Demand for machines in sectors such as agriculture, packaging, materials handling and machine tools will push revenues

High demand for machines in manufacturing sectors ranging from auto making to packaging will push the industrial machinery market to new heights during the next five years, highlighted by a doubling of growth this year, according to a new report from IHS Technology.

As economic conditions continue to improve worldwide, the demand for machines in sectors such as agriculture, packaging, materials handling and machine tools will push revenues to $1.6 trillion this year, up from $1.5 trillion in 2013. This represents annual growth of 6.3 percent, more than twice the 2.9 percent increase seen in 2013.

Strong growth is forecast to continue for the next four years, with revenue rising to $2.0 trillion by 2018, as shown in the attached figure. During this period, the machinery market’s annual growth rate will remain quite impressive, averaging between 5 percent and 6 percent.

“The improving economic outlook is a key factor in the strong growth of machinery in the coming years,” said Andrew Robertson, senior analyst for industrial automation at IHS. “The growing populations and the expanding middle classes in developing countries are generating more disposable income. This translates into increased demand across a vast number of sectors.”

Sales growth for industrial machines in 2014 is being driven by a number of factors
First, higher demand for cars worldwide is spurring the requirement for more spending on tools and robotics in the automotive business, as well as the rubber and plastics segments. Meanwhile, an increase in the standard of living and growing spending on nutrition will benefit the food and packaging machinery sectors.

Furthermore, rising spending on technology products will boost the demand for robotics, semiconductor equipment, mining, and oil and gas machinery.

At the same time, increased demand for housing, infrastructure and commercial buildings is benefiting the construction equipment sectors. Moreover, social awareness of green technologies is resulting in higher demand for industrial machines in photovoltaics (PV) and in wind turbines.

Right package
Packaging is a sector that is slated for high growth in the next few years. The increase in packaging market growth will come from an investment in lighter packaging. Such packaging requires less material, generates less waste, is more energy efficient to produce and has improved aesthetic appeal.

Lighter packaging options are also suitable for developing countries where processed products are becoming more attainable for a growing middle class.

Furthermore, advances in packaging-such as wrapping food in ready-to-cook enclosures, cartons that are never pierced until opened and new aseptic packaging technology-are promoting demand for industrial machines in this sector.

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