Internal Gear Skiving Machine Market Size & Outlook, 2026-2034

Internal Gear Skiving Machine Market Overview

The global internal gear skiving machine market size is valued at USD 164.7 million in 2025 and is projected to reach USD 341.5 million by 2034, growing at a CAGR of 8.4% during the forecast period. Steady market expansion is driven by the rising adoption of high-precision gear manufacturing technologies, where internal gear skiving significantly reduces cycle times, improves gear accuracy, and enables complex internal geometries that traditional methods struggle to achieve. These performance advantages are encouraging automotive, aerospace, and industrial machinery manufacturers to shift toward advanced skiving platforms to enhance productivity and meet increasingly stringent quality requirements.

Key Market Trends And Insights

• Asia Pacific dominated the market with a revenue share of 35.27% in 2025.
• North America is anticipated to grow at the fastest CAGR of 9.12% during the forecast period.
• Based on machine type, the Vertical Internal Gear Skiving Machines segment held the highest market share of 54.63% in 2025.
• By automation level, the Fully Automated Skiving Cells segment is estimated to register the fastest CAGR of 9.48% during the forecast period.
• Based on gear size, the Medium (200–500 mm) segment dominated the market in 2025 with a market share of 46.81%.
• By application, the Internal Gear Cutting segment accounted for the largest share in 2025, representing 51.24% of total revenue.
• Based on end-use industry, the Automotive segment held the leading position and is projected to grow at a CAGR of 8.92% during the forecast period.
• China dominates the Asia Pacific Internal Gear Skiving Machine Market, valued at USD 42.8 million in 2024 and projected to reach USD 47.5 million in 2025.

Source: Straits Research

Market Size and Forecast

• 2025 Market Size: USD 164.7 million
• 2034 Projected Market Size: USD 341.5 million
• CAGR (2026-2034): 8.4%
• Dominating Region: Asia Pacific
• Fastest Growing Region: North America

The internal gear skiving machine market encompasses specialized, highly advanced machining solutions for high-precision internal gear manufacturing, including horizontal and vertical skiving platforms, which enable efficient cutting, finishing, coupling production, and rework operations. These machines exist across a spectrum of automation levels, from stand-alone CNC skiving units to integrated systems within multi-tasking centers and fully automated cells.

 Internal gear skiving equipment supports diverse gear size categories: small, medium, and large. This allows the manufacturers to meet various needs of production and accuracy in order to satisfy their customers. The industry caters to a wide spectrum of end-use industries, including automotive, aerospace, industrial machinery, robotics, wind energy, and other engineered sectors, offering technologically driven solutions for improving productivity, reducing cycle times, and driving superior internal gear quality across global manufacturing environments.

Market Trends

Transition from Traditional Gear Processes to High-Efficiency Skiving Ecosystems

The manufacturing internal gears industry is experiencing a considerable changeover from traditional shaping and broaching processes to integrated gear skiving systems incorporating precision machining, digital monitoring, and automated workflows. Traditionally, gear producers relied on sequential processes that used several machines, long setup times, and lengthier throughput cycles, bottlenecking production and boosting expenses in operations. Today, manufacturers adopt advanced internal gear skiving systems that match the precision of CNC machines with automated loading and real-time quality control within a single platform. The capability to cut, finish, and rework without transferring parts through multiple machines enhances consistency and improves overall production flow. Several implementations in automotive and industrial machinery plants have reported notable reductions in cycle time, much greater gear accuracy, and significant improvements in general OEE. This has come to reflect the industry's conscious movement toward a leaner, smarter, highly synchronized environment for manufacturing gears.

Rapid Adoption of Hard Skiving in Precision Gear Manufacturing

A powerful trend that reshapes the market is the accelerating adoption of hard skiving, with manufacturers requesting higher accuracy, durability, and surface quality in internal gears for electric vehicles, aerospace systems, robotics, and high-load industrial gearboxes. In the earlier stages, hard finishing for internal gears relied on grinding and honing processes, which required costly tooling, large footprint machines, and long cycle durations. However, advances in cutter coatings, machine rigidity, thermal stability, and digital compensation technologies allowed hard skiving to emerge as a practical and highly efficient alternative.

