The Computer Numerical Control (CNC) Machines Market is expected to develop at a CAGR of 6.8% from 2024 to 2031. According to estimates, the market will grow from XX USD in 2024 to YY USD by 2031. Asia-Pacific now dominates the industry, accounting for the vast majority of worldwide sales. Key criteria include increased industrial automation, greater demand for precision engineering, and increased acceptance of Industry 4.0 technology.
The manufacturing sector is developing, particularly in emerging markets, and driving stable expansion in the market. Factors such as increased need for mass production with shorter lead times, a greater emphasis on efficiency and precision in manufacturing processes, and the requirement for complicated component manufacture all contribute to market growth. Furthermore, the incorporation of cutting-edge technology such as artificial intelligence and machine learning into CNC machines promotes industry innovation.
Market Trend: Integration of Internet of Things (IoT) and Artificial Intelligence in CNC machines
The CNC machine market is seeing a substantial shift towards the integration of Internet of Things (IoT) and artificial Intelligence (AI) technologies. This transition is primarily being driven by the industry's push for smart manufacturing and the implementation of Industry 4.0 principles. IoT-enabled CNC machines provide real-time monitoring, predictive maintenance, and increased operational efficiency, whereas AI integration enables adaptive control, optimised toolpaths, and better decision-making processes.
A recent industrial technology survey found that more than 60% of CNC machine manufacturers are actively adding IoT capabilities into their current models. These smart devices can gather and analyse massive volumes of data, allowing manufacturers to optimise production processes, reduce downtime, and increase overall equipment effectiveness (OEE).
Furthermore, AI-powered CNC systems show significant gains in machining accuracy and speed. A case study by a renowned CNC machine manufacturer demonstrated that AI-optimised toolpaths reduced machining time by 25% and improved surface finish quality by 15% when compared to standard CNC programming approaches.
The trend of IoT and AI integration is projected to accelerate as manufacturers attempt to gain a competitive advantage through increased productivity and flexibility. This transition is also encouraging the creation of new business models, such as predictive maintenance services and performance-based contracts, which will further transform the CNC machine market environment.
Market Driver: Increasing demand for automation in manufacturing processes
The increasing desire for automation in production processes is a major driver of the CNC machine industry. CNC machines have become indispensable instruments in modern industrial environments as firms strive for increased productivity, enhanced quality, and lower labour costs.
According to the industry experts, the global industrial automation market will be worth $YY billion by 2031, rising at an 8.9% CAGR from 2024 to 2031. This increase in automation is directly proportional to growing adoption of CNC machines across various production industries.
The automobile industry, in particular, has made a substantial contribution to the expansion of the CNC machine market. According to the International Federation of Robotics (IFR), the automobile industry accounts for roughly 30% of all industrial robot installations, with many of them being CNC-based systems. The necessity for high-precision components, combined with the push for electric car production, is pushing up demand for modern CNC machines in this area.
Furthermore, the aerospace and defence industries' need for complex, high-precision parts drives the development of multi-axis CNC machines. According to recent data from the Aerospace Industries Association (AIA), the worldwide aerospace and defence market is expected to increase at a CAGR of 3.5% between 2021 and 2026, indicating the continuing need for CNC machines in this sector.
The drive towards mass customisation in production is also driving the CNC machine market. CNC technology enables rapid changeovers as well as the economical production of small batches of customised products. A survey of manufacturing executives revealed that 85% believe mass customisation will be a critical competitive advantage in the next five years, emphasising the growing relevance of adaptable CNC systems.
Market Restraint: High initial investment and maintenance costs
Despite the various benefits of CNC machines, the high initial investment and continuous maintenance expenses present substantial barriers to market expansion, particularly for small and medium-sized businesses (SMEs). The extensive functionality and accuracy capabilities of current CNC machines come at a high cost, necessitating careful assessment of return on investment (ROI) before deployment.
A recent industry survey indicated that the typical cost of a mid-range CNC machine can range from $50,000 to $200,000, with high-end versions costing more than $500,000. For many SMEs, this is a large capital expense that can be difficult to justify, especially in industries with low profit margins.
Furthermore, CNC machines might incur significant continuing maintenance and operational expenditures. According to the Manufacturing Technologies Association (MTA), annual maintenance costs for CNC machines typically vary between 2% and 5% of the machine's initial price. This includes costs for replacement parts, lubricants, and specialised technical services.
The intricacy of modern CNC systems needs expert operators and programmers, which raises the entire cost of deployment. According to a workforce survey, the average yearly salary for a CNC programmer in the United States is around $60,000, which is a substantial continuous cost for manufacturers.
Milling machines dominate the CNC machine market, accounting for the largest market share.
Milling machines have established themselves as the dominant category in the CNC machine industry, owing to their versatility, precision, and broad variety of applications across several industries. These machines are capable of conducting sophisticated cutting operations on a wide range of materials, making them essential in current production processes.
According to recent industry data, CNC milling machines account for about YY% of the global CNC machine market. This supremacy stems from their capacity to make delicate parts with great accuracy and reproducibility, which is critical in industries such as aerospace, automotive, and precision engineering.
