Machine Tools market in China

The Machine Tools market in China is expected to increase by over 12% for 2012 to be worth over US$ 28 billion in 2012. The machine tool market expansion in China will ensure China remains the worlds most attractive market for the Machine Tools industry. China is the World's largest consumer of machine Tools as well as the world's largest producer of machine Tools. Currently Japanese machine tool manufactures export the largest amount of machines and tools to China and German machine tool companies are 2nd and in fact China is the number One export market for German machine tool manufacturers. The China market currently accounts for about 16% of the worlds total machine tool demand and total value of Machine tool imports was just under US$ 10 Billion.

The government of China has set policies to benefit the Machine Industry as its seen as a key Strategic Emerging Industries (SEI) for growth and the policies will help benefit all areas of the machine Tool industry in China and across the world. The Chinese government is expect to carry on supporting the Machine Tools industry as its seen as an industry that will provide '' Indigenous Innovation'' which is why its considered a SEI.

Sales of Metal cutting machine tools including Lathes, Machining centers, Milling machines, grinding and polishing machines and EDM machines are expected to be higher then other types of machines in 2012 and there total market share should be close to 40%. Its expected that the sale of machine tools accessories will increase as china manufactures even more of its own Machine tools. Metal Forming machine tools will continue to grow in China in 2012 and is expected to be a faster growing sector at 14% during this year, the growth will be fueled by a continued expansion of domestic manufacturing output by local and foreign owned businesses.

The largest demand for Machine tools in China is the Industrial machinery sector which accounts for over 40% due to the extensive use of machines in various industries. As China is now the world's number one market for the purchase of Auto's with sales growing year on year by up to 80% over the last few years so therefore the Automotive Industry in China is the 2nd biggest user of machine tools and accounts for up to 23% of the market. The Energy Industry is also a big market for companies wishing to sell there machine Tools to China as well as the Aviation, Railway and Shipbuilding Sectors.

The segment of the Machine Industry which is expected to grow at the fastest rate over the next 3 years is the High-End and Heavy Duty machine tools sector with the Chinese government creating targeted policy towards this part of the Machine Tool industry and also providing over 9 Billion of direct investment to the High-End and Heavy Duty machine tools sector in China. The investment will be made to help companies in China in Research and development and High end machine tools will also benefit with more favorable trade tariffs to help promote domestics demand for Chinese made machine Tools in China.

BricPartner feels that the China Market will be the worlds leading market for machine tools for many years to come and the only market that will rival it in the foreseeable future will be its Bric Partner India which currently has a lot of catch up to do to match the China Machine Tool market