Europe’s machine tool industry is facing a significant downturn, according to CECIMO, the European Association of Manufacturing Technologies. The sector has been hit in recent years by global instability, trade barriers, weakening demand, and supply chain disruptions. Industry experts warn that without strong policy measures, Europe could lose its leading position in advanced manufacturing and technological innovation.
For many years, the European machine tools sector has been a driver of competitiveness, innovation, productivity and technological progress generating positive spillover effects across the entire manufacturing ecosystem. The sector has supported high-skilled employment, strengthened European industrial value chains, and contributed significantly to Europe’s economic growth and resilience.
However, during the last years, a combination of unprecedented crises as the pandemic, economic slowdown, inflationary pressures, geopolitical instability, supply chains disruptions, trade tensions, stronger competition emerging from China and increasing uncertainty levels have negatively affected the European MT sector undermining its global position, stability and long-term prospects. Despite its resilience and adaptability, the pressure now facing European machine tool manufacturers is jeopardizing their endurance and capacity to absorb shocks and maintain global competitive advantage.
Economic uncertainty and weakening demand have had a significant impact on production and investment. The business sentiment among European machine tool builders has remained negative since Q2 2023, accompanied by a rising level of uncertainty. Machine tool production decreased by 9.2% in 2024. Expectation for 2025 project a further production drop of around 8.5%. When examining the European machine tool (MT) market shares, a decline has been observed since 2023. Current estimates place Europe’s share of the global machine tool (MT) market at 31%, down from 37% in 2019.
Similar patterns are observable when looking at consumption levels. European machine tool consumption dropped by 17.1% in 2024 and it is anticipated to decline by 5.2% in 2025. Since 2023, the market share of European machine tool builders in global consumption has declined, reaching an estimated level of 20.8% in 2025, compared with 25.2% in 2023.
The negative outlook becomes evident when analysing the annual averages of the Domestic and Foreign, orders indexes for the CECIMO8 countries (Austria, Czech Republic, France, Germany, Italy, Spain, Switzerland, and the United Kingdom). In particular, the yearly averages of these indicators decreased by 18% and 8% in 2023 compared to 2022. Additionally, the index averages decreased further in 2024 by 12% and 16%, confirming the downward trend across all market segments. In line with the downward trends observed in domestic and foreign orders, the CECIMO8 Total Order Index registered a further decline in 2023 and 2024, according to yearly averages, respectively by 11% and 12%.
Furthermore, the results of the CECIMO Investment & Competitiveness Survey highlighted how global instability, trade barriers and weaker demand have worsened the competitive position of MT builders in non-EU markets. At the same time, higher costs, administrative burdens, and limited access to financing are limiting investment in innovation and modernization, leaving MT companies less able to adapt to global competition or accelerate digital transformation.
“Europe’s manufacturing backbone is under pressure” said Filip Geerts, CECIMO Director General. “If we don’t act decisively, we risk losing our leadership in machine tool technologies to global competitors within the next few years”, he concluded.
“The sector’s decline represents not only a threat to its own survival but also a risk to Europe’s manufacturing competitiveness and technological sovereignty.” said Francois Duval, CECIMO President.
European machine tool builders play a key role in supporting the European industrial ecosystem. By driving reindustrialisation and technological upgrading, European manufacturing technologies generate positive spillover effects across the manufacturing base, strengthening the competitiveness and economic resilience of downstream sectors and the broader economy. Therefore, CECIMO urges national and European institutions to reinforce their support for the manufacturing technology sector, recognising its strategic importance within the industrial value chain and its essential contribution to innovation, productivity, and technological progress across Europe. Immediate and coordinated action is needed to safeguard the continent’s industrial future, preserve its technological leadership, and ensure that Europe remains a global hub for advanced, sustainable, and resilient manufacturing.
