Industrial Machinery Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.75 Trillion |
| Market Size (2029) | USD 1.10 Trillion |
| CAGR (2024 - 2029) | 8.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Machinery Market Analysis
The Industrial Machinery Market size is estimated at USD 0.75 trillion in 2024, and is expected to reach USD 1.10 trillion by 2029, at a CAGR of 8.10% during the forecast period (2024-2029).
- The industrial machinery market is a cornerstone of the global economy, underpinning the manufacturing and production of diverse equipment utilized across industries, including automotive, construction, mining, and energy. The adoption of automation, robotics, and cutting-edge manufacturing technologies, notably Artificial Intelligence (AI), Machine Learning, and the Internet of Things (IoT), is expected to drive market growth. These advancements bolster production efficiency, minimize human error, and elevate the quality of end products.
- Furthermore, the ongoing transition to Industry 4.0 is reshaping industrial processes, amplifying the demand for state-of-the-art machinery. Industry 4.0 advocates for smart factories, where advanced automation of industrial machinery reduces the need for manual labour and enhances operational efficiency. By incorporating sensors, robotics, and AI, machines can operate autonomously, detect issues, and make real-time decisions. This level of automation decreases downtime, speeds up production, and improves product quality.
- The industrial machinery market is characterized by surging demand in emerging economies as they industrialize, particularly in the construction, mining, and manufacturing sectors. Infrastructure endeavours, from roads and bridges to buildings, necessitate a spectrum of machinery, including cranes, excavators, and concrete mixers. In several nations, government-led initiatives targeting industrial growth and infrastructure advancements, such as China's Belt and Road Initiative, propel the demand for industrial machinery.
- The industrial machinery market is revolutionized by 3D printing, which enables the production of intricate parts and bespoke machinery components. This innovation streamlines production, curtails material waste, and accelerates prototyping. The automotive industry, especially with its burgeoning electric vehicle (EV) segment, remains a dominant consumer, driven by the quest for high-efficiency manufacturing tools to satisfy escalating production needs.
- The market is driven by a rising global appetite for energy, especially from renewable sources like wind, solar, and hydropower, leading to heightened demand for industrial machinery tailored for power-generation equipment, including turbines and generators. Companies are heavily investing in R&D to develop cutting-edge industrial machinery with superior capabilities, such as greater precision, faster throughput, and reduced downtime. These innovations are driving growth in the sector and increasing competitiveness among manufacturers.
- Industrial machinery demands significant upfront capital investment, which can be a barrier for small and medium-sized enterprises (SMEs) or industries in emerging markets. Additionally, maintaining and operating these machines involves high ongoing costs, including maintenance, repairs, and replacement parts, which may deter potential buyers.
- Trade disputes, tariffs, and protectionist policies between major economies can disrupt the flow of industrial machinery, increase costs, and limit access to new markets. Global economic volatility, inflationary pressures, or financial crises can reduce capital spending by industries, thus negatively impacting the demand for industrial machinery.
Industrial Machinery Market Trends
Construction to Hold Significant Market Share
- Urbanization, technological advancements, labor shortages, and the need for quicker and more sustainable project completions are driving the construction industry's demand for industrial machinery. As construction becomes more complex and competitive, machinery is crucial for enhancing efficiency, reducing labor costs, and ensuring job site safety.
- As the global population increasingly moves towards urban areas, the demand for residential, commercial, and public infrastructure rises. This trend is particularly evident in developing regions like Asia-Pacific and parts of Africa. The need to build new cities, highways, bridges, and essential infrastructure directly boosts the demand for construction machinery such as cranes, bulldozers, excavators, and road rollers.
- With the advent of Industry 4.0, the construction sector is adopting smart machinery that incorporates IoT (Internet of Things), artificial intelligence, and sensors. These technologies enable machinery to operate autonomously, make real-time adjustments, and communicate with other equipment and central control systems. For example, automated bulldozers and excavators can function with minimal human intervention. This automation reduces labor costs, improves precision, and enhances productivity, making advanced machinery indispensable.
