Market Dynamics
Global CNC Cutting Machines Market Drivers
Growth in Automotive Industry
The automotive manufacturing industry is one of the main end-use markets for CNC cutting machines. The development of growing markets in Asia-Pacific and South America, the quick ascent of new technologies, sustainability regulatory regulations, and quickly shifting consumer choices about car ownership are all driving the contemporary economy's industrial dynamics. Digitization, increased automation, and changing business models have disrupted the automotive sector. Autonomous driving, diversified mobility, connectivity, and electrification are the four disruptive technology trends fostered by these new industry dynamics in the automotive industry. Industry insiders predict that the four trends will pick up speed and build upon one another and that the automobile sector is prepared for explosive expansion.
Connectivity services, shared mobility, and feature upgrades are the industries driving forces. The industry's new business models can increase automobile sales by around 30%. The need for CNC cutting machines will rise dramatically due to the automobile industry's tremendous revenue growth. Automobile manufacturing will increase in response to growing demand, necessitating manufacturers' use of CNC-cutting machines.
Global CNC Cutting Machines Market Restraint
Lack of Skilled Labor
Semiconductors and electronics is a multi-billion dollar industry. Leading manufacturers benefit from a competitive advantage provided by CNC cutting machines. Using CNC cutting machines is a complex operation that requires a high level of dexterity and knowledge. The design must be created in a computer-generated CAD/CAM environment before being programmed into the CNC cutting machines. This overall process consists of numerous intricate sub-processes using various pieces of equipment. The expense of the procedure is primarily attributable to the equipment and technological investments made to reduce the line width. Some critical sectors of the market are labor-intensive and have different salaries, taxes, and other policies depending on the nation. The majority of machine makers contract out their work to contractors and foundries.
Additionally, the need for trained personnel has grown significantly due to the expanding demand for automotive and furniture applications. But the widespread shortage of skilled workers has dramatically slowed the uptake of CNC-cutting machines. Since there is a severe shortage of expertise in the field, wages and pay for skilled workers have increased significantly. Therefore, a lack of qualified personnel will somewhat restrain the growth of the worldwide market throughout the forecast period.
Global CNC Cutting Machines Market Opportunities
Automation in Imperial Economic Systems
It is anticipated that the growing use of automation technology in developing nations like India, Brazil, Mexico, Vietnam, and Cambodia will open up new business opportunities for suppliers of CNC cutting machines. Due to the COVID-19 epidemic, there is a growing need for critical machinery, with CNC manufacturers being recognized as an integral component of essential services. Industrial design firms are increasingly turning to CNC machines for modular kitchens, furniture, play and educational equipment, and PoS units. For instance, DT Solutions has acquired the required CNC machinery to meet the rising demand for output. Additionally, there has been a greater emphasis on teaching experts how to use CNC software and minimize production pauses. Therefore, the increased automation in developing nations is anticipated to offer attractive growth prospects for companies competing in the worldwide CNC cutting machines market.
Regional Analysis
Asia-Pacific Dominates the Global Market
The global CNC cutting machines market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.25% during the forecast period. Asia-Pacific is anticipated to have the most considerable demand for CNC cutting machines, primarily due to the increased product demand from top manufacturing nations like China, India, and Japan for industrial parts and automotive parts. The largest manufacturing sectors for consumer goods, electronics, automobiles, and machine tools are also located in this area. Additionally, the growth of the local automotive industry is anticipated to increase demand for CNC routers by increasing the caliber of manufacturing both industrial and automotive parts during the study period.
Europe is expected to grow at a CAGR of 5.35% during the forecast period. During the projected period, the market for CNC cutting machines in Europe is anticipated to expand significantly, mainly due to an increase in the use of cutting-edge technology and regional import and export operations. Aside from that, the area is a center for the automobile sector because of top producers with extensive production capabilities like Audi, BMW, and Volvo. This is also projected to impact the market's expansion positively. European manufacturers' rising RandD spending is anticipated to significantly influence market expansion in this area. In addition, the market is expected to develop as existing infrastructure is renovated more frequently.
North America holds a significant market share. Future expansion of the region's market for CNC cutting machines has enormous potential. The demand for CNC cutting machines in this region is driven by expanding investments in the furniture, food processing, automotive, aviation, and automotive industries and by the presence of significant market participants. The region is developed when it comes to investing in the automobile sector. Due to the increasing demand for passenger automobiles worldwide, the automotive industry anticipates significant investments from leading market competitors. This is expected to fuel the market for CNC-cutting machines in the area. Additionally, rising labor costs in the area likely lead to using CNC cutting machines over traditional machining, fueling market expansion.
In the Middle East and Africa, the leading producers of CNC cutting machines are Saudi Arabia, the UAE, Iran, South Africa, and Nigeria. The need for CNC cutting machines is anticipated to increase dramatically with the expansion of the automotive and construction industries. Moreover, the CNC routers market is expanding due to increased manufacturing operations. For instance, the African Union's Agenda 2063 centers on manufacturing. Additionally, throughout the forecast period, it is anticipated that the ongoing construction of warehousing and logistics parks and other related infrastructure projects in the Middle East will boost demand for CNC cutting machines and increase the country's share in the global market.
Segmental Analysis
The global CNC cutting machines market is segmented by type, product, application, and end-use.
The global market is bifurcated based on type into stationary and movable gantry types.
