Guoyuan Securities: Industrial mother machine market continues to grow, policies and technology drive industry development

The Zhitong Finance App learned that Guoyuan Securities released a research report saying that demand in the machine tool market continues to grow, and the scale of the global machine tool market continues to expand. The international machine tool market presents a “pyramid” structure. The spire is represented by developed countries such as Germany and Japan. According to 2024 data, China is steadily the world's largest producer and consumer of machine tools. There are many players in the domestic market, and Chinese enterprises are developing steadily. The import and export structure has been optimized, and the value drive has been highlighted. The traditional “low-end overseas, high-end introduction” model for machine tools in China is gradually changing.

Guoyuan Securities's main views are as follows:

Industry Overview: 100 billion market, innovation drives development

Industrial mother engines play an important role in the modernization of the national economy. An industrial mother machine, also known as a machine tool, is a machine that processes blanks or workpieces of metal or other materials to obtain the required geometric shape, dimensional accuracy, and surface quality. Demand in the machine tool market continues to grow, and the global machine tool market continues to expand. According to Precedence Research data, it is expected to reach approximately US$185.76 billion by 2035. Numerical control of machine tools has become an industry trend. In particular, high-end CNC machine tools are expected to develop rapidly. With the development of electronic information technology, the current machine tool industry has entered an era of mechatronic integration with products represented by CNC machine tools. The industrial mother machine industry chain includes upstream core component supply, midstream machine tool manufacturing, and downstream terminal applications. Domestic production is rapidly rising in the midstream, while the upstream core and high-end markets are still dominated by foreign countries. The international machine tool market presents a “pyramid” structure. The spire is represented by developed countries such as Germany and Japan. According to 2024 data, China is steadily the world's largest producer and consumer of machine tools. There are many players in the domestic market, and Chinese enterprises are developing steadily.

Development trends: policy dividends continue to be released, technological innovation builds advantages

Policy dividends continue to be released, and China's machine tool industry ushered in a period of strategic opportunity. In recent years, the national level has introduced a series of clear and unprecedentedly strong support policies around “industrial mother machines”, injecting strong impetus into the development of the machine tool industry, especially high-end CNC machine tools. The policy focus has shifted from supporting “machine tools” as a whole to accurately supporting key areas of shortcoming. The trend of technological substitution is clear, and the localization substitution process is accelerated. Products evolve to intelligence, and complex and integrated coexist. The import and export structure has been optimized, and the value drive has been highlighted. The traditional “low-end overseas, high-end introduction” model for machine tools in China is gradually changing.

Related targets

It is recommended to focus on Haitian Precision: a leader in the localization of high-end CNC machine tools, technological upgrading drives long-term growth; Neway CNC: a technology-driven domestic machine tool company; Genesis: a high-end intelligent equipment business, and the steady improvement of technology R&D and innovation capabilities.

Risk Alerts

Risk of delayed policy implementation; risk of macroeconomic and downstream demand fluctuations; risk of technological upgrading and market competition; risk of supply chain security; risk of international market expansion and geopolitical risk.