- The construction industry faces significant labor shortages, especially in developed economies with a declining manual labor workforce. This shortage of skilled labor is prompting companies to adopt more efficient, automated machinery. The use of robotic arms, automated excavators, and self-driving trucks reduces dependency on human labor, as machines can perform tasks more efficiently and consistently.
- In the competitive construction industry, the speed of project delivery is crucial. Construction firms are under constant pressure to complete projects ahead of schedule while maintaining high-quality standards. Industrial machinery plays a pivotal role in meeting these demands by increasing the speed at which work can be completed. Heavy-duty machinery like excavators, backhoes, and bulldozers expedite site preparation, while cranes and concrete pumps accelerate construction activities such as lifting and material handling.
Asia Pacific is Expected to Witness a High Market Growth Rate
- In the Asia-Pacific (APAC) region, sectors such as construction and automotive are driving a significant surge in demand for industrial machinery. This uptick is fueled by rapid industrialization, infrastructure development, supportive government policies, and heightened manufacturing activities.
- APAC nations are pouring investments into vast infrastructure undertakings, encompassing highways, bridges, ports, airports, and mass transit systems. Notably, China and India have unveiled ambitious initiatives, including China's Belt and Road Initiative (BRI) and India's Smart Cities Mission. These endeavors necessitate sophisticated machinery for tasks ranging from construction and earthmoving to road development and heavy lifting. Consequently, there's a heightened demand not just for construction equipment but also for machinery pivotal to infrastructure logistics, such as cranes, loaders, and backhoes.
- China, India, Japan, and South Korea stand out as major players in the automotive manufacturing arena. With a rising appetite for cars, electric vehicles (EVs), and commercial vehicles, the demand for cutting-edge automotive machinery in manufacturing plants is on the rise. China's automotive sector is witnessing rapid expansion, cementing the region's stature in the global auto landscape. As a testament to this growth, data from CAAM highlighted that in August 2023, China sold 846,000 new energy vehicles, with a dominant 808,000 being passenger electric vehicles and 39,000 classified as commercial.
- In a bid to balance rising energy demands with environmental stewardship, APAC nations are ramping up investments in renewable energy projects. Leading the charge, countries like China, India, Japan, and South Korea are advancing their renewable energy infrastructure, spanning wind, solar, hydroelectric, and geothermal domains. Coupled with government incentives for manufacturing and the embrace of Industry 4.0 technologies, the region's appetite for state-of-the-art industrial machinery is set to accelerate. As the APAC region continues to spearhead global economic growth, its voracious demand for industrial machinery is poised to be a linchpin for innovation and investment in the worldwide machinery market.
Industrial Machinery Industry Overview
- The industrial machinery market is highly fragmented, with global and local conglomerates and specialized players operating across various segments. While several large multinational companies dominate specific high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the demand for the industrial machinery across a wide range of end-user verticals, allowing both large and small companies to coexist and thrive in the market.
- Leading companies in the industrial machinery market include Lincoln Electric Holdings, Manitowoc Company, Illinois Tool Works, Inc., Terex Corp, Astec Industries, Toyota, Samsung Electronics, AGCO Corporation, Alamo Group, Ford Motor Company, Hitachi , Ltd., and Siemens AG. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
- Manufacturers of industrial machinery are actively integrating automation and robotics into their offerings. This encompasses the creation of intelligent machinery equipped with IoT sensors, capabilities for predictive maintenance, and features for autonomous operations. Furthermore, companies are setting their sights on expanding into emerging markets, notably in the Asia-Pacific, Africa, and Latin America. These regions are witnessing a surge in demand for industrial machinery, driven by swift industrialization, urbanization, and extensive infrastructure projects. Additionally, industry players are channeling investments into pioneering technologies, including electric machinery, AI-driven automation, and additive manufacturing (3D printing). These advancements not only enhance product quality but also serve as a means to stand out in a competitive landscape.
Industrial Machinery Market Leaders
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Lincoln Electric Holdings
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Manitowoc Company
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Illinois Tool Works, Inc.
