The metal processing machines market is projected to reach US$ 35,196.30 million by 2030, growing at a CAGR of 4.8% from 2023 to 2030.
Investments in defense and aerospace sector and increase in demand for consumer electronics driven by rising disposable incomes are expected to contribute to the metal processing machines market growth. In 2022, the Tamil Nadu government released Aerospace and Defense Industrial Policy. This policy aims to attract substantial investments of ~US$ 10.5 billion over the next decade and generate nearly 100,000 job opportunities. The demand for the latest technologies and advancements in manufacturing processes is expected to propel the growth of the metal processing machines market players. Sheet metal cutting is vital in aerospace, automotive, marine, construction, and electronics industries. The metal processing machines market is witnessing ongoing advancements in digital technology, particularly in embedded systems. Additionally, there is a focus on innovation in additive manufacturing, smart robotics, and computerized monitoring and control systems. These trends are expected to propel the metal processing machines market growth by enhancing the efficiency and precision of metal processing machines.
Further, the aerospace industry increasingly focuses on lightweight materials and advanced manufacturing techniques to improve fuel efficiency and performance. In this industry, metal processing machines are critical in producing aircraft components such as fuselage structures, wings, and landing gears. Airbus, a European plane manufacturer, plans to open a second assembly line for the A-320 narrow bodies in Tianjin, China, in 2023 to magnify its manufacturing activities in the Chinese market. With this expansion, Airbus would be able to produce 75 new A-320 neo-family jets every month by 2026. The globally expanding aerospace manufacturing activities with huge investments, coupled with an upsurge in the need for aircraft fleets, would continue to favor the progress of the metal processing machines market players, as there are used in a wide range of processes in this industry, including cutting, bending, and designing.
Impact of COVID-19 Pandemic on Metal Processing Machines Market Growth
The impact of the COVID-19 pandemic on the metal processing machines market share in North America has been significant. The region experienced widespread disruptions in manufacturing activities due to lockdown measures, supply chain disruptions, and reduced consumer demand. Many industries that rely on metal processing machines, such as automotive, aerospace, construction, and machinery, faced temporary closures and reduced production capacities. The uncertainty surrounding the pandemic led to decreased investments and capital expenditures, affecting the demand for new metal processing machines. Also, the travel restrictions hindered the installation and maintenance of machinery. In 2020, G.M., Ford Motor, and Fiat Chrysler, one of the leading automakers, stopped production in response to COVID-19 outbreak. The lockdown measures further exacerbated the situation and disrupted the supply chain of such automotive companies, which had a negative impact on the metal processing machines market growth.
The use of robotics in metal processing operations has gained significant attention in recent years. Robots can perform various tasks from handling raw materials to finishing and packaging final products. They can work around the clock, improving productivity and reducing lead times. Furthermore, robots offer greater precision, accuracy, and repeatability than manual workers, leading to higher product quality and consistency. In 2020, Shape Process Automation partnered with TRUMPF and FANUC Robotics. This collaboration is expected to bring expertise into the company in robotics laser cutting systems. Such technological developments in robotics allow companies to achieve cutting precision, cost reduction, quality improvement, and efficiency enhancement. Companies such as Ford, Boeing, Airbus, Toyota, Caterpillar, Apple, and Samsung have managed to enhance their productivity with such advancements in metal processing operations. Thus, the adoption of automated fabrication processes and the use of robotics presents significant opportunities for the growth of the metal processing machines market.
Europe holds a significant share in the global metal processing machines market share. The region is known for its well-established manufacturing industries, including automotive, aerospace, machinery, and construction. These industries rely heavily on metal processing machines to achieve high precision and efficiency in their manufacturing processes. Germany is a key market within Europe, known for its advanced engineering and manufacturing capabilities. The country's strong focus on innovation, automation, and digitalization drives the demand for metal processing machines. In 2022, the German government invested $ 220 billion in industrial transformation, the Germany will see the growth in aerospace and industrial manufacturing which will lead to increase in demand of bending machines and laser cutting machines.