The global CNC metal-cutting machine market size was valued at USD 86.59 billion in 2022. It is estimated to reach USD 140.20 billion by 2031, growing at a CAGR of 5.5% during the forecast period (2023–2031). The need for machinery is expanding in the railway, electricity, and packaging sectors. This is predicted to increase demand for CNC metal-cutting machines in the upcoming years, supporting the market's expansion.
A computer controlled machine tool used for precise metal workpiece cutting and shaping is a CNC metal cutting machine, CNC machining center, or CNC milling machine. Computer-aided design (CAD) and manufacturing (CAM) software are used to program the machine's motions and perform precision machining operations. A worktable or platform where the workpiece is put, a sturdy foundation or frame, and a cutting tool that can move along many axes (generally three or more) are the standard components of a machine. Depending on the desired machining process, the cutting tool could be a revolving milling cutter, drill, or another tool. A computer program that describes the workpiece's dimensions, shape, and cutting path controls the CNC metal cutting machine. The cutting tool is moved under the program's control, which modifies the cut's speed, direction, and depth to produce the desired result. This enables machining operations to be extremely accurate and repeatable.
For jobs including milling, drilling, tapping, and turning, CNC metal cutting machines are extensively utilized in various industries, including manufacturing, aerospace, automotive, and electronics. They provide several benefits compared to conventional hand machinings, such as improved accuracy, efficiency, and the capacity to create intricate forms and designs.
|Market Size||USD 140.20 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The defense sector's growth largely drives most emerging markets and developed nations. This is explained by the fact that this industry manufactures satellite systems, military hardware, and weaponry. The Stockholm International Peace Research Institute estimates that worldwide defense spending increased by 2.6% to USD 1.82 trillion in 2018 compared to the previous year. Thus, the demand for CNC metal-cutting machines will rise as the military industry develops.
Additionally, many foreign investors and multinational corporations concentrate on funding defense initiatives, particularly in developing economies. For instance, the FDI policies of China and India let private companies participate in the defense industry. To improve the manufacturing capacity of Chinese industries, the Chinese government invested USD 55.6 billion in private-sector businesses in November 2018. As a result, all of these elements work together to expand the worldwide market.
Increased investments in the industrial machinery industry have created a stronger foundation for the engineering and machinery markets. Due to economic development, the markets for CNC metal-cutting machines in Eastern and Central Europe contain enormous potential in addition to the conventional markets for exporters of these machines. Foreign investors also pay close attention to developing nations' engineering and machinery industries since they can provide several benefits regarding manufacturing costs, technology, and innovation. Additionally, the need for machinery is expanding in the railway, electricity, and packaging sectors. This is predicted to increase demand for CNC metal-cutting machines in the upcoming years, supporting the market's expansion.
The lifespan of brand-new CNC metal cutting machines is 8 to 10 years. For end-user industries, the installation of new machines was more expensive. However, installing a used CNC metal cutting machine is less expensive. Used CNC metal cutting machines are more popular among newcomers to the metal cutting industry since they allow them to enter the market easily. Many medium- and small-scale enterprises buy old CNC machines for small projects to reduce the initial capital cost. Additionally, many suppliers and dealers have started favoring secondhand equipment, which hurts the sales of new CNC metal-cutting machines. Businesses like Exapro and Valk Machines BV offer used CNC metal cutting machines, which prevents the market from expanding.
The implementation of tax laws and government subsidies, as well as government initiatives like Made in China 2025, are expected to fuel the growth of the machine tool sector, according to the European Association of the Machine Tool Industries and Related Manufacturing Technologies (CECIMO). Similarly, the Japanese government unveiled a new idea called Connected Industries, which will work with the private sector to create machine tools. In addition, the government of India launched the Make in India and Skill India initiatives to promote the expansion of the machine tool market, which is anticipated to fuel the market for CNC metal cutting machines.
Based on region, the global CNC metal cutting machine market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant global CNC metal cutting machine market shareholder and is estimated to exhibit a CAGR of 6.4% over the forecast period. The Asia-Pacific machine tool industry is not complete without CNC metal-cutting machines. The adoption of machine tools has increased quickly due to the expansion of the packaging and manufacturing industries. China is already a major player in the global CNC metal-cutting machine market and is expected to witness an increase in the production of high-efficiency machine tools.
Additionally, the Asia-Pacific region has become the largest market for CNC metal-cutting machines globally due to increased investments from major infrastructure, defense, and aerospace producers. Due to increased urbanization and population growth, the automotive and industrial industries have grown substantially in rising nations like China and India during the past few years. Due to the expansion of the automotive industry, which drives the market growth in the Asia-Pacific region, China holds the top spot in the production of CNC metal cutting machines. Additionally, a greater emphasis on technology development to produce highly effective CNC metal-cutting machines is anticipated to fuel market expansion soon.
Europe is anticipated to exhibit a CAGR of 4.3% over the forecast period. The demand for CNC metal-cutting machines is anticipated to increase in economies like Germany and Italy despite the economic downturn and fall in the metal-cutting industry due to the growth of the machine tool sector. Additionally, the market is anticipated to grow due to increased investments in the aerospace, automotive, and defense sectors, which use these machines in manufacturing.
Furthermore, most global industries, including heavy machinery and aircraft, are dominated by Europe, led by Germany and Italy. Regarding total motor vehicle production in 2017, the German auto sector came in fourth with a market share of more than 29% of the European Union. Germany was rated third in the globe for the manufacturing of cars. Therefore, it is anticipated that throughout the time of forecasting, the growth of the CNC metal-cutting machine market will be driven by the expansion of Europe's heavy machinery, automotive, and aerospace sectors.
North America emerged as one of the fastest-growing regions in the global market. The expansion of the defense and aerospace industries and the widespread use of CNC machines are expected to drive market growth. The growth of numerous end-use industries, including the automotive, aerospace, and machinery industries, is driving the demand for CNC metal-cutting machines in the North American area. The need for CNC metal-cutting machines is increasing as the automotive and aerospace industries develop. The market is also growing due to increased demand from the metal-cutting industries. The market for CNC metal-cutting machines has many prospects due to industrial growth, notably in the United States.
In addition, Mexico's rising domestic auto production is anticipated to fuel market expansion. The rise in the price of broaching machines built in the United States and other countries aids in expanding the local market.
In LAMEA, numerous small-scale industries use CNC metal cutting equipment throughout the Gulf nations and Latin America. For instance, the Gulf region's significant oil and gas industry presence fuels the demand for CNC metal-cutting machines. However, LAMEA is entirely dependent on imports of CNC metal-cutting machines due to the lack of manufacturing enterprises in the region. The expansion of the automotive sector, which in turn boosts demand for CNC metal-cutting machines, is fueled by the economic prosperity of nations like Brazil, South Africa, Colombia, and Argentina. In addition, among the world's main regions, sub-Saharan African nations are anticipated to enjoy growth in the metal-cutting business during the coming decades, like how the rise of the metal sector in the Middle East is anticipated to propel the market for CNC metal-cutting machines in the area.
The global CNC metal cutting machine market is bifurcated into type and end-user.
Based on the type, the global CNC metal cutting machine market is bifurcated into machining centers, lathe machines, gear-cutting machines, and laser-cutting machines.
The machining centers segment dominates the global market and is projected to exhibit a CAGR of 5.2% over the forecast period. A CNC machine with an automatic tool changer and a table that clamps the workpiece in place is referred to as a "machining center." High-speed CNC machines are now necessary due to the development of complicated machining procedures. The expansion of the CNC metal cutting machine market is also fueled by the creation of multifaceted tools and the rising popularity of manufactured goods. Additionally, the metal-cutting industry is adopting machining centers more frequently since they eliminate the need for tool change and can operate at high rates.
Additionally, metal-cuttings activities are a part of the machine learning sector, which is anticipated to accelerate market expansion. Amada Holdings Co., Ltd., Coherent, Inc., and DMG MORI CO., Ltd. are just a few major companies that offer machining centers to different end-user sectors. As a result, the sum of all these aspects is projected to present profitable opportunities for market expansion over the projection period.
Based on end-users, the global CNC metal cutting machine market is divided into automobile, aerospace and defense, electronics, power and energy, and others.
The automobile segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.9% over the forecast period. Internal helical gears, ring-shaped gears, and other parts can be cut using CNC metal cutting equipment. They are also utilized in aftermarket vehicles, ATVs, and motorcycle parts. Due to its advantages over traditional machines in terms of working efficiency and speed, the automotive industry has seen an increase in the trend of adopting CNC metal-cutting machines. Manufacturers of CNC metal cutting machines have responded to demand by concentrating on performance development, enhancement, and technological capability. Several CNC machine manufacturers in China and India have embraced modern manufacturing practices like TPM, TQM, and Six Sigma to provide top-notch solutions. The rise in demand in China and other developing nations is the main factor driving the use of CNC metal-cutting machines in the automotive industry.
Additionally, this equipment cuts and shapes the internal combustion engine's parts. Many major firms in the automotive sector intend to set up production facilities in underdeveloped nations, which is anticipated to present market expansion chances. For instance, Volkswagen, a German automaker, plans to spend over USD 1.1 billion in India by 2025 to create six new cars under the Volkswagen and Skoda brands. Thus, these reasons are anticipated to increase the demand for CNC metal-cutting machines, boosting the market's expansion.