Machinery Industry MPI >> globalEDGE: Your source for Global Business Knowledge

Release Date: October 02, 2017

The Industry Specific Market Potential Index (MPI) aims to compare 89 countries, which globally have the highest Gross Domestic Product (GDP), with each other on several dimensions in order to rank them according to their market potential for different industries. The focus of the study is to identify new markets to export goods rather than identifying new countries to invest in.

The Index compares these countries on six dimensions; size, growth rate, capacity, openness of the market, existing logistics infrastructure and risk (political, economic and business) of the country. To measure each dimension a different set of indicators are identified for every industry. Secondary data is used for these indicators which have been gathered from different reputable sources, as noted. Ranking scores are calculated by adding up the dimensions, weighted by relative importance.

While the MPI is a very useful tool for companies in the industry who are in the process of researching new markets for export, it shouldn’t be used as the single source of decision. MPI is designed to support other detailed market research and for verification purposes. It can be utilized as the first step of a market research which will help identify the focus countries that a more detailed market research should be conducted on.

Since MPI is calculated with the most recent data available, it is also important to remember that it represents the current states of the countries and it is not aimed to forecast the future states of the countries.

Industry specific MPIs will be updated annually.

View 'Insights, Rankings & Assumptions' Document

Overall Rank	Country	Market Size Index	Market Growth Rate Index	Market Capacity Index	Market Openness Index	Logistics Infrastructure Index	Country Risk Index	Overall Index
1	China	100	49	100	63	78	60	100
2	Germany	43	50	46	85	89	94	74
3	Japan	35	50	84	87	67	92	71
4	United Kingdom	20	50	44	93	89	87	62
5	Canada	17	51	49	100	84	88	62
6	France	20	49	54	87	79	88	61
7	Netherlands	13	47	51	88	100	92	60
8	Singapore	10	47	46	98	81	88	57
9	Switzerland	7	48	74	85	68	100	56
10	South Korea	18	52	39	77	71	79	56
11	Ireland	4	64	75	88	59	86	55
12	Belgium	8	48	21	87	92	89	54
13	Spain	11	52	26	82	80	77	53
14	Sweden	6	44	35	86	78	96	52
15	Italy	15	49	27	80	61	77	52
16	Hong Kong	11	20	68	90	77	84	52
17	Mexico	17	60	15	86	57	51	52
18	Denmark	4	52	31	84	73	91	51
19	Norway	4	49	40	89	56	97	51
20	Austria	7	49	27	84	62	94	51
21	United Arab Emirates	7	60	27	83	72	69	51
22	Finland	4	43	29	89	66	90	49
23	Australia	8	46	38	82	35	91	49
24	Czechia	7	52	12	82	49	85	47
25	Poland	7	54	14	82	49	76	47
26	India	16	54	18	68	36	57	46
27	Israel	4	56	28	80	43	78	46
28	Portugal	3	49	13	84	62	77	46
29	Estonia	2	52	12	85	48	86	45
30	Malaysia	6	51	10	81	56	69	45
31	Slovakia	4	60	12	81	36	78	45
32	Lithuania	2	63	10	81	47	73	45
33	Saudi Arabia	8	63	15	69	44	60	44
34	Hungary	5	56	9	83	40	67	44
35	Chile	3	47	16	81	47	76	43
36	Slovenia	2	48	14	83	48	76	43
37	Latvia	2	50	10	81	44	75	42
38	Turkey	9	55	12	70	48	44	42
39	Philippines	5	81	7	71	6	58	42
40	Panama	1	39	12	84	77	58	41
41	Dominican Republic	1	66	6	87	45	42	41
42	Thailand	8	51	8	75	30	54	40
43	Vietnam	6	72	7	68	28	43	40
44	Morocco	3	56	5	73	49	57	40
45	Romania	4	54	9	78	29	59	40
46	Peru	3	50	8	79	37	57	39
47	Russia	13	45	24	63	30	39	39
48	Greece	2	49	13	79	47	50	39
49	El Salvador	1	55	4	92	36	43	39
50	Bulgaria	2	58	7	77	23	58	39
51	Costa Rica	1	45	10	90	28	59	39
52	Croatia	2	51	9	81	43	46	39
53	Indonesia	9	52	10	68	9	54	38
54	Kuwait	2	57	18	66	24	61	38
55	Cote d'Ivoire	1	85	2	67	35	28	38
56	Guatemala	1	58	4	85	35	41	38
57	Colombia	3	45	9	78	41	51	38
58	Oman	1	50	10	75	40	55	38
59	Bahrain	1	51	14	77	42	48	38
60	Uruguay	1	44	12	75	40	59	37
61	Brazil	10	40	38	56	30	39	37
62	South Africa	4	43	7	72	43	49	37
63	New Zealand	2	1	22	88	34	93	37
64	Cyprus	1	36	13	77	31	65	37
65	Qatar	3	23	33	66	42	67	36
66	Cambodia	1	100	2	53	4	29	36
67	Jordan	1	53	4	79	29	39	35
68	Sri Lanka	1	59	4	73	24	38	35
69	Honduras	1	48	3	81	38	35	35
70	Ecuador	2	45	6	78	47	27	35
71	Ethiopia	1	97	2	54	1	20	34
72	Bolivia	1	64	3	76	4	34	34
73	Kenya	1	54	4	69	26	38	34
74	Kazakhstan	3	48	8	83	12	31	34
75	Serbia	1	46	5	73	17	38	32
76	Algeria	3	53	5	54	18	39	32
77	Tunisia	2	47	5	66	17	40	32
78	Egypt	3	52	6	50	45	25	32
79	Azerbaijan	2	49	6	66	21	30	31
80	Pakistan	3	69	2	44	26	21	31
81	Uzbekistan	3	58	4	71	6	16	31
82	Bangladesh	3	64	4	52	7	28	31
83	Lebanon	1	53	7	64	26	20	30
84	Paraguay	1	42	3	73	18	32	30
85	Argentina	4	45	12	43	32	32	30
86	Cuba	3	53	6		34	1	30
87	Uganda	1	54	1	67	7	28	30
88	Nicaragua			2	76	23	24	30
89	Belarus	2	42	6	79	22	7	29
90	Angola	2	64	7	52	4	16	29
91	Ghana	1	41	3	58	20	36	28
92	Tanzania	1	46	2	56	12	30	27
93	Ukraine	2	30	5	72	24	12	27
94	Nigeria	3	47	5	47	15	15	26
95	Cameroon	1	52	2	36	6	27	24
96	Venezuela	4	41	5	45	18	1	23
97	Democratic Republic of the Congo			1	1	4	9	1

