The Role of CNC Machines Market in Modern Manufacturing
The Role of CNC Machines Market in Modern Manufacturing
Blog Article
Machining is a form of subtractive metalworking where a cutting tool such as a drill or a lathe tool removes material from a workpiece to create machined parts and components. This includes drilling, boring, milling, turning, and other cutting processes where a piece of raw material is converted into a desired final shape and size.
Machining Market finds applications in various industries including automotive, aerospace, construction, electrical & electronics and others. Key process in machining includes turning processes where a workpiece is rotated to cut off excess material, milling processes where a rotating cutter removes material along various axes and drilling processes that cuts holes into materials.
The machining market is estimated to be valued at USD 402.56 Bn in 2024 and is expected to reach USD 625.55 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Key Takeaways
Key players operating in the machining market include DMG Mori Co., Ltd., TRUMPF Group, Dalian Machine Tool Group Corporation, AMADA Co., Ltd. and Okuma Corporation. These players are focusing on development of computer numerical control machines to cater to growing demand from various industries like automotive, aerospace and electronics.
The demand for machined components and parts is growing from the automotive industry owing to increasing vehicle production globally. The lightweight and high-strength components required in modern vehicles encourage the use of machinable materials. Technological advancements including 3D printing, computer aided manufacturing and robotics are helping machining processes to gain improved precision, reduce waste and enhance productivity.
Market Trends
Additive manufacturing is finding increased applications in the machining industry for fast prototyping, tooling and low volume production. This helps reduce lead times and costs compared to conventional CNC machining. Another trend is the use of lean manufacturing techniques where waste is reduced from processes through effective planning and workflow optimization. This improves production efficiency in machining operations.
Market Opportunities
Stringent emission norms have increased the need for lightweight design of vehicles. This creates opportunities for machining of advanced high strength materials like aluminum and magnesium alloys. Developing multi-functional machines integrated with IIoT and sensing capabilities can enhance machining capabilities for producing complex components. Adoption of intelligent automation technologies like computer vision, collaborative robots would help overcome labor shortage issues and drive growth.
Impact of COVID-19 on Machining Market Growth
The COVID-19 pandemic has severely impacted the machining market growth. During the initial lockdown phases in early 2020, manufacturing facilities were either temporarily shut or operating at significantly reduced capacities due to supply chain disruptions and lockdown restrictions. This led to a sharp decline in demand for machining services from core industrial sectors like automotive, aerospace, metal fabrication etc.
However, as lockdowns eased in later half of 2020, the machining market also started witnessing a gradual recovery. Manufacturers resumed production by maintaining stringent safety and hygiene protocols. There was also a shift towards localized manufacturing and reducing dependencies on global supply chains. This provided some impetus for domestic demand recovery.
Going forward, the spread of vaccination programs and easing of international travel curbs is expected to aid complete normalization of manufacturing activities. However, supply chain disruptions and volatility in raw material prices continue to pose challenges. Machining companies now focus on robotics, digitalization and remote monitoring tools to enhance productivity while maintaining social distancing. Automakers are also ramping up production to cater to strong pent-up demand. The medical devices sector too provides bright prospects owing to rising healthcare spending globally post pandemic.
Asia Pacific Region Dominates Global Machining Market
Asia Pacific currently dominates the global machining market and accounted for over 45% of the total market value in the pre-COVID year of 2019. China, Japan, India, South Korea are the leading machining hubs, driven by strong presence of automobile, electronics and machinery manufacturing industries. Large machining companies have set up their production facilities in these countries to leverage low cost advantage.
Europe is the second largest regional market for machining owing to large automobile manufacturers. Germany dominates European machining market. North America is another major region driven by the US market. Reviving oil & gas sector is bringing new opportunities in Middle East. However, Africa and Latin America are emerging rapidly on back of growing industrialization and foreign investments in manufacturing sector.
South East Asia Emerging as Fastest Growing Regional Market
Within Asia Pacific, South East Asian countries like Vietnam, Indonesia, Thailand etc. are emerging as the fastest growing regional markets for machining. Their growth rates outpaced regional heavyweights like China & India during past five years. South East Asia’s proximity to the major economies has transformed it into a key export manufacturing hub. Countries have successfully attracted multinational manufacturers through their competitive government policies and incentive frameworks. Rising labor costs in China further accelerated the shift of low cost machining jobs to South East Asian nations. Their economic growth rates also remain strong, fueling increased demand for machining services from local industrial sectors over the forecast period. This will help South East Asia to retain its position as the fastest expanding regional machining market globally.
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About Author: Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)