According to our latest study of "Broaching Machines Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type and End User," the market is expected to grow from US$ 865.34 million in 2022 to US$ 1,113.24 million by 2028; it is estimated to grow at a CAGR of 4.3 % from 2022 to 2028.
In heavy industries such as automotive, aerospace & defense, and metal industries, broaching machines play a vital role in performing various operations. These machines are widely used in the manufacturing of automotive and industrial components, as well as subassembly parts like gears, shafts, and splines. Broaching is an efficient metal removal technique that is specifically designed for heavy industrial applications. It is particularly suitable for high-volume applications that require close-fitting tolerance, which is commonly found in the automotive and aerospace industries. Broaching machines offer excellent repeatability and provide better part finish than other metal removal methods.
The demand for various broaching machines is increasing in developing countries like India and China, primarily due to the rising defense expenditure in these countries. The policies supporting foreign direct investments have encouraged international private companies to tap into the manufacturing capabilities of these countries, including the production of military equipment for domestic defense forces. In 2021, the Chinese Government allocated around US$ 293 billion for the procurement of military equipment and solutions. Additionally, the growing passenger car sales in India and China are fuelling the demand for broaching machines in the automotive sector. For example, in 2021, China's total new vehicle sales increased by approximately 3.8%, reaching 26.3 million.
Computerized machining systems offer high precision, which reduces the need for repeated work and machining time, leading to increased operational efficiency in industrial settings. With the aid of modern software and programs, managers can monitor broaching processes on the shop floor in real-time. The broaching machines market is experiencing significant growth owing to the introduction of precision machines equipped with advanced technologies by leading market players. The expanding manufacturing and automotive sectors in developing countries like China and India are major drivers of this growth. However, the lack of skilled labor and high costs of machinery are impeding the market's progress. Furthermore, the COVID-19 pandemic caused slow growth in the automotive and manufacturing sectors in 2020 due to travel restrictions and supply chain disruptions, resulting in raw material shortages and limited progress in the broaching machines market.
Impact of COVID-19 Pandemic on Broaching Machines Market
The regulations related to the environment in North America have a significant impact on the manufacturing and automotive industries. Additionally, the COVID-19 pandemic has severely affected suppliers and other stakeholders in the supply chain. The reduced demand for new vehicles due to the uncertainty of the economic situation has led to a decline in the sales of broaching machines used in the manufacturing of passenger vehicle parts. However, the growing interest in electric and hybrid vehicles may lead to a slight increase in the demand for broaching machines.
The pandemic has also raised awareness about the importance of supply chain operations in manufacturing. In response to the pandemic, operators have begun reviewing their CNC machining operations and looking for ways to improve them. Broaching machines can be used to replace components from heavily-tooled businesses that are unable to meet the demand. Sometimes, adopting alternative production techniques can ensure the continuous supply of products when required.
Key Findings of Study
Based on geography, the broaching machines market is divided into five regions-North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Asia Pacific dominated the overall market in 2021. Europe contributed the second-largest share of the broaching machines market in 2021, followed by North America. The broaching machines market is segmented on the basis of type and end-use industry. The broaching machines market, based on type, is segmented into horizontal broaching machine, vertical broaching machine, surface broaching machine, and others. The vertical broaching machines segment is expected to dominate the broaching machines market during the forecast period. The market, by end-user, is segmented into automotive sector, metal fabrication industry, aerospace & defense sector, oil & gas sector, and others. The automotive segment is expected to dominate the broaching machines market during the forecast period.
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