According to forecasts from multiple international research institutions, global and major economies are expected to maintain steady growth in 2026. Signs of easing tensions emerged from the fifth round of trade negotiations between the United States and China in Malaysia, while supply chain relocation continues to drive economic expansion in ASEAN countries. These factors are likely to boost global manufacturing investment confidence and, consequently, increase demand for machine tools. However, uncertainties such as the Russia-Ukraine war, Middle East conflicts, geopolitical tensions between India and Pakistan, Thailand and Cambodia, deteriorating China-Japan relations, and potential renewed trade sanctions between China and the United States may still affect global economic performance in 2026. The following sections analyze major economic and trade policies in key countries closely linked to Taiwan’s machine tool industry, either as important markets or major competitors.

India, Southeast Asia, Central and Eastern Europe, and Latin America are emerging as high-potential export markets for Taiwan’s machine tool industry, driven by global supply chain restructuring and manufacturing relocation. India and Southeast Asia benefit from rapid industrial expansion and foreign investment, while Central and Eastern Europe attracts European manufacturers seeking cost-efficient and resilient supply chains. Latin America, particularly Mexico and Brazil, gains momentum from nearshoring and automotive industry growth.

In 2025, the global manufacturing sector shows moderate growth with structural divergence. The machine tool industry is gradually recovering from its downturn, with growth driven mainly by aerospace, semiconductors, precision components, and smart manufacturing upgrades. In 2026, the recovery is expected to continue at a steady pace, led by five-axis machines, high-speed and high-precision equipment, hybrid and additive manufacturing, and AI-enabled smart machines. Emerging manufacturing hubs such as India and Southeast Asia will remain key export growth engines.

The EMO Hannover 2025 exhibition in Germany is one of the most influential international trade shows in the global machine tool industry. This edition marked the 50th anniversary of EMO, with the theme “Innovate Manufacturing.” The exhibition focused on forward-looking trends including automation technologies, artificial intelligence (AI) and digital transformation, green manufacturing, and process integration, showcasing the technological evolution and strategic adjustments of the global machine tool industry in response to emerging challenges.

EMO Hannover 2025, marking its 50th anniversary, centered on "Innovate Manufacturing" through automation, sustainability, and digitalization. To combat labor shortages, leading manufacturers showcased flexible automation modules integrating AGVs and robotic arms. Digital transformation highlights included Digital Twin technology for real-time collision prevention and virtual validation. Generative AI emerged as a pivotal "Smart Assistant" (e.g., Copilots), streamlining programming and lowering learning curves for operators. Additionally, emerging materials like mineral casting were featured to enhance thermal stability. For Taiwan’s industry, integrating AI and advanced materials is essential to pivot toward high-end markets and overcome global competitive pressures.

Since 2016, government initiatives promoting “Smart Machinery” and “Smart Manufacturing” have accelerated the adoption of AI, IoT, and 5G technologies. This transformation aligns with global manufacturing trends toward “high-mix, low-volume, and mass customization.” While flexibility and intelligence bring unprecedented productivity gains, they also expose valuable digital assets and production equipment to the risks of full connectivity. Taiwan, positioned at the frontline of global cyber warfare, has become a hotspot for hacker attacks. Cybersecurity must advance in parallel to ensure the resilience of our industrial champions.

explores how Taiwan’s machine tool industry can reshape talent cultivation by learning from German experiences. Through the ViVA 4.0 cross-border dual system and the national INex-ÜBA inter-company smart training project, Germany demonstrates the core values of "human-machine collaboration" and "resource sharing." The study suggests that Taiwan should leverage its industrial clusters to build a localized smart manufacturing talent ecosystem and develop transnational training mechanisms to enhance its global supply chain competitiveness.

Since its 1989 transition, Poland has emerged as a leading economy in Central and Eastern Europe through "shock therapy" reforms, EU membership, and a resilient domestic market. Its industrial landscape is evolving from traditional manufacturing (home appliances, furniture, automotive) toward ICT, green energy, and business services (BPO). Once dubbed the "back garden" of German industry, Poland is now a strategic outpost for Western energy diversification and nearshoring. Amid global supply chain restructuring, Taiwan-Poland cooperation is deepening beyond electronics into semiconductors, AI, and green tech, fostering a mutually beneficial strategic partnership.