CNC (Computer Numerical Controls) Machine Tools Market Size, Share & COVID-19 Impact Analysis, By Type (Metal Cutting, Metal Forming), By Application (Automotive, General Machinery, Precision Machinery, Transport Machinery, Others) and Regional Forecast, 2020-2027

The global CNC (Computer Numerical Controls) machine tools market size stood at USD 82.40 billion in 2019 and is projected to reach USD 117.65 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period.

The market is expected to thrive due to the growing demand for greater efficiency in complex machining products. In addition, an increase in demand for high precision and low operating costs, along with technological advancements in production processes, is further influencing the popularity of CNC machine tools. Moreover, the surge in mass production of products across industry verticals including automotive and electronics is accounting for the CNC machine tools 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.

Adoption of CNC Machine Tools in the Healthcare Sector to Ensure Growth amid COVID-19

The COVID 19 pandemic has severely hit the manufacturing sectors across the globe. Likewise, the CNC machine tools market is facing several challenges amid the pandemic. These challenges were the result of the sudden shutdowns of manufacturing plants, supply chain disruptions, labor shortage, etc. However, considering that the recovery period of the market is paramount, manufacturers are striving hard to come back to normalcy post-Q4 2020.

Moreover, the manufacturers are currently facing sales challenges across the sectors, such as automotive industrial, construction, aerospace and defense, power, and others, owing to the downfall of these industries. Contrary to this, there has been a sudden rise in the demand for CNC machine tools across the healthcare and pharmaceutical sectors. For instance, in May 2020, Australian Numerical Control and Automation Pty Ltd (ANCA), which is known for providing precision cutting tools, is focusing 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, which are ultimately balancing the sales of the market in the midst of the pandemic. Furthermore, owing to the increasing demand for industrial automation and digitalization, the sales of the CNC technologies are expected to propel steadily post the recovery period.

LATEST TRENDS

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Incorporation of Digital Technologies in Products and Processes to Influence the Adoption of CNC Technology

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 towards process automation of the manufacturing industry. Thus, manufacturers are themselves adopting new technologies and are manufacturing products that include various digital technologies such as Artificial Intelligence (AI), and the Internet of Things (IoT). For instance, JTEKT is using different digital technologies in their products and processes. JTEKT has deployed automated inspection equipment that includes image processing technology to replace manual inspection. Besides, in the machine tools domain, JTEKT is developing Programmable Logic Controllers (PLC) that incorporate edge computing and autonomous grinder. Thus, AI technology is one of the major trends emerging in the machine tool domain.  

DRIVING FACTORS

Evolution of IoT to Drive the Market

Manufacturers are increasingly adopting the Internet of Things in their production processes owing to the surge in demand for real-time information access. This 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 (CNC) machines already in India. The availability of sensors, internet access, and cloud computing is further expected to drive the market. Increasing investments in IoT in the manufacturing sector are driving the CNC machine tools market. For instance, according to sources, the manufacturing sector will be investing 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 FACTORS

High Maintenance Costs and Lack of Training to Hinder Growth of the Market

Generally, CNC machines are costlier than the 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 by the manufacturers. Besides that, appropriate training and machinists need to get acquainted with the professional skills necessary to operate these machines. Therefore, in order to minimize the impact of the restraint, manufacturers are introducing various training programs to enhance the skills of machinists. For example, in July 2020, Mazak Corporation introduced a remote training program at their customer sites to support them with the dos and don’ts while operating their machines in the UK.

SEGMENTATION

By Type Analysis

Digital Transformation across the Machine Tools Domain to Accelerate the Demand for CNC Tools

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

The CNC metal cutting machine tools are gaining popularity owing to the increasing demand for high accuracy, time, and energy efficiency in the metal fabrication industry. Furthermore, increasing demand for electrochemical machining is resulting in the growth of the metal cutting tools segment. This is attributed to the various benefits of electrochemical machining and electrochemical micromachining for better surface integrity on 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 are expected to drive this segment in the near future. Thus, the time and space efficiency offered by CNC metal forming machines is expected to favor the growth of this market.

By Application Analysis

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Precision Engineering Application to Acquire Impetus over the Forecast Period

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

The automotive sector holds a significant share in the market. This is attributed to the increasing demand for faster production of highly efficient parts in the automotive sector. CNC machines can be used to 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 are resulting in the increased penetration of CNC machine tools in this sector. In addition, increasing automation in the manufacturing and production processes is expected to drive the market in the near future.

High precision engineering is the fastest-growing segment in this market. This is attributed to the increasing demand from the aerospace, medical, and defense sectors. Furthermore, the general machinery and transport machinery segments are expected to positively contribute to the CNC market revenue in the coming years.

REGIONAL INSIGHTS

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Asia Pacific is expected to dominate the CNC machine tools market share. The increasing demand for the precision products in short lead-time is leading to an increased CNC machine tool adoption. The mass production of complex applications such as automotive, medical, aerospace, and semiconductor industry is expected to result in the increased demand for the CNC machines. The benefits offered by CNC machine tools, 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, the 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 repair, maintenance, and production of large workpieces up to 2000 kg.

North America exhibits significant growth owing to the increasing adoption of advanced technologies in the U.S. The market in the United States is experiencing the lucrative growth with the effect of increased machine tools consumption for metalworking facilities across industries. In addition to this, increased imports attributed to the manufacturing sector are also boosting the market growth.

The Middle East & Africa is also expected to contribute to market growth. This 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 the precision engineering and automotive sector.

Europe has observed stable growth over the past few years owing to its cost-reduction and time-saving applications. CNC tools offer a flexible working process as compared to conventional sub-segment, especially in the manufacturing industry. For instance, in December 2019, Yamazaki Mazak Corporation introduced a UK-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 high accuracy.

KEY INDUSTRY PLAYERS

Leading Players to Focus on Enhancing R&D Capacities

Key manufacturers are continuously focusing on R&D to upgrade their product portfolio with advancements in CNC technologies. 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 CNC machine tools market in the near future.

LIST OF KEY COMPANIES PROFILED:

• Yamazaki Mazak Corporation (Aichi, Japan)


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


• Trumpf (Ditzingen, Germany)


• Amada Machine Tools Co., Ltd (Kanagawa, Japan)


• JTEKT Corporation (Nagoya, Japan)


• MAG IAS GmbH (Wurttemberg, Germany)


• Schuler AG (Goppingen, Germany)


• Makino (Tokyo, Japan)


• Hyundai WIA (Gyeongsangnam-do, Korea)


• Komatsu Ltd. (Tokyo, Japan)


• Okuma Corporation (Aichi, Japan)


• FANUC Corporation (Yamanashi Prefecture, Japan)


• XYZ Machine Tools (Devon, United Kingdom)


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


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


• ANCA Group (Melbourne, Australia)

KEY INDUSTRY DEVELOPMENTS:

• 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 axes machines with high-speed sampling. 


• September 2018: Amada Holdings Co., Ltd. launched CM II-DG Series carbide-tipped circular saw machines equipped with CNC automatic setting for high-precision cutting.

REPORT COVERAGE

An Infographic Representation of Computer Numerical Controls (Cnc) Machine Tools Market

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The CNC machine tools market research report provides a detailed industry analysis and focuses on key aspects such as leading companies, product types, and leading application 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 that have contributed to the growth in recent years.

Report Scope & Segmentation