The rapid pace at which industrial machinery market is gearing up can be majorly credited to the recent incorporation of more compact and powerful computational technologies in agriculture as well as in high-end industries. Over the past few years, machinery controls have seen a migration from hardware logic to a software based logic. Nowadays manufacturers are embracing technological advances to improve the productivity of the plant to enable an optimized customer reach. For instance, assimilation of GPS with agricultural equipment has resulted in a more systemic approach as it allows smooth integration with other devices too. In addition, some of the regulatory favors such as tax benefits especially across emerging nations such as India, China, is leaving an influential impact on the industrial machinery industry growth curve. As per Global Market Insights Inc., “Industrial machinery market having had a revenue of USD 485 billion in 2015, is slated to exceed USD 770 billion by 2024, with a projected CAGR of 5.3% over the period of 2016-2024.”
U.S. Industrial Machinery market size, by application, 2013-2024 (USD Billion)
The breakthrough of hi-tech machinery has led some of the industrial manufacturing units to provide hand-free training, track inventory, quick response to maintenance requests, and real-time overview of the ongoing industrial operations. Escalating infrastructural development along with growing demand for mechanization of these units have positively driven industrial machinery industry. Earthmoving equipment such as heavy duty excavators are experiencing a global adoption in the construction sector. They are widely used for landscaping, heavy lifting, brush cutting, and hydraulic attachments. Growing trend of cement augmentation is further spurring the excavator demand which in a way is pushing industrial machinery market growth.
Asia pacific dominated the global industrial machinery market landscape in term of revenue in 2015. With a considerable share of China, APAC market is anticipated to remain one of the prominent regions driving the overall industry in the years ahead. Food processing and smart packing are the leading trends catering the regional industrial machinery market.
Increasing consumer preference toward packaged food, especially across the middle-class population, is playing a pivotal role behind the commendable industrial machinery market share in the packaging sector. Multifunctional modular systems are witnessing increasing demand, owing to the high flexibility and efficiency offered by these systems. The impact of changing consumer lifestyles will also substantially influence the industrial machinery market size over the coming seven years. Industrial machinery market from packaging is expected to exceed a revenue of USD 65 billion by 2024.
Europe industrial machinery industry is contributing noticeably to the global demand and is estimated to register a CAGR of 4.7% over the period of 2016-2024. A large number of equipment companies in this region who provide numerous options such as outright purchases, rentals, leasing, financing which allows contractors to utilize these technologically advanced products available in the market at an affordable price range. Furthermore, spreading awareness regarding harmful gas emissions as well as a less noisy operation is further allowing an increasing penetration of sophisticated refined based industrial machinery market.
With the rapid expansion of processed food industry fueled by the increasing demand for packaged food, food processing applications is also witnessing a positive changeover. Driven by the globalization of food manufacturing units, consumers are more aware of the nutritional benefits of processed food, which in a way is spurring industrial machinery market size from this sector. The overall industry from food processing is anticipated to chart a sharp growth curve at an annual rate of 7% in the coming seven years.
Industrial machinery market size in agricultural sector is experiencing a stupendous growth worldwide. Farm tractors, haying, livestock machinery, plowing, and other cultivating machinery are the prominent products witnessing global adoption. Agronomists are nowadays deploying sensors on agricultural vehicles, satellites, light aircraft for precise field mapping. In this regard, UK is technologically a step ahead. Farmers here use crop canopy measure to monitor the growth status prior to nitrogen application. This helps them determine the amount of nitrogen required for local plants. These technological integrations in agriculture sector to enhance the overall productivity is stimulating global industrial machinery market dynamics.
Industrial machinery industry is highly competitive with some of the key market players investing heavily in research activities to improve their performance portfolio. Manufacturers are taking various strategic initiations to build a strong dealer supplier network that would provide a better consumer reach. Industrial machinery market is also characterized by the global inclination toward eco-friendly products. Though the business is majorly driven by large retail outlets, yet e-commerce serves also as an attractive channel for the massive expansion.
Companies that hold a prominence in industrial machinery market include Atlas Copco, Sandvik, Caterpillar, Terex, and Komatsu.