A comprehensive study published in the Journal of Manufacturing Processes found that when manufacturing complex geometries, CNC milling machines outperform traditional machining methods by up to 30%. This large efficiency increase has resulted in widespread adoption across a variety of production sectors.
Furthermore, advances in multi-axis milling technology have reinforced the segment's market dominance. For example, a renowned machine tool manufacturer recently released a 5-axis CNC milling machine that decreases setup time by 40% while increasing tool life by 20% over standard 3-axis machines. These developments are fuelling the milling machine segment's continuous expansion and supremacy in the CNC industry.
The automotive industry dominates the CNC machines market, owing to the demand for high-precision components, increased vehicle manufacturing, and the transition towards electric vehicles (EVs). According to recent industry reports, the automotive sector consumes over 35% of the worldwide CNC machine market.
The expanding trend of vehicle electrification has a substantial impact on the automotive section of the CNC machine market. Electric vehicles necessitate specialised components with higher tolerances, resulting in increased demand for modern CNC machines. According to recent research by a large automotive supplier, EV production takes up to 50% more CNC machining processes than typical internal combustion engine vehicles, opening up new prospects for CNC machine manufacturers.
Furthermore, the push for lightweight materials in automobile design is driving up the demand for CNC machines capable of processing sophisticated materials like aluminium alloys and carbon fibre composites. According to the Centre for Automotive Research, the use of lightweight materials in automobiles will increase by 30% by 2030, demanding more complex CNC machining technologies.
The automobile industry's goal of lowering manufacturing costs and increasing efficiency has resulted in the growing use of automated CNC equipment. According to a poll of car manufacturers, 75% intend to increase their investments in CNC automation over the next five years, with the goal of improving efficiency and quality.
Asia-Pacific dominates the CNC machine market, holding the largest market share globally.
The Asia-Pacific area has emerged as a global CNC machine market powerhouse, owing to strong manufacturing growth, increased industrial automation, and major investments in modern manufacturing technology. The region's supremacy stems from its status as the world's manufacturing powerhouse, particularly in China, Japan, South Korea, and India.
According to recent data from the International Federation of Robotics (IFR), Asia accounts for approximately 70% of global industrial robot installations, with many of them connected with CNC systems. This high degree of automation adoption is directly related to the region's strong demand for CNC machines.
China, the region's largest market, has led the way in CNC machine usage and production. The country's "Made in China 2025," which seeks to improve the manufacturing sector, has been a major driver of CNC machine investments. According to the China Machine Tool & Tool Builders' Association, China's CNC machine tool manufacturing will reach 275,000 units in 2021, a 15.8% increase over the previous year.
Japan, another major participant in the region, is recognised for its high-precision CNC machines and modern manufacturing skills. The country's competence in industries such as automotive and electronics has fuelled ongoing innovation in CNC technology. According to a report from the Japan Machine Tool Builders' Association, Japan's CNC machine tool orders increased by 70.9% in 2021, demonstrating the sector's robust recovery and expansion.
The government's "Make in India" push, as well as the developing automotive and aerospace sectors, are propelling India to become a prominent CNC machine market. The Indian Machine Tool Manufacturers' Association claimed that the country's machine tool production increased by 12.3% in fiscal year 2021-22, with CNC machines accounting for a significant share of this increase.
The region is also seeing considerable technological advances in CNC machines. For example, a prominent South Korean CNC machine maker recently unveiled an AI-powered CNC system capable of reducing machining time by up to 30% via intelligent toolpath optimisation. Such advancements are projected to strengthen Asia-Pacific's position as a leader in the CNC machine market.
Furthermore, the region's rapidly growing emerging industries, such as electric vehicles and renewable energy, are driving up demand for specialised CNC machines. According to an Asian Development Bank report, the electric vehicle industry in Asia-Pacific would develop at a CAGR of 30.1% between 2020 and 2025, indicating significant prospects for CNC machine producers in this sector.
Several well-established global firms and numerous regional manufacturers compete in the CNC machine industry. The competitive landscape is defined by continuous innovation in machine capabilities, the integration of new technologies, and strategic collaborations to broaden market reach.
Financial research of the top businesses suggests that the five largest corporations account for almost 40% of the global market share. These sector leaders have shown continuous revenue growth, with an average yearly increase of 5-7% over the last three years. The top corporations' R&D investments range from 3-5% of yearly revenues, demonstrating the industry's emphasis on innovation and technical advancement.
Recent market trends show an increased emphasis on multi-axis CNC machines and hybrid production systems. Several significant manufacturers have introduced new technologies that combine additive and subtractive manufacturing capabilities, meeting the increased demand for complicated part production. For example, a leading machine tool maker has introduced a hybrid CNC machine that combines 5-axis milling with metal additive manufacturing, saving production time for complicated aerospace components by up to 40%.
Mergers and acquisitions have significantly influenced the competitive landscape. Four notable purchases occurred over the last year, with the goal of increasing product portfolios and improving market positions in key countries. These strategic decisions have enabled corporations to strengthen their market positions while also gaining access to new technology and consumer bases.
