Industrial Equipment Market Research Reports

"The Industrial Equipment Revolution: Key Drivers and Market Dynamics for 2023 and Beyond (2024 Market Size: USD 250 billion)"!

Industrial Equipment Industry Overview

The global economy is significantly influenced by the industrial equipment market, which is responsible for the increasing efficacy and productivity of a variety of industries. According to cognitive market research, The global industrial equipment market size was USD 230 billion in 2023 and will be USD 250 billion in 2024, with a compound annual growth rate (CAGR) of 4.2%. By 2031 the market size will be USD 347.4 billion, with a CAGR of 4.20%. The expansion of manufacturing activities in emerging economies, the rise of Industry 4.0, and the increasing adoption of automation are the primary factors driving the growth. The industrial equipment market is experiencing an increase in the prevalence of automation technologies, such as AI and robotics. In 2023, the global shipment of industrial robots exceeded 500,000 units, representing a 12% increase in their adoption. 

This trend is persist in 2024, as it is motivated by the necessity for operational efficacy and the reduction of labor costs. An increasing emphasis is being placed on sustainability in the industrial equipment market. In 2023, there was a 15% increase in investments in ecological manufacturing technologies, including renewable energy sources and energy-efficient machinery. This trend will continue to gather momentum in 2024 as companies endeavor to comply with rigorous environmental regulations and decrease their carbon footprint. The industrial equipment market is undergoing a revolution as a result of the integration of digital technologies and the Internet of Things (IoT). In 2023, around 35% of industrial equipment manufacturers implemented IoT solutions into their operations, which enabled predictive maintenance and real-time monitoring. Operating efficiency and outage reduction are improved by this percentage, which is increase to 40% in 2024. 

In 2023, Europe dominated the market with a USD 55 billion share, with Germany being the most successful due to its robust manufacturing market. Investments in digitalization initiatives and renewable technologies are drive the market's expansion to USD 58 billion in 2024. In 2023, the Asia-Pacific region was valued at USD 80 billion and will increase to USD 88 billion in 2024, making it the fastest-growing market. China and India are significant contributors to this expansion, which is driven by the rapid development of infrastructure and industrialization. In 2023, the United States dominated the industrial equipment market in North America, which was valued at USD 65 billion. Advancements in automation and the expansion of the energy sector are fuel's the region's steady growth, which will reach USD 68 billion in 2024.

Top Countries Contributing in Industrial Equipment Market

United States (2024 Market Size: USD 68 billion)

The United States industrial equipment market size was USD 65 billion in 2023 and will be USD 68 billion in 2024. The advancements in digital technologies and automation are the primary drivers of this growth. Manufacturing, automotive, aerospace, and energy are among the industries that rely on industrial apparatus. The manufacturing market is responsible for 35% of the industrial equipment utilization, which is primarily driven by the demand for high-quality and efficient production processes. The automotive and aerospace market contribute an additional 25%, with a particular emphasis on robotics and precision engineering. 20% of the industrial apparatus is utilized by the energy market, which emphasizes sustainable and energy-efficient solutions. This market includes renewables, oil, and gas. The United States is a dominant participant in the global industrial equipment market, with 28% of the market share.

China (2024 Market Size: USD 88 billion)

According to cognitive market research, the China's industrial equipment market size was USD 80 billion, and will be USD 88 billion in 2024. This growth is fueled by the accelerated development of infrastructure and industrialization in China. Manufacturing, construction, and energy are the primary sectors that employ industrial equipment. The manufacturing sector is the largest, contributing 40% of the equipment utilization, which is driven by extensive production activities in a variety of industries. The construction and energy sectors contribute 30% and 20%, respectively, with a focus on energy-efficient equipment and heavy machinery. China's substantial influence and production capacity are evident in its 35% market share of the global industrial equipment market.

Germany (2024 Market Size: USD 58 billion)

In 2023, the industrial equipment market in Germany was valued at USD 55 billion and will be USD 58 billion in 2024. Germany is renowned for its robust manufacturing market, which is notably strong in the production of machinery and automobiles. Advancements in robotics and precision engineering have resulted in the automotive market utilizing 30% of the industrial equipment. An additional 35% of the economy is comprised of the machinery and manufacturing sectors, which concentrate on the development of production processes that are both efficient and of high quality. Germany is also a significant player in the renewable energy sector, employing 15% of the apparatus for sustainable energy solutions. Germany's position as a leader in engineering and manufacturing is underscored by its 10% proportion of the global industrial equipment market.

