Lathe Machines Market By Type (Vertical, Horizontal), Operation (Conventional, CNC), End-User Industry (Automotive, General Manufacturing, Transportation), & Region for 2024-2031

Lathe Machines Market Valuation – 2024-2031

The increasing demand for precise manufacturing across various industries, such as automotive, aerospace, and general engineering, which require high-quality components manufactured effectively utilizing modern lathe machines, is the primary driver of the lathe machines market. According to the analyst from Market Research, the lathe machines market is estimated to reach a valuation of USD 22.92 Billion over the forecast subjugating around USD 18.1 Billion in 2024.

The growing emphasis on automation and Industry 4.0 initiatives, which are propelling the adoption of CNC (Computer Numerical Control) lathe machines that offer improved precision, productivity, and flexibility in manufacturing processes, is another major factor driving the lathe machines market. It enables the market to grow at a CAGR of 3% from 2024 to 2031.

Lathe Machines MarketDefinition/ Overview

Lathe machines are flexible machine tools that remove undesired material from a rotating workpiece before shaping it into the required shape. They are frequently utilized in industries including automotive, aerospace, and general engineering to efficiently manufacture high-quality components. Lathe machines can execute a wide range of operations, including turning, facing, drilling, and threading, making them an indispensable tool in modern production processes.

What are the Key Drivers that Foster the Demand for Lathe Machines?

The expansion of the automobile industry is a major driver of the lathe machine market. According to the International Organization of Motor Vehicle Manufacturers (OICA), worldwide vehicle production reached 85.4 million units in 2023, up 6.3% over the previous year. This increase in car production is directly proportional to the growing need for lathe machines, which are used to manufacture a wide range of automotive components, from engine parts to transmission elements.

The growth of automation and computer numerical control (CNC) technology in production is driving up demand for advanced lathes. The International Federation of Robotics (IFR) estimated that the global installed base of industrial robots reached 3.5 million units by 2023, with an average annual growth rate of 13% between 2018 and 2023. The rising adoption of robots and automated machinery is boosting demand for CNC lathe machines, which provide greater precision and productivity.

Furthermore, the increasing aerospace and defense sector is a major driver of the lathe machine market, especially for high-precision equipment. According to the Aerospace Industries Association (AIA), the worldwide aerospace and military industry’s revenue reached USD 697 Billion in 2023, representing a 3.8% year-over-year increase. This increase is increasing demand for specialized lathe machines that can produce complicated, high-tolerance parts for aircraft and defense equipment.

What are the Key Challenges Hindering the Growth of the Lathe Machines Market?

The lathe machine market faces a substantial issue in locating experienced operators and specialists. As technology progresses, the complexity of CNC lathe machines grows, necessitating a workforce with specific knowledge. Many veteran machinists are retiring, leaving a scarcity of young talent entering this market. This skills gap restricts industry expansion and impedes the use of sophisticated lathe technologies.

Modern CNC lathe machines, particularly ones with extensive features and capabilities, have significant upfront expenditures. Small and medium-sized businesses (SMEs) often find it difficult to justify this expenditure, especially under uncertain economic conditions. Also, continuous maintenance and upgrade costs are high, which limits market penetration in price-sensitive groups and regions with low capital resources.

Category-Wise Acumens

What Factors Contribute to the Market Leadership of Horizontal Lathes?

According to Analysis, the horizontal lathe segment is estimated to hold the largest market share during the forecast period. Horizontal lathes provide increased versatility in a variety of industries, including automotive, aerospace, and general manufacturing. They can handle a greater range of workpiece sizes and shapes, including small components and lengthy shafts. This versatility makes horizontal lathes the favored choice for many machine shops and production facilities, contributing to their market domination.

Horizontal lathes have higher spindle speeds and more powerful motors than vertical lathes. This results in faster material removal rates and shorter cycle times, which boosts production. The horizontal layout also facilitates chip evacuation and improves coolant flow, lowering downtime and increasing overall efficiency in high-volume production settings.

Furthermore, horizontal lathes have a long history in the machining business, making them the preferred option for many applications. This familiarity among operators and engineers, combined with a well-established ecosystem of equipment and accessories, helps to ensure their continued supremacy. Many training programs and educational curricula center on horizontal lathe operation, which strengthens their market position.

What are the Key Driving Forces for the Growth of Lathe Machines in the Automotive Industry?

The automotive segment is estimated to dominate the lathe machines market during the forecast period. Precision components for the automotive sector must be manufactured on a big scale. Lathe machines are vital for producing a variety of parts, including engine components, shafts, and brake rotors. The high volume demand in automobile manufacturing needs ongoing investment in modern lathe machines to maintain efficiency and quality, resulting in a substantial share of the market for this segment.

