Industrial Machinery Market size was over USD 749.5 billion in 2024 and is estimated to reach USD 1887.3 billion by the end of 2037, expanding at a CAGR of 8% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the industrial machinery is evaluated at USD 809.4 billion.
The shift towards smart manufacturing, driven by Industry 4.0 (allowing smart manufacturing and the creation of intelligent factories) fueling demand for advanced industrial machinery. Automation technologies such as robotics, IoT-enabled machines, and AI integration are transforming production efficiency and reducing operational costs. Artificial intelligence (AI) for manufacturing investment is predicted to increase from USD 1.1 billion in 2020 to USD 16.7 billion in 2026, a 57% increase. This is a huge advancement that will allow machines to automate difficult activities and replicate parts of human intelligence. In addition to increasing income and cutting expenses, this might also lessen risk and revolutionize production.
The global increase in infrastructure projects, especially related to smart city developments and urbanization initiatives, is significantly driving the demand for industrial machinery. Essential equipment, including construction machinery, HVAC systems, and material-handling devices, plays a crucial role in ensuring efficient project execution. These projects, covering residential, commercial, and industrial sectors, are not only contributing to the robust growth of the market but also reflecting nations' commitment to modernization and sustainable infrastructure development.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8% |
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Base Year Market Size (2024) |
USD 749.5 billion |
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Forecast Year Market Size (2037) |
USD 1887.3 billion |
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Regional Scope |
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Distribution Channel (Direct sales, Indirect sales)
By 2037, indirect sales segment is set to account for industrial machinery market share of around 73.7%. Manufacturers are increasingly leveraging distribution networks, resellers, and third-party agents to effectively expand their customer base, as these intermediaries provide valuable expertise, expedited delivery, and additional support. In 2023, manufacturing contributed an impressive USD 2.3 trillion to the U.S. GDP, accounting for 10.2% of the total GDP. By adopting indirect sales channels, companies can more easily penetrate new markets while minimizing the need for substantial infrastructure investments, ultimately driving overall market growth and fostering a more dynamic business environment.
Application (Agriculture, Construction, Packaging, Food Processing, Mining, Semiconductor manufacturing)
Based on application, the construction segment is anticipated to hold a dominant share over the forecast period in the industrial machinery market. The segment is growing due to increased global infrastructure projects, urbanization, and smart city initiatives are key components of modern development. In June 2024, manufacturing construction spending, or the money spent to construct new or expand existing manufacturing facilities, hit a new high of USD 238 billion. Demand for advanced construction equipment, such as excavators, cranes, and material handling systems, is rising to meet tighter project deadlines and improve efficiency. Additionally, the shift towards sustainable building practices and green infrastructure further drives the need for specialized machinery, making the construction segment a significant growth driver in the market.
Our in-depth analysis of the global market includes the following segments:
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Distribution Channel |
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Application |
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Operation |
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North America Market Statistics
By the end of 2037, North America industrial machinery market is set to capture around 48.6% revenue share. The transition to automated production lines helps industries enhance efficiency and meet rising consumer demand in the region. Automation also compensates for labor shortages and increases output quality, driving the need for high-tech machinery. North America has leadership in oil and gas exploration ensuring steady demand for specialized machinery, from drilling rigs to transportation systems, critical for energy production and distribution. For instance, 32 U.S. states and U.S. coastal water generate crude oil. In 2022, almost 72% of the crude oil produced in the United States came from five states. This increases the demand for industrial equipment by significant folds, propelling the market growth.
The U.S. is dominating the North America industrial machinery market, harboring a revenue of around 266.5 billion by the end of 2024. The country is rapidly adopting smart manufacturing solutions to stay competitive globally. Advanced machinery with integrated IoT and AI capabilities supports precision, real-time monitoring, and scalability, making it essential for modern factories. Robotic equipment capital expenditures in the United States were registered at USD 11,536 million, or 1.1% of all equipment. As manufacturers bring operations back to the U.S., they invest in advanced machinery to build automated, cost-effective production lines. This trend is driven by the need for supply chain resilience and government incentives. For instance, the Biden-Harris Administration has announced USD 22 million to support smart manufacturing at small and medium-sized businesses nationwide.
Canada is heavily investing in infrastructure development, with a focus on essential projects like roads, bridges, and innovative smart city initiatives. Through the Investing in Canada Infrastructure Program, the federal government is committing over USD 33 billion to enhance public infrastructure nationwide. These substantial investments not only create new job opportunities but also foster consistent growth in the market. Furthermore, Canada’s strategic proximity to the U.S., combined with trade agreements like USMCA, provides manufacturers with a valuable opportunity to export industrial machinery efficiently, bolstering overall production and economic activity.
Europe Market Analysis
The industrial machinery market in Europe is poised to garner lucrative market share over the forecast period. Europe is at the forefront of adopting automation technologies and industry 4.0 initiatives. Smart factories, IoT-enabled machinery, and AI-driven processes are transforming manufacturing, boosting demand for advanced industrial machinery. Continuous R&D investing is fostering innovations in robotics, additive manufacturing, and AI-integrated machinery, enabling companies to stay competitive and meet evolving industry demands.
The push for digital transformation in manufacturing is driving demand for advanced industrial machinery with automation capabilities in the UK. In 2022, the total government spending on infrastructure reached USD 33 billion. Of this amount, USD 24.5 billion was sourced from the central government (CG), while the local government (LG) contributed USD 8.5 billion. A significant portion of this spending, amounting to USD 28.6 billion, was allocated to transport infrastructure, which includes roads, airports, harbors, and railways. Government initiatives such as the National Infrastructure Strategy are fueling demand for construction equipment, HVAC systems, and material-handling machinery to support ongoing urban development and infrastructure upgrades.
The market in Germany is poised for growth, driven by strong international demand that highlights its reliability, efficiency, and commitment to global standards. This positions Germany as a key player in the export market. With tightening environmental regulations, there is an increasing demand for energy-efficient machinery, presenting an opportunity for innovation. German manufacturers are actively developing solutions that align with national and EU sustainability goals, focusing on reducing emissions and energy consumption. By setting an ambitious target to cut greenhouse gas emissions by at least 65% by 2030, Germany is not only leading the way in sustainability but also paving the path for a more environmentally responsible future in the industrial sector.
Key companies in the industrial machinery market are driving innovation through the integration of IoT, AI, and robotics to enhance automation and efficiency. They are developing energy-efficient machinery to meet sustainability goals, investing in advanced materials for durability, and offering customizable solutions tailored to specific industries such as automotive, construction, and food processing, ensuring adaptability to evolving industrial machinery market demands. For instance, AGCO Corporation and Bosch BASF Smart Farming jointly announced that they will work together to develop further new features and integrate and market Smart Spraying technology on Fendt Rogator sprayers.
Author Credits: Richa Gupta
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