Market Trends of Broaching Machines Industry
This section covers the major market trends shaping the Broaching Machines Market according to our research experts:
Growing Demand from the Automotive Industry
Major factor boosting the growth of broaching machines is the increasing demand from the automotive industry. Broaching machines have a significant share in the automotive industry and are used for several operations to manufacture gears, transmission shafts, steering wheel hubs, steering yokes, etc. Automotive gear manufacturers implemented significant improvements in external planetary gear manufacturing. As hybrid and electric vehicles are developing and bringing to the market, the demand for quieter gears continues to rise. Broaching is widely used method for cutting internal gear. Internal helical broaching is regarded as an economical choice for the highest volume mass production with minimal product mix. The advent of electromechanical broach machines allows helical broaching without the need for the specific mechanical guides.
Despite some headwinds, automotive industry is look bright globally. U.S. light vehicle sales figures peaked in 2016 with 17.46 million and 2018 marked the fourth straight year with over 17 million unit sales. According to industry sources, global light vehicle production units have been remarkable and it is only continue to grow. APAC is expected to register the highest growth rates in terms of production volumes followed by North America. This scenario is expected to create demand for the broaching machines and other related machines associated with manufacturing process.
Spotlight on Asia-Pacific Market
According to analysis, Asia-Pacific (APAC) is estimated to register a significant growth rate in the current market studied. The region has the highest number of manufacturing plants where adoption of broaching machines is substantial. China is expected to be the major country in the region owing to its vast manufacturing sector. Additionally, automotive is one of China's pillar industries, and it continues to be the largest vehicles market in the world. The country’s total automotive production reached 27.8 million units in 2018, which is far ahead of major markets like the United States (11.3 million units), Japan (9.7 million units), and Germany (5.1 million units).
Coming to ASEAN, the manufacturing sector has been one of ASEAN’s key economic growth drivers. Economies in this region have low operating costs, which attract many businesses from larger manufacturing bases. In the recent times, China has seen rising wages and tighter regulations, which has led to an increase in operating costs as it shifts towards the higher value manufacturing. In order to replace the role that PRC once played, companies are looking to the ASEAN region for lower-value production networks which have also been largely integrated into global manufacturing value chains. As per the analysis, broaching machine manufacturers should align their distribution channels to focus on the growing markets by serving the emerging manufacturing sectors to increase their sales.