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AGCO Corporation
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Siemens AG
*Disclaimer: Major Players sorted in no particular order
Industrial Machinery Market News
- September 2024: Manitowoc is set to unveil a major new crane at Bauma, China 2024. Their interactive booth, spanning 510 sq. m, will spotlight the features and advantages of their entire product lineup. Additionally, the company will showcase cranes instrumental in shaping global infrastructure and will honor its leading dealers during the event. Alongside unveiling a new crane, the Company will highlight its involvement in significant infrastructure projects such as bridges, airports, ports, stadiums, and power plants. This underscores the pivotal contributions of Grove, Manitowoc, and Potain cranes in propelling global infrastructure development.
- August 2024: Konecranes has unveiled its flagship Konecranes X-series industrial crane, succeeding the widely acclaimed CXT model. This new crane boasts a compact design and integrates advanced, reliable technology. Notably, its wireless upgrade capabilities ensure it can evolve with customer needs, both now and in the future. Prioritizing safety and reliability, the design maximizes investment value through its adaptability. This is achieved via smart, connected components that facilitate seamless "over the air" software upgrades a pioneering feature in the standard crane industry.
Industrial Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Automation & Industry 4.0
5.1.2 Growing Industrialization and Infrastructure Development
5.2 Market Restraints
5.2.1 High Initial Investment and Maintenance Costs
6. MARKET SEGMENTATION
6.1 By Application
6.1.1 Printing
6.1.2 Food
6.1.3 Textile
6.1.4 Construction
6.1.5 Pharmaceuticals
6.1.6 Chemical
6.1.7 Automotive
6.1.8 Agricultural
6.1.9 Power Generation
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Middle East and Africa
6.2.6 Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Lincoln Electric Holdings
7.1.2 Manitowoc Company
7.1.3 Illinois Tool Works, Inc.
7.1.4 Terex Corp
7.1.5 Astec Industries
7.1.6 Toyota
7.1.7 Samsung Electronics
7.1.8 AGCO Corporation
7.1.9 Alamo Group
7.1.10 Ford Motor Company
7.1.11 Hitachi , Ltd.
7.1.12 Siemens AG
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Industrial Machinery Industry Segmentation
Industrial machinery encompasses the heavy equipment, tools, and devices employed across various sectors, including manufacturing, construction, agriculture, and mining. These machines are engineered for intricate, large-scale operations, demanding substantial power, precision, and automation.
The study tracks the revenue accrued through the sale of the industrial machinery by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The industrial machinery market is segmented by Application( Printing, Food, Textile, Construction, Pharmaceuticals, Chemical, Automotive, Agricultural, Power Generation),and Geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.
| By Application | |
| Printing | |
| Food | |
| Textile | |
| Construction | |
| Pharmaceuticals | |
| Chemical | |
| Automotive | |
| Agricultural | |
| Power Generation |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Middle East and Africa | |
| Latin America |
Industrial Machinery Market Research FAQs
How big is the Industrial Machinery Market?
The Industrial Machinery Market size is expected to reach USD 0.75 trillion in 2024 and grow at a CAGR of 8.10% to reach USD 1.10 trillion by 2029.
What is the current Industrial Machinery Market size?
In 2024, the Industrial Machinery Market size is expected to reach USD 0.75 trillion.
Who are the key players in Industrial Machinery Market?
Lincoln Electric Holdings, Manitowoc Company, Illinois Tool Works, Inc., AGCO Corporation and Siemens AG are the major companies operating in the Industrial Machinery Market.
Which is the fastest growing region in Industrial Machinery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Industrial Machinery Market?
In 2024, the Asia Pacific accounts for the largest market share in Industrial Machinery Market.
What years does this Industrial Machinery Market cover, and what was the market size in 2023?
In 2023, the Industrial Machinery Market size was estimated at USD 0.69 trillion. The report covers the Industrial Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Machinery Industry Report
Statistics for the 2024 Industrial Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Machinery analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
