Increased global appetites for essential consumer goods like cars and food as well as increased demand in the energy sector for goods and services like oil, gas exploration and green energy are driving global growth in the industrial machinery market that will benefit from “quite impressive” growth in the next four years, according to a recent report by IHS Technology.
Jonathan Cassell of ThomasNet summarizes the report:
High demand for machines in manufacturing sectors ranging from auto making to packaging will push the industrial machiney market to new heights during the next five years, highlighted by a doubling of growth this year …
The machinery market’s annual growth rate will average between 5 and 6% for the next four years with revenue jumping to $2 trillion by 2018.
This year could be a dynamo as demand in agriculture, packaging, materials handling and machine tools will drive revenue to $1.6 trillion, more than double the 2.9% increase of 2013.
Increased population growth and larger middle classes in developing countries are giving consumers more disposable income that translates into increased demand across many sectors including industrial machinery.
There is more demand for housing in these developing countries, resulting in increased demand for infrastructure and commercial buildings. More social awareness of green technologies is creating higher demand for industrial machines.
The forecast of bullish growth in the global industrial machinery market is welcome news from recent stagnation. Government investing caused the Americas market to boom in 2012 where machinery production revenue grew by 6.5%. In 2013, the brakes came on as machinery production growth in the Americas lessoned to 2%, still better than in many other parts of the world.
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