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India instead of China: the market for injection molding machines

Last year, the worldwide sales of injection molding machines experienced stagnation. A total of 0.1% fewer machines were sold in 2016 than in the previous year. The reason for this is a decline in demand from China and Taiwan, the largest market for injection molding machines. On the other hand, the markets of North America and India are developing very strongly and the industry will ensure moderate growth around the world, according to a study by Interconnection Consulting. By 2019 the sales of the worldwide injection molding machine market are expected to annually increase by 1.4%.

Chinas changing economy

The Chinese market showed a substantial decline in sales figures in the past year. Although around half of the injection molding machines are still sold in China, the number of machines sold last year decreased by 4.6%. Chinas modest depreciation of the yuan against the US dollar and the uncertain forecast of the global economy led to shrinking demand for injection molding machines. The Chinese market is in a phase of upheaval: "The times when the entire focus of the Chinese industry was on quantity and high productivity are over," explains Ernst Rumpeltes, author of the study. Interconnection also expects a further decline in sales for the region of China and Taiwan in 2017 and 2018.

North America is the growth driver

While China’s share of the world market for injection molding machines is declining, North America’s shares (USA and Canada) is increasing. Sales growth in 2016 amounted to 5.5%. Also in the following years moderate growth of up to 4% is expected. The automotive sector in particular was a driver for the region and represents the largest customer segment at 35.6%. The packaging industry and the medical sector also rank rather high. In total, electrically-powered injection molding machines in this region were able to expand their market dominance with a share of more than 50%.

Central and Eastern Europe as growth guarantors

In Europe sales also increased by 4.2% compared to 2015. By 2019, the industry is expected to keep up with the annual average growth of 4.3%, whereas the market in Central Europe, followed by Eastern Europe and Asia Southern Europe exhibit the largest growth rates. Overall, the market volume for injection molding machines amounted to 2.35 billion Euros last year. The largest growth in Europe is generated by electric injection molding machines (+ 5.9%), followed by hybrid models (+ 4.5%). Although hydraulic models are losing ground, they are still the largest product segment.

India: the growth emperor

India is the market with the greatest growth potential. One reason for this is, apart from strong general economic growth, the exploding number of car models (the number of car models is expected to triple between 2008 and 2020), which explains India’s huge demand for injection molding machines. Overall, the market volume for injection molding machines in India rose by 9.1% last year. The Latin American market is stable and grew by 2.6% last year. There, the packaging industry, with a share of 22.2%, purchased the most injection molding machines.

The automotive industry is number one

30.4% of all injection molding machines worldwide are used in the automotive industry, which seems to have recovered after a difficult period and is helping to stabilize the industry. Other important fields of activity are electronics with 21.8% of sales and the packaging industry with a 16.1% share. However, the field of medical technology has the largest growth in sales. The global share in this segment is growing steadily and already accounts for 10.2%. The top 10 companies (Arburg, Engel, Fanuc, Haitian, Japan Steelworks, Krauss Maffei Group, Milacron Group, Nissei, Sumitomo, Toshiba Machine) account for about 65% of the total market. Particularly in the emerging markets of East Asia and South America new suppliers for injection molding machines are emerging. Established companies from Europe and America are therefore compelled to maintain their market positions in the overseas markets by focusing on offering quality and sustainability, explains Rumpeltes. Overall, the European share of the overall market volume of the industry amounts to 13.6%, whereas in North America it totals 4.3%. China and Taiwan, on the other hand, are the lonely leaders with a market share of 48.4%.

2017-01-23 13:20:33

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting

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