The stationary gantry type segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.50% during the forecast period. CNC routers with stationary gantries (moving tables) are easier to design, construct, and maintain. The fixed X-axis beam assembly makes them intrinsically stiffer than moving gantry machines. Any additional structural weight has no adverse effects because it is fixed, improving performance. A stationary gantry design is a more straightforward and logical option for CNC machines with smaller footprints that need stiffness to cut more complex materials. Gantry support verticals are simple to construct, inexpensive to produce, and maintain. It features weighty components that can make the Y-axis move slowly; the Y-axis may need more power to move more quickly.
It is reasonable to use a moving gantry architecture to minimize the footprint. This is more mechanically dependent and includes connected components, making it more challenging to construct. The gantry must stay within the weight restriction because it is less stiff. It is more mechanically complex, making maintenance more difficult. The weight moved is constant since it has heavy components that do not interfere with the Y-Axis operation. As increased weights have an impact on performance, it is more challenging to make gantry verticals stiff. It is mainly used to cut softer sheet materials on larger machines where space is at a premium. For instance, Scuderia is a moving beam milling machine of the gantry type that is appropriate for high-speed machining.
Based on product, the global market is bifurcated into plasma, laser, waterjet, and router.
The router segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.60% during the forecast period. Similar to CNC lathes and mills, CNC routers operate similarly. The main distinction is the manual nature of every carpentry task, including interior, exterior, and door decorating, wood panels, signboards, frames, molding, musical instruments, furniture, and other items. It entails using a program so that a user can design their product in drawing software and then confirm it using the program. The idea that CNC machines are only used for cutting metal is prevalent. Yet, there is a sizable market for CNC woodworking equipment, the CNC router being the most prominent example.
Smooth mobility is necessary for CNC plasma machines. The drive motor torque must accelerate smoothly and swiftly to attain the best cut speeds. Since the router and plasma share the same machine base, gantry, and electronic cabinet, this configuration is more cost-effective. The two machines so take up the same amount of space as one. Shipping and workshopping expenses are reduced. This combination machine is an attractive choice for cutting metal and nonmetallic materials.
It involves heat cutting using a laser. Energy (3–6 kW) is focused through special lenses onto a limited region to melt away material. Many things can be done with lasers. To cut metal plates, they are employed. The laser cutting technique produces outstanding and accurate cutting quality on aluminum, mild steel, and stainless-steel plate. It is possible to cut delicate forms and tiny holes thanks to its narrow kerf width and small heat impact zone. CNC programming is used to run both laser cutters and CNC routers.
Based on application, the global market is bifurcated into woodworking, stone working, and metalworking.
The metalworking segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.25% during the forecast period. When material needs to be removed, milling is the technique used. It covers many processes and tools, from tiny individual pieces to extensive, powerful gang-milling operations. The high-performance routing and engraving equipment for cutting 2D and 3D parts for fabrication profiling control panels and 3D milling to make prototypes, models, and molds are included in the metalworking. For end-use operations, it mainly makes use of plasma and waterjet technologies. Flat plate, sheet metal, round, and square tubes may all be cut with metal CNC routers.
Tools used to make wood things include CNC wood routers. The control of a wood router is similar to that of a metal mill, although CAM and CAD programs like Mastercam, Bobcad, Artcam, and AlphaCam are made expressly for use with wood routers. Depending on the wood's type and characteristics, numerous cutters are available on the global market. In contrast to industrial routers, which are intended for more intensive applications, lower-grade routers can be utilized for lighter strain cuts. Typical 3-axis CNC wood routers are typically substantially more significant than their metal industry equivalents. Wood routers often have beds that are 5' x 5', 4' x 8', and 5' x 10'.
A machine tool computer-controlled for stone milling is a stone CNC machine. Other names for stone CNC machines include stone CNC routers, stone CNC carving machines, stone CNC engraving machines, and stone CNC cutting machines. The CNC stone router can polish ceramic tiles, marble, granite, artificial stone, tombstones, glass, and other building materials and work with natural and engineered stones for arts and crafts. The most common diameters of its diamond tools are 4mm, 6mm, and 8mm. The pieces comprise a metal bar sintered with a coating of rigid but amorphous particles for use in stone CNC machines. Compared to cutting, CNC routing requires more grinding.
Based on end-use, the global market is bifurcated into automotive, building and construction, consumer electronics, aerospace and defense, medical, energy and power, furniture, transportation, and others.
The automotive segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.60% during the forecast period. Advanced CNC router technology is highly beneficial to the automotive sector. A CNC router produces significant parts, including bushings, transmission cases, carburetor components, housings, shafts, valves, brake systems, and suspension components. The CNC router is best used in the automobile industry to create engine cylinders, where a metal block is quickly sliced and formed into a cylinder. The idea of integrating AI within CNC machines has enhanced quality control and cost-effectiveness.
Architectural projects can use complex patterns made with CNC routers. architects are adopting CNC cutters in computer-guided production because of the higher precision, quicker manufacturing, and less expensive construction sites. Furthermore, CNC routers allow architects to refine their architectural plans to basic building block projects, fusing technology, mathematics, and art to produce never-before-seen shapes and innovative applications for conventional materials. For instance, Naimor, Inc. employs CNC routers for various tasks, but their capabilities and versatility are particularly well suited to architectural fabrication projects.
Aerospace industry components must withstand high pressure, fast air currents, and speeds. An aircraft's parts, pieces, and members must all be carefully engineered and created to meet strict requirements. Tolerances of 0.0004 inches are required for the aerospace sector. CNC machines meet high tolerance requirements through the milling of highly robust materials. Titanium, aluminum, nickel, and polymers are among the materials used in the aerospace sector. The kind of material employed relies on the part's intended purpose and the qualities that the material must possess.
