The global Computer Numerical Control (CNC) Machine Market size was estimated at USD 96.4 Billion in 2022 and it is expected to hit around USD 153.8 Billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 5.33% from 2023 to 2030.

Computer Numerical Control (CNC) Machine Market Overview

By 2030, the demand for computer numerical control (CNC) devices is expected to be more than 2,800 thousand units. Rising demand for equipment to make semiconductors, medical devices, Electric Vehicles (EV), and telecom communication devices is expected to be the market's main growth driver over the next few years. The market is also expected to grow because EV manufacturers need more five-axis milling machines and ultra-precision machines to meet their needs.
In 2021, the market for CNC machines got back on its feet to more orders for machines in all industries, especially in Europe, Asia-Pacific, and North America. In 2021, the market grew because of orders that had been put off because of the epidemic. This will keep happening in the near future so that 2020 backlogs can be taken care of. But the shortage of semiconductors around the world, rising steel prices, and higher shipping costs are expected to keep OEMs from making as much money from sales until 2023.

Over the next few years, the market for Computer Numerical Control (CNC) machines is expected to grow thanks to automated CNC systems connected to industrial robots and using simulation software to increase output. One of the main reasons for using automated CNC machines is to make up for the lack of skilled workers in most industries at the moment. This lets industrial businesses be as productive and efficient as possible. To meet this demand, existing companies in this market, such as Fanuc Corporation and OKAMA America Corporation, put a lot of emphasis on integrating new technology into their existing product lines.

Rising costs of raw materials and a coming shortage of semiconductors that CNC machines use are expected to be problems for the industry. Under these conditions, the market for used CNC machines is likely to grow, which will slow the growth of the market for new CNC machines. During the predicted time, the trend is likely to stay the same. The average unit price of CNC machines is expected to go up because of changes in the cost of raw materials over time.

Key Market Drivers

Increase in demand in mass production plants

CNC systems are used by companies that make a lot of products because they can make parts and components that are very precise. CAD and CAM work with a number of CNC processes that are used to make standard parts with machine tools, like CAD. Also, using CNC in manufacturing facilities has a direct effect on lowering costs and has a big effect on both productivity and product quality. So, the above CNC capabilities have an effect on the growth of industries like the automotive and aerospace and military industries, and they create a good market opportunity for U.S. CNC machines.

Demand for Various Industrial Devices and Equipment

One of the main things driving the growth of the computer numerical control (CNC) machine market is the rising demand for a wide range of industrial devices and equipment, such as medical devices, equipment for making semiconductors, telecom communication devices, and electric cars (EV).

Growing use of industrial automation in the world's manufacturing sector

Industrial automation systems are being used more and more in the manufacturing industry around the world because real-time data is becoming more useful for modelling processes and predicting maintenance. Automation has many benefits for businesses that make parts for the automotive, medical, aerospace, and military industries, such as increased productivity and lower operating costs. It also makes production better in terms of quality, safety, uniformity, and accuracy. Due to the fact that automakers are using more highly automated technology, like CNC machines, to speed up their production.

Key market challenges

Lack of skills: One of the biggest problems for the market is that there aren't enough skilled people to run these automation systems. People need to learn how to use CNC machines as soon as possible through training programmes. In small factories, there aren't many people who know how to use CNC equipment. A major market problem is that most people in the workforce don't know how CNC machines work and can't use them. Lack of training can hurt the marketability of CNC machines in a big way.

Key market opportunities

Popularity of Automated CNC Systems: Demand is going up for automated CNC systems that work with industrial robots, which has more market effects. Simulation software is used in these systems to improve manufacturing, make up for the lack of skilled workers, and boost productivity. The market for computer numerical control (CNC) machinery is also helped by the growth of cities, changes in lifestyle, a rise in investments, and more spending by consumers.

Strong Internet of Things (IoT) Adoption: CNC (Computer Numerical Operate) machines control machine tools with computerised systems. Strong use of the Internet of Things is expected to make more people want to buy things. Also, adding modern digital technology to CNC is expected to make it more useful in a lot of different industries. As digitalization grows and production methods change to be more automated, industries may see a rise in product adoption. Also, rising IoT spending in the manufacturing sector is likely to speed up the adoption of the technology in many industries. Reports say that by 2020, the industrial sector will have spent up to USD 267 billion on developing IoT services. The market for CNC (Computer Numerical Control) machines may grow because of these things.

