Industrial Equipment and Machinery Market Size to Attain USD 163.32 Billion by 2034

The global industrial equipment and machinery market size was estimated at USD 89.77 billion in 2024 and is projected to be worth around USD 163.32 billion by 2034, growing at a CAGR of 6.16% from 2025 to 2034.

Highlights of the Industrial Equipment and Machinery Market

• North America dominated the global market in 2024.
• Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
• By application insight, the heavy machinery components segment led the market in 2024.
• By application insight, the others (agricultural equipment, etc) segment is expected to grow at the fastest rate during the forecast period. 
  

Industry Valuation and Growth Rate Projection

The industrial equipment and machinery market encompasses production, sales, repair, and maintenance of machinery and equipment used within a variety of industries. These include engines, powertrains, hydraulic systems, automation tools, and control technologies. Owing to rapid industrialization and automation, along with the integration of revolutionizing technologies such as AI, IoT, and 3D printing, there has been steady progress in the market. These technologies promote operational efficiency while also reducing costs and supporting smart manufacturing. Demand is being propelled by government initiatives such as "Make in India," while energy-efficient and sustainable approaches to machine-building are being called for. There lies in front of this industry serious potential for transformation and growth-great growth, wherein innovation, customization, and integration of intelligent, data-driven systems will all have their hand in shaping the future.

Industrial Equipment and Machinery Market: Stats and Figures

Sales report of Komatsu, a Japanese company specializing in construction, mining, and forestry equipment.

• Construction, Mining & Utility Equipment: Sales increased by 5.1% from FY2023 to JPY3,798.2 billion. Segment profit increased by 4.3% to JPY598.9 billion.
• Industrial Machinery & Others: Sales increased by 14.3% from FY2023 to JPY223.6 billion. Segment profit increased approximately 2.7 times to JPY27.4 billion.

Sales report of Cummins: A global power technology leader, Cummins designs, manufactures, and distributes engines, power generation equipment, and related technologies.

• Fourth quarter 2024 revenues of $8.4 billion decreased 1% from the same quarter in 2023. Sales in North America were flat while international revenues decreased 3%.

How AI Has Benefitted the Industrial Equipment and Machinery Market

Industrial equipment and machinery markets, from production lines to the actual output, are in the throes of an industrial transformation implemented by areas such as efficiency, predictive maintenance, quality control, cost reduction, etc. It is meant to take care of monotony, maximize the use of resources, or smooth workflow. Artificial intelligence-based vision systems catch defects in real time for the purpose of maximum quality control. Insights derived from the dataset are the basis for process enhancement and decision-making improvement. Safety is ensured via automated procedures, while the dangerously hard jobs are taken over by robots. Price reduction mechanism: lower human labor costs, reduced machine maintenance costs, and reduced material wastage costs. Through AI, manufacturers are empowered to be intelligent rather than doltish, safe rather than unsafe, and efficient rather than inefficient-manufacturing worthy of quality outputs.

Industrial Equipment and Machinery Market Dynamics

What are the Major Market Drivers in the Industrial Equipment and Machinery Market?

The major market drivers in the industrial equipment and machinery market are technological advancements, increasing automation, and the growing emphasis on energy efficiency. Additionally, the "Make in India" campaign and government investments in infrastructure and renewable energy are further fueling the demand for industrial equipment.

• Technological Advancements: Currently, AI-enabled industries transform the market. For instance, AI predicts maintenance needs, while IoT gives real-time monitoring, and 3DP is used for fast prototyping and for the custom manufacture of parts. These technologies enhance the productivity of processes as well as conserve energy and reduce waste. Manufacturers are harnessing digital twins and smart factory solutions to optimize processes and maximize supply chain responsiveness. This migration towards advanced machinery integrated with intelligent systems is therefore turning innovation into a foremost global differentiator.
  
• Increased Automation: The heightening movement in automation industries comes from increased throughput, precision, and reduction in labor dependency. Robotic arms are widely accepted in such sectors as automotive welding and assembly, pharmaceutical industries for automated filling and packaging, and textile industries for automated looms and quality inspection. Rising labor costs and nonstop production cycles force companies to substitute manual processes with automated machinery, intensifying the need for advanced industrial machinery.

