Vertical Machine Center Market is projected to grow at a 4.45% CAGR, increasing from USD 7.633 billion in 2025 to USD 9.913 billion in 2031.
Vertical machine centers are advanced machining tools that are widely used in the manufacturing and metalworking industries such as automotive, aerospace and defence, and electronics. These centers use sophisticated computer numerical control systems and are outfitted with a variety of cutting tools, such as drills, end mills, and taps. These can be changed automatically during the machining process using a tool changer. The favorable establishment of printed circuit board (PCB) and other manufacturing plants contributed to the vertical machine center industry's growth.
Market Drivers
The establishment of medical equipment manufacturing plants propels the vertical machine center market upwards.
Medical equipment manufacturing requires advanced solutions to produce complex and sophisticated medical devices and equipment. The favorable investments in new medical device production plants coupled with bolstering growth in the healthcare sector are anticipated to increase the demand for vertical medical centers. For instance, in March 2022, Wipro GE Healthcare, a global leader in medical technology, announced the opening of a new manufacturing facility in Bengaluru, India, under the Production Linked Incentive (PLI) Scheme of the Indian government.
Increasing printed circuit board (PCB) manufacturing plants bolsters the vertical machine center market growth.
Vertical machine centers are versatile milling machines that can perform a variety of milling operations such as drilling, boring, and cutting. This versatility enables manufacturers to produce numerous types of Printed Circuit Boards (PCBs) with varying complexities in an efficient manner thereby meeting the market's distinct requirements. This is expected to push the vertical machine center market trajectory upwards. For instance, in July 2023, Otis Worldwide Corporation officially launched its brand-new PCB production hall in Berlin. Additionally, in August 2023, the Teltonika company group entered a new phase of development with the establishment of a cutting-edge PCB manufacturing plant in the future technology park of Liepkalnis, Vilnius.
Bolstering growth in the automotive sector drives the vertical machine center market expansion.
The establishment of new automotive manufacturing plants demands vertical machine centers as it provides advanced and efficient milling options for a wide range of automotive components. These components include engine blocks, cylinder heads, transmission parts, and chassis components. It precisely cuts and shapes the automotive components. Favourable efforts undertaken by automotive manufacturers in new facilities establishments to enhance their production capacity have provided a positive scope to the market outlook. For instance, in June 2022, the BMW Group broadened its manufacturing footprint in China with the official opening of plant Lydia in Shenyang, China.
Asia Pacific is expected to show considerable growth.
Asia Pacific is expected to account for a significant share of the vertical machine center market due to the various establishment of manufacturing plants. For instance, in June 2023, OMRON Healthcare Co., Ltd. announced a plan to open a manufacturing plant at the origins by Mahindra in Chennai. Additionally, in October 2023, Quasar Medical launched its innovative manufacturing plant in Dongguan, China to provide cutting-edge solutions for the medical device industry. In April 2022, Siemens Healthineers expanded its manufacturing footprint in India with the approval of a new production plant of Computed Tomography scanners under the Government of India's PLI scheme.
Market Restraints
High vibration will restrain the growth of the vertical machine center market.
Vertical machining centers cause more vibration in comparison to horizontal machining centers which can reduce precision and use on tooling and fixtures. Furthermore, this vibration can be a problem for manufacturers who are machining sensitive parts or components. Such performance-related setbacks may limit the adoption of vertical machine centers.
Market Development
September 2022- Makino Inc. launched the Slim3n three-axis vertical machining center, a superior performance, space-saving solution for component and part processes requiring turnkey and automation. The Slim3n is equally capable of drilling and tapping applications, with a 50 m/min rapid rate powered by a 1.5 G Z-axis acceleration.
June 2022- LMW introduced two new machines the JG 50 and the LF20C Twin G at Intec 2022, Codissia, Coimbatore, the workhorses for the customer shopfloor, increasing customer productivity.
Company Products
Vertical Machine Center Market Segmentation
By Axis Type
3 Axis
4 Axis
5 Axis
By Application
Mold Manufacturing
Complex Part Manufacturing
Others
By End User
Automotive
Aerospace & Defence
Electronics
Manufacturing
Medical
Others
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others