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.
In 2009, the Computer Numerical Controls market tumbled from the lofty heights reached in 2008, shedding about one-third of the market’s value. In the two years since, the market has strongly recovered. The market size surpassed the level experienced in 2008, once again exceeding $6 billion.
Machine tool builders, the primary consumer of CNC systems, have realized an uneven recovery across regions, with Asia Pacific and North America recovering very strongly through 2011, while non-German European markets experienced stagnating domestic markets. The Latin American market also suffered as a result of increased imports.
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:
- Where is the market growing?
- How important will the services business become?
- What are the constraints of selling into the various markets?
- What types of CNCs are being purchased by companies in different regions of the world?
- What industries are purchasing CNC systems?