What are the Major Market Restraints in the Industrial Equipment and Machinery Market?    

The industrial equipment and machinery market experiences growth restraints due to factors such as high initial investment costs, skilled labor shortages, and fluctuating raw material prices.

• Skilled Labor Shortage: A lack of skilled workers penalizes operational efficiency and retards market growth. With every new technology of automation, artificial intelligence, and IoT installed, call for a well-educated workforce. There exists an ever-expanding gap between skills and personnel. This shortage affects installation, maintenance, and the best use of machinery, resulting in equipment downtime, projects being delayed, and a decrease in productivity. Because of the inability of workers to use the full scope of capabilities of modern machinery, the investments in said machinery become underutilized and finally raise their operational costs. The emergence of vocational training infrastructure in emerging economies and the lack of technical education awareness have even further exacerbated the matter. Filling this labor gap is paramount for viable growth and making the most of technological advancements in the sector.
• Fluctuating Raw Material Prices: Since fluctuating prices of raw materials in themselves are a big problem here, the manufacturing costs and profitability of the industrial equipment and machinery markets must undergo regular external shocks. Steel, aluminum, copper, and alloys are all necessary raw materials for machinery production, and if the prices really do go through a period of aberrance, there is a possibility of a very significant disruption of the supply chains and the pricing system. Manufacturers cannot keep the prices competitive; hence, it can be very unlucky for them to plan and budget in the long run, and if we consider SMEs, it is too painful to look into. Price variability here is being caused due to global geopolitical tensions, trade restrictions, inflation, and supply and demand forces of commodities. To do away with this risk, companies would either have to enter into long-term contracts, diversify suppliers, or go for alternative materials, and each of these needs time and money.

What are the Market Opportunities in the Industrial Equipment and Machinery Market?

Growth opportunities in the industrial equipment and machinery market are linked to the integration of the latest advances, such as collaborative robots, a focus on sustainability, etc.

• Focus on Sustainability: Sustainability is a major opportunity in the industrial equipment and machinery market. Environmental regulations are imposed on the manufacturer, and at the same time, consumers want greener products. This has led to the evolution of a range of eco-friendly machinery, like energy-efficient motors, renewable energy systems, and recyclability machines. Companies investing in sustainable technologies get a double benefit: one, the money saved due to compliance with regulations; second, the improved brand image, with which companies can capitalize competitively. Governments and respective agencies are also providing incentives, tax benefits, and subsidies for adopting sustainable equipment, all of which further create a good demand level for these products. Sustainability will continue to be at the forefront, with opportunities for innovation and growth awaiting in the sector.
• Collaborative Robots (Cobots): Industrial systems have been reaching a boom today because of the advancement in collaborative robots or cobots, whereby human manual dexterity meets robotic accuracy. Such robots are used in electronics, automotive, and packaging industries, requiring precision and adaptability. They are simple to program and cost less while demanding very few installation alterations from a manufacturer; hence, more manufacturers have the facility of using them. As labor shortages persist and demand for automation increases, the market for cobots will grow at a high pace. This makes the ability to scale, increase efficiency, and achieve versatility the cornerstone for their future industrial automation growth.

Industry Leader Announcements

• MB Patil, Karnataka’s Minister for Large and Medium Industries: 

“The new unit will directly employ 800 people in its initial phase and will support sectors such as electric vehicles, data centres, renewable energy, battery storage, and general manufacturing. “This plant will contribute to local production, strengthen research and development, and improve supply chain stability.”

•  Sandeep Singh, Managing Director, Tata Hitachi: 

“Bharat Construction Equipment Expo 2025 provides a unique platform for us to showcase our latest innovations and reaffirm our commitment to driving progress in the construction equipment sector. With our new CEV-5 compliant machines and advanced technology solutions, we aim to empower businesses with tools that are efficient, sustainable, and reliable.