Dimension	Weight	Measures Used
Market Size	30	Consumption of Machinery =[Production+ Imports]-Exports (2016) ¹ Consumption of Machinery =[Production+ Imports]-Exports (2016) ² Imports of Machinery (2016) ² Manufacturing, Value Added (2015) ³
Market Growth Rate	15	CAGR of Consumption of Machinery (2011-2016) ¹ CAGR of Consumption of Machinery (2011-2016) ² CAGR of Imports of Machinery (2011-2016) ² CAGR of Manufacturing, Value Added (2010-2015) ³
Market Capacity	10	Foreign Direct Investment, Net Inflows (2015) ³ GNI Per Capita (2016) ³ R&D Expenditure (2016) ¹
Market Openness	15	Applied Tariff Rate on Machinery (2017) ⁴ Burden of Customs Procedure (2016) ³ Cost to Import, Border Compliance (2016) ³ Cost to Import, Documentary Compliance (2016) ³ Imports of Machinery from US as a Share of Global Imports (2016) ²
Logistics Infrastructure	15	Distance of Country from US (2016) ⁵ Liner Shipping Connectivity Index (2016) ³ Logistics Performance Index (2016) ³ Quality of Port Infrastructure Index (2016) ³
Country Risk	15	Business Risk Rating (2016) ⁸ Economic Risk Rating (2016) ⁷ Intellectual Property Rights Protection (2017) ⁹ Political Risk Rating (2016) ⁶

Data used are those available for most recent year. All sources were accessed in October 2017.

¹ Passport GMID:,Global Market Information Database

² UN Comtrade:,Commodity Trade Statistics Database

³ World Bank:,World Development Indicators

⁴ World Trade Organization (WTO):,Tariff Database

⁵ Happyzebra:,Distances

⁶ Credendo:,Country Risks

⁷ Coface:,Economic Studies

⁸ Swiss Export Risk Insurance:,Cover Practice for Countries and Banks

⁹ International Property Rights Index:,2013 IPRI Report

¹⁰ U.S. Energy Information Administration (EIA):,International Energy Statistics

¹¹ International Labor Organization:,ILOSTAT

¹² Organisation for Economic Co-Operation and Development:,OECD.Stat

¹³ Food and Agriculture Organization of the United Nations:,FAOSTAT

¹⁴ WARDSAUTO:,Data & Insights

¹⁵ International Organization of Motor Vehicle Manufacturers:,Production Statistics

¹⁶ Knoema:,Car Production Statistics

¹⁷ World Intellectual Property Organization (WIPO):,IP Statistics Data Center

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer Cavusgil,
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91: doi .

" Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country Clustering and Country Ranking " - S. Tamer Cavusgil, Tunga Kiyak, and Sengun Yeniyurt
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi .

For additional inquiries, please contact MSU-IBC.