Taiwan's machine tool industry is facing decline of market demand caused by the COVID-19 pandemic. In order to adapt to external environmental variations and further to re-establish market competitive advantage, Taiwan's machine tool industry must continues to strength its market expansion and customer service. It also needs to plan well ahead to explore future development opportunities and directions. This article will explain the impact of COVID-19 pandemic on the global machine tool industry output value and the export value of Taiwan's machine tool. It also discusses the trends of machine tool market demand, including major contributing factors, industry demand for downstream applications, and industrial competition status, and how to create a new wave of growth through assisting customers to digitize and intellectualize their existing machines and production lines.