Market Trends of Drilling Machines Industry
This section covers the major market trends shaping the Drilling Machines Market according to our research experts:
Rise in Demand for Drilling Machines in the Automotive Industry
The major factor boosting the growth of drilling machines is the increasing demand from the automotive industry. But since 2020, the global automotive sector has faced decreased demand and production halts resulting from the COVID-19 pandemic. According to industry sources, global light vehicle production units have been remarkable, and they only continue to grow. APAC is expected to register the highest growth rates in terms of production volumes, followed by North America. This scenario is expected to create demand for the drilling machines and other related machines associated with the manufacturing process.
In response to these automobile manufacturing, economic, and environmental/regulatory trends, the market is looking for innovations in turning and drilling, both machines and tooling. For instance, the Ultra T-A and Stealth Drill technologies enabled the low-pressure machines to perform dramatically better, on par with modern high-pressure coolant machines. Each insert can drill about 1200 holes, which is 3-6 times more than the old technology.
At present, there has been significant growth in the automotive industry because of the rising disposable income of people around the world. This rising income further improves the spending capacity of the global population. Thus, a noticeable growth in the automotive industry is predicted to create demand avenues in the drilling machine market shortly. These machines are used at an increased rate in the automotive industry. These drilling machines are commonly used for different drilling operations to fabricate automotive frames, cars, and others. Further, hole drilling is predicted to play a vital role in the manufacturing unit of the automotive industry. Hundreds of holes are drilled during the manufacturing of every vehicle, such as for camshafts, airbag propellants, engine blocks, transmission shafts, and many others.
So, based on how these products are being used more and more, the drilling machine market is expected to grow quickly over the next few years.
Asia-Pacific to Dominate the Drilling Machines Market
According to analysis, Asia-Pacific (APAC) is estimated to hold the highest market share in the current market studied. The region has the highest number of manufacturing plants, where the adoption of drilling machines is substantial. China is expected to be the major country in the region owing to its vast manufacturing sector. Additionally, automotive is one of China's pillar industries, and it continues to be the largest vehicle market in the world. In April 2022, around 210,000 commercial vehicles and 996,000 passenger cars were produced in China. During the month, the industry produced a total of 1.2 million vehicles, a decrease of 46.2 percent from the previous month and 46.1 percent year-over-year.
The economies in this region have low operating costs, which attract businesses from larger manufacturing bases and countries. In recent times, China has seen tighter regulations and rising wages, which have led to an increase in operating costs as it plans to shift toward higher-value manufacturing. Hence, to replace the role that China once used to play, companies are looking to the ASEAN region for lower-value production networks, which have also been largely integrated into global manufacturing value chains. As per the analysis, drilling machine manufacturers should align their distribution channels to focus on the growing markets by serving the emerging manufacturing sectors to increase their sales.
Rapid urbanization, industrialization, high disposable income, and increased R&D activities associated with technological advancement are some of the factors expected to fuel demand for drilling machines in the Asia-Pacific region.
