CECIMO examined the challenges the sector will face in 2026 and discussed future risks and opportunities, in a context still characterized by political and economic uncertainty.
Economic situation and prospects
In 2025, the European machine tool sector continued to face a challenging economic environment, with weak demand and increased global competition putting pressure on CECIMO member companies. European machine tool production is estimated to have decreased by approximately 6.6% compared to 2024, reaching €23.5 billion, demonstrating that the slowdown has yet to ease.
This trend is also impacting Europe's position in the global market. In 2025, Europe's share of global machine tool production fell to approximately 30.8%, almost 2 percentage points less than the previous year. This trend is particularly worrying when compared to 2023, when Europe accounted for 33.4% of global production. This means that Europe has lost almost 3 percentage points of global production share in just two years, indicating a gradual erosion of its "industrial position."
Furthermore, the European machine tool market showed clear signs of weakening when considering consumption levels, which decreased by 3.7% compared to 2024, reflecting lower demand across European countries. Trade flows also declined: exports by European machine tool manufacturers decreased by 8.8%, while imports fell by 4.2%. The main export destinations for European machine tool manufacturers (excluding Europe) are the United States, China, and India. At the same time, when looking at European machine tool import flows, Japan, China, and South Korea continue to be the most significant suppliers.
Overall, these developments confirm that the sector has been operating in a challenging economic environment, impacted by slowing investment, persistent uncertainty, geopolitical tensions, and weakening momentum in both European and global markets. Taken together, these factors have reduced demand for machine tools and negatively impacted the operating conditions of CECIMO members.
A similar picture emerges when looking at the order levels of the CECIMO8* index. Domestic orders decreased by approximately 1.7% in 2025 compared to 2024, marking the third consecutive year of contraction. By contrast, foreign orders increased by 1.2% over the same period, marking the first year of growth after two consecutive years of decline.
CECIMO's projections for 2026 indicate a modest improvement after two consecutive years of declining production and consumption in the European machine tool sector. Consumption and production levels are expected to increase in European countries, suggesting a possible stabilization. CECIMO's estimates for orders indicate an improvement in overall order volumes in the CECIMO8 index countries in 2026. However, this outlook remains fragile and exposed to external shocks and general market conditions and should therefore be interpreted as a transition phase rather than a full recovery.
The sector will continue to operate in a highly uncertain environment, characterized by geopolitical tensions and conflicts, trade risks, potential tariff measures, energy market volatility, and weak investment dynamics in major European economies. Since European machine tool manufacturers remain highly exposed to international trade and industrial investment cycles, any deterioration in these conditions could limit the expected recovery and potential future recoveries.
At the same time, CECIMO sees potential support from positive spillover effects related to public investment and strategic sectors such as defense, aerospace, electrification, artificial intelligence technologies, and advanced engineering. These sectors could help support demand for advanced and high-precision manufacturing solutions, but their impact will depend on timely implementation and avoiding further delays.
A stable trade environment, increased industrial investment, and effective policy measures could mark the beginning of a gradual recovery for the European machine tool sector. Without these conditions, Europe risks further weakening its position in machine tool technologies, while global competitors continue to strengthen their industrial capabilities.
"The current situation confirms that Europe cannot take its industrial leadership for granted. European machine tool manufacturers continue to operate in a challenging environment, characterized by declining demand, persistent global uncertainty, and growing competitive pressure. While some opportunities may emerge in strategic sectors, Europe needs a stable policy framework, increased industrial investment, and faster implementation of measures to support advanced manufacturing," commented François Duval, President of CECIMO.
Made in steel 2027: exhibition space sales open
Registration is now open for the twelfth edition of the international Conference & Exhibition dedicated to the steel industry. In a European market that is showing signs of stabilization after difficult years, the event confirms itself as a strategic platform for business and discussion between operators in the sector. The exhibition space sales campaign for Made in Steel 2027 , the international event dedicated to the steel industry, has officially begun. Scheduled for May 11, 12, and 13 at Fiera Milano , the event is organized by siderweb in conjunction with Fiera Milano. Interested companies can reserve their space at an event that, year after year, has established itself as an international reference point for steel producers, distributors, traders, service centers, processors, and users. An "Early Bird" option will also be available for exhibitors who book by June 19. The twelfth edition of Made in Steel presents itself with a renewed layout and expanded spaces in pavilions 8, 12 and 16 , designed to welcome an ever-increasing number of companies and promote visibility, networking and business opportunities along the entire steel supply chain. Following the growth of the 2025 edition, which attracted over 19,000 attendees and nearly 400 companies from all over the world, Made in Steel is looking to 2027 with the aim of further consolidating its role as a European platform for discussion, innovation, and development for the sector. "The opening of sales represents the first step towards an edition that aims to position the Italian steel industry in an even more international and business-oriented context," said Made in Steel CEO Paolo Morandi. "In a period of profound transformation for the European steel industry, the biennial event aims to be a place where companies, institutions, and stakeholders can meet to develop new growth opportunities and jointly address the challenges of competitiveness and industrial transition." In addition to the exhibition area, Made in Steel 2027 will also offer a rich program of conferences, round tables, and in-depth discussions dedicated to key topics in the steel industry: market dynamics, regulations, technological innovation, sustainability and the circular economy, geopolitics, and industrial competitiveness. The market context: between first signs of recovery and new competitive challenges The opening of registrations for Made in Steel 2027 comes at a particularly significant time for the European steel market. After three consecutive years of declining demand, the sector is showing signs of stabilization, despite a still highly uncertain environment. According to Eurofer's latest Economic and Steel Market Outlook, apparent steel consumption in the European Union is expected to return to growth in 2026, albeit at a moderate pace, supported by a gradual improvement in industrial activity and investment. However, demand levels remain lower than those recorded before the pandemic, and factors such as high energy costs, geopolitical tensions, and growing competitive pressure from non-European imports continue to weigh on demand. In Italy, the European Union's second-largest steel producer after Germany, companies in the supply chain are undergoing a transition phase that requires significant investments in energy efficiency, digitalization, and decarbonization. At the same time, strengthening strategic sectors such as construction, infrastructure, energy, and advanced manufacturing could help sustain demand in the coming years. Made in Steel is the international conference and exhibition dedicated to the steel industry. It is organized by siderweb - the steel community alongside Fiera Milano. Made in Steel is a conference and exhibition. It offers opportunities for business and reflection, networking and learning. It is both an exhibition showcase and a cultural hub that, with conferences, forums, and roundtables, aims to foster competitive collaboration and the exchange of information, essential elements for business growth. Since 2023, Made in Steel has been certified for sustainable event design and management according to the ISO20121 standard. siderweb - The Steel Community is the only online publication in Italy dedicated entirely to the steel industry. It is a point of reference for industry professionals, thanks to its simple style, focus on in-depth analysis, and objectivity. Since 2009, it has been tracking the prices of raw materials and steel products on the national market every week, now numbering over 60, using a method certified by the Laboratory of Statistics, Data, Methods, and Systems at the University of Brescia. Since 2022, it has published five weekly indices for scrap, carbon steel, long and flat products, and stainless steel. Since 2005, it has organized Made in Steel, the international Conference & Exhibition dedicated to the steel industry, and structured its contents: conferences, interviews, and outlooks.
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