Japan (2024 Market Size: USD 52 billion)

As per cognitive market research, In 2023, the Japan's industrial equipment market size was USD 50 billion, and will be USD 52 billion in 2024. The nation is distinguished for its precision manufacturing and technological advancements. Automotive, electronics, and robotics are among the industries that employ industrial apparatus. Advanced manufacturing and automation technologies are the primary focus of the automotive market, which accounts for 35% of equipment usage. Precision and high-tech production processes are the primary focus of the electronics market, which contributes 25%. Innovations in automation and AI are stimulated by the utilization of 20% of the industrial apparatus in robotics, a critical sector for Japan. Japan's technological leadership is underscored by its 8% market share of the global industrial equipment market.

South Korea (2024 Market Size: USD 42 billion)

The South Korea's industrial equipment market size was USD 40 billion in 2023, and will be USD 42 billion in 2024. Electronics, automotive, and shipbuilding are among the industries that rely on industrial apparatus. Driven by the nation's robust semiconductor and electronics manufacturing capabilities, the electronics market is the largest, comprising 40% of equipment utilization. Advanced manufacturing technologies and automation are the primary focus of the automotive market, which contributes 30%. The shipbuilding industry, a substantial sector in South Korea, employs 15% of the industrial apparatus, with a focus on precision engineering and heavy machinery. South Korea's industrial prowess is evident in its 6% proportion of the global industrial equipment market.

India (2024 Market Size: USD 33 billion)

In 2023, the India's industrial equipment market size was USD 30 billion, and will be USD 33 billion in 2024. The accelerated development of infrastructure and industrialization stimulates the expansion. Manufacturing, construction, and energy are the primary sectors that employ industrial equipment. The manufacturing market is responsible for 35% of the equipment utilization, which is a result of the expansion of production activities across a variety of industries. The construction and energy markets, which concentrate on energy-efficient solutions and heavy machinery, holds 30% and 20%, respectively. India's increasing influence in the industrial equipment market is evidenced by its 5% share of the global market.

Italy (2024 Market Size: USD 26 billion)

According to cognitive market research, the Italy industrial equipment market size was USD 25 billion in 2023 and will be USD 26 billion in 2024. The nation is renowned for its robust manufacturing market, which is particularly strong in the production of automotive and equipment. The automotive, energy, and manufacturing market are the primary sectors that employ industrial equipment. High-quality and efficient production processes are the primary drivers behind the utilization of 35% of the equipment by the manufacturing market. Precision engineering and advanced manufacturing technologies are the primary focus of the automotive sector, which contributes 25%. Around 15% of the equipment is utilized by the energy market, which emphasizes sustainable solutions, including renewables. Italy's engineering and manufacturing capabilities are evident in its 4% market share of the global industrial equipment market.

France (2024 Market Size: USD 23 billion)

In 2023, the France's  industrial equipment market size was USD 22 billion and will be USD 23 billion in 2024. Aerospace, automotive, and energy are among the industries that rely on industrial apparatus. The aerospace market is the most significant, contributing 30% of the equipment utilization, which is attributed to the development of engineering and manufacturing technologies. Precision and high-tech production processes are the primary focus of the automotive market, which holds 25%. Energy-efficient and sustainable solutions are prioritized by the energy market, which employs 20% of the equipment, including nuclear and renewables. France's robust position in advanced manufacturing is underscored by its 4% market share of the global industrial equipment market.

United Kingdom (2024 Market Size: USD 21 billion)

As per cognitive market research, the U.K. industrial equipment market size was USD 20 billion in 2023 and will be USD 21 billion in 2024. The automotive, energy, and manufacturing market are the primary sectors that employ industrial equipment. Around 30% of the equipment is employed by the manufacturing market, which is motivated by the necessity for high-quality and efficient production processes. Precision engineering and advanced manufacturing technologies are the primary focus of the automotive market, which contributes 25%. Sustainable solutions are prioritized by the energy market, which employs 20% of the equipment, including renewables. The United Kingdom's industrial and engineering capabilities are evident in its 3%  market share of the global industrial equipment market.

