Frost & Sullivan: APAC increases production investment

With middle-class consumer purchasing on the rise Manufacturers are investing in new production facilities to meet escalated demand. As a result of this increase of production plants and machines, there has been an drive in a requirement for machine tools. An analysis by Frost & Sullivan predicts that this will push the machine tool market in Asia-Pacific to grow at a compound annual growth rate of 2.2% between 2018 and 2023, reaching US$10bn in revenue. Business expansion strategies and plant localisation of end-user industries are set to drive the growth of the machine tool industry in the APAC region, commented Divya Saiprasad, Principal Consultant, Industrials at Frost & Sullivan. The rise in demand for machine tools can be attributed to the increase in the production of auto components and growth of the automotive industry.