While the machine tool industry was adversely impacted in 2013, the business environment in 2014 improved overall and the global market for machine tools, the primary market for computer numerical control (CNC) systems, is expected to register good growth. Several fundamental factors drive demand for CNC-based machine tools. These include increasing demand for consumer goods from the growing middle class, adding new infrastructure to become a part of the global community, a willing financial environment for capital investments, and the need to both produce and conserve energy to cope with the rapidly rising global energy demands. As a result, the demand for the CNC systems will grow steadily over the next five year forecast period, according to a new ARC Advisory Group study.
“CNC systems suppliers remain very optimistic on the long-term outlook of the market because CNC systems play a key role in solving challenges in energy savings and productivity. These systems and their underlying technologies are enhancing energy efficiency, productivity, accuracies, and smart manufacturing,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Computer Numerical Controls Global Market Research Study”.
CNC Applications Expand into New Industries
Automotive and aerospace are major users of CNC systems. However, demand from other end user industries also contributes to market growth. CNC systems are now deployed in healthcare, jewelry, and woodworking industries as well. CNC systems offer ease of use and higher accuracy for manufacturing some products within these industries. For example, the woodworking industry benefits from use of CNCs as the technology enables manufacturing of furniture and other intricate wooden pieces that require complex shapes.
Regional Dynamics
In 2014, the machine tool demand varied in different regions. The uncertainties in Europe and the current sluggishness in China represent uncertainties for the future market demand of CNC controls. Though markets such as Japan and Germany have strong domestic markets, China and the rest of Europe represent major export markets for these two countries, and therefore injecting uncertainties for overall CNC market growth outlook. The study addresses these market dynamics and provides analysis and forecast under such environment.
Leading Supplier and Market Shares
The CNC market remains highly consolidated. However, interesting dynamics exist relative to market leadership. While the study discusses major suppliers and their market shares in major world regions, it also addresses new dynamics created by global suppliers and regional domestic suppliers in China.
The study also identifies growth segments and market trends, as well as challenges suppliers face. In addition to the quantitative assessment of the CNC market, this ARC study provides an insightful analysis of the market and strategies and explores issues that will impact these businesses well into the future.
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