Canada (2024 Market Size: USD 19 billion)

In 2023, the industrial equipment market in Canada was valued at USD 18 billion, and will be USD 19 billion in 2024. Energy, mining, and manufacturing are among the markets that employ industrial equipment. The energy market, which encompasses oil, gas, and renewables, is the largest, with a 35% of the equipment utilization. The mining sector, which emphasizes precision engineering and heavy apparatus, accounts for 25% of the total. Utilizing 20% of the equipment, the manufacturing market is motivated by the necessity for high-quality and efficient production processes. Canada's industrial and natural resource strengths are underscored by its 3% market share of the global industrial equipment market.

PESTEL Analysis of Industrial Equipment Market

Political

The industrial equipment market is substantially influenced by the political landscape, which affects regulations, trade policies, and government support for infrastructure and manufacturing. Consistent growth and investment in industrial apparatus can be stimulated by political stability in critical markets such as the United States, China, and Germany. In contrast, political instability, such as trade tensions between major economies or regional conflicts, can impede market expansion and disrupt supply chains. Trade policies and agreements significantly influence the market. Tariffs and import/export regulations can influence the cost and availability of basic materials and finished products. For example, the trade dispute between the United States and China resulted in elevated tariffs on industrial equipment, which affected the profitability and prices of both manufacturers and consumers. On the other hand, free trade agreements can make cross-border transactions more efficient and provide cost savings. Major drivers of the industrial equipment market include government initiatives and infrastructure projects. Substantial industrial equipment is necessary for infrastructure investments, including energy initiatives, urban development, and road construction, which in turn increases demand.

Economical

The industrial equipment market is significantly influenced by economic factors, which affect demand, investment, and market growth. Industrial activity and equipment purchases are directly influenced by the global economy's health, which is defined by inflation, interest rates, and GDP growth rates. During periods of economic expansion, businesses increase their investment in capital equipment to satisfy the growing demand and improve productivity. Conversely, economic downturns result in reduced spending and postponed investments. The industrial equipment market is stimulated by GDP growth in significant markets, including the United States, China, and the European Union. For example, the substantial investments in infrastructure and manufacturing that China has made in response to its robust economic growth have resulted in a high demand for mining and construction equipment. In the same vein, the economic recovery in post-pandemic Europe has stimulated industrial activities, thereby increasing the sale of equipment. Interest rates and inflation are also significant factors. The cost of raw materials and production is exacerbated by high inflation, which can result in manufacturers' profit margins being squeezed unless they are able to pass these costs onto consumers.

Social

Social factors, including changes in workforce demographics, urbanization, and societal attitudes toward technology and sustainability, influence the industrial equipment market. The availability of labor, consumer demand, and industry practices influence the development and innovation trajectories of the market. Demographic shifts, including the aging populations in developed countries and the expanding workforces in emergent economies, influence labor dynamics. Automation and robotics are becoming increasingly important in countries with aging populations as a means of addressing labor shortages and ensuring productivity. For instance, Japan's industrial equipment market has made substantial investments in robotic solutions to mitigate the decrease in the working-age population. In contrast, countries with youthful, expanding populations, such as India, have an abundant labor supply, but they require skill development and training to satisfy industrial demands. Urbanization trends also influence the demand for industrial apparatus. The demand for construction and mining equipment has increased as a result of the extensive infrastructure development that is a result of rapid urbanization in Asia and Africa, which includes the construction of roads, bridges, and buildings.

Technological

The industrial equipment market is fundamentally driven by technological advancements, which foster innovation, efficiency, and competitiveness. The industry has been revolutionized by the incorporation of automation, digitalization, and smart technologies, which have increased productivity and created new opportunities for growth. Modern industrial equipment is significantly influenced by automation and robotics. The implementation of automated machinery and robotic systems significantly enhances precision and efficiency, reduces labor costs, and streamlines manufacturing processes. For example, Siemens and ABB are industry leaders in industrial automation, offering sophisticated robotic solutions that enhance operational efficiency and optimize production lines. These technologies are especially important in industries such as electronics and automotive, where precision and efficiency are of the utmost importance. Another significant technological trend is digitalization. The industrial equipment market is being transformed by the implementation of digital tools and platforms, including IoT (Internet of Things), AI (Artificial Intelligence), and data analytics. Real-time monitoring and predictive maintenance are facilitated by IoT-enabled equipment, which reduces downtime and extends the lifespan of machinery. 

