Global machine tool market drops 5.5% in 2024: report
A major contributor to the decline was the slowdown in China.
The global machine tool market declined by about 5.5% in nominal terms in 2024, on the back of wider geopolitical crises, economic uncertainty, and stagnation in key industries, according to a Roland Berger report.
A major contributor to the decline was the slowdown in China, the world’s largest machine tool producer. Germany, the second-largest producer, recorded a 19% drop in incoming orders in nominal terms. Globally, order volumes fell by more than 20%.
Moreover, the global sector is expected to witness a 4% fall in production this year, with orders unlikely to rebound before the second half.
“In machine tools, great technology is nowadays just not enough anymore. Customer centricity is becoming the new right to play,” said Oliver Herweg, Partner at Roland Berger, Munich Office.
Three key challenges further shape the landscape for Western producers. First, securing incoming orders in the short term is critical to avoid potential restructuring and the loss of skilled workers.
Second, maintaining price competitiveness, particularly in the US market, remains difficult, with the US-led trade war creating uncertainty, especially as no Western manufacturers have localised development and production to any great extent.
Lastly, Chinese competitors are aggressively internationalising their business in light of the domestic slowdown, focusing on Europe due to the trade war.
The rise of Chinese machine tool automation players poses a challenge for Western producers, particularly in sectors related to electric vehicle technologies, such as battery assembly and electric motor assembly.
Chinese manufacturers have secured a strong foothold in these areas through clear cost advantages. As a result, Western firms struggle to regain market share in these applications.