This has caused hard-skived gear production to surge, with manufacturers reporting significant improvements in surface finish and reduced rework rates, along with enhanced dimensional stability. As industries move toward lightweight, low-noise, and high-precision transmission systems, hard skiving becomes one of the preferred finishing methods that drives strong equipment demand and establishes a new benchmark for internal gear quality.

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Market Driver

Accelerated Manufacturing Localization Through Government Industrial Policies

A major driving factor in the Internal Gear Skiving Machine Market is the rapid push toward localized manufacturing on the wheels of national industrial policies and investment programs. Brunei, China, India, Indonesia, Japan, Malaysia, the Philippines, South Korea, Thailand, Vietnam, the U.S., and many European countries have introduced large-scale initiatives to expand domestic production of automotive components, aerospace systems, heavy machinery, and precision gear assemblies, directly increasing demand for advanced internal gear machining capabilities.

Several countries have rolled out incentive frameworks under programs akin to China's industrial upgrading strategy, India's Production Linked Incentive schemes, and U.S. reshoring initiatives that support domestic EV and drivetrain manufacturing. These policies are encouraging the OEMs and Tier-1 suppliers to expand local gear production capacity, adopt higher-precision machining technologies, and modernize aging equipment fleets.

Consequently, it is expected that this government-driven thrust toward industrial self-sufficiency will act as a strong catalyst for spiking demand in internal gear skiving machines capable of delivering the needed precision, speed, and flexibility to new national manufacturing standards.

Market Restraint

Regulatory Compliance Burden Slowing Machine Deployment

A major restraint in the Internal Gear Skiving Machine Market is the increasingly strict regulatory and certification demands imposed on advanced machining systems across major industrial economies. Countries have tightened machinery safety, emissions, and operational compliance frameworks through policies aligned with initiatives similar to the updates being carried out for Europe's Machinery Regulation, Japan's Industrial Safety Standards, and North America's enhanced manufacturing equipment certification protocols. These evolving regulations entail time-intensive validation, documentation, and third-party testing for machine builders before machines can be marketed or commissioned. For manufacturers operating in sectors such as automotive, aerospace, and defense, the approval cycle for new internal gear skiving equipment has lengthened due to mandatory conformity assessments, environmental impact checks, and digital system cybersecurity validations. This extended regulatory cycle often delays procurement timelines, slows down production modernization plans, and reduces near-term investment momentum.

Market Opportunity

Demand for Flexible Production Lines on the Rise in Multi-Industry Machining Environments

A major opportunity arising in the Internal Gear Skiving Machine Market is the rapidly increasing need for flexible, multi-application machining environments across industries like automotive, aerospace, robotics, and industrial machinery. Companies are moving away from stiff, single-purpose gear manufacturing lines to more modular production lines that can accommodate several gear sizes, different types of tooth geometries, and various finishing needs within the same manufacturing facility.

The need for internal gear skiving machines has increased due to rising requirements for accommodating shorter product development cycles, frequent design updates, and higher customizations in electric powertrains, precision actuators, and compact industrial gear units. Capable of cutting, finishing, and reworking gears within one consolidated platform, these internal gear skiving machines provide agility to manufacturers in switching between production programs without major reconfigurations. Industry deployments have shown that such flexible skiving systems improve asset utilization significantly, reduce changeover downtime, and enable companies to serve various end-use segments from a single machining cell.

