Computer Numerical Control Market

Market Overview

The global computer numerical control market size was valued at USD 17430 million in 2021 and is estimated to reach an expected value of USD 29698 million by 2030, registering a CAGR of 6.1% during the forecast period (2022 – 2030).

A completely automated option for computer-controlled metalworking equipment is a computer numerical control (CNC) machine. Due to its benefits across numerous end-user industry verticals, including the automotive and manufacturing industries, this machine is a vital asset in the machine tools sector. For instance, CNC increases productivity and improves machining performance regarding precision and accuracy. Most CNC machine operations are controlled by software languages like computer-aided design (CAD), computer-aided manufacturing (CAM), and vector. These software packages make it possible to run the CNC machine precisely and accurately in mass production settings.

The global computer numerical control market is expanding due to increased productivity, time efficiency, and precision & accuracy offered across metal working industries like the automotive and manufacturing industries. Positive government programs like "Make in India" and "Made in China 2025" in the Asian area also contribute to the expansion of this sector.

Market Dynamics

Market Driving Factors

• Increase in Demand in Mass Production Plants

Due to their capacity to produce very precise parts and components, CNC systems are used more frequently in factories producing large quantities of goods. Moreover, the diversified range of techniques such as CAD and CAM used in CNC to produce standardized parts through machine tools are entirely interchangeable. Furthermore, the application of CNC in manufacturing plants directly impacts cost reduction along with a substantial increase in productivity and quality of the final product. Thus, CNC's abovementioned capabilities influence the growth of end-user industry verticals such as automobile, aerospace, and defense, which, in turn, augment the demand for CNC machines in mass production plants.

• Increase in Need for Precision and Time Effectiveness

The surge in the need for intricate solid parts manufactured with defined finishing along with operational effectiveness is primarily driving the growth of the computer numerical control market. Due to their extremely precise operations, CNC machines are primarily utilized for engraving on wood and metal surfaces. With its ability to process novel materials like polymers and provide results precisely by customer requirements, CNC possesses micro- and nano-machining capabilities. Applying CNC in process plants effectively reduces the time required for design and production. This feature encourages companies to adopt CNC solutions, thereby boosting the computer numerical control market growth.

Market Restraining Factors

• Implementation of Stringent Government Regulations

The global economic crisis and barriers to machine tool imports in Brazil and China influence the key players worldwide. For instance, foreign companies face market access barriers due to divergent regulatory frameworks across Chinese Provinces, such as China Compulsory Certification Mark (CCC Mark) and intellectual property rights (IPRs). In the past decades, Europe represented a significant share in machine tools consumption globally; on the contrary, Asia has presently taken over this share. However, regulations on CNC machine placements and machine tool imports have affected Europe adversely. For instance, on October 12, 2017, Germany informed the Commission of a safeguard measure taken on September 12, 2017, to prohibit the placing on the market of CNC milling machine models UMC750SS and UMC750 (CNC milling machines), manufactured by Haas Automation Europe N.V., Mercuriusstraat 28, B-1930 Zaventem (the manufacturer). Germany took the measure considering that the CNC milling machines did not conform to the essential health and safety requirements in section 1.5.13 of Annex I to Directive 2006/42/EC. Thus, all these factors have collectively restrained the growth of the market.

Market Key Opportunities

• Increase in Application Areas

CNC machines benefit various industry verticals, such as automotive and aerospace, with their advanced software and hardware interfaces. Some industries where CNC machining centers are used include drives for removing metals, fabricating metals, Electrical Discharge Machining (EDM) industry, lettering& engraving systems, and routing & drilling operations. The metal removal industry utilizes CNC for metal removal by various machine tools such as lathe, milling machine, boring machine, shaping machine, reamer, drilling machine, and others. CNC machines are also used for machining operations, including flame or plasma cutting, welding, shearing, laser cutting, punching, forming, and others. Thus, due to such extensive applications of CNC machines in different industries, the computer numerical control market demand is anticipated to witness a surge in growth during the forecast period.

In addition, several companies, such as Optomec and Titan Robotics, have taken initiatives to reduce the cost of the entire production process by introducing 3D printers in their manufacturing plants. For instance, in October 2016, Titan Robotics proposed a plan to implement a pellet extrusion system into the Atlas 3D printer that can quickly print using a pellet extruder and finish the production process with a CNC machine. Such advancements in CNC offerings are expected to offer lucrative opportunities for market expansion during the forecast period.

Regional Analysis

Region-wise, the global computer numerical control market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 7.8%. The need for automation in the manufacturing sector in countries such as India, China, and Japan, rapid growth in industrialization, and improvement in regional economy have boosted the development of the Computer numerical control market in the Asia-Pacific region. Leading players in Asia-Pacific are offering advanced products with upgraded features to expand their market reach, owing to their high potential for growth and revenue generation. For instance, in January 2020, PTJ Factory, a CNC machining firm based in China, launched advanced tools.

Europe is the second largest region. It is estimated to reach an expected value of USD 8415 million by 2030, registering a CAGR of 5.1%. The World Machine Tool Survey published in 2018 shows that Germany and Italy are among the top five global machine tool consumers. Germany contributed 8.8%, whereas Italy accounted for a 5.8% share in machine tool consumption. Europe is leading the marketplace with significant exports to the auto component industry. The presence of highly established vital players, a novelty in solutions, rise in adoption of manufacturing technology, increase in Industry 4.0 trend, and surge in import/export activities are anticipated to fuel the demand for CNC products in the European countries.

