Cutting Equipment Market Size & Outlook, 2026-2034

Cutting Equipment Market Overview

The global cutting equipment market size is valued at USD 36.01 billion in 2025 and is estimated to reach USD 57.75 billion by 2034, growing at a CAGR of 5.43% during the forecast period. Rising demand for high-precision, high-speed cutting across automotive, aerospace, and contract metal-fabrication, as well as increasing automation and digital integration, are the primary drivers propelling market growth.

Key Market Trends & Insights

• North America dominated the market with a revenue share of 43.45% in 2025.
• Asia Pacific is anticipated to grow at the fastest CAGR of 9.4% during the forecast period.
• Based on technology, the laser cutting segment held the highest market share of 54% in 2025.
• By automation, the semi-automated cutting systems segment is estimated to register the fastest CAGR growth at 6.0%.
• Based on material type, the Ferrous metals category dominated the market in 2025 with a revenue share of 48%.
• By end-use industry, the automotive segment is projected to register the fastest CAGR of 6.4% during the forecast period.
• U.S. dominates the market, valued at USD 10,134.27 million in 2024 and reaching USD 10,640.99 million in 2025.

Table: U.S Cutting Equipment Market Size (USD Million)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 36.01 billion
• 2034 Projected Market Size: USD 57.75 billion
• CAGR (2026-2034): 5.43%
• Dominating Region: North America
• Fastest-Growing Region: Asia Pacific

The cutting equipment market comprises machines and tools used to cut, shape, or separate materials such as metal, glass, and composites through processes like laser, plasma, oxy-fuel, or waterjet cutting. These systems are essential in the manufacturing, automotive, construction, and shipbuilding industries. The market growth is driven by the rising adoption of automation and precision manufacturing, along with increasing demand for high-efficiency and low-waste fabrication. Additionally, expanding industrialization in emerging economies continues to boost equipment demand for infrastructure and heavy engineering applications.

Latest Market Trends

Rapid adoption of fiber-laser systems and hybrid punch-laser cells

The global cutting market is rapidly transitioning away from older CO2 and mechanical cutting technologies toward advanced fiber-laser systems and integrated hybrid cells. This pivot is driven by fiber lasers' superior electrical efficiency, reduced maintenance needs, and significantly faster processing of thin-to-medium sheet metals. Hybrid punch-laser cells further consolidate operations, minimizing part handling and boosting first-pass productivity for fabricators.

• For example, in September 2025, the AMADA ORSUS 3015 AJe Fiber Laser (6kW) with AMS CL Automation made its North American debut at FABTECH, featuring a new 6kW fiber laser and the flexible AMS CL material handling automation solution.

This industry momentum allows OEMs to prioritize modular platforms, enabling customers to scale power and automation as their demand grows.

Manufacturing re-shoring and investments in local production capacity

A material catalyst for cutting equipment demand is the broad corporate strategy of re-shoring and near-shoring production capacity. Companies across automotive, aerospace, and industrial sectors are shortening supply chains and establishing regional production nodes to reduce freight lead times and geopolitical exposure. These strategic shifts require direct capital investment in new, local fabrication cells.

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Market Drivers

Integration of digital workflows

Digitalization of cutting workflows is transforming from an optional feature into a core requirement for competitive fabrication. The integration of IIoT, nesting optimization, and remote service capabilities moves the industry toward buying holistic production capacity rather than standalone machines.

• In July 2025, TRUMPF showcased an AI-integrated laser welding solution with VisionLine Inspect, using sensors and AI to ensure immediate quality control.

Real-time data streams from laser heads and torches allow for predictive maintenance and maximum uptime, providing the necessary data for fabricators to improve operational reliability, driving market growth.

Labor shortages and the productivity imperative

There is a persistent global shortage of skilled fabricators that is directly fueling capital expenditure on high-automation cutting equipment. Manufacturers invest in machines that minimize operator intervention, such as automated loaders, pallet changers, and integrated cutting-bending cells, to maintain or increase output. This makes new machinery a critical productivity multiplier, enabling higher volumes with fewer personnel.

Market Restraint

High upfront cost and integration complexity for small shops

Although automation and advanced lasers bring operating advantages, their high upfront acquisition cost and integration complexity can deter small and medium fabricators. Many small shops operate thin margins and cannot justify large capital expenditures without clear, short-term payback. Furthermore, integrating new cells requires process change, operator retraining, and sometimes shop-floor layout redesign, tasks that carry time and cost. As a result, technology diffusion can be uneven, making it difficult for smaller job shops to upgrade.

Market Opportunity

Aftermarket services, software subscriptions, and cutting-as-a-service models

A major opportunity lies in expanding recurring revenue through aftermarket services, software subscriptions, and flexible "cutting-as-a-service" models. As customers prioritize predictable uptime and total cost of ownership, OEMs can offer high-margin service contracts, remote diagnostics, and subscription-based optimization software.

