The global CNC machine tools market size is set to touch USD 128.86 billion by 2026, with rising demand for smart machine tools expected to be the key growth driver of this market during the forecast period. A new Fortune Business Insights report, titled “CNC (Computer Numerical Controls) Machine Tools Market Size, Share & Industry Analysis, By Type (Metal Cutting, Metal Forming), By Application (Automotive, General Machinery, Precision Machinery, Transport Machinery, Others), and Regional Forecast, 2019-2026”, states that the market value stood at USD 83.56 billion in 2018 and projected to exhibit a CAGR of 5.5% from 2019 to 2026.
Rising Popularity of Predictive Analytics Tools to Foster Growth Prospects
Maintenance and repair of machinery and equipment is a costly affair, resulting in escalating downtime costs for manufacturers. For example, close to 95% of the organizations surveyed in a recent study claimed that just one hour of machine downtime costs USD 100,000. As a result, the demand for predictive analytic solutions is gaining momentum in industry circles and is anticipated to be one of the leading CNC machine tools market trends. According to some industry experts, maintenance operations performed using predictive software can reduce costs arising out of unplanned outages by 50%, while the general repair costs can be brought down by 20%. These advantages of predictive analytics are likely to speed up their adoption and accelerate the CNC market growth in the near future.
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- By Type: Based on type, the market is divided into metal cutting and metal forming. Here, the metal cutting segment is set to lead owing to growing demand for metal cutting equipment from diverse industries such as construction, aerospace, and shipbuilding. Increasing application for electrochemical machining will also play a role in raising the demand for metal cutting. The metal forming segment will gain from rising demand for high precision and control instruments for metal shaping purposes.
- By Application: Based on application, the market is segmented into automotive, general machinery, precision engineering, transport machinery, and others. Here, the automotive segment will dominate with a share of 41.0%. This dominance will be a result of increasing demand for efficient production of spare parts for automobiles along with rapid automation in the automotive industry. High demand from medical, defense, and aviation industries will make precision engineering the fastest growing segment in this market. The other segments are also expected to register steady growth during the forecast period.
- By Region: Geographically, the market is categorized into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. Here, Asia-Pacific is set to lead the CNC machine tools market share, having generated USD 44.18 billion in revenue in 2018. Rapid economic development, which is spiking the demand for automobiles, is the main factor driving the growth of the CNC market in the region. Rising demand for electric vehicles will further propel the market in Asia-Pacific. The other regions are also anticipated to offer lucrative business opportunities during the forecast period.
Increasing Focus on R&D Activities to Spur Competition
The CNC machine tools market forecast points to a period of intense competition in the market. This will be owing to growing investment by players to enhance their R&D capacity and bring out innovative products. This will not only diversify their product portfolio, but it will also strengthen their position in this market.
Key Industry Developments:
- May 2019: Japan-based Okuma Corporation set up a new machine tool production unit in Changzhou, China. The facility will be focused on assembling vertical machine centres and lathes which are high in demand among small and medium enterprises in China.
- January 2019: Dynamic International inaugurated a novel factory in South Korea called Smart Machine Tool Korea (Smart Korea). The unit will produce machine tools and aims to manufacture 80 to 100 machines per month by the end of 2019.
- Okuma Corporation
- General Technology Group Dalian Machine Tool Corporation
- JTEKT Corporation
- FANUC America Corporation
- Amada Machine Tools Co., Ltd
- Yamazaki Mazak Corporation
- Hyundai WIA
- Doosan Machine Tools Co., Ltd.
The global CNC machine tools market is segmented as follows:
Value (USD billion)
- Metal Cutting
- Metal Forming
- General Machinery
- Precision Engineering
- Transport Machinery
- Others (Energy, Electrical and etc.)
- North America (U.S. and Canada)
- Europe (Germany, UK, Russia, Italy, and Rest of Europe)
- Asia Pacific (Japan, China, India, Southeast Asia, and Rest of Asia Pacific)
- Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa)
- Latin America (Brazil, Mexico, and Rest of Latin America)