Research Report on Southeast Asia Machine Tools Industry 2023-2032
A machine tool is a power unit used to machine a workpiece and is an important piece of equipment in the manufacturing process of mechanical parts. Machine tools can generally be used as other tools for forming, cutting and joining. According to CRI's analysis, Southeast Asian countries generally have the problem of weak basic industries, so machine tool products mainly rely on imports, such as low-end machine tools from Asian countries, high-end machine tools from developed countries. There are a large number of machine tool dealers in the Southeast Asian market, importing machine tool products from abroad and reselling them to local enterprises in Southeast Asia.
Southeast Asia in this report includes 10 countries: Singapore, Thailand, Philippines, Malaysia, Indonesia, Vietnam, Myanmar, Brunei, Laos and Cambodia. With a total population of over 600 million by the end of 2021, Southeast Asia has an overall economic growth rate higher than the global average and is one of the key drivers of future global economic growth.
According to CRI's analysis, the economic levels of the 10 Southeast Asian countries vary greatly, with Singapore being the only developed country with a per capita GDP of about US$73,000 in 2021. While Myanmar and Cambodia will have a GDP per capita of less than US$2,000 in 2021. The population and minimum wage levels also vary greatly from country to country, with Brunei, which has the smallest population, having a total population of less than 500,000 people in 2021, and Indonesia, which has the largest population, having a population of about 275 million people in 2021. The most economically advanced countries in Southeast Asia do not have a legal minimum wage, with the actual minimum wage exceeding US$400 per month (for foreign maids), while the lowest minimum wage level in Myanmar is only about US$93 per month.
With the development of manufacturing industry in Southeast Asia, there have been gradually foreign enterprises to set up machine tool manufacturing enterprises in Southeast Asia to reduce costs and better occupy the Southeast Asian market, or export to other regions.
Overall, according to CRI forecast, the size of Southeast Asian machine tool industry will maintain growth from 2023-2032. On the one hand, the lower operating costs in Southeast Asian countries attract global machine tool companies to shift production capacity to the region. On the other hand, with the development of manufacturing industry in Southeast Asia, the demand for machine tools in Southeast Asia is also growing.
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