The global market for extrusion machinery grew by 4.7% in volume last year and will continue to achieve stable growth in the coming years. For example, growth is expected to continue at more than 4.5% annually until 2025, according to a study by Interconnection Consulting.

In 2020, the industry suffered greatly from the effects of COVID. In the process, market volume declined by 0.7% in global volume terms. In the meantime, the momentum of the 2021 catch-up process has slowed down a bit again. The forecast global growth up to 2025 is 5.9% per year.

Europe Falling Behind

China & Taiwan continue to act as the growth driver for the entire industry, with average annual growth of 7.1% up to 2025. The market volume in this market region is EUR 1.7 billion, making it the largest submarket examined. India shows even stronger dynamics with average growth rates of 8.1% until 2025, but with a yet still small market volume of around 170 million euros. North America will also show strong growth in the next few years from today’s perspective, with growth rates of around 5% in volume. The current market volume is around 500 million euros. In Europe, we will have to be content with smaller growth. The rising cost of energy and raw materials, as well as uncertainty in supply chains due to the Ukraine war, will cause investments to decline, which will also reduce demand for extrusion machinery, as Yuliia Hrebenkova, the author of the study, explains. However, with these developments, Europe is also losing significant market share to North America and China.

Sheet vs. Pipe

Sheet extrusion machinery is the top-selling product group, accounting for 32% in value. One reason for its popularity is the universal application of these machines in growing industries, such as packaging and medical, as well as construction and advertising.  In comparison, machines for window profiles are used only in the construction industry. Pipe extrusion machines are the leading product group in volume, with a share of 31%, mainly due to the low price as well as a dynamic global construction industry. There is a large difference between regions in terms of market share for each product segment. In Europe, pipe extrusion leads (35%) ahead of window profiles (31.7%) in China, sheet extrusion leads (30%) and in the USA & Canada, pipe extrusion leads ahead of sheet extrusion (37 and 16% respectively).

High Market Concentration

The total global market volume in 2022 in the global core markets was around 4.4 billion euros. The market for extrusion machinery shows a high level of competitive concentration… The seven largest manufacturers share around 60% of the total market. The study examined the following markets: China & Taiwan, India, South Korea, Japan, Latin America, USA & Canada, France & Benelux, Eastern Europe, Central Europe, Northern Europe, Southern Europe.

07/08/2023

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