Positive signals from the global machinery and equipment market
In the current era of scientific and technical development, machinery and equipment have become one of the fields with the most potential for development in the global economy. In production activities, modern equipment plays an important role in the operating process of enterprises, helping to improve product quality, solve cost problems and labor shortages. In today’s article, join RX Tradex to learn about the positive signals from the global machinery market in 2023, including general trends and development opportunities in this sector.
1. Global machinery market overview in 2023.
According to Reportlinker, the global machinery and equipment market is expected to grow from $506.67 billion in 2022 to $545.67 billion in 2023, at a compound annual growth rate (CAGR) of 7.7%. However, in the short-term future, the Russia-Ukraine war will disrupt the chances of global economic recovery after COVID-19, disrupt supply chains and directly affect the machinery and equipment market. [1]
Also according to Reportlinker, the industrial machinery sector will increase to 708.3 billion USD by 2027, of which, the main products are: Food and beverage production machinery, semiconductors, wood, paper, printing equipment, plastics, rubber,…
It is expected that the global machinery and equipment market will continue to grow steadily in 2023. This comes from the world economic recovery, developed countries stepping up investment in industry and the need to improve production processes.
2. Positive signals from the machinery and equipment market in the world.
2.1. Positive signals come from the growth of each region.
Currently, North America is considered the largest market for industrial machinery production. According to many experts, this region will have significant growth in 2023. This comes from the application of advanced technologies in production processes and the recovery from the economic crisis of leading companies. In addition, North American member the United States, with its leading position in global science and technology, will make significant contributions to the overall development trend in the machinery and equipment market. According to data released by the US Department of Commerce on April 27, the country’s first-quarter 2023 GDP grew by 1.1%, recording positive growth for the third consecutive quarter.
Besides, Asia-Pacific is also a very large machinery and equipment market. It is estimated that this area will have strong growth for many years to come. At that time, countries such as China, India, Korea, Japan,… There is an increasing demand for industrial machinery. From there, the common market will be comprehensively promoted, contributing to stabilizing the supply and demand for industrial equipment worldwide.
In addition, Europe also plays an important role in the global industrial machinery market. This is an area with a stable economic growth in recent years, creating a significant demand for procurement and renewal of industrial manufacturing machinery. Although the Russia-Ukraine war negatively affected the political, economic situation. But with the pillar countries, there are still good economic growth such as the UK, France, Germany ,… Europe is gradually on the rebound and starting to show more signs of improvement this year.
2.2. Technology drives the growth of the global machinery and equipment market.
Currently, many advances in technology promise to promote innovation in industrial production, thereby creating growth momentum for the machinery market in the near future. Many businesses have started to apply modern technology to business activities such as 3D printing, artificial intelligence, data analysis,… This makes the demand for machine innovation in production will continue to increase.
According to a global survey by The Economist Intelligence Unit, companies feel that artificial intelligence (AI) will have a positive impact on the growth of their business. Many experts believe that AI will help improve productivity and operating costs, leading to higher profit margins. Thereby, the use of equipment and machines integrated with AI will be an inevitable trend, having a far-reaching impact on the global market.
2.3. The construction machinery market is forecasted to grow in the near future.
According to Mordor Intelligence, the construction equipment market is predicted to reach USD 228 billion by 2026, at a CAGR of over 6% during the period (2021-2026) [2]. Contributing to this growth is strong investment in infrastructure and automation of the construction sector. In addition, governments, especially in the Asia-Pacific region, focused on enacting many programs to develop roads and improve transport systems.
In the near future, major construction projects in the world will come into operation, promising to boost the market such as cranes or construction machinery. Europe is planning various projects, including: port expansion, underwater tunnels, railways,… In addition, Africa and Latin America are expected to encourage more infrastructure construction and development this year using foreign investment inflows. The number of construction projects is increasing such as hydroelectric dams, business real estate, commercial and residential complexes,… is the main driving force, driving the construction machinery market to develop.
2.4. Mining machinery and equipment have many development opportunities in the future.
According to Research and Markets, the global mining machinery and equipment market is expected to grow from USD 70.35 billion in 2022 to USD 78.08 billion in 2023 at a compound annual growth rate (CAGR) of 11% [3]. Currently, scientific and technical advances are the main actors, shaping the field of mining machinery and equipment. Thereby, leading corporations are focusing on developing technology solutions for this market.
Products for the mining industry include: Coal breaking machines, mining cars, coal cutting machines, rock drilling equipment,… is predicted by many experts to be the key commodity group in the global machinery and equipment market. In particular, Asia-Pacific is the largest region in 2023, focusing demand mainly in countries such as China, India, Southeast Asia,… This brings huge development opportunities for the supply of mining machinery to these high-demand markets.
2.5. Agriculture is a notable bright spot in the global machinery market.
According to Mordor Intelligence, the agricultural machinery market size is estimated to reach USD 153.96 million in 2023 and is expected to reach USD 200.27 million by 2028, growing at a CAGR of 5.40% during the period (2023-2028) [4]. Today, agricultural equipment is used to make farming operations easier, reduce manpower and save labor costs. Some of the key products of this market are: Tractors, plows, harvesting equipment, tilling and seeding,…
According to Mordor Intelligence, the rate of farm mechanization in developing countries such as India and China accounts for 45-55%, while in developed countries such as the United States it accounts for 95%. In addition, Africa is also expected to play an important role in the global agricultural market, as farmers here have access to new technologies and demand for machinery and equipment increases sharply.
3. Summing up.
Through the above article of RX Tradex, it can be seen that the global machinery and equipment market is showing many positive signals in the future. This is still considered a key field, bringing a lot of economic value to businesses. And this year, if you want to learn more about the latest production equipment, you can immediately participate in the exhibition events organized by RX Tradex Vietnam such as: NEPCON Vietnam, METALEX Vietnam, Vietnam Manufacturing Expo and Waste and Recycling Vietnam.
Note:
[1]: Reportlinker- Industrial Machinery Global Market Report 2023.
[2]: Construction equipment market size & share analysis – growth trends & forecasts (2023 – 2028)
[3]: Mining Machinery And Equipment Global Market Report 2023
[4]: Agricultural machinery market size & share analysis – growth trends & forecasts (2023 – 2028)