Modern automobiles are growing increasingly complicated, with more sophisticated components that necessitate tight tolerances. Advanced CNC lathe machines are essential for creating these complicated pieces with high accuracy and consistency. As vehicle technology advances, the demand for capable lathe machines in the automotive industry grows, cementing its market dominance.

Furthermore, the automotive industry is at the forefront of implementing automation and sector 4.0 technologies. This trend encourages investment in modern CNC lathe machines that can interface with smart manufacturing systems, thereby increasing efficiency and lowering production costs. The automotive sector’s push for digital transformation generates steady demand for cutting-edge lathe machines, allowing it to maintain its global leadership.

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Country/Region-wise Acumens

What are the Specific Trends that Propel the Growth in the Asia Pacific Region?

According to Analyst, Asia Pacific is estimated to dominate the lathe machines market during the forecast period. The Asia Pacific region is undergoing tremendous industrial expansion, which is pushing up demand for lathe machines. According to the Asian Development Bank (ADB), the manufacturing sector in developing Asia increased by an average of 7.2% per year between 2018 and 2023. China, the region’s largest market, increased its industrial production by 5.6% in 2023 alone, according to the National Bureau of Statistics of China. The continuous growth in industrial activity is driving up demand for lathe machines in a variety of industries.

The automobile industry in Asia Pacific is a significant driver of the lathe machines market. The International Organization of Motor Vehicle Manufacturers (OICA) estimated that Asia produced 46.7 million automobiles in 2023, accounting for 54.7% of global output. China alone produced 27.2 million automobiles, retaining its status as the world’s largest automotive manufacturer. This enormous automotive manufacturing activity generates a substantial market for lathe machines used to manufacture various car components.

Furthermore, several Asian countries have launched programs to promote modern manufacturing, resulting in the increased adoption of sophisticated lathe equipment. For example, under India’s “Make in India” program, the manufacturing sector’s GDP contribution climbed from 16.3% in 2018 to 19.7% in 2023, according to the Indian Ministry of Statistics and Programme Implementation. Similarly, Japan’s “Society 5.0” project seeks to incorporate sophisticated technology into production, with the Japan Machine Tool Builders’ Association predicting a 15% rise in domestic machine tool orders in 2023 over the previous year.

What are the Factors Leading to Substantial Share in the North American Region?

The North American region is estimated to exhibit substantial growth within the market during the forecast period. North America’s industrial sector is seeing a comeback, thanks in part to reshoring efforts. According to the Reshoring Initiative, the number of manufacturing jobs returning to the United States hit a record high of 224,213 in 2023, up 38% from the previous year. This development is increasing demand for modern machining equipment, such as lathe machines, to serve the expanding manufacturing base.

North America has a strong aerospace and defense sector, which is a major driver of high-precision lathe equipment. According to the Aerospace Industries Association (AIA), the US aerospace and military industry’s revenues reached $909 billion in 2023, up 3.2% from the previous year. This increase is generating demand for modern lathe machines capable of creating complicated, high-tolerance parts used in airplanes and defense equipment manufacturing.

Furthermore, the North American industrial sector is increasingly adopting Industry 4.0 technology, resulting in increased demand for modern CNC lathe equipment. According to the US Department of Commerce, North American firms’ investments in Industry 4.0 technologies are estimated to total $154 billion by 2025, expanding at a CAGR of 12.5% from 2020. This digital shift is driving the demand for smart, connected lathe machines that can integrate with IoT and AI systems.

Competitive Landscape

The competitive landscape of the lathe machines market is extremely fragmented, with numerous local and regional competitors competing for market share. This competitive environment is driven by the necessity for manufacturers to constantly develop and produce new products to fulfill the industry’s changing demands.

Some of the prominent players operating in the lathe machines market include

• DMG MORI SEIKI
• Okuma Corporation
• Yamazaki Mazak Corporation
• Doosan Machine Tools Co., Ltd.
• Haas Automation, Inc.
• Dalian Machine Tool Corporation
• Tsugami Corporation
• Hardinge, Inc.
• JTEKT Corporation
• Samsung Machine Tools

Latest Developments

• In September 2023, Star Micronics announced the creation of SP-20/23, a CNC Swiss-type automatic lathe capable of supporting part machining in a variety of industries, including autos, hydraulic/pneumatic equipment, and general machinery.
• In December 2022, the Tata Group unveiled a five-year investment plan of USD 90 billion in semiconductors. This goal involves expanding into sophisticated chip fabrication and fabs in the next years, which is projected to increase demand for lathe machines in the semiconductor industry.

Report Scope

Lathe Machines Market, By Category

Type

• Vertical Lathe
• Horizontal Lathe

Operation

• Conventional
• CNC

End-User Industry

• Automotive
• General Manufacturing
• Transportation
• Others

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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