The global market for precision engineering machines was valued at USD 13.07 billion in the year 2022. This market is projected to expand steadily, with a compound annual growth rate (CAGR) of 6.8% anticipated between 2023 and 2030. The key drivers behind this growth include the increasing demand for highly advanced precision machining solutions across various industries. Additionally, there is a growing emphasis on minimizing downtime in production environments, which helps enhance overall efficiency, improve accuracy, and streamline machining operations.

Advanced precision machining technologies contribute significantly to reducing the time required for machining tasks. This, in turn, lowers material wastage, setup durations, and the costs associated with customized machining processes. As a result of these benefits, precision engineering machinery is widely adopted by manufacturing companies seeking to improve operational productivity and cost-effectiveness. Consequently, these machines have become an integral component of modern manufacturing facilities worldwide.

Precision engineering encompasses the development and refinement of high-accuracy machine tools, as well as the detailed evaluation of machine design, construction, precision measurement, operational procedures, and related research and development. This discipline also involves the meticulous manufacturing and measurement of components and products with extremely tight tolerances. Tools used in precision engineering are capable of meeting the requirements of both large-scale mass production and applications demanding exceptionally fine detail and accuracy.

Today’s most advanced and sophisticated precision engineering machines provide manufacturers with improved control over product quality while requiring reduced manual labor input. This enhancement in efficiency and automation allows manufacturers to increase their profit margins. A significant factor contributing to the rising demand for these machines is their evolving design—modern precision engineering equipment tends to be more compact and modular compared to older models, making them easier to integrate into existing manufacturing environments.

The precision offered by computerized machining systems plays a critical role in reducing redundant work and minimizing machining time, which leads to improved efficiency in industrial operations. Furthermore, recent technological advancements have facilitated the development of intelligent software and applications that allow shop floor managers to monitor machine activities in real time. This capability enables quicker and more informed decision-making, further streamlining production processes.

As urban populations continue to grow, there is a corresponding surge in demand for both residential and commercial infrastructure. In response, manufacturers are under pressure to produce components quickly, accurately, and efficiently. This rising need is driving increased demand for precision engineering machines across various sectors.

Additionally, the market is witnessing growth due to the rising adoption of sophisticated machining solutions and the ongoing focus on reducing production downtime to maximize efficiency, precision, and operational performance. The emergence of Industry 4.0 is also playing a pivotal role, as it promotes the integration of manufacturing systems with digital technologies to create intelligent, adaptable, and holistic automation ecosystems. Precision engineering machinery is integral to this transformation, offering the capabilities required for modern, interconnected manufacturing processes.

Detailed Segmentation:

End-use Insights

The non-automotive segment held the largest market share of nearly 78.0%in 2022. This segment includes aerospace and defense, engineering and capital goods, power and energy, and others. The aerospace industry has observed increased demand for advanced materials such as nickel alloys and titanium alloys in recent years, leading to the increased use of machine tools and cutting tools.  In Germany, the demand can be attributed to the fact that precision engineering machines produce components with higher accuracy and better finish in non-automotive industries. In the capital goods industry, heavy equipment and shipbuilding are expected to experience high demand for precision engineering machinery due to the growing production of heavy equipment in APAC countries such as Japan and China.

Regional Insights

Asia Pacific dominated the precision engineering machines market in terms of market share in 2022 at over 33.0%. Precision engineering equipment is rapidly gaining importance in China's manufacturing sector. China is seeing profitable growth prospects in products and services, including CNC manufacturing systems and optimized manufacturing service centers in order to meet the growing demand for advanced manufacturing and CNC machining services. Japan is also home to almost 200 machine tool makers, making it one of the leading nations for precision engineering tools. Countries like India and South Korea are also experiencing a growth in demand for precision engineering machinery in end-use industries like the automotive and power & energy industries.

Detailed Segmentation:

key players in the Precision Engineering Machines Market

• Amada Machine Tools Co., Ltd.
• Amera-Seiki
• DATRON AG
• Dalian Machine Tool Group (DMTG) Corporation
• DMG Mori Co., Ltd.
• FANUC Corporation
• Haas Automation, Inc.
• Hurco Companies, Inc.
• Okuma Corporation
• Shenyang Machine Tool Co., Ltd.
• Yamazaki Mazak Corporation 

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