Regional Analysis

Asia Pacific dominated the market in 2025, accounting for 35.27% of total revenue. Such leadership is backed by the strong concentration of gear manufacturing hubs across the region. The high-volume production of automotive transmissions, industrial gear units, and robotics actuators encourages large-scale adoption of internal gear skiving technology. In addition, the region hosts dense clusters of manufacturing units that have a well-established machining ecosystem, which fosters increased deployment of advanced skiving systems, especially for mid-size and high-precision internal gears. Several large industrial groups across the region have also expanded their investments in next-generation machining centers, accelerating the pivot toward flexible skiving solutions capable of fast changeovers and high-mix production. These combined industrial capabilities continue to strengthen Asia Pacific's leading position in the market for internal gear skiving machines.

The domestic market for internal gear skiving machines in China is moving rapidly, with several key drivetrain and industrial gearbox manufacturers scaling up capacity for precision gear production. Many large machining enterprises have upgraded from shaping-based internal gear workflows to fully skiving-driven production lines in order to minimize cycle time and enhance dimensional stability. Increasing demand for compact EV transmission and high-efficiency industrial drives further fuels the adoption of vertical skiving platforms, especially within medium-diameter internal gear production facilities. As companies continue to modernize their production infrastructure and expand machining automation, China is emerging as the most influential country-level market contributor in the Asia Pacific.

North America Internal Gear Skiving Machine Market Insights

North America is positioned as the fastest-growing region, expected to expand at a CAGR of 9.12% from 2026–2034. The region's rapid growth is supported by increasing investments in precision machining capabilities across aerospace suppliers, specialized drivetrain manufacturers, and advanced industrial equipment producers. Many companies are shifting toward internal gear skiving to achieve higher productivity in hardened gear finishing, a critical requirement in high-load aerospace actuator systems and robotic motion assemblies. North America also benefits from a rising number of machining centers upgrading their legacy equipment to multi-tasking platforms with the ability to integrate skiving operations that allow higher throughput and reduced floor-space utilization. These modernization initiatives drive the strong forward momentum of the region.

The U.S. internal gear skiving machine market is growing steadily, while manufacturers in aerospace, robotics, and clean-energy machinery raise their demand for ultra-precise internal gears. A number of high-performance gear manufacturers have installed skiving cells into their production lines to replace older shaping systems, realizing improved tooth geometry consistency and reduced rework rates. Besides, increasing deployment of automation-enabled machining cells across U.S. manufacturing plants has driven the demand for completely integrated skiving solutions, placing the country in a strategic position to be a significant contributor to North America's growth trajectory.

Source: Straits Research

Europe Market Insights

Europe is a mature marketplace for internal gear skiving systems, supported by dense clusters of precision gear manufacturers and a deep network of Tier-1 suppliers across Germany, Italy, and Central Europe. The region's strong focus on drivetrain refinement, noise and vibration reduction standards, and industrial automation has, in turn, encouraged gearmakers to modernize their machining lines and give priority to skiving for high-precision internal geometries. Collaborative centres of excellence and supplier consortia in Europe accelerate the pace of technology transfer between machine tool builders and end users, thus enabling faster commercialization of flexible skiving cells and retrofit solutions. These industrial linkages are collectively driving the adoption of internal gear skiving systems across European manufacturing hubs.

The internal gear skiving machine market in Germany is growing as automotive OEMs and specialized transmission suppliers are increasing local sourcing of precision gears for electrified drivetrains and industrial automation equipment. A significant share of German gear manufacturers is systematically retrofitting legacy shaping and broaching cells to add skiving capability, increasing the part throughput and reducing post-machining rework. Moreover, German machine tool integrators are offering modular skiving along with locally developed quality-monitoring suites and tool-life management services, which facilitate quick ramp-ups in production and reinforce Germany's position as a leading adopter in the region.

Latin America Market Insights

Latin America is an emerging market for internal gear skiving solutions, driven by localized investments in aftermarket gear manufacturing and a growing appetite among regional OEMs for higher-value domestic suppliers. Regional gear shops increasingly move away from imported finished components to in-country machining to shorten lead times and improve supply resilience. This transformation has created demand for compact skiving platforms and retrofit packages suited to smaller floorplates and mixed-production schedules, enabling regional manufacturers to capture higher-margin gearbox work previously sourced from abroad.

