Growing per-capita income of middle-class consumers has led to a rise in spending on goods. To meet the demand and grab the opportunity in the Asian market, manufacturing industries are investing in new production plants and machines. Additionally, low-cost manufacturing competitiveness such as lower labor costs, young populations, and low cost of raw materials have pushed end-user industries to relocate their businesses to Asian countries which will also lead to rapid increase in the demand for machine tools. Government initiatives to expand the economy and launch of new roadmaps to support innovation in the manufacturing sector will also drive the demand.
Moreover, with intense competition in the market, machine tool consumers are looking for more accuracy and precision to produce mass goods with minimum efforts. Understanding this necessity of their customers, machine tool manufacturers are producing machine tools. Machine tool manufacturing companies are manufacturing tools that are reducing production lead times significantly.
Factors limiting the growth of machine tools are high prices, adoption of used machine tool products, absence of skilled workforces, and dependency on capital expenditure from manufacturing industries.
New types of machines tools are being introduced by machine tool manufacturers to meet the requirements of high-end manufacturing and done-in-one processes. Moreover, the inclusion of new technologies such as Internet of Thing (IoT) and Big Data for preventive and predictive maintenance of machines will create immense opportunities in the machine tool market in coming years.
Machine tool manufacturers are aggressively supporting aftermarket sales support and customer support to serve their customers in every country in Asia-Pacific.
Japan continued to dominate the Asia-Pacific machine tool market, followed by South Korea and Taiwan in 2018. Vietnam, Thailand, and Indonesia are anticipated to have strong growth in the next 5 years, owing to the expansion of the manufacturing sector and rising demands. These regions are also investing more in Industry 4.0 and new technologies to compete against mature markets.
On the end-user vertical front, engineering and automotive sectors contributed the highest share in the machine tool market in 2018 and are projected to remain dominant throughout the forecast period. Growth in the aviation sector, supported by the growth in the upper middle-class population is driving the demand.
Amada, Yamazaki Mazak, and Okuma Corporation were the top 3 participants in the machine tool market in 2018. A diverse product portfolio and stronghold in the domestic market have led these companies to maintain their market shares in the Asia-Pacific machine tools market.