CNC Machine Market Size, Share & Trends

Updated on : Sep 13, 2024

CNC Machine Market Size & Share

[240 Pages Report] The CNC Machine market size is projected to grow from USD 67.5 billion in 2023 to USD 80.4 billion by 2028, at a CAGR of 3.5% during the forecast period. Rising mass production of high-precision components for high-growth industries and increasing automation in manufacturing industries globally driving the CNC Machine market.

CNC Machine Market Forecast to 2028

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CNC Machine Market Size & Share

Driver: Rising mass production of high-precision components for high-growth industries

Mass production refers to the simultaneous manufacturing of multiple similar products. This helps reduce the per-unit production costs and maximize profits for manufacturing companies. Increasing mass production of parts for electronic devices and automobiles has fueled the adoption of CNC (Computer Numerical Control) machines.

A large number of identical parts can be mass-produced with the help of CNC (Computer Numerical Control) machines with high precision. In addition, both the automotive and electronics industries demand high levels of precision and complexity in their components and products. CNC (Computer Numerical Control) machines excel in providing the necessary level of accuracy for intricate parts. In the automotive sector, precision is crucial for engine components, transmission parts, and chassis components.

In electronics, tiny and highly detailed components are integral to devices such as smartphones and computers. CNC (Computer Numerical Control) machines are capable of meeting these stringent requirements, making them indispensable in the production processes of both industries.

Furthermore, the automotive and electronics industries frequently require customization and rapid prototyping to meet consumer demands for product variety and innovation. CNC (Computer Numerical Control) machines offer the flexibility to produce custom components efficiently. For automotive manufacturers, this means creating unique vehicle models or personalized features. In the electronics sector, it enables the development of prototypes and small-batch production runs, essential for testing and innovation.

Restraint: High installation and maintenance costs of CNC (Computer Numerical Control) machines

The substantial investment needed for the procurement of CNC (Computer Numerical Control) machines serves as a significant impediment to the global growth of the CNC Machine market. Brand-new CNC (Computer Numerical Control) machines, including lathes and routers, come with a price tag that frequently extends into the thousands of dollars, contingent on factors like brand and model.

These expenses encompass not only the initial purchase price but also associated costs for shipping, installation, ongoing operation, and maintenance, thereby increasing the overall financial burden on companies that implement CNC (Computer Numerical Control) machines. CNC (Computer Numerical Control) machines are robust and can vary in weight from 100 pounds to several tons. Generally, transportation costs are integrated into purchase agreements, but if not, they can result in substantial outlays for customers.

Furthermore, CNC (Computer Numerical Control) machines can be tailored to meet the specific demands and specifications of end-users. The required configurations of CNC (Computer Numerical Control) machines differ based on the specific applications in which they will be used. Additionally, CNC (Computer Numerical Control) machines necessitate periodic upgrades to remain compatible with changes in the manufacturing process or product variations, incurring significant expenses.

These high costs associated with the overall operations of CNC (Computer Numerical Control) machines are the key factors considered in making the purchase decisions. They are expected to hinder the adoption of CNC (Computer Numerical Control) machines, especially across cost-sensitive regions and industries. Therefore, high installation and maintenance costs pertaining to CNC (Computer Numerical Control) machines are expected to prove to be a restraining factor for the growth of the CNC Machine market.

Opportunity: Increasing demand for artificial intelligence-based systems in manufacturing

Globally, traditional systems have almost shifted toward smart manufacturing and digitization. They allowed physical equipment or machines to communicate with control systems and act autonomously using machine learning (ML) and artificial intelligence (AI).

Therefore, many organizations have embraced AI and automation to speed up supply chains, increase inventory and order accuracy, and improve quality control. The integration of AI into CNC (Computer Numerical Control) machining is a burgeoning trend, witnessing increasing acceptance among machine shops. As AI technology advances, it is increasingly likely that AI will attain a level of sophistication that allows it to seamlessly integrate with design software, automatically enhancing designs to achieve better results.

A prime example of this is generative design—an iterative process that automatically optimizes designs. Generative design software, such as Autodesk Dreamcatcher, is already demonstrating the potential of AI by directly connecting to both additive manufacturing (3D printing) and subtractive manufacturing (CNC machining) processes.

Challenge: Lack of expert technicians to operate CNC (Computer Numerical Control) machines

A significant hurdle impacting the CNC Machine market's growth is the shortage of qualified CNC (Computer Numerical Control) programmers, setup machinists, and machine operators. In the past, the challenge revolved around optimizing the limited capabilities of machines. However, CNC (Computer Numerical Control) technology has effectively addressed this issue.

Today, the primary challenge lies in the scarcity of skilled personnel who can proficiently program, set up, and operate these machines. CNC (Computer Numerical Control) machines are capable of performing a wide range of tasks when programmed accurately. Nonetheless, incorrect programming of CNC (Computer Numerical Control) machines can lead to manufacturing errors, resulting in unnecessary cost burdens for end-users.

The demand for skilled technicians to operate CNC (Computer Numerical Control) machines has grown over the years. However, in many industries, there is a shortage of qualified engineers and maintenance personnel needed to adequately support and upkeep these machines.As CNC (Computer Numerical Control) machines comprise various components, it necessitates the requirement of highly skilled workers to set them up. However, the shortage of qualified setup machinists and machine operators, coupled with high labor costs, is a key challenge for the growth of the CNC Machine market.

CNC Machine Market Ecosystem

This section describes the CNC (Computer Numerical Control) ecosystem and the deployment of CNC (Computer Numerical Control) solutions in different end-user industries, along with the impact of associated technologies on the CNC Machine market.

