The industrial machinery market size is estimated to grow at an approximate CAGR of 6% from 2016 to 2024. The improving economic conditions worldwide is one of the major factor driving the demand for the industrial machinery in various sectors such as packaging, agriculture, machine tools and materials handling. Rapid industrialization and increasing investment in capital-intensive technologies has led to a significant increase in the demand for the industrial machinery.
Industrial machinery is considered crucial in the operations of printing, food, textile, construction, pharmaceuticals, chemical, automotive, agricultural, power generation, utility, transportation and shipping industries.
The growth in the Industrial machinery market is driven by the increasing global demand for cars which will lead to a rise in the spending on robotics and the tools used in the automotive sector. The increase in the production of automobiles will also lead to an increase in the rubber and plastic industries which will, in turn, drive overall market demand.
The increase in standard of living worldwide increased spending on nutrition and the growth in demand for food will be a huge gain for the food and packaging industry. The rise in demand for housing, commercial buildings, and better infrastructural facilities is expected to increase the demand for machinery used in the construction sector.
The increasing popularity of green technologies has led to an increase in demand for the industrial machinery in photovoltaic and in wind turbines manufacturing companies. The growing demand for efficiency and quality is anticipated to drive investments in the development of the industrial machinery market. Automated machinery saves time, improves quality and also lowers operational cost of a manufacturing company.
The packaging industry is expected to boost the demand for industrial machinery. Increasing investment in lighter packaging which requires fewer materials, produces less waste and is more energy efficient is projected to spur the demand for industrial machinery. Further, the technological advances in packaging like wrapping food in ready-to-cook enclosures and new aseptic packaging technology is projected to drive the market growth.
The increased dependency on machines is estimated to create a huge demand for industrial machinery over the forecast period. The industrial machinery aftermath market which includes maintenance and service contracts is anticipated to influence the market growth positively. Increasing capital expenditure on automated processes and increasing research & development and innovation in this market expected to boost market growth over the forecast period.
The increasing cost of raw materials like steel, energy especially coal and fuel prices have adversely affected the growth in the industrial machinery market. Government policies affecting prices along, import and export tariffs, and trade relations with the other countries could also restrict the growth in the market.
The industrial machinery market can be categorized into agriculture & food machinery, construction machinery & related equipment, power & energy equipment, aerospace, material handling machinery, personal protective equipment, metalworking machinery, general purpose industrial machinery, automotive, mining and industrial process machinery.
North America is anticipated to observe a decline in the market growth mainly due to a decrease in the mining activities. A sharp fall in the demand for farm and mining machinery is expected over the coming years. Currency fluctuations could also hinder the industrial machinery market growth.
The market in South Africa is expected to experience high growth rate as the government in focusing on improving its manufacturing, chemical processing, agricultural sectors and mining. Huge investments made in the residential, commercial, industrial and infrastructure segment is anticipated to boost market growth over the future years.
The industrial machinery market in Asia-Pacific is estimated to grow at a significant CAGR from 2016 to 2024. The growing demand for industrial machinery from countries such as China, India, South Korea and Japan is anticipated to drive overall market demand over the forecast period. China's government is focusing on urbanization and the recent policies stress on rapid industrialization. India is expected to observe rapid industrialization on account of favorable government regulations and policies.
The major market players are Caterpillar Inc. and Deere & Company. Caterpillar Inc. is the leading manufacturer of industrial gas turbines, construction & mining equipment, diesel-electric locomotives, and diesel & natural gas engines. Deere Company in engaged in the production and distribution of agricultural & forestry equipment, construction equipment, and engines across the world.
The other prominent players in the market are AO Smith Corp, Lincoln Electric Holdings Inc., Manitowoc Company, Illinois Tool Works, Terex Corp., Astec Industries, Toyota, Samsung Electronics, AGCO Corporation, Alamo Group, Ford, Hewlett-Packard, Hitachi, IBM, Lindsay Corporation, Siemens and General Electric.
Research Support Specialist, USA