Co. KG
• GF Machining Solutions Management SA
• Fanuc Corporation
• Okuma Corporation
• Chiron Group SE
• Yamazaki Mazak Corporation
• Mitsubishi Electric Corporation

By Type	By End-use	By Region
CNC Machine Tools EDM Machine Tools Others	Automotive Non-Automotive	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Precision Engineering Machines Market, By Type:

• CNC Machine Tools
• EDM Machine Tools
• Others

• Precision Engineering Machines Market, By End-use:

• Automotive
• Non-Automotive

• Precision Engineering Machines 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