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CNC Machine Tool Overview
The global CNC Machine Tools Market is
estimated to surpass $76.7 billion mark by 2026 growing at an estimated CAGR of
more than 4.2% during the forecast period 2021 to 2026. Increasing demand for
high efficiency in complex machining products, such as cutting and grinding
machines is expected to be the major growth factor for the CNC Machine Tools market.
Rise in demand for low operating cost and high precision, along with
technological advancement in production processes, is further resulting in the
popularity of CNC machine tools. Moreover development and launch of
next-gen, cutting-edge machine products and automated control solutions are the
central focus areas for key players in this market. These players are
continuously investing in R&D to create enhanced and sophisticated
offerings to strengthen their portfolio and further entrench their position in
the market.
CNC Machine Tools Market Report Coverage
The
report: “CNC Machine Tools Market–
Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the
following segments of the CNC Machine Tools Market.
By Product Type: Metal Cutting Tools (Boring and Drilling, Milling,
Finishing, Lathe, Machine Centers and Others), Metal Forming Tools (Rolling,
Forging and Press, Extruding and Drawing, Punching and Blanking, Bending,
Shearing, Casting and Others) and Special Machine Tools (EDM, EBM, PAM, LBM,
USM, ECG, CM and Others)
By Sales Channel: Direct and Indirect
By End User Industry: Automotive,
Healthcare, Mining and Metal, Aerospace and Defense, Construction, Electrical
and Electronic, Energy and Power, Transportation and Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), South America (Brazil, Argentina and others), and RoW (Middle East and Africa).
Key Takeaways
- End users in this market, typically prefer OEMs to provide maintenance support rather than going through a third party. Thus, driving a change in the market model prevalent in this segment.
- CNC has various advantages over conventional machines. the various advantages of CNC machines, including high accuracy, safety, time efficiency, flexibility, and low maintenance, is further expected to drive the CNC cutting and grinding machine tools market demand.
- The core focus areas for leading players in this business are the technical advancement and introduction of next-gen, cutting-edge CNC machine products and automated control solutions. In order to build enhanced and advanced offerings to improve their portfolio and further entrench their position in the industry, these players are actively investing in R&D.
- The adoption of advanced materials such as Poly Crystalline Diamond and solid carbide tools will be a major market driver due to the strength and capability of these materials.
CNC Machine Tool Segment Analysis - By End User Industry
The Automotive and Mining and metal sectors play key roles in the demand for
CNC machine tools. The rising demand for high performance in complex cutting
and grinding machine products is expected to boost the CNC sector. The growth
in demand for low running costs and high accuracy, along with technical
advances in manufacturing methods, is further contributing to the popularity of
CNC machine tools. In addition, the increase in demand across industries
particularly in the electronics and automotive sectors contributes positively
to the development of the market for CNC machine tools. The core focus areas for leading players in this
business are the technical advancement and introduction of next-gen,
cutting-edge CNC machine products and automated control solutions. In order to
build enhanced and advanced offerings to improve their portfolio and further
entrench their position in the industry, these players are actively investing
in R&D. Nearly every OEM provides maintenance services to the end users.
These end users prefer OEM led maintenance services rather than third parties
due to the discounted maintenance services typically offered as well as
reliability and improved component procurement policies. This is changing the
business model typically utilized in the market.
CNC Machine Tool Segment Analysis - By Product Type
The Milling segment held among the highest market share in 2020. Milling
machines tools are primarily used in metal grinding processes across a variety
of industries. Poly Crystalline Diamond and solid carbide are materials
witnessing significant adoption in the CNC machine tool market. The positive
acceleration of the metalworking process industries in the world has ignited
the market for milling machines tools. Milling machines tools are extremely
flexible and can perform a wide range of functions, such as filling, spinning,
chamfering, drilling, gear cutting, grinding machine and so on. These devices
can also render numerous incisions by using multiple cutters. Moreover, Lathe
segment is anticipated to witness significant market growth during the forecast
period 2021-2026. Lathe is a tool that rotates every workpiece on its axis in
order to execute a wide variety of operations. Automation is the key factor
likely to fuel the expansion of the global demand for lathe machines tools.
