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Strong requirements for automation in the production processes using machine tools have been increasing due to lack of high-skilled machining engineers. Automation used to be utilised in mass production, but it is also necessary in medium- to low-volume production recently. Next requirements will be monitoring or sensing functions to make the following possible: prompt service when the machine stops; detection of abnormality before the machine breaks down; and compensation of thermal displacement to ensure machining accuracy. These now need to be performed automatically in place of operators so that abnormality can be detected during machining operation. In this paper core technologies to support automation system will be discussed which are operation monitoring, predictive maintenance, sensing interface and thermal displacement compensation as a sensing application.