The global machine tools and cutting tools market grew in 2012, beginning a five-year period of projected substantial growth, according to a new report from Frost & Sullivan.
The Global Machine Tools and Cutting Tools Market report by Frost & Sullivan revealed annual market revenue growth of $15.72 billion in 2012, a base year market growth rate of 5.0 percent. Over the 2012-2017 period, Frost & Sullivan forecasts a compound annual growth rate (CAGR) of 6.2 percent, spurred by various industries.
The market research firm noted that the global economic slowdown reduced spending on machine tools and cutting tools, but growing investment in various areas have already proven beneficial to the industry. Frost & Sullivan sees growth increasing in the Asia-Pacific market, especially as China and India improve domestic infrastructure. Additionally, oil and gas investments in countries like Angola, Nigeria, Brazil, and Venezuela, as well as in the Middle East, have already affected the sales of forming tools. And the American automobile industry will capitalize on federal aid to grow and boost cutting tools and finishing tools from 2012-2017.
The report also highlights German machine tool quality as an important factor driving the sector in the coming years. Indeed, Germany will play host to machine tool trade show EMO Hannover 2013 in September, with a focus on metalworking professionals and machine tool manufacturers. EMO Hannover organizers highlighted predictions about the U.S. rise in capital investments in machine tools for the coming year, estimated at 4.8 percent. Furthermore, drivers like China, as Frost & Sullivan noted, will continue to increase investments and developments in machine tool and cutting tool technology.