Market for Computer Numerical Controls Is Volatile
Computer Numerical Control (CNC) is an application-specific motion control system for industrial machinery, primarily targeting machine tool OEMs. More specifically, CNCs are focused on the largest segment of the machine tool market, metal working machinery, with a relatively smaller target including a number of other material contouring and cutting applications in wood, plastics, and glass.
The CNC market has simply exploded in the last two years leading to a compound annual growth rate of about 17% since 2005. In particular, the European and Asian markets have surged in overall revenues. Despite this extraordinary growth which is characteristic of an emerging market, the competitive alignment has remained remarkably consistent. For a market that typically experiences single digit growth and five year capital expenditures cycles the unprecedented growth is providing an opportunity for second tier competitors to make inroads into the market.
Strategic Issues
This report discusses many of the trends that are occurring in the CNC market with special attention to the regional differences which are so critical to its success. Some of the key strategic issues include:
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Where is the market growing?
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What are the constraints of selling into the various markets?
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What types of CNCs are being purchased by companies in different regions of the world?
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What industries are purchasing CNC systems?