Global Recovery Not Expected Until 2025

Global Recovery Not Expected Until 2025

Worldwide profile machinery market, which experienced slight growth in 2023, is set to face serious stagnation in 2024, despite a slight increase in total market volume from EUR 1.02 billion to EUR 1.03 billion. The minimal growth is overshadowed by the challenging economic climate, driven by the war’s impact and inflationary pressures, leaving the market stuck in neutral. According to a recent study by Interconnection, a 3.3% global recovery isn’t anticipated until 2025, offering little immediate hope for the industry.

Soaring Prices Crush Investment Sentiment

The profile machinery sector, especially for profile bar machining centres, has been hit hard by rapidly rising prices, with some industry leaders hiking prices by 15% during 2022-2023. The sharp price increases have stalled demand, with profile bar machining centres still accounting for 47% of the total market value in 2023. Other segments, like cutting machinery (20%) and screwing and drilling machinery (just 2%), are faring even worse, facing anemic demand.

Despite Central Europe’s dominance, holding 26% of global market sales, the region is unlikely to experience any real recovery until 2025. Rampant inflation, high-interest rates, and a lack of governmental support have created a toxic investment environment across Europe, mirroring the situation in Germany.

Aluminium Takes Over as Other Materials Struggle to Compete

In 2023, aluminium machinery dominated the profile machinery market, accounting for 56% of global sales, and this trend shows no signs of slowing. With EUR 878.4 million in total sales across PVC, steel, and aluminium equipment, the aluminium segment continues to grow due to its superior material properties — lightweight, corrosion-resistant, and highly recyclable. Aluminium’s sustainability and versatility make it a top choice in construction, automotive, and aerospace industries, pushing its demand far ahead of competitors like PVC and steel.

The Americas are leading the charge, with 67% of the market dominated by aluminium machinery, while Europe maintains over 50%. PVC’s demand fluctuates with the construction industry, and steel machinery remains niche due to its heavier weight and lower recyclability, struggling to gain traction despite some companies investing in its future.

A Grim Outlook Until 2025

Despite minor growth in 2023 and 2024, the CAGR for profile machinery until 2027 is expected to hit 2.9%, with PVC machinery sales projected to reach EUR 404.5 million. Steel equipment remains a niche market, though some industry players are making small, forward-looking investments.

Aluminium’s continued dominance, driven by its widespread use and eco-friendly appeal, will keep it at the forefront of the market, securing over 50% of sales through 2025 and beyond. However, for the industry to truly break free from its stagnation, major economic shifts are required, alongside global recovery efforts expected in 2025.

Market Concentration Poses Challenges

The global profile machinery market remains highly concentrated, with just a handful of companies controlling most of the sales. European giants like Voilàp, FOM, Urban, Graf, Rotox, Schirmer, and Stürtz dominate, yet they reported a difficult 2023. The situation is mirrored outside Europe as well: Turkish companies Kaban, Murat, and Yilmaz are making moves into Latin America and Africa, while maintaining a strong grip in the Middle East. Meanwhile, APAC manufacturers like Tianchen and Parker are emerging as global forces after years of dominating their local markets.

The USA, typically a promising market, is also showing strength with local producers like Joseph and Pro-Line, though the current global climate has impacted even this market’s potential.

Conclusion

Despite 2023’s initial growth surge, the profile machinery market is in deep trouble. Spiraling costs, weak investment sentiment, and harsh economic conditions have left the sector on life support. Until 2025’s projected recovery, driven largely by aluminium demand, the market will remain in a holding pattern, with only slight incremental growth expected. The future of the industry depends on global economic stabilization — and time is running out.

20/03/2024

Copyright: Interconnection, free of charge for publication in the context of reporting on the study mentioned and IC Consulting.

Link to the report

20/09/2024

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

Allison Carranza

> Learn more about Allison Carranza

Allison Carranza is a market analyst for the plastic machinery and facade paint industries. She is an expert in market forecast models. In addition to her analytical skills, her international customers benefit from her perfect language skills such as English, Italian and Spanish. Ms. Carranza studied economics and cultural economics in Rome.