• An example of this is Rockwell's service offerings, including Remote Support & Monitoring and Asset Optimization Services, which emphasize the shift toward selling lifecycle uptime and data-driven production optimization, moving beyond one-time machine sales.

Furthermore, rental and pay-per-use models allow smaller shops to access high-end capabilities without a full capital purchase, supporting the market and aligning OEM profits directly with customer operational success.

Regional Analysis

North America dominated the market in 2025, accounting for 43.45% market share. The region’s dominance stems from a dense concentration of end-users, deep penetration of advanced technologies, and a mature aftermarket ecosystem. Corporate and public initiatives to strengthen domestic manufacturing and supply-chain resilience are supporting new capital investment in fabrication cells and automation. Strong logistics and service reduce adoption friction for capital equipment, reinforcing North America’s leading share in both machine sales and service revenue.

The U.S. is the primary driver within North America due to large automotive, aerospace, and defence programs and broad corporate funding for near-shoring. Federal and state grants for manufacturing and workforce training lower barriers for upgrading to automated cutting cells. OEM expansions and widespread adoption of laser and robotic integration keep the U.S. as the single largest national market for cutting equipment in 2025.

Asia Pacific Market Insights

Asia Pacific is emerging as the fastest-growing region with a CAGR of 9.4% from 2026-2034, driven by rapidly expanding automotive and EV supply chains, large-scale electronics and appliances manufacturing, and the fast growth of domestic industrial capacity in China, India, Japan, and Southeast Asia. National industrial policies encourage local capital investment and deepening supply chains, increasing demand for lasers, waterjets, and automated cells. Local OEMs and global suppliers are expanding production and service footprints to serve the large, cost-sensitive but high-volume manufacturing base.

India is a fast-growing national market as PLI incentives, Make-in-India goals, and strong growth in auto-component manufacturing drive local demand for cutting cells. The auto-ancillaries sector’s expanding turnover and investment in EV and component production increase capital spending on lasers, plasma, and automation. Government-backed projects to localize manufacturing and skill development reduce adoption barriers for advanced cutting equipment across regional hubs.

Regional Market share (%) in 2025

Source: Straits Research

Europe Market Insights

Europe holds a significant share of global cutting-equipment revenue in 2025. The region’s market is propelled by a robust machine-tool industrial base, heavy users in automotive and aerospace clusters, and strong regulatory and energy-efficiency drivers. Public funding programs for manufacturing innovation and climate-friendly industry support digitization and energy-efficient machine upgrades. European fabricators also prioritize sustainable, high-precision manufacturing to meet OEM quality and environmental requirements.

Germany leads Europe due to a large concentration of precision engineering, automotive suppliers, and industrial tooling firms. Government support for industrial modernization and climate-protection funding helps firms adopt energy-efficient lasers and automated cells. German integrators and OEMs provide deep local service and customization, making it the regional centre for high-value cutting equipment purchases and exports.

Latin America Market Insights

Latin America’s growth is concentrated in Brazil, Mexico, and Chile, driven by automotive plants, rising local manufacturing for domestic markets, and food-processing equipment demand. Recent foreign investments and factory openings boost local fabrication needs and thus equipment purchases. Government incentives for industrial investment and export expansion in countries such as Brazil further support capital spending on cutting machines and automation.

Brazil leads Latin America due to a significant vehicle production base and growing export orientation. New plant openings and foreign OEM investments increase local demand for cutting equipment for body panels, chassis, and components. Government support for industrial investment and incentives for regional production have strengthened the business case for local machine purchases and aftermarket services. This makes Brazil the main national market for cutting systems in the region.

Middle East and Africa Market Insights

The Middle East and Africa is steadily growing, especially in the Gulf (UAE, Saudi Arabia), driven by industrial diversification efforts, defence modernization, and investments in localized fabrication for infrastructure and energy sectors. National visions promote manufacturing, industrial parks, and technology transfer, encouraging capital investments in modern fabrication equipment.

Saudi Arabia is a regional leader in MEA due to Vision 2030’s industrialization goals and investment into steel, defence, and infrastructure projects. These initiatives include establishing new industrial zones and supporting technology adoption, which leads to public-private investments into fabrication equipment, including lasers, plasma, and robotic cells. Policy emphasis on local production and diversification is driving pilot industrial projects that require modern cutting systems.

Technology Insights

Laser cutting dominated the market with a revenue share of 54% in 2025 because of its high precision, speed, low kerf width, and flexibility of cutting various materials. As the industry moves toward thinner and mixed materials, fiber laser systems particularly enable fast cuts with lower operating costs. Laser systems also integrate more readily with automation (robot arms, nesting software, IIoT), making them attractive for modern factories.

