GIA sees industrial machinery market booming in 2015

The global industrial machinery market to reach US$514 billion by 2015, reports Global Industry Analysts Inc. (GIA). Growth is driven by increasing economic activity that in turn drives industrial output and demand for new machinery. Meanwhile, demand for metal forming machine tools, metal cutting machine tools as well as machine tool accessories, is expected to grow by a robust 7.2% annually through 2015.

The key players in this sector include industrial machinery and component manufacturers, while the main buyers are commercial users and construction, metalworking, manufacturing, power producing, agriculture, and other such industrial companies. The top four players, comprising Mitsubishi Heavy Industries, IHI Corporation, Kawasaki Heavy Industries, and MAN hold about 14% of the overall market value. Several companies, that are relatively smaller, compete with large players by producing a specific kind of machinery. Among the larger players, the competition is intense driven mainly by higher fixed costs as well as lower-switching cost for the buyers.