Environmental

In the industrial equipment market, environmental factors have become more significant, influencing industry practices, product development, and regulatory compliance. Significant changes in the design, manufacturing, and operation of industrial equipment are being driven by the imperative to address climate change and the movement toward sustainability. The mitigation of greenhouse gas emissions is one of the most urgent environmental issues. Industrial equipment manufacturers are being compelled to develop machinery that is more energy-efficient and emits fewer emissions as a result of the strict regulations that governments worldwide are enacting to reduce emissions. The expanding market for electric and hybrid apparatus is a clear indication of this change. Caterpillar and Komatsu, for example, are making substantial investments in the development of electric versions of their heavy machinery in order to comply with regulatory mandates and minimize their carbon footprints. Another critical area is resource efficiency. The industrial equipment market is currently emphasizing the optimization of resource utilization, which encompasses basic materials, water, and energy. Real-time monitoring and predictive maintenance are facilitated by advanced technologies such as IoT and AI, which contribute to the reduction of waste and the enhancement of operational efficiency. Companies can reduce their environmental impact and extend the lifespan of their assets by implementing these technologies.

Legal

The industrial equipment market is significantly influenced by the legal environment, which affects compliance requirements, intellectual property rights, trade regulations, and labor laws. Legal frameworks guarantee that industry practices are consistent with national and international standards, thereby fostering sustainability, safety, and equitable competition. Safety and environmental regulations are of the utmost importance in the industrial equipment market. In order to guarantee that machinery is environmentally friendly and secure for operation, governments implement rigorous regulations. For example, the Machinery Directive of the European Union delineates the fundamental health and safety requirements for machinery. In contrast, the Occupational Safety and Health Administration (OSHA) of the United States establishes workplace safety standards. Manufacturers must prioritize compliance with these regulations due to the potential consequences of noncompliance, including substantial fines, legal penalties, and reputational harm. The market is considerably influenced by environmental laws, particularly in light of the growing emphasis on the promotion of sustainable practices and the reduction of carbon footprints. The reduction of greenhouse gas emissions is mandated by legislation such as the Clean Air Act in the United States and the Emission Trading System (ETS) of the European Union. These regulations stimulate innovation in the development of energy-efficient and low-emission equipment. 

Key Players of Industrial Equipment Market

Caterpillar Inc.

In 2023, Caterpillar Inc., a global leader in industrial equipment, reported a revenue of USD 56 billion, and will be USD 58 billion by the end of 2024. The organization is distinguished by its broad selection of products and services, which encompasses diesel and natural gas engines, industrial gas turbines, diesel-electric locomotives, and construction and mining equipment. In 2023, Caterpillar devoted USD 2 billion annually to research and development, with an emphasis on the advancement of technologies that would improve the efficacy, sustainability, and performance of its equipment. Major business segments of Caterpillar include Financial Products, Energy & Transportation, Resource Industries, and Construction Industries. Through the sale of mining equipment and heavy machinery, the Construction Industries and Resource Industries segments are particularly significant, contributing significantly to the company's revenue. The Energy & Transportation segment is also crucial, as it encompasses marine applications and industrial power systems. Caterpillar holds a 15% market share in the global industrial equipment market.

Siemens AG

In 2023, Siemens AG, a global leader in industrial automation and digitalization, reported revenue of USD 89 billion (approximately $97 billion). The company anticipates that this figure will rise to €92 billion (approximately $100 billion) in 2024. The company's dedication to technological advancements and innovation was evident in its USD 5.6 billion R&D expenditure in 2023. Siemens operates through a variety of significant business segments, such as Siemens Healthineers, Smart Infrastructure, Mobility, and Digital Industries. The Digital Industries segment, which is directly involved in the development of industrial equipment, automation, and software solutions, is a significant revenue generator. This market concentrates on process automation, industrial software, and manufacturing automation, providing services to a wide variety of industries, including electronics and automotive. Siemens holds a 10% of the global industrial equipment market share.

Komatsu Ltd.

