High demand for machines in manufacturing sectors, ranging from auto-making to packaging will push the industrial machinery market to new heights worldwide in the next five years, says consulting group IHS Technology. The Colorado-based firm says demand will also bring growth this year. These and other findings are available in its new Machinery Production Market Tracker report (technology.ihs.com).
The report states that as worldwide economic conditions continue to improve, the demand for machines in sectors such as agriculture, packaging, materials handling and machine tools will push revenues to $1.6 trillion this year, up from $1.5 trillion in 2013. This represents an annual growth of 6.3%, more than twice the 2.9% increase seen in 2013. Strong growth is forecast to continue for the next four years, with revenue in this sector rising to $2.0 trillion by 2018. During this period, the machinery market’s annual growth rate is expected to average between 5% and 6%.
IHS Machinery Group analysts say this growth is driven by several factors. First, higher demand for cars worldwide is spurring the need to spend on tools and robotics in the automotive business, as well as in rubber and plastics. Meanwhile, an increase in the standard of living and growing spending on nutrition will benefit the food and packaging machinery sectors. Furthermore, rising spending on technology products will boost the demand for robotics, semiconductor equipment, mining, and oil and gas machinery.