Horizontal Machining Center Market

COVID-19 Impact Analysis

• The COVID-19 pandemic ceased the production of various products in the horizontal machining center industry, which is attributed to the global lockdown. This has hampered the growth of horizontal machining center market in the years and a similar trend is expected to be seen in the first half of 2022.
• The major demand for horizontal machining center was previously noticed from giant developed and developing countries including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for horizontal machining center.
• Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Horizontal machining center manufacturers can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
• Horizontal machining center manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce. 

Top Impacting Factors

The manufacturing sector accounts for about 16% of the total global GDP, and this is expected to rise due to an increase in global population and rise in disposable income of the public in general. This trend is anticipated to increase demand in the horizontal machining center market. In addition, the features of horizontal machining center, such as machining at multiple angles, high feed rate, and high output make it more desirable than a vertical machining center, thus surge in demand for horizontal machining center.  Furthermore, it can be used to machine any type of metal due to its robustness. This features a high versatility to the equipment, thereby, surging the demand for horizontal machining center. However, the high cost of horizontal machining center is one of the restraining factors hindering the growth of horizontal machining center market. Contrarily, technological developments in horizontal machining center products such as adoption of remote operation, use of industry 4.0 technology, and others boost the efficiency of the equipment as well as result in higher output. This is anticipated to create lucrative opportunities for the horizontal machining center market growth during the forecast period.

Market Trends

• Businesses in the machining tool market are adopting partnership strategies to achieve a stronger foothold in the market. For instance, in November 2019, DMG MORI CO., LTD., a manufacturer of machining tools, and Nikon Corporation, a leading market player in optical devices, signed a memorandum of understanding for a business alliance. With this alliance, both the companies will cooperate to develop advanced DMG MORI machine tools by incorporating Nikon's measurement and camera related technologies.
• Similarly, leading market players are entering the horizontal machining center market after witnessing the growth in horizontal machine market so far. They adopted acquisition as their key developmental strategy to expand in this new market. For instance, in August 2021, DTR Automotive, a South Korea based manufacturer of batteries, tires, and other automotive parts acquired Doosan Machine Tools Co. Ltd. a manufacturer of machining tools. This move will help the DTR Automotive diversify their offerings.
• Moreover, business expansion strategies assist in enhancing the geographic footprint of the company and help in gaining significant market share for horizontal machining center products. For instance, in April 2019, Mazak corp. a manufacturer of machining tools announced to open a new Florida Technical Center, in the Orlando area of U.S. This facility will serve manufacturers of all sizes throughout the state. The new facility will provide demonstrations of the latest in advanced manufacturing technologies, with support of sales, service, application and training. 

Key Benefits of the Report

• This study presents the analytical depiction of the horizontal machining center industry along with the current trends and future estimations to determine the future investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the horizontal machining center market share.
• The current market is quantitatively analyzed to highlight the horizontal machining center market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed horizontal machining center market analysis based on competitive intensity and how the competition will take shape in coming years.