Strong Demand for CNC from the Healthcare Industry: The COVID-19 pandemic is expected to help the market because the healthcare industry has a strong demand for CNC (Computer Numerical Control) gear. Because of the sudden rise in COVID-19 infections, which no one saw coming, a number of businesses turned to automation. The demand for technology in the healthcare field went up because of this problem. The pharmacy industry also helped this business because there was a lot of demand for effective health care technologies. Also, rapid digitization makes it more likely that CNC equipment will be used. During the time of the epidemic, these things helped the business world grow.

Segmental Insights

Type Insights

The market for CNC lathe machines was worth about USD 17 billion in 2021, and it is expected to grow at a CAGR of about 10.4% during the period of the forecast. Over the next five years, the market is expected to grow because the automotive industry will need more CNC lathe machines to make custom parts like cylinder heads, gearboxes, starter motors, and other prototypes. Also, the growth of the market is likely to be helped by technological improvements to existing CNC lathe systems, such as the addition of new features. In February 2021, Citizen Machinery Co., Ltd. released the Cincom L32 XII, which is an automatic CNC lathe with a sliding headstock and an automatic tool changer. Because of these qualities, many tasks can be done at the same time and complex structures, like medical implants, can be made.

By 2030, there will be a need for more than 600,000 units of CNC laser equipment, which is a CAGR of 9.3% over the forecast period. The category is likely to grow during the forecast period because semiconductor manufacturers need more CNC laser cutting machines to make up for the shortage of semiconductors in many industries. Also, the growing use of CNC fibre laser cutting equipment in the metal fabrication and kitchenware industries is expected to help the market grow in the coming years.

End Use Insights

In the end-use segment, the vehicle, aerospace and military, construction equipment, power and energy, industrial, and other subcategories are further broken down into subcategories. By 2030, the industrial sector is expected to be worth more than $28 billion and make up more than a quarter of the market. The general manufacturing areas of packaging, electronics, pharmaceuticals, and other general industries are all part of the industrial division. During the forecast period, growth is expected to be driven by the growing need for fully automated and turnkey CNC machines to increase production and get rid of backlogs. This will start to happen in 2020.

It is expected that the rise in sales of electric vehicles (EVs) and the rise in demand for the production of ultra-precise parts for EVs will help the automotive industry grow over the next few years. The demand for customised car parts like crankshafts, cylinder heads, and motor pumps is expected to keep the market growing. Taking these factors into account, the auto industry will need more than USD 24 billion worth of CNC machines by 2030.

Regional Insights

In 2021, more than 35% of the world market was in the Asia-Pacific region, and this is expected to stay true throughout the forecast period. CNC machine sales are expected to reach 800 thousand units in 2022 and four times that amount by 2030. The increase in manufacturing outsourcing services for industrial equipment, the availability of cheap raw materials, and low operational costs are all driving the demand for manufacturing outsourcing, which will lead to more sales of CNC machines over the next few years.

Over the next few years, Europe is expected to have a CAGR of 9%. Germany, Italy, France, and countries in Central and Eastern Europe are driving the growth. In the coming years, the market is likely to grow because of a lack of workers, which will force metalworking companies to invest more in automation to make their CNC machines work faster.

Scope Analysis:

Recent Developments

• In March 2021, Fanuc America Corporation, a branch of Fanuc Corporation, added the Quick and Simple Startup of Robotization (QSSR) G-code feature to ss as part of an update to its CNC product line. With this link, the company's improved CNC machines make it easier for toolmakers and machine operators to programme robots.
• FANUC America, a well-known maker of robots, CNCs, and ROBOMACHINES, says that old CNC machines with older operating systems will have an upgrade option in 2020. FANUC CNCs can be fixed with the Panel I Replacement Program, which has a powerful industrial PC with a touch- or non-touch LCD screen and Windows 10 IoT Enterprise.

Market Segmentation

This portion of the study on the Computer Numerical Control (CNC) Machine Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Type