Manufacturers have begun to simplify their manufacturing procedures in order to
improve efficiency. The incorporation of the Internet of Things (IoT) and automated controls into manufacturing
(Smart Manufacturing) is one of the latest market trends that will give the
business sufficient momentum in the years ahead.
CNC Machine Tool Segment Analysis - By Geography
APAC accounted for the largest share of the Machine
tool market. The significant demand from automotive and aerospace sector in
China, India and South East Asia in particular is driving market growth. Geographically,
RoW (Middle East and Africa) region is anticipated to witness the significant
market growth during the forecast period 2021-2026 with a CAGR of 5.2%. The
market growth is due to the rising demand of the CNC machine tools from the end
users including automobile, food & beverage, aerospace, construction and
others. Growing automotive production primarily in Kuwait, Jordan, and others
is projected to boost the market growth. Israel is home to robust mining and manufacturing sector. The country’s
manufacturing sector is booming with effective diamond cutting/polishing
technologies, aviation and space products, and food processing. These provide
promising growth prospects for the machine tool market in the country.
CNC
Machine Tool Market, By Geography, 2020
CNC Machine Tools Market Drivers
Rising Adoption of Internet of Things (IoT) Technologies to Fuel Growth
One of the most prominent machine tools market trends is expected to be the increasing uptake of IoT in the manufacturing sector. This will be a result of escalating demand for information and access to information. Furthermore, producers are looking to bring down their production costs, streamline processes, and raise the safety quotient in their units. As a result, there is growing investment in IoT by manufacturers for improved management and automated control, which is propelling the machine tool market, especially CNC Machine tools. Studies have shown that close to 31% of manufacturing operations are already IoT-enabled, which augurs well for this market.
Adoption of CNC Machine Tools in Medical Sector
The medical industry greatly benefits from the
efficiency, speed, and accuracy of CNC machining. According to a report by
Teton Machine, the number of Americans aged 65 and older is projected to double
between 2019 and 2060 and reach 95 million. Due to the growth of aging population, the
need for precision machining services in the medical industry is growing as
well. CNC machines are capable of producing sophisticated surgical
instruments such as grinding machines, tiny screws and everything in
between. In addition medical machined parts for the most complex devices
require tight tolerances, which is capable through CNC machine tools. Adding to
this, multi-tool and multi-axis machines, such as CNC Swiss turning centers,
improve the manufacturing of medical parts with shorter cycle times and owing
to the features allowing versatility during production. Moreover several
medical equipment manufacturers such as Pulse systems, are focusing on adopting
CNC machine tools for advancements in manufacturing. In 2019, Pulse Systems
acquired additional CNC (computer numerical control) machine tools to support
the company's rapid growth, and has expanded its facilities space to
accommodate the newly-added capital equipment. Hence these rising adoption will
drive the market growth in the forecast period 2021-2026.
CNC Machine Tools Market Challenges
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, the 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. Apart
from this, the focus in the current market is on deploying cheaper machine
tools, especially in developing nations. While this saves on initial
investment, these machine tools have higher long-term maintenance, parts
replacement and other costs, apart from the limited functionality. Besides that
appropriate training and machinists need to get acquainted with the
professional skills necessary to operate these machines. Hence high maintenance
costs and lack of skilled workers will restrict the market growth in the
forecast period 2021-2026.
CNC Machine Tools Market Landscape
Product launches, acquisitions, and R&D activities are
key strategies adopted by players in the CNC Machine Tools Market. Dalian,
Amada, JTEKT, Trumpf, Shenyang Machine Tool (SMTCL), Philips Machine Tools, KRC
Machine Tool Services, Optimation Technology Inc., Troy Industrial Services,
MIC Group and others are considered to be the key players of the CNC Machine
Tools Market.
Acquisitions/Technology Launches/Partnerships
- In December 2019, DMG MORI, a leading machine tool manufacturer launched LASERTEC 125 3D hybrid, a new hybrid additive manufacturing system. The LASERTEC 125 is a 5-axis laser deposition welding (LDW) system designed for the maintenance, repair and production of significantly larger parts
- In February 2019, Okuma America Corporation, a world leading builder of CNC machine tools, partnered with Jergens, a superior manufacturer of workholding solutions for machine tools. This partnership was aimed to provide the best possible integrated solutions to the end-user. Such partnerships and Product launches positively impacts the market growth.
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