CNC Machine Market Segment

Machines Segment to hold the largest share of the CNC Machine market during 2023–2028

The machines segment is expected to account for the largest size of the CNC Machine market during the forecast period. The machines come in various types, including milling machines, lathes, and grinding; each designed for specific machining processes.

These machines serve as the foundational technology and hardware that underpin precision manufacturing processes across a wide range of industries, making them the central focus of the market. Furthermore, CNC (Computer Numerical Control) machines continually benefit from ongoing technological advancements and innovations. These innovations drive demand for more advanced and efficient systems, reinforcing their significance in the market. The ability to deliver increasingly sophisticated machining capabilities further solidifies their position as a core component of the CNC Machine market.

Machining Centers product type to dominate the CNC Machine market during the forecast period.

Machining Centers product type segment is expected to account for the largest size of the CNC Machine market during the forecast period. Machining centers offer exceptional versatility and precision, catering to a wide spectrum of industries.

Their automation capabilities contribute to enhanced operational efficiency, making them equally adept for high-volume production and customized, intricate components. Ongoing technological advancements have continuously improved their performance and capabilities. Furthermore, the growing demand for CNC-machined components in diverse sectors underpins their prominent standing in the market, reflecting the market's confidence in their ability to deliver quality and cost-effective solutions.

Automotive & Transportation end-user industry to dominate the market during the forecast period

The automotive & transportation end-user industry is expected to account for the largest share of the CNC Machine market during the forecast period. CNC (Computer Numerical Control) machines contribute to higher productivity and cost savings in the automotive industry through automation and efficient production processes. This machine ensures consistency in part production.

They follow precise instructions, minimizing the likelihood of defects or variations in dimensions. This level of quality control is critical in the automotive industry, where safety and performance standards are stringent. The automotive and transportation industry is experiencing a significant increase in global demand driven by population growth, urbanization, and rising consumer expectations. To meet this ongoing and increasing demand, automotive manufacturers need efficient and scalable production methods, with CNC (Computer Numerical Control) machines being a key component of these processes.

CNC Machine Market Regional Analysis

The CNC Machine market in Asia Pacific is expected to maintain the highest share during 2023–2028

Asia Pacific is expected to hold the largest share of the CNC Machine market throughout the forecast period. The region is considered significant in the growth of the global CNC Machine market, both in production and sales. The aging population in China and Japan has resulted in rising labor costs, leading to the growing adoption of automation.

The increasing population is also attracting companies to invest in the Asia Pacific. The presence of some of the most prominent players in the CNC Machine market space, such as DMG MORI (Japan), OKUMA Corporation (Japan), Makino Milling Machine Co., Ltd. (Japan), JTEKT Corporation (Japan), DN SOLUTIONS (South Korea), and others is another major factor driving the market in this region.

CNC Machine Market by Region

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Top CNC Machine Companies - Key Market Players

The CNC Machine companies have /implemented various types of organic and inorganic growth strategies, such as product launches, product developments, partnerships, and collaborations, to strengthen their offerings in the market.The major players are

• DMG MORI (Japan),
• Okuma Corporation (Japan),
• Makino Milling Machine Co., Ltd. (Japan),
• Haas Automation, Inc (US),
• JTEKT Corporation (Japan),
• DN SOLUTIONS (South Korea),
• TRUMPF (Germany),
• Hurco Companies, Inc. (US),
• Yamazaki Mazak Corporation (Japan),
• GF Machining Solutions Management SA (Switzerland),
• CHIRON Group SE (Germany), and others.

The study includes an in-depth competitive analysis of these key players in the CNC Machine market with their company profiles, recent developments, and key market strategies.

CNC Machine Market Report Scope

CNC Machine Market Highlights

This report categorizes the CNC Machine market based on offering, product type, end-user industry, and region.

Recent Developments in CNC Machine Industry

• In June 2023, Makino Milling Machine Co., Ltd. introduced A91NX launched horizontal machining center. The product is the latest addition to its renowned NX-series lineup, bringing advanced capabilities to the machining of oversized components. The machine offers high-quality machining results, outstanding thruput capabilities, and lower overall manufacturing costs. The machine is suitable for use in automotive, industrial components, agriculture equipment, construction machinery, and aero structural pieces.
• In May 2023, DMG MORI launched the newest additive manufacturing machine, the LASERTEC SLM 30 US. This machine features adaptive beam control and a non-contact recoating method. It offers several significant advancements, including a hybrid toolpath strategy, dynamic adjustments to laser power, laser speed, and laser beam profile at the best industry production cost. With a working area of 11.8 x 11.8 x 11.8 inches, the LASERTEC 30 SLM US focuses on cost-effective part production and handling complex shapes.
• In April 2022, Okuma Corporation introduced the LB3000 EX III, the latest addition to the LB-EX series of high-precision CNC (Computer Numerical Control) lathes with a single saddle. The product attains exceptional levels of decarbonization, precision, and productivity. The newly launched lathe machine offers user-friendly operation and simplifies advanced machining tasks. In addition, its digital twin-based front loading boosts efficiency.
• In September 2022, JTEKT Machinery Americas Corporation introduced the FH5000 series, a high-speed horizontal machining center (HMC), in IMTS 2022. The FH5000S HMC, with a 60-tool ATC, is designed for speed and production reliability, featuring a 15,000-rpm spindle, 50 hp power, and a 0.7-second index time for the B-axis table. This enables aggressive, high-volume machining in a compact space.

Critical Questions:

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