COMPUTER NUMERICAL CONTROL MACHINE MARKET ANALYSIS

Market Challenges And Opportunities

Global Computer Numerical Control (CNC) Machines Market  – Drivers

Growing demand for automated manufacturing in the industrial sector

The growing need for automated manufacturing in the industrial sector is a major driver of the CNC market. Industries as diverse as automotive, aerospace, electronics, and consumer goods are increasingly interested in automation to improve the productivity, efficiency, and quality control of their manufacturing processes. This shift towards automation has created a strong demand for CNC (Computer Numerical Control) systems. CNC machines play an important role in automated manufacturing as they enable accurate, repeatable, and complex machining operations. CNC technology allows manufacturers to program machines to perform a wide range of tasks with high precision, consistency, and speed. This eliminates the need for manual intervention, reduces human error, and increases the efficiency of the entire process. For instance, In April 2020, industrial technology company Zyfra introduced a ground-breaking innovation to the CNC market with the launch of the cloud-based version of its MDCplus machine monitoring system. This cloud-based solution has revolutionized the way CNC (Computerized Numerical Control) machines are monitored and managed, enabling remote monitoring and control of machines in India.

Rising need for medical devices, electric vehicles (EV), and telecommunications equipment

Growing demand for medical equipment, electric vehicles (EVs), and telecommunications equipment are strongly driving the growth of the CNC market. These industries require highly precise and complex manufacturing processes, for which CNC machines can be used. In the medical device industry, CNC machines play an important role in manufacturing various components and devices. From surgical instruments and implants to diagnostic equipment, CNC machines enable the production of complex, precision parts for medical applications. Increased demand for innovative medical equipment, advances in healthcare technology, and an aging population have increased the need for CNC machines in this field. The electric vehicle industry is growing rapidly around the world due to the push for sustainable transportation and the shift to clean energy sources. CNC machines play a key role in manufacturing critical EV components such as battery cells, electric motors, power electronics, and charging infrastructure. The ability of CNC machines to produce lightweight, high-strength components to tight tolerances supports the development of efficient and reliable electric vehicles. As the demand for electric vehicles grows, so does the need for CNC machines in this sector. For instance, according to a report by ibef.org, an organization focused on promoting India's business and economic interests globally, announced that from 2020 - 2025, the diagnostic imaging market in India is likely to expand at a CAGR of 13.5%. Also, in August 2022, Wipro GE Healthcare, a leading global provider of advanced medical technologies announced that it had partnered with medical device maker Boston Scientific to offer comprehensive, cutting-edge cardiac interventional care solutions in India. These events indicate a growth in the medical sector thereby also increasing the CNC market growth.

Global Computer Numerical Control (CNC) Machines Market – Restraints

High initial investment

CNC machines are complex and technologically advanced devices requiring significant investment in machinery, software, and skilled labor. The initial capital expenditure of purchasing a CNC machine and building the necessary infrastructure can be prohibitive for small and medium-sized enterprises (SMEs) and start-ups, limiting their ability to enter the market or expand their business. Additionally, the maintenance, upgrade, and training costs associated with CNC systems add to the overall financial burden. This further deters potential buyers and limits the adoption of CNC technology, especially in emerging markets where cost considerations play an important role in decision-making.

Counterbalance - The CNC industry requires high initial capital investment which is a barrier to market growth, but the many benefits and long-term cost savings that CNC technology offers offset these concerns. Declining CNC machine prices, availability of financing options, and significant ROI make CNC machines an attractive investment for companies looking to improve productivity, quality, and overall operational efficiency. 

Lack of skilled labor to operate and maintain CNC machines

The lack of skilled labor to operate and maintain CNC (Computer Numerical Control) machines is a major constraint on the CNC market. CNC machines play a vital role in various industries such as manufacturing, aerospace, automotive and medical by enabling precise and efficient machining processes. However, CNC machines are complex and highly technological, requiring skilled operators with the knowledge and experience to program, set up and operate these sophisticated systems. Additionally, regular maintenance and troubleshooting of CNC machines is necessary to ensure optimal performance and longevity. Unfortunately, there is a serious shortage of skilled workers in the field of CNC machining. Technology is advancing faster than individuals can acquire the skills they need. Lack of formal training programs, limited educational resources, and declining interest in technical jobs contribute to this talent shortage. 

Counterbalance - Skilled labor shortages in CNC machining can be a barrier, but measures such as investment in training programs, automation, remote monitoring, and collaboration with industry will play a key role in overcoming this challenge. Adopting these strategies will help the CNC market grow and adapt to the evolving demands of modern manufacturing and other manufacturing industries. 

Global Computer Numerical Control (CNC) Machines Market – Opportunity

Integration of additive manufacturing

The combination of CNC machining and additive manufacturing technology opens up new possibilities in terms of design freedom, material utilization, and production efficiency. CNC machining has traditionally been used for subtractive manufacturing processes, but 3D printing can create complex and intricate shapes by adding material layer by layer. By integrating additive manufacturing capabilities into CNC machines, manufacturers can take advantage of the strengths of both technologies. CNC machining excels at producing high-precision parts with excellent surface finishes, while 3D printing allows for complex geometries and custom components. The integration of these technologies enables a hybrid manufacturing process that uses CNC machining to refine and finish 3D printed parts, resulting in a high-quality, functional end product. For instance, GE has been a leader in additive manufacturing, particularly with its subsidiary GE Additive. They offer a range of CNC additive manufacturing solutions, including their Concept Laser and Arcam brands. GE utilizes CNC additive manufacturing to produce complex components for industries such as aerospace, healthcare, and automotive.

Increasing demand for miniaturization and micro-machining applications

Advances in technology and the emergence of innovative devices are driving the need for smaller, more precise components in a variety of industries such as electronics, medical, and aerospace. With a high level of precision and repeatability, CNC machines are well-suited to meet these needs and fuel the growth of micromachining. Micromachining is the manufacturing of extremely small components with complex features and tight tolerances. Equipped with specialized tools, precision spindles, and advanced control systems, CNC machines achieve sub-micron precision and enable the production of complex microscale parts. For instance, the medical industry relies heavily on miniature diagnostic, therapeutic, and surgical products. Minimally invasive procedures, implantable devices, and medical equipment require precise, compact components. Examples include minimally invasive surgical instruments, catheters, pacemakers, hearing aids, and insulin pumps. Miniaturization of medical devices contributes to increased patient comfort, reduced invasiveness, and improved patient outcomes. 

Global Computer Numerical Control (CNC) Machines Market – Impact of COVID-19

The global computer numerical control (CNC) machines market, like many other industries, has been significantly impacted by the COVID-19 pandemic. The virus outbreak and subsequent lockdown measures by governments around the world have disrupted supply chains, halted manufacturing activity, and caused a decline in aggregate demand. In the early stages of the pandemic, the CNC machinery market experienced a significant decline in orders and sales as manufacturing facilities were forced to close or operate at reduced capacity. Many industries such as automotive, aerospace, and electronics, which are big buyers of CNC machines, are facing production disruptions and reduced investment due to the economic uncertainty caused by the pandemic.