World machine tools demand poised for big growth in 2014

Global demand for machine tool products - encompassing metal cutting machine tools, metal forming machine tools and machine tool accessories - is projected to increase a strong 6.9 percent per year through 2014 to $108 billion.

However, gains will be rising from a depressed 2009, when a large part of the global economy underwent recession. The best prospects will continue to be found in the developing regions, especially in China and India.

Growth in North America will post respectable gains, but only because 2009 was such a bad year for the dominant U.S. market. Japan and Western Europe will continue to see gains that considerably lag the global average.

Although the industrial machinery and equipment market will continue to account for the largest share of demand, electronic equipment markets hold the best prospects for machine tool demand through 2014. Gains in this sector will benefit from increasing per capita incomes in developing countries that will allow people to purchase electronic products.

In developed countries, a significant number of electronic products are now almost considered to be basic necessities. Motor vehicles also hold highly favourable prospects, especially in the developing world, where China and numerous other countries are promoting vehicle ownership as a way to develop prosperous consumer classes.

Moreover, the auto industries of a number of large developed markets such as the US and Japan will see healthy recoveries through 2014 after the major declines experienced in 2009. Several hundred firms manufacture machine tool products around the world, the majority falling in the small and midsized categories. The largest machine tool producing nations are China, Germany, Japan, Italy, the United States, South Korea, Taiwan and Switzerland.