In 2024, the global economy continued to face challenges from geopolitics, regional wars, and financial turmoil, leaving the machine tool industry in an uneasy environment. Furthermore, factors such as government controls on exports to Russia and Turkey, the yen's depreciation exceeding that of the New Taiwan Dollar, and the gradual unfolding of the effects of China's Ministry of Commerce suspending the ECFA early harvest list contributed to a third consecutive year of decline in both export and production value, further complicating the industry's future development.
If 2024 can be described as a major election year, then 2025 will be a year of transition. In early 2024, governments around the world successively elected new leaders who, upon taking office, immediately faced severe economic, social, security, environmental, and technological challenges. While these issues could have been addressed one by one in the past, their simultaneous emergence amidst a turbulent geopolitical landscape has multiplied their complexity. Looking back, the previous golden age of trade appears to have ended. In 2023, global trade in goods contracted by approximately 2%, a higher rate of decline than any other period in this century outside of global economic recessions, making current supply chain management even more challenging. Major shipping routes, from the Red Sea to the Baltic Sea, have descended into chaos, while tensions in Northeast Asia, across the Taiwan Strait, and in the South China Sea have gradually escalated, introducing greater uncertainty into shipping and logistics.
In 2023, the global machine tool market faced weak demand due to inflation, interest rate hikes, and China’s slower recovery, while geopolitical risks further dampened investment. Global consumption totaled about $79 billion, down 5%. China remained the largest consumer despite a 9.6% decline, while the U.S. grew 8.2%, and Mexico and Turkey showed strong gains. Production slightly decreased overall, with Germany, the U.S., and Spain growing, but China, Japan, and Taiwan declining. Germany, China, and Japan led exports; the U.S. and China topped imports. Future demand will focus on net-zero emissions, smart technologies, and digital and green transformation.
The Southeast Asian EV market is growing rapidly, driven by global decarbonization trends and government policies. By 2035, sales are projected to reach 8.5 million units, with an ecosystem value of $8–12 billion. Thailand and Indonesia are key investment hubs—Thailand attracts foreign manufacturers through incentives, while Indonesia leverages its nickel resources to develop battery supply chains. Chinese players like BYD dominate Thailand’s market, highlighting the importance of localization and policy support. Taiwanese firms entering the region should consider geopolitical risks and learn from Chinese strategies to strengthen their New Southbound initiatives.
