CNC (Computer Numerical Control) Machine Market Size, Share & COVID-19 Impact Analysis, By Type (Metal Cutting, Metal Forming), By Application (Automotive, General Machinery, Precision Engineering, Transport Machinery, Others), and Regional Forecast, 2022-2029

The global CNC (Computer Numerical Control) machine market size was valued at USD 83.99 billion in 2021. The market is projected to grow from USD 86.83 billion in 2022 to USD 140.78 billion by 2029, exhibiting a CAGR of 7.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with CNC machine experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -0.5% in 2020 compared to 2019.

The growing demand for greater efficiency in complex machining products by industries is expected to affect market growth positively. In addition, an increase in demand for high precision and reduced operating costs and technological advancements in production processes further influence the popularity of CNC technology. Moreover, the surge in mass production of products across industry verticals, including automotive and electronics, accounts for the CNC (Computer Numerical Control) machine market growth. An upsurge in demand for mass customization is also boosting the uptake of these tools. For example, CNC programmable machine tools offer quick and efficient production of different products in one batch.

COVID-19 IMPACT

Adoption of CNC Machines in the Healthcare Sector Amid COVID-19 to Propel Market Growth

The COVID-19 pandemic has severely hit the manufacturing sectors across the globe. Likewise, the machine tools industry is facing several challenges amid the pandemic. These challenges resulted from the sudden shutdowns of manufacturing plants, supply chain disruptions, labor shortages, and others. However, considering that the recovery period of the market is paramount, manufacturers are striving hard to return to normalcy post-Q4 2020.

Moreover, the manufacturers are currently facing sales challenges across the sectors, such as automotive, construction, aerospace and defense, power, and others, owing to the downfall of these industries. Contrary to this, there has been a sudden rise in demand for machines across the healthcare and pharmaceutical sectors. For instance, in May 2020, Australian Numerical Control and Automation Pty Ltd (ANCA), known for providing precision cutting tools, focused on providing ventilator components, owing to its need to combat COVID-19.

Apart from this, the manufacturers are also completing their pre-existing orders to their clients, ultimately balancing the market sales during the pandemic. Furthermore, owing to the increasing demand for industrial automation and digitalization, the adoption of CNC technology is expected to grow steadily post the recovery period.

LATEST TRENDS

 Incorporation of Digital Technologies in Products and Processes to Aid Growth

Process automation has had a significant impact on the machine tool industry. The need for increased service quality, efficiency, and simplicity has resulted in an increasing inclination toward process automation in the manufacturing industry. Thus, manufacturers are adopting new technologies and manufacturing products that include various digital technologies such as artificial Intelligence (AI) and the Internet of Things (IoT). For instance, JTEKT uses different digital technologies in its products and processes. It has deployed automated inspection equipment, including image processing technology to replace manual inspection. Besides, the company is developing Programmable Logic Controllers (PLC) in the machine tools domain that incorporates edge computing and autonomous grinder. Thus, AI technology is one of the major trends emerging in the CNC machine tool domain. 

DRIVING FACTORS

Evolution of the Internet of Things (IoT) to Drive Market Growt

Manufacturers are increasingly adopting the Internet of Things in their production processes, owing to the surge in demand for real-time information access. This factor would, in turn, improve productivity, safety, production innovation, and reduce downtime costs. For instance, in April 2020, Zyfra launched a remote Internet of Things (IoT) innovation in the form of a cloud-based version of its MDCplus machine monitoring system, which allows remote monitoring of computerized numerical control machines already in India. The availability of sensors, internet access, and cloud computing is further expected to drive the market.

The increasing investment in IoT in manufacturing is driving the global market growth. For instance, according to sources, the manufacturing sector invested approximately USD 267 billion in IoT by 2020. Manufacturers are focusing on the adoption of smart devices. The sources state that approximately 31% of production processes and equipment already incorporate smart devices.

RESTRAINING FACTOR

High Maintenance Costs and Lack of Training to Hinder Market Growth  

Generally, CNC machines are costlier than manually-operated machines. However, with time, their cost is estimated to reduce effectively. Furthermore, to maintain the proper functioning of the machines, regular maintenance of the high-tech pieces is essential for manufacturers. Besides that, appropriate training and machinists need to get acquainted with the professional skills necessary to operate these machines. Therefore, to minimize the impact of the restraint, manufacturers are introducing various training programs to enhance the skills of machinists. For instance, in July 2020, Mazak Corporation introduced a remote training program at its customer sites to support them with the dos and don’ts while operating its machines in the U.K.