Waterjet cutting or hybrid systems (waterjet + laser) is the fastest growing segment because it causes no thermal damage, can cut exotic materials (composites, ceramics), and has versatility in multi-material workpieces. As demand rises for aerospace composites, advanced materials, and complex shapes, waterjet systems become more relevant.

By Technology Market Share (%), 2025

Source: Straits Research

Automation Insights

Semi-automated cutting systems, including manual loading, partial automation of cutting motion, and basic control software, are expected to grow at a CAGR of 6.0% in 2025. Semi-automated systems provide enhanced precision and throughput over manual machines while keeping cost and complexity manageable. Many job shops and medium fabricators adopt them as a balance of price and productivity.

Fully automated systems, with robotic loading and unloading, pallet changers, multi-axis motion, and smart scheduling, are the fastest-growing. As labor shortages persist and fabricators seek continuous production with minimal human intervention, demand for fully integrated, lights-out cutting cells increases.

Material Type Insights

Ferrous metals (steel, iron, etc.) hold the largest market share of 48% in 2025 due to the bulk of industrial fabrication, construction, and heavy machinery uses steel parts. Cutting equipment is most frequently applied to ferrous metals, so the revenue share for cutting systems handling ferrous material is highest. Even as new materials expand usage, steel remains the base load for cutting machines.

Composites, plastics, and advanced fibres are the fastest-growing because industries such as aerospace, electric vehicle parts, renewable energy (blades), and lightweight design increasingly use composites. Cutting these materials often requires specialized machines (waterjet, hybrid, laser + gas) and careful process control.

End-Use Industry Analysis

Automotive is the leading end-use industry, registering a CAGR of 6.4% in 2025. because car manufacturing requires high volumes of precise parts, body panels, battery enclosures, and structural metal components. Cutting systems are used heavily in sheet metal, battery pack modules, and structural frames. The automotive sector’s scale ensures it accounts for the largest share of cutting equipment demand.

The aerospace & defense segment is the fastest-growing because it demands higher precision, exotic materials, composite cutting, and minimal defects. As aerospace ramps up jetplane production and defense modernization, its capital equipment spend on high-end cutting-edge technology rises more rapidly.

Competitive Landscape

The cutting-equipment market is moderately consolidated among global OEMs, specialist fabricator suppliers, and an expanding set of automation partners. OEMs pursue product refreshes, local expansions, and government-supported production investments to secure regional service footprints and shorten lead times. Buyers value uptime, energy efficiency, and total cost of ownership; firms that bundle machines with software and service contracts gain a commercial edge.

Prima Power: A high-growth innovator

Prima Power has positioned itself as a growth-oriented OEM by rapidly developing high-throughput 3D and multi-head laser systems aimed at the automotive and high-volume metalworking sectors. Its business pattern mixes product R&D, targeted automation modules, and factory-capacity expansions to serve large OEM supply chains.

Latest News:

• In June 2025, Prima Power unveiled the Giga Laser Next, a four-head 3D laser solution for high-volume automotive cutting.

List of key players in Cutting Equipment Market

1. TRUMPF (Trumpf Inc. and Farmington operations)
2. AMADA
3. Bystronic
4. Mazak (Yamazaki Mazak)
5. Prima Power
6. Flow International
7. Hypertherm
8. ESAB
9. Mitsubishi Heavy Industries
10. Haas Automation
11. Koike
12. Piranha (Piranha/Voortman-type integrators)
13. Salvagnini
14. Prima Industries
15. BLM Group
16. Messer Cutting Systems
17. Lincoln Electric
18. Cytro
19. Cloos
20. LVD
21. KMT Waterjet
22. PELI/Peli BioThermal

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Strategic Initiatives

• May 2025 - Connecticut awarded TRUMPF a $2.5 million grant under a Strategic Supply Chain Initiative to expand its North American production and training capacity in Farmington, supporting a press-brake and tube-laser production line and apprenticeship growth.
• June 2025 - Prima Power announced the Giga Laser Next, a four-head 3D laser cutting solution tailored for high-volume automotive applications. The machine emphasizes throughput for complex 3D and formed parts, reflecting OEM demand for integrated, high-capacity cutting cells.
• June 2025 - TRUMPF released next-generation TruFiber laser systems and related process solutions at mid-2025 events, highlighting higher productivity for welding and battery-related applications and improved automation readiness for industrial use. These product upgrades reflect TRUMPF’s push for fiber-laser efficiency and automation.
• June 2025 - Bystronic featured its ByTube Star 130 tube laser and expanded automation tools during mid-2025 showcases, demonstrating increased focus on tube/tube-to-profile cutting and end-to-end cell automation for structural and tubular components. These launches reflect demand for specialized tube processing and automation in fabrication shops.