Segmental Insights

The heavy machinery components segment encompasses engines, powertrains, hydraulic systems, electronic components, bearings, gears, frames, and axles, which led the market in 2024, because they are very essential for large-scale industrial operations. Essential factors of the performance, efficiency, and durability of heavy equipment are components used in construction, mining, and manufacturing. Infrastructure development has created a demand for durable, state-of-the-art components. Investments pertaining to automation and energy-efficient solutions have forced manufacturers to install smarter, more precise components within upgraded machinery. Advancements in bearings, gears, and frames assure that these machines operate in adverse environments and undertake heavy work. Essentially, this segment of heavy machinery components is crucial to industrial development.

The others (agricultural equipment, etc) segment is expected to grow at the fastest rate during the forecast period in the industrial equipment and machinery market. This is due to the global rise in food demand and the advent of modern farming, the "others" segment of agricultural equipment is witnessing the fastest growth. This category includes machinery in planting and crop processing, irrigation systems, hay and forage, and special implements. Such machines are necessary to increase agricultural productivity, especially in areas with variable farm conditions. Other demand factors include precision agriculture adoption, climate variability, and the scale of farm operations. The "others" category is witnessing tremendous changes with the integration of technological advancements that include the use of GPS and sensor-based automation, and is currently one of the fastest-growing segments in the broader industrial machinery market.

Geographical Insights

The industrial machinery is favored by North America for its strong manufacturing base, advanced technology, and infrastructure. The center of many major manufacturers and innovators in the region further pushes product development and sustains competitive advantages. With a well-established supply chain and distribution network, volumes of machinery are always produced for one sector or another. Being majorly industrialized, North America witnesses demand from the automotive, aerospace, and construction industries for high-performance, highly precise equipment. Moreover, market growth is supported by government incentives and the use of advanced technologies such as IoT, AI, and Industry 4.0 practices. This market is well integrated with a skilled technical workforce capable of further technological advancement to ensure the efficiency of operations, thus giving the industrial machinery of North America a leading crown on the international stage.

The Asia Pacific industrial machinery market is witnessing growth at a fast pace due to industrialization processes and developing infrastructure projects, and manufacturing automation investments. Manufacturing centres in the region are developing high-quality machinery for property and export purposes. The market further gets a boost from an abundant labor force, improved technical education, and global players in machinery manufacturing. Policies promoting domestic production, export incentives, and public-private collaborations are the big pluses to this market. With its ever-growing domestic market and cooperation with world technology leaders, China is positioned as a major force in the Asia Pacific industrial machinery market and is, therefore, influencing global competitiveness.

Recent Developments in the Industrial Equipment and Machinery Market

• In June 2025, Tata Hitachi showcased its innovative machinery and advanced technology solutions at the Bharat Construction Equipment Expo 2025, catering to the evolving industry demands.
• In June 2025, Cognex Corporation is set to launch OneVision™, a cloud-based platform designed to revolutionize the manufacturing process by enabling the development, training, and scaling of AI-powered vision applications.
• In February 2025, Nidec, a multinational data center equipment manufacturer, opened a new production facility in the Dharwad-Beluru Industrial Area, involving an investment of ₹600 crore.

Competitive Landscape

The market is moderately fragmented, with local players such as Caterpillar, Komatsu, John Deere, Cummins, ABB, and Thermax, among others, seeking to expand their presence through investments, partnerships, acquisitions, and mergers. They also invest in product development and competitive pricing. These strategies will promote market growth and lucrative opportunities for market players

• Company Name: John Deere
• Year of Incorporation: 1837
•  Headquarters: Moline, Illinois

John Deere's most recent annual revenue, for the fiscal year ending in October 2024, was approximately $51.72 billion. This represents a 15.57% decrease compared to the previous year.

• Company Name: ABB
• Year of Incorporation: 1988
• Headquarters: Zurich, Switzerland

ABB's most recent annual revenue for 2024 was $32.85 billion, representing a 1.91% increase from the previous year. The company's revenue for the twelve months ending March 31, 2025, was $32.915 billion, reflecting a 2.07% year-over-year increase.

• Company Name: Komatsu
• Year of Incorporation: 1921
• Headquarters: Minato, Tokyo, Japan

Komatsu's annual revenue for the year ended March 31, 2024, was approximately USD 26.669 billion, representing a 1.71% increase from the previous year.