Jan 26, 2012

Industrial Machinery Market to Reach $514 Billion by 2015, New Report

GIA announces the release of a comprehensive global outlook on the Industrial Machinery Industry. The global market for industrial machinery is on the path of recovery and is projected to continue to post steady growth through 2015, driven by increasing economic activity that in turn drives industrial output and demand for new machinery. Demand for machinery in sectors such as Construction would be driven by increasing economic growth and rising construction activity across major markets worldwide. With respect to other sectors, such as Agriculture industry, factors such as rapid growth in mechanization of agriculture in developing countries, increasing adoption of advanced technologies and replacement sales in developed markets are expected to spearhead growth in demand in the foreseeable future.

The global industrial machinery segment is showing signs of improvement. The key players in the Industrial Machinery sector include industrial machinery and component manufacturers, while the main buyers are commercial users and construction, metalworking, manufacturing, power producing, agriculture, and other such industrial companies. The market for industrial machinery is highly fragmented. The top four players, comprising Mitsubishi Heavy Industries, IHI Corporation, Kawasaki Heavy Industries, and MAN hold about 14% of the overall market value. Several companies, that are relatively smaller, compete with large players by producing a specific kind of machinery. Among the larger players, the competition is intense driven mainly by higher fixed costs as well as lower-switching cost for the buyers.

The global agricultural equipment market is predicted to experience moderate rate of development, with emerging markets set to offset the effect of recession in advanced countries. Europe and the US are the major markets for farm equipment, representing a significant share of the global market. Growing mechanization of farm sectors in emerging markets, specifically in India and China, is expected to drive the demand for agricultural machinery across the world. Chinese and Indian agriculture sectors are still marked by manual and inefficient performance of farm tasks, when compared to farm sectors in developed countries. There is a high potential in China and India as the level of automation is low and farm equipment is ineffective. The highly mechanized US farm sector growth is expected to lag behind the average global growth rate, owing to the slowdown in the sector’s growth. Western Europe is expected to realize much lower growth than the US, with reduced regional farm output through 2015.

A growing desire for fuel diversification is generating growing interest in the boilers market. The market will be impacted by factors such as fuel price differential, forward pricing for power, impact of new environmental legislation and regulations, global pressures to reduce CO2 emissions, and public acceptance. The global demand for various machine tool devices, including metal forming machine tools, metal cutting machine tools as well as machine tool accessories, is expected to grow by a robust 7.2% annually through 2015. The electronic equipment sector is expected to contribute the most for machine tools demand through 2015. The gains in this particular segment would benefit from the rising per-capita wealth in developing countries, which would enable more purchases of electronic products.