In 2023, Komatsu Ltd., a prominent Japanese manufacturer of mining and construction equipment, reported revenues of USD 27 billion and will be USD 28 billion by the end of 2024. Komatsu's research and development initiatives are substantial, with an annual expenditure of USD 1.4 billion. These initiatives are designed to improve the efficiency, sustainability, and performance of their equipment. Construction, Mining & Utility Equipment, Retail Finance, and Industrial Machinery & Others comprise Komatsu's business segments. The company's revenue is primarily generated by the Construction, Mining, & Utility Equipment segment, which is the largest and most critical. This segment encompasses products that are indispensable for mining and construction operations, including motor graders, dump vehicles, bulldozers, and hydraulic excavators. Komatsu's equipment is a preferred option in the industry due to its efficiency, advanced technology, and durability. Komatsu holds a revenue share of 8% of the global industrial equipment market.

ABB Ltd.

In 2023, ABB Ltd., a Swiss multinational corporation that specializes in automation technology, industrial electrical equipment, power, and robotics, reported revenues of USD 29 billion and will be USD 30 billion by the end of 2024. The annual R&D expenditure of USD 1.3 billion by ABB is noteworthy, underscoring its commitment to technological advancement and innovation. ABB is engaged in the operation of numerous critical business segments, including Industrial Automation, Robotics & Discrete Automation, Motion, and Electrification. The industrial equipment market is particularly pertinent to the Industrial Automation, Robotics, & Discrete Automation segments. These segments offer digital technologies, robotics, and sophisticated automation solutions that improve productivity and efficiency in a variety of industries. ABB's market share of the global industrial equipment market is 7%. The company's strong emphasis on automation and digital solutions, global presence, and advanced technological capabilities are the primary factors contributing to this substantial share. 

General Electric Company (GE)

In 2023, General Electric Company (GE), an American multinational conglomerate, reported revenues of USD 75 billion, and will be USD 78 billion by the end of 2024. With an annual expenditure of USD 4 billion, GE's research and development initiatives are extensive, with an emphasis on the development of sophisticated technologies across its diverse business segments. Aviation, healthcare, renewable energy, and power comprise GE's principal business segments. Renewable Energy and Power are the primary divisions that encompass the industrial equipment market. Turbines, generators, and industrial equipment for energy production and distribution are among the products offered by these segments. GE's apparatus is renowned for its technological advancements, efficiency, and reliability. GE holds an 6% of the global industrial equipment market share.

Recent developments in Industrial Equipment Market

• april 2023: Bosch BASF Smart Farming and AGCO Corporation are collaborating on Smart Spraying technology. This technology will be commercialized and incorporated into Fendt Rogator sprayers. The collaboration was announced in April 2023. (Source: https://www.basf.com/global/en/media/news-releases/2023/04/p-23-159)

Conclusion

In 2023, the industrial equipment market exhibited robust growth and resilience, and this trend will persist into 2024. In 2023, the global industrial equipment market size was USD 240 billion, and will be USD 250 billion in 2024. By 2031 the market size will be USD 347.4 billion, with a CAGR of 4.20%. The escalating demand in critical industries, including mining, energy, construction, and manufacturing fuels this expansion. The global market is currently dominated by the United States, China, and Germany, which collectively account for 53% of the market. China alone accounts for 35% of the market. Technological advancements have been a substantial growth driver. In 2023, the combined expenditures of companies such as Siemens, Caterpillar, and Komatsu in research and development surpassed USD 8 billion. These investments are concentrated on sustainable technologies, digital solutions, and automation. For example, Siemens' MindSphere platform optimizes industrial operations by utilizing IoT, while Caterpillar's integration of telematics and data analytics has optimized machinery performance.

This market is also experiencing a transition to sustainability. Electric and hybrid machinery are being developed by major actors in order to comply with rigorous environmental regulations and minimize carbon footprints. Some examples of how the industry is responding to these demands include ABB's energy-efficient motors and actuators and Komatsu's Smart Construction initiative. The industrial equipment market appears to have a promising future. Efficiency and innovation will continue to be stimulated by the ongoing digital transformation, which is defined by the implementation of Industry 4.0 technologies. Automation, artificial intelligence (AI), and data analytics will be essential for optimizing operations and decreasing disruptions. Additionally, the emphasis on sustainability will encourage the advancement of green technologies, which will be consistent with the objectives of the international environmental community.