Market Insights
The aerospace machine tools market is set to grow at a promising CAGR of 6.2% over the next five years to reach US$ 4.3 Billion in 2028.
Aerospace machine tools refer to the specialized equipment and machinery used in the aerospace industry for the manufacturing, shaping, cutting, drilling, and finishing of various materials to create parts and components for aircraft. CNC machining centers, CNC lathes, electrical discharge machining (EDM), and grinding machines are some common types of machine tools used in the aerospace industry. These tools are designed to meet the aerospace industry's stringent precision and quality requirements, contributing to the production of high-performance and reliable aerospace products. Moreover, aerospace-grade materials often pose challenges in terms of machinability, requiring specialized machine tools capable of handling these new materials effectively.
The emergence of the COVID pandemic in 2020 left several industries in shambles, and the machine tool market was no exception. With the spread of the virus and the implementation of lockdown measures, there were significant disruptions in the supply chain, affecting the availability of raw materials, components, and spare parts required for machine tool production. Lockdowns, transportation restrictions, and factory closures in various regions led to labor shortages and production delays, impacting the production schedules and the overall capacity of aerospace machine tools. As a result, the demand for aerospace machine tools witnessed a massive decline of over 40% in 2020.
However, the long-term outlook for the market seems very promising, as the market recorded colossal growth during 2020-2021 and 2021-2022. With the expected increase in the production rate and the introduction of key aircraft programs, the demand for aerospace machine tools is also likely to grow. This will drive the market in the coming years, ultimately helping the industry stakeholders cross their pre-pandemic levels by 2025.
Recent Market JVs and Acquisitions:
Over the past few years, there have been a fair number of strategic alliances, including M&As, JVs, etc., across the globe. Some of them have been mentioned below:
- In February 2023, NIDEC Corporation completed the acquisition of the Italian machine tool manufacturer PAMA along with its nine affiliates, which is renowned for its diverse product lineup and advanced large machine tools, especially in boring and milling. The company also completed the acquisition of Mitsubishi Heavy Industries Machine Tool Co., Ltd., a company that designs, manufactures, and sells machine tools, cutting tools, and related products, in August 2021.
- In April 2022, Massey Capital, a private investment firm, closed a deal to acquire SMS Machine Tools Limited, an industry-leading distributor and servicer of CNC machines and tools in Ontario and Quebec, serving the aerospace, automotive, medical, energy, and related industries.
- In August 2021, Hardinge Inc. acquired the shares of Ohio Tool Works, LLC. This acquisition enhanced Hardinge’s machine tool and workholding portfolio with an attractive platform of high-precision honing machines, tooling, and abrasives across the industrial, aerospace, defense, and metalworking industries.
Segments' Analysis
Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Machine-Type Analysis
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Milling Machines, Turning Machines, and Others
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Milling machine is expected to maintain its market dominance as well as witness the fastest growth, in the next five years.
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Axis-Type Analysis
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5-Axis Machines, 3/4 Axis Machines, and Others
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5-Axis machines are anticipated to be dominant as well as witness the fastest growth, in the coming years.
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End-User-Type Analysis
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OEMs, Tier-I Companies, and Others
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Tier-I companies are expected to be the dominant as well as the fastest-growing end-user type, during the forecast period.
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Aircraft-Type Analysis
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Civil Aircraft and Military Aircraft
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Civil aircraft is expected to maintain its market dominance as well as witness faster growth, in the next five years.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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North America is expected to remain the largest market over the next five years, whereas Asia-Pacific is likely to grow at the fastest rate.
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Machine Type
The market is segmented into milling machines, turning machines, and others. Among these machine types, milling machines are expected to remain the dominant segment of the market during the forecast period. Milling machines are the most significant machines that are equipped with various cutting tools, making them versatile for a wide array of aerospace applications. These machines enable the mass production of identical parts and can achieve high levels of precision and accuracy.
Axis Type
The market is segmented into 5-Axis machines, 3/4-Axis machines, and others. Among these sub-segments, the 5-Axis machines are expected to dominate the market as well as witness the fastest growth over the next five years. These machines are used to produce various structural components for aircraft, such as wing ribs, fuselage frames, and bulkheads, which often have complex contours and shapes that require multi-axis machining for accuracy. In addition, 5-axis machines not only reduce the number of setups required for completely machining an aerospace part but also enhance the overall efficiency, often allowing most of the components to be meticulously machined in just one or two setups.
End-User Type
The market is segmented into OEMs, tier-I companies, and others. Among these end-user types, the tier-I segment is expected to maintain its market dominance as well as witness the fastest growth during the forecast period. The demand for machine tools among tier-1 component manufacturers in the aerospace industry is significant and continues to be driven by various factors. Several tier-I engine, aerostructure, and landing gear manufacturers rely on advanced machine tools to produce complex and high-precision parts that are critical to the performance, efficiency, and safety of aircraft.
Aircraft Type
The market is segmented into civil aircraft and military aircraft. Despite taking a nosedive in 2020, civil aircraft is expected to remain the most dominant segment of the market during the forecast period. The return to service of the B737Max, the entry of new programs (C919, B777x, and MC-21), and the expected recovery in the production rates of the A320 and B737 programs are likely to fuel the segment’s growth.
Regional Analysis
North America is expected to remain the largest market for aerospace machine tools during the forecast period, driven by the presence of a large number of aircraft OEMs, tier players, machine tool manufacturers, and raw material suppliers. The USA is likely to remain the leading market, both in North America and globally, during the forecast period. Concurrently, Asia-Pacific is likely to be the fastest-growing region during 2023-2028, with China, Japan, and India being the major contributors.
The aerospace machine tools market is segmented into the following categories:
By Machine Type
- Milling Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Turning Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Axis Type
- 5-Axis Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- 3/4-Axis Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By End-User Type
- OEMs (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Tier-I Companies (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Aircraft Type
- Civil Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Military Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Key Players
The aerospace machine tools market is populated by several regional and global players. The major market players have excellent product development capabilities and they compete on some of the governing factors, including price, product offerings, quality, regional presence, etc. These players hold distinct capabilities in manufacturing aerospace machine tools. A majority of the players are located in the North American region, with Europe and the Asia-Pacific regions being home to some key companies as well. As a whole, the following are the key players in the global aerospace machine tools market:
- YAMAZAKI MAZAK CORPORATION
- DMG MORI CO., LTD.
- Makino Milling Machine Co., Ltd.
- DN Solutions
- Fives Group
- GF Machining Solutions
- Okuma Corporation
- Starrag Group
- JTEKT Corporation
- Gebr. Heller Maschinenfabrik GmbH
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aerospace machine tools market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
Customization Options
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Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
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