China machine tools demand to grow 9.2% yearly through 2017

Demand for machine tools in China is forecast to increase 9.2 percent per year to ￥600 billion (US98 billion) in 2017, reports Freedonia Group. Gains will be stimulated by healthy growth in manufacturing production, especially in the industrial machinery and transportation equipment industries. In addition, a continuing shift in the product mix toward higher-value product types such as machining centres, CNC machine tools, and multitasking machine tools will help drive market advances in value terms. Moreover, increasing regulations regarding energy conservation will lead to growth in demand for energy-efficient machine tools.

Machine tool shipments in China are projected to slightly outpace demand through 2017, benefiting from sizable expansions in the domestic market as well as rising demand for Chinese machine tools in a number of export markets as the quality of Chinese machine tools continues to improve. Exports of machine tools will rise at a strong annual through 2017, driven by improved product quality, especially in small CNC machine tools, while prices remain competitive. Government policies to subsidize the research and development of high precision, high speed, and relatively more sophisticated machine tools will also support product sales. China will continue to see its trade deficit in machine tools expand for the foreseeable future. As imports rise through 2017, foreign suppliers will continue to benefit from growing demand for the precise and sophisticated machine tools needed to manufacture advanced machines. In addition, decreases in tariffs on imported machine tools will also drive sales of imported products through 2017.

Metal cutting machine tools will continue to be the largest product segment in 2017, benefiting from their relatively wider range of applications in durable goods production and a comparatively greater variety of metal cutting product types. In addition, growing demand for highly advanced and comprehensive metal cutting machines -- especially for machining centres and multitasking machines -- will further boost product sales. Growth in demand for metal forming equipment is forecast to slightly outpace that of metal cutting machine tools through 2017, benefiting from strong growth anticipated in the motor vehicle, shipbuilding, aerospace, and power transmission and distribution industries.