In Chile, a specialized market for large-diameter gear production is developing in conjunction with the region's growing mining equipment and heavy machinery sectors. Many Chilean companies currently consider skiving solutions to produce tough internal gears locally, reducing their reliance on long lead-time imports. The attention is on machines capable of handling large modules and operating under harsh tolerances in mining drivetrains, which makes Chile an increasingly strategic country for any supplier targeting heavy-industry gear applications in Latin America.

Middle East And Africa Market Insights

The demand for internal gear skiving machines is exhibiting selective growth in the Middle East & Africa, especially in areas where local industrialization programs are targeting heavy equipment manufacturing, energy infrastructure, and maritime systems. Investors in the region are tuning the facility design toward integrated machining cells that reduce reliance on distant suppliers and allow faster turnaround for critical spare parts. As energy and infrastructure projects grow, regional maintenance workshops are acquiring skiving-capable machines to support onsite gearbox refurbishment and reduce costly downtime.

Strong after-sales and maintenance focus in mining, port operations, and heavy construction machinery clusters drives market dynamics in South Africa. Indeed, service providers in South Africa are increasingly procuring medium to large skiving systems for onsite rework and life-extension programs that allow operators to refurbish internal gears to original specifications without full part replacement. This pragmatic maintenance-driven demand pattern is creating a steady, specialized opportunity for machine tool vendors that offer robust field support and retrofit services in the region.

Machine Type Insights

The Vertical Internal Gear Skiving Machines segment dominated the market, accounting for 54.63% of the revenue share in 2025. Its leadership is attributed to the increasing demand for flexible, high-precision machining systems that manage complex internal geometries for various applications in automotive, aerospace, and industrial machinery.

The Horizontal Internal Gear Skiving Machines segment is expected to see the fastest growth, with a projected CAGR of about 8.74% during the forecast period. Growth in the segment is bolstered by increasing adoption in specialized gear applications, particularly for part handling efficiency and compact machine footprints.

Source: Straits Research

Automation Level Insights

The Standalone CNC Skiving Machines segment led the market, accounting for 41.56% of the revenue in 2025. Leading position arises from the strong preference among gear manufacturers for reliable, cost-efficient, and easy-to-integrate machining platforms that fit seamlessly into existing production lines.

The segment of Fully Automated Skiving Cells is expected to grow at the fastest pace, with a CAGR of 9.48% during the forecast period. This accelerated growth is because, across the industries, unmanned machining, continuous production cycles, and enhanced quality consistency requirements are taking place.

Gear Size Insights

Medium (200–500 mm) garnered the largest share of 46.81% in the market in 2025. This is because of the growing production of mid-size internal gears for automotive transmissions, industrial gearboxes, and heavy-duty mechanical systems. In this segment, medium gears find an ideal balance between load capacity and compact design.

The large segment (above 500 mm) is expected to grow at the highest pace, at a CAGR of approximately 8.67% during the forecast period. The growth of this segment can be attributed to the growth in the adoption of large internal gears in wind energy systems, mining equipment, marine transmissions, and high-capacity industrial gear units.

Application Insights

The Internal Gear Cutting segment accounted for the largest share in 2025 at 51.24% of total revenue. This domination is underpinned by the broad need for high-precision internal gears in automotive powertrains, industrial gearboxes, robotics drives, and aerospace actuator systems. Skiving remains preferred in primary cutting operations for its remarkably faster cycle time, superior tooth profile accuracy, and greater flexibility compared to traditional shaping and broaching.

The segment of Internal Gear Finishing is anticipated to show growth at the quickest rate through the forecast period. This is driven by increased adoption of hard-skiving methods for the final finishing of hardened gears for EV transmission, precision motion systems, and high-load industrial applications. Hard finishing by skiving offers improved surface quality, enhanced dimensional stability, and consistent micro-geometry corrections within shorter machining cycles.

