Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
Demand for machine tools in China is forecast to increase 9.2 percent per annum to ¥600 billion in 2017. Both metal cutting and forming machine tools and machine tool accessories will grow at a similarly strong pace. Transportation equipment and electrical/electronic equipment manufacturing will be the fastest growing markets.
This study analyzes the ¥386 billion machine tool industry in China. It presents historical demand data for 2002, 2007 and 2012, and forecasts for 2017 and 2022 by product (e.g., lathes, milling machines, machining centers, grinding machines, multitasking machines, laser machines, EDM, presses and forging machines, bending machines, shearing and punching machines, machine tool accessories), market (e.g., industrial machinery, transportation equipment, electrical and electronics, primary and fabricated metals) and geographic region.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 38 industry participants, including Shenyang Machine Tool Group, Dalian Machine Tool Group and Beijing Jingcheng Machinery Electric.
Demand in China to grow 9.2% yearly through 2017
Demand for machine tools in China is forecast to increase 9.2 percent per year to ¥600 billion in 2017. Gains will be stimulated by healthy growth in manufacturing production, especially in the industrial machinery and transportation equipment industries. In addition, a continuing shift in the product mix toward higher-value product types such as machining centers, CNC machine tools, and multitasking machine tools will help drive market advances in value terms. Moreover, increasing regulations regarding energy conservation will lead to growth in demand for energy-efficient machine tools.
Shipments to slightly outpace domestic demand
Machine tool shipments in China are projected to slightly outpace demand through 2017, benefiting from sizable expansions in the domestic market as well as rising demand for Chinese machine tools in a number of export markets as the quality of Chinese machine tools continues to improve. Exports of machine tools will rise at a strong annual through 2017, driven by improved product quality, especially in small CNC machine tools, while prices remain competitive. Government policies to subsidize the research and development of high precision, high speed, and relatively more sophisticated machine tools will also support product sales.
China will continue to see its trade deficit in machine tools expand for the foreseeable future. As imports rise through 2017, foreign suppliers will continue to benefit from growing demand for the precise and sophisticated machine tools needed to manufacture advanced machines. In addition, decreases in tariffs on imported machine tools will also drive sales of imported products through 2017.
Metal forming machine tools to be fastest growing
Metal cutting machine tools will continue to be the largest product segment in 2017, benefiting from their relatively wider range of applications in durable goods production and a comparatively greater variety of metal cutting product types. In addition, growing demand for highlyadvanced and comprehensive metal cutting machines -- especially for machining centers and multitasking machines -- will further boost product sales. Growth in demand for metal forming equipment is forecast to slightly outpace that of metal cutting machine tools through 2017, benefiting from strong growth anticipated in the motor vehicle, shipbuilding, aerospace, and power transmission and distribution industries.
Gains in key markets to track average industry pace
The industrial machinery and transportation equipment markets have the largest impact on overall machine tool sales, as they accounted for well over half of all demand in 2012. Gains in these two markets are forecast to be near the market average through 2017. Sustained plans to expand durable goods production, facility renovations, and new product innovation in all markets will continue to stimulate growth. Machine tool demand in the electrical and electronics market is also expected to expand near the average rate through 2017, benefiting from strong increases in fixed investment in the home appliance and power generating equipment industries. Machine tool demand in the primary and fabricated metal market will be spurred by continued expenditures in construction projects.
Profiles of 38 firms competing in the Chinese Industry
This study analyzes the machine tool industry in China. The following types of machinery are covered: metal cutting machines (such as lathes, milling machines, drilling machines, boring machines, machining centers, grinding machines, electrical discharge machines, and others), metal forming machines (pressing and forging machines, bending and shearing machines, and others) and machine tool accessories (measuring tools, cutting tools, and tool holders and headings). The major markets for machine tools covered in the study are industrial machinery, transportation equipment, primary and fabricated metals, and electrical and electronic products.
Excluded from the scope of the study are tools designed for wood processing or home use, as well as industrial pattern, welding apparatus, and other types of metalworking machinery. Also excluded are hand-held, manual, and portable power tools. The Special Administrative Regions of Hong Kong and Macau are excluded from the scope of this study. Both Hong Kong and Macau remain, to a great extent, economically independent from the rest of the country, even though they returned to the People’s Republic of China in the late 1990s. Taiwan, which is economically independent from the rest of China and not under the administration of the central government, is also excluded from the scope of this study.
Historical data for 2002, 2007, and 2012 and forecasts for 2017 and 2022 are provided in current yuan for machine tool demand, shipments, imports, and exports, as well as for all major machine tool markets. Historical data and forecasts for demand by detailed product classifications and regional market are also in current yuan. The term “demand” -- used interchangeably with “market,” “sales”, and “consumption” -- is defined as all shipments from Chinese plants, plus imports, minus exports.