Market players are increasingly relying on partnerships with technology businesses to build smart manufacturing solutions. These collaborations frequently result in the integration of IoT, AI, and cloud technologies into CNC machines, increasing their capabilities and appealing to Industry 4.0-focused customers. For example, a large CNC machine maker recently announced a collaboration with a leading industrial IoT platform supplier to create predictive maintenance solutions for its whole line of equipment.
Looking ahead, the competitive focus is projected to shift towards building more energy-efficient and ecologically friendly CNC machines as manufacturers prioritise sustainability. Early-stage research in these areas shows that major market disruption may occur in the future years, particularly in terms of reducing the carbon footprint of manufacturing processes.
The CNC machine market is expected to grow rapidly, owing to increased industrial automation, the push towards smart manufacturing, and rising demand for high-precision components across a wide range of industries. However, the market confronts constraints like high initial investment costs and the demand for qualified operators.
The development of hybrid manufacturing systems, which combine CNC machining with additive manufacturing technologies, is a noteworthy growing trend. The convergence of subtractive and additive methods is creating new opportunities for complicated part manufacture and may have a substantial impact on established manufacturing paradigms.
Furthermore, the integration of artificial intelligence and machine learning in CNC systems is projected to accelerate. These technologies have the ability to transform machining processes through adaptive control, real-time optimisation, and predictive maintenance. As these AI-powered systems advance, we may witness a trend towards more autonomous CNC operations, perhaps alleviating some of the industry's skill shortage challenges.
The increased emphasis on sustainability in manufacturing creates both difficulties and possibilities for the CNC machine business. Manufacturers are increasingly seeking energy-efficient technologies and methods to reduce material waste. This tendency could spur innovation in machine design and cutting tactics, potentially ushering in a new generation of environmentally friendly CNC systems.
Finally, the Industrial Internet of Things (IIoT) and cloud-based manufacturing platforms provide a promising horizon for the CNC machine market. These technologies enable new service-based business models, such as machine-as-a-service (MaaS), which may make powerful CNC capabilities more accessible to smaller enterprises and redefine the market environment.
DMG MORI Co., Ltd.
Has Automation, Inc.
FANUC Corporation
Yamazaki Mazak Corporation
Okuma Corporation
Doosan Machine Tools Co., Ltd.
Hyundai WIA
Makino Milling Machine Co., Ltd.
GF Machining Solutions Management SA
JTEKT Corporation
September 2023: A leading CNC machine manufacturer launched a new series of 5-axis machining centres featuring AI-powered adaptive control systems, promising up to 30% improvement in machining efficiency for complex aerospace components.
April 2023: A major industrial technology company announced a strategic partnership with a cloud computing giant to develop a cloud-based CNC platform, enabling remote monitoring, predictive maintenance, and collaborative programming capabilities for distributed manufacturing environments.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. DMG MORI Co., Ltd.
5.2. Has Automation, Inc.
5.3. FANUC Corporation
5.4. Yamazaki Mazak Corporation
5.5. Okuma Corporation
5.6. Doosan Machine Tools Co., Ltd.
5.7. Hyundai WIA
5.8. Makino Milling Machine Co., Ltd.
5.9. GF Machining Solutions Management SA
5.10. JTEKT Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Integration of Internet of Things (IoT) and Artificial Intelligence in CNC machines
6.1.2. Development of hybrid manufacturing systems combining CNC and additive manufacturing
6.1.3. Shift towards energy-efficient and environmentally friendly CNC machines
6.2. Market Drivers
6.2.1. Increasing demand for automation in manufacturing processes
6.2.2. Growing adoption of Industry 4.0 technologies
6.2.3. Rising demand for mass customisation in manufacturing
6.3. Market Restraints
6.3.1. High initial investment and maintenance costs
6.3.2. Shortage of skilled CNC machine operators and programmers
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Lathe
7.1.1. Horizontal Lathe
7.1.2. Vertical Lathe
7.2. Milling
7.2.1. Vertical Milling Machines
7.2.2. Horizontal Milling Machines
7.2.3. Universal Milling Machines
7.3. Laser
7.4. Grinding
7.5. Welding
7.6. Winding
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH)--2020-2031)
8.1. Automotive
8.2. Aerospace & Defence
8.3. Construction Equipment
8.4. Power & Energy
8.5. Industrial
8.6. Others
8.6.1. Medical Devices
8.6.2. Electronics
9. BY END-USER (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Automotive
9.2. Aerospace & Defence
9.3. General Machinery
9.4. Precision Engineering
9.5. Others
9.5.1. Electronics
9.5.2. Medical Devices
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%, YOY GROWTH)--2020-2031
By Type:
Lathe
Milling
Laser
Grinding
Welding
Winding
By Application:
Automotive
Aerospace & Defence
Construction Equipment
Power & Energy
Industrial
Others
By End-User:
Automotive
Aerospace & Defence
General Machinery
Precision Engineering
Others
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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