End Use Industry Insights

The Automotive segment is expected to grow the fastest at 8.92% owing to the accelerating shift toward electric and hybrid powertrains needing highly precise, compact, and low-noise internal gear assemblies. In line with growing EV transmission, e-axle, and advanced driveline component production by OEMs and Tier-1 suppliers, demands for high-accuracy internal gear cutting and finishing operations have strengthened considerably.

Competitive Landscape

The global Internal Gear Skiving Machine Market is considered moderately consolidated, with a mix of machine tool manufacturers who have long-established operations and those that deal in specialized precision gear technologies. Only a few leading players dominate this market by offering a wide range of machine portfolios, integrated skiving platforms, advanced tooling solutions, and strong global service networks. Their leading positions are further reinforced by vast experience in high-precision gear machining and the ability to support their end-users in all major segments, including automotive, aerospace, industrial machinery, and robotics applications.

Major players in the market are Liebherr-Verzahntechnik GmbH, Gleason Corporation, Mitsubishi Heavy Industries Machine Tool, and other manufacturers of precision engineering. Leading companies in the industry engage in competitive business practices through aggressive product development, increasing the number of machining centers with skiving capabilities, entering strategic alliances with drivetrain component manufacturers, and improving technology related to cutters. Many players in the market are consolidating their positions through key investments, regionalized service centers, and joint product development for flexible, high-accuracy internal gear skiving, and to increase their market share globally.

Reishauer AG: An Emerging Market Player

Reishauer AG is a Swiss-based gear machinery and automation specialist. It has just entered the internal gear skiving segment with a newly launched hard-skiving machine in 2025.

• In September 2025, Reishauer introduced the "RS 300 Hard Gear Skiving Machine", marking its first dedicated internal-gear skiving platform for high-precision and hard-finished internal gears in automotive, industrial, and wind-energy applications.

Thus, Reishauer AG has emerged as a challenger that is credible and growth-oriented in the Internal Gear Skiving Machine Market, building on its rich heritage in gear machinery and offering an advanced hard-skiving platform suitable for modern precision-gear demands.

List of key players in Internal Gear Skiving Machine Market

1. Liebherr-Verzahntechnik GmbH
2. Gleason Corporation
3. Mitsubishi Heavy Industries
4. EMAG GmbH & Co. KG
5. Klingelnberg AG
6. Nidec Machine Tool Corporation
7. NACHI-FUJIKOSHI Corporation
8. JTEKT Corporation
9. FFG Werke
10. DMG MORI Co., Ltd.
11. Reishauer AG
12. Felsomat GmbH & Co. KG
13. Kanzaki Kokyukoki Mfg. Co., Ltd.
14. KAPP NILES
15. Samputensili Group
16. Hyundai WIA Corporation
17. Kashifuji Works Co., Ltd.
18. Karats Precision, Inc.
19. Chongqing Machine Tool Group
20. DVS TECHNOLOGY GROUP

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Strategic Initiatives

• September 2025: Liebherr-Verzahntechnik GmbH introduced the LK 280 DC Gear Skiving Machine at EMO Hannover. The machine redefines gear skiving with next-level precision and versatility, targeting aerospace and automotive applications.
• June 2025: Nidec Machine Tool Corporation launched the MGC300 multitasking gear center, capable of hobbing, skiving, and gear tooth chamfering in one setup to reduce operator workload and improve productivity for small-batch production.
• April 2025: Gleason Corporation showcased its 100PS Power Skiving Machine for robotic parts at CIMT Beijing. The machine demonstrated enhanced productivity with cycle times reduced by 15% compared to prior models.
• May 2024: Yamazaki Mazak Corporation unveiled its INTEGREX AG Hybrid Multi-Tasking Machines at IMTS 2024, integrating three gear machining methods: gear skiving, hobbing, and endmilling into a single platform. This innovation reduced in-process time and initial costs for manufacturers, with machining diameters ranging up to Φ2300 mm.