On the production side and the consumer side, China's machine tools are the world's largest players. According to the 2022 global market report released by VDM German Mechanical Industry Network, the total output value of the global machine tool industry in 2022 is about 80.3 billion euros, and China ranks first in the world with an output value of 25.7 billion euros, accounting for 32% of the global market, followed by Japan and Germany, with output values of 9.9 billion euros and 9.7 billion euros respectively, accounting for 12% and 12% of the global market. The global machine tool industry CR5 is as high as 71%, reflecting the high concentration of the global machine tool manufacturing market. In 2022, the global machine tool industry consumption is 80.8 billion euros, and China also ranks first in the market with a scale of 26 billion euros, followed by the United States and Germany, with consumption of 9.7 billion euros and 5.2 billion euros respectively, accounting for 12% and 7% of the global demand market, and the demand of the first three countries has occupied half of the global machine tool consumption. In the past five years, China has always maintained the leading position at both ends of the supply and demand of the global machine tool market, and in 2022 it will still maintain a rapid growth of output value of 18% year-on-year and consumption growth of 10% year-on-year.
The long-term trade deficit of China's machine tool industry is gradually shrinking, marking that domestic machine tools are gradually moving towards self-controllable and domestic substitution. For a long time, China's machine tool import and export market has shown a growth trend year by year, since the beginning of 2019, affected by the trade conflict, China's import market has a certain degree of decline, starting in 2020 Due to the impact of domestic economic environmental problems, China's machine tool import and export markets have further declined. Subsequently, until 2022, on the one hand, the domestic machinery industry chain began to move towards independent and controllable domestic substitution, and reaped certain results, on the other hand, China and even the global market were gradually fulfilled by the demand for public health and safety incidents, and the export volume was rising. It can also be seen from the trade deficit in the import and export market that since 2018, the trade deficit has declined year by year. The rapid improvement of the domestic machine tool manufacturing level has gradually reduced the external dependence of high-end machine tools, and the situation of maintaining a large trade deficit in the machine tool market for a long time has been reversed, and by 2022, the import and export trade balance of the machine tool market has narrowed to 274 million euros. The recovery of the machine tool industry in the first quarter of 2023 is a positive indication of the subsequent recovery of demand this year.