Contact me without obligation, I support you gladly!

Tel:+43 1 585 46 23 - 50

E-mail:carranza@interconnectionconsulting.com

Inquiry

Leading Companies trust in Interconnection Consulting

Admonter

At the IC Impulsworkhop "Sales Optimization" we appreciate not only the practical relevance, but also the eloquent language and the perfect rhetoric. The most important benefit for our company was the sales pipeline. Adrian Capellarie (Head of Sales Admonter Holzindustrie)

Deutscher Holzfertigbau Verband

Interconnection provides us with the prefabricated house study a plausible and veritable data basis for the analysis of the actual situation in the prefabricated house market and beyond for the assessment of the future market development. We are happy to use this interpreted data for our lobbying and everyday work.

Thomas Schäfer (Managing Director, Deutscher Holzfertigbau-Verband)

ELK

The prefabricated housing study by Interconnection Consulting shows a real picture of the actual market situation and forms a valuable basis for our strategic decisions.

Gerhard Schuller (CFO ELK)

Epson

EPSON is satisfied with the Interconnection's way of communication with the market and with clients. EPSON is also appriciate the Interconnection's continuous work trying to aim the report to be at the higher level. As a result, EPSON rely on Interconnection data, for the market of POS Printers and Systems.

T.Murakami (Brand Management, Seiko Epson Corporation)

Gaulhofer

I appreciate on the forum "Impulsworkshop Vertriebsoptimierung" the practical relevance of Peter Berger linked with his practical examples. I also liked the sovereign presentation style. The most important benefit was for me, on the one hand refresh of methods and also the sales management tools that were shown. Ing. Dietmar Hammer (Head of Product Management Gaulhofer)

Kontron

The most important benefit of the Impulsworkshop "sales optimization" was in my view the procedure of the definition of strengths and the entire sales process. Mr. Berger is very competent and professional. Fabian Freund (Sales Manager, Kontron Austria)

Österreichs Personaldienstleister

The sales management tool "Jobs Intelligence Austria" has become indispensable for many Austrian temporary staffing providers for fast and correct strategic management decisions as well as a daily support tool for hot leads for the sales team. Interconnection Consulting has consider individually to all user needs during development process and also convinces with fast response times during operation.

Dr. Gertraud Höltl (Generalsekretärin Österreichs Personal Dienstleister)

Saint Gobain

Long experience and deep understanding of the construciton industry markets make up the quality of the IC studies. Interconnection Consulting is a constant companion concerning the assessment of markets and helpful for decision-making.

Bernd Blümmers (Directeur General, Saint-Gobain Solar Systems, Central Europe, Aachen)

Salamander

Interconnection Consulting reports deliver a worthfull external perspective and are so a good contrast with regards to our internal market point of views.

Pedro Posada (CEO Salamander Industrial Products Spain)

Scandinavian Business Seating

The IC Report gives a very good overview of the Western European office furniture market, in a well-structured way. The data is helpful to better understand the market developments and drivers.

Beatrice Sotelo (Director Business Development , Scandinavian Business Seating)

Schneider Electric

Under a short time constraint, Interconnection was able to deliver an outstanding study that exceeded my expectation in terms of quality and market breadth. I highly recommend Interconnection to anyone in need of market research.

Jeff Canterberry (Director of Strategy and M&A, Schneider Electric)

Sodexo

When developing new market strategies, Interconnection is a trusted source we always come back to. Christian Frey (Marketing Manager CS DACH)

Do not hesitate to contact us

Please describe your needs or request a callback. We look forward to hearing from you and contact you immediately.

By submitting the request, you agree that your personal data in the database of the Interconnection Consulting Group will be stored until further notice and used for further processing and sending of information. The data will not be shared with third parties.

You can revoke your given declaration of consent with effect for the future here at any time here.