SEGMENTATION

By Type Analysis

Digital Transformation Across Machine Tools Domain to Accelerate Demand for CNC Metal Cutting

Based on type, the market is segmented into metal cutting and metal forming.

CNC metal cutting machine tools are gaining immense popularity owing to their high accuracy, time, and focus on energy efficiency. Furthermore, the high demand for electrochemical machining results in the growth of the metal cutting segment. This factor is attributed to various benefits of electrochemical machining and micromachining for better surface integrity in different applications, including stress-free drilled holes in the automotive sector and complex shapes manufacturing in the aerospace industry.

High demand for optimal performance with high precision and control is expected to result in the growth of the metal forming segment. The widespread use of CNC metal forming operations in sheet bending, including press brake bending, roll forming, tube bending, and stamping is expected to drive this segment. Thus, the time and space efficiency offered by CNC metal forming machines is expected to favor the growth of the market.

By Application Analysis

Precision Engineering Application to Experience Profound Growth Owing to its Demand Across Industrial Sector

Based on application, the market is classified into automotive, general machinery, precision engineering, transport machinery, and others.

The automotive segment holds a significant share in the market due to increasing demand for faster production of highly efficient parts in the automotive sector. These machines can produce various parts, including a car’s combustion engine, suspension components, lights, exhaust parts, fluid system components, bushings, and valve retainers. The automotive sector demands high accuracy, precision, reduced operational time, and repetitive tasks without discrepancies, resulting in the increased penetration of CNC machines in this sector. Besides, increasing automation in the manufacturing and production processes is expected to drive segmental growth.

High precision engineering is the fastest-growing segment in the market. This growth is attributed to the increasing demand from the aerospace, medical, and defense sectors.

The general machinery and transport machinery segments are expected to grow, thus positively contributing to the market revenue in the forthcoming years.

REGIONAL INSIGHTS

Asia Pacific is expected to dominate the CNC (Computer Numerical Control) machine market share. The increasing demand for precision products in short lead-time leads to increased CNC machine adoption. The mass production of complex applications such as automotive, medical, aerospace, and semiconductor industries is expected to increase the demand for these machines. The benefits offered by computer numerical control machines, including quick and efficient production of different products in one batch are gaining popularity.

The growing adoption of additive and subtractive CNC machines is one of the trends evolving in the machine tool industry. Thus, to keep up with the same trend, manufacturers are developing hybrid machinery. For instance, in 2019, DMG MORI launched LASERTEC 125 3D, a hybrid manufacturing system at Formnext 2019. LASERTEC 125 is a 5-axis laser deposition welding system focused on repairing, maintaining, and producing large workpieces up to 2,000 kg.

The increasing demand from various computer numerical control machines, such as electrical equipment, consumer goods, and electronics manufacturing, is likely to propel market growth. The rising demand for electricity generation, distribution, and transmission machinery in the country results in the growth of the electrical machinery industry analysis. For instance, according to India Brand Equity Foundation (IBEF), India's electrical generation equipment market is expected to expand at a CAGR of around 12.7% from 2017 to 2022.

The Make in India initiative states the production of electrical equipment to value more than USD 100 billion by 2022. The increasing penetration of mobile phones and laptops results in the high demand for consumer electronics, which is further expected to result in market growth. The surge in demand from several industries, including construction, manufacturing, automotive, and aerospace has led to an increased need for such machines. The Society of Indian Automobile Manufacturers indicated that the total passenger vehicle trade increased by 2.7% in the 1st quarter of 2019. Also, increasing support from governments is boosting the machine tools market revenue. For instance, the ‘Make in India’ campaign encourages Foreign Direct Investments (FDI) and tax benefits for the manufacturing sector in India. The National Electric Mobility Mission Plan and the Automotive Mission Plan 2016-26 are further expected to drive the market.

North America is anticipated to showcase significant growth owing to the increasing adoption of advanced technologies in the U.S. Moreover, the growing adoption of machine tools for metalworking facilities across several industries will boost the adoption of such machines in the region. In addition, increased imports attributed to the manufacturing sector are also promoting market growth.

The Middle East & Africa is expected to contribute to the global market growth. This factor is attributed to the increasing demand from the automotive, food & beverage, construction, and aerospace sectors. Increasing automotive sales in Kuwait, Jordan, and others will also augment the market in the region.

Latin America is anticipated to contribute to the advanced compact CNC machines used in various sectors, including precision engineering and automotive sectors.

Europe has observed stable growth over the past few years, owing to its cost-reduction and time-saving applications. CNC machines offer a flexible working process compared to conventional sub-segment, especially in the manufacturing industry. For instance, in December 2019, Yamazaki Mazak Corporation introduced a U.K.-made compact 5-axis machining center at Autosport & Southern Engineering. The compact machining center, the CV5-500, is equipped with a CNC machine to promote high rigidity and accuracy.

KEY INDUSTRY PLAYERS

Leading Players to Focus on Enhancing R&D Capacities to Expand their Horizon

Key manufacturers continuously focus on R&D to upgrade their product portfolio with advancements in the global machine market. They are also readily adopting the trends set by Industry 4.0. Okuma Corporation, for instance, has developed a smart factory with its machine tool offering named Dream Sites (DS1, DS2). Furthermore, partnerships in the machine tool industry are further expected to drive the global computer numerical control machines market in the near future. Also, key players, such as Trumpf, Fanuc Corporation, and Yamazaki Mazak Corporation, are focusing on upgrading product quality, investing more in R&D, and contacting the metal cast makers to have a prominent and niche presence in the industry. Generally, the metal cast makers have tie-ups with their trustworthy suppliers as these suppliers customize the product as per the required size and other specifications. Therefore, it is a vital strategy of the CNC machine tool suppliers to build a healthy relationship with the clients and maintain the product quality and services.

LIST OF KEY COMPANIES PROFILED:

• Yamazaki Mazak Corporation (Japan)


• Doosan Machine Tools Co., Ltd. (Korea)


• Trumpf (Germany)


• Amada Machine Tools Co., Ltd (Japan)


• JTEKT Corporation (Japan)


• MAG IAS GmbH (Germany)


• Schuler AG (Germany)


• Makino (Japan)


• Hyundai WIA (Korea)


• Komatsu Ltd. (Japan)


• Okuma Corporation (Japan)


• FANUC Corporation (Japan)


• XYZ Machine Tools (U.K.)


• Mitsubishi Heavy Industries Machine Tool Co., Ltd. (Japan)


• General Technology Group Dalian Machine Tool Corporation (Liaoning Province)


• ANCA Group (Australia)

KEY INDUSTRY DEVELOPMENTS:

• August 2021: MES Inc. announced the acquisition of Versatech, LLC, which operates as a prominent manufacturer of CNC machine solutions. This acquisition will augment intentions of MES Inc. to increase its prominence in the last mile manufacturing industry.


• April 2019: Fanuc Corporation, in collaboration with Preferred Networks, Inc., developed an AI function named AI Servo Monitor that collects control data from the spindle axis and feeds axis machines with high-speed sampling.


• August 2021: CNC Software Inc., a company engaged in development and distribution of CAD/CAM software solutions for diverse players operating in the manufacturing industry, was acquired by Sandvik. The company will now perform under the design & planning automation division of Sandvik.


• March 2022: Ramco Specialties Inc., which works as a manufacturer of critical components across the market of the U.S. has recently increased its capabilities of its manufacturing facilities through procurement of tight-tolerance CNC equipment. This installation is expected to encourage other critical component manufacturers within the area to procure such state of art equipment for manufacturing.


• September 2021: Kongsberg Precision Cutting Systems (Kongsberg PCS) has finalized its decision to make a strategic acquisition of MultiCam, which operates as a developer and distributor of CNC cutting machines. The acquisition will help Kongsberg Precision to increase its customer base across the U.S., Canada, and Germany using sales offices of MultiCam in aforementioned locations.

REPORT COVERAGE

The global market report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the growth in recent years.

Report Scope & Segmentation