North America is the third largest region. North American computer numerical control market is expected to grow steadily, owing to its increased consumption and import/export activities of machining tools. According to the International Trade Association, in 2019, the US exported USD 1.45 billion of machine tools for planning, shaping, slotting, broaching, gear cutting, gear grinding or finishing, sawing, cutting-off, and other machine tools. Furthermore, the immediate adoption of advanced manufacturing technology and the rise in the manufacturing automation trend has fueled the computer numerical control market in North America. Moreover, according to the World. According to the Machine Tool Survey by Gardner Intelligence, the U.S. was the second largest consumer of machine tools in 2018, which significantly impacted the growth of the North America Computer numerical control market.

Segmental Analysis

The global computer numerical control market is segmented into machine tool type, industry vertical, and region.

By Machine Tool Type

The global computer numerical control market is categorized into lathe, mills, routers, grinders, and others (plasma cutters, drill press, electric discharge machining, welding, and winding machines). The lathes segment was the highest contributor to the market and is estimated to grow at a CAGR of 5.1% during the forecast period. Innovation in the product design of CNC lathe machines, along with a focus on supportive needs such as service providers for the design & fabrication of customization, apparatus, trading, and training, drive the growth of this market. In addition, the development of platform technologies for enhanced teaching of manufacturing and engineering design is expected to support the growth of the CNC lathes market. Advancements in the production of lathes that can be easily assembled & dismantled, which have a compact design, and are longitudinally movable are expected to boost the adoption of lathes in the upcoming years, thereby driving the growth of the market.

The mill's segment is the second largest. CNC milling machines find their primary application in 3D printing and computer-aided designing (CAD). The rise in penetration of advanced CNC mills known as multiaxis machines, which offer additional two axes to the three existing axes- X, Y, & Z, drives the growth in the CNC mills market. These multi-axis mills provide various advantages over common CNC mills, such as reduction of human labor, provision of an enhanced surface finish, and manufacture of complex shapes, which further propel their demand across the globe. Moreover, with a decrease in prices of computers and open-source CNC software, the need for CNC mills is expected to increase, thereby augmenting the growth of the global market.

The router segment is the third largest. With advanced scanning technology and powerful CAM software, three-dimensional machining is used to get detailed turnings and carvings. With the further introduction of advanced tools, developments are expected in CNC technology in the near future. Furthermore, new materials have allowed manufacturers to offer novelty in their products, such as reconstituted stones and metal laminates that a CAN router can cut. Such factors drive segment growth.

Based on Industry Vertical

The global computer numerical control market is segregated into aerospace & defense, automobile, consumer electronics, healthcare, industrial machinery, and others (metal & mining and transportation). The industrial machinery segment was the highest contributor to the market and is estimated to grow at a CAGR of 4.8% during the forecast period. The surge in demand for accurate high-resolution devices and the need to reduce machining trajectory faults boost the demand for CNC machines in the industrial sector, as they enable error-proof surface finishes. Moreover, integrating CNC technology with high-speed CNC hardware highlights accurate detection and ultra-smooth rotation and boosts the market's growth across significant regions.

The automobile segment is the second largest. The rise in the need to produce identical and bulk automotive parts is boosting the growth of CNC in the automotive sector. Furthermore, the surge in demand for vehicles globally, along with mass-produced quality parts, is expected to spur the demand for CNC machines. The efficiency and precision of the parts created by CNC machines encourage automotive manufacturers to use cutting-edge technology to produce various automobile parts within the allotted period. Errors in the manufacturing line are significantly decreased because these machines are controlled by electronic numerical control with little to no human involvement, which is anticipated to present a lucrative opportunity for the CNC machine tools industry.

The aerospace & defense segment is the third largest. An increase in demand to boost the production of components in the aerospace industry by assuring increased safety encourages the implementation of CNC machine tools in the aerospace & defense industry. In addition, the rise in the need to adopt CNC-based machine tools to attain precision in the components used in the production processes of aerospace components propels the demand for CNC in the industry. Furthermore, as the aerospace & defense industry deals with the manufacturing and testing critical components such as jet engines, aircraft extensions, and laser communication systems, the demand for CNC machines is expected to increase.

Recent Developments

• March 2022 - FANUC started the development of NC (numerical control) in 1955 and has unwaveringly devoted its business to factory automation. Since the start of production of the first NC in 1958, the accumulated production has increased steadily, resulting in 10,000 units in 1974, 1 million units in 1998, 2 million units in 2007, 3 million units in 2013, 4 million units in 2018, culminating in a total of 5 million units in February 2022.
• September 2022 - With the planar system ctrlx flow6d, Bosch Rexroth pioneers new territory. Planar systems have a lot of potential for many different industry sectors. Bosch Rexroth has advanced contactless high-performance transport and positioning to a new level with ctrlx flow6d. Free-floating transport platforms, also known as movers, are moved on a working surface that is horizontal, vertical, or overhead. Each mover operates with six degrees of freedom, great speed, and accuracy without creating any pollution or friction. Ctrlx Automation's integration into the automation toolkit produces a comprehensive solution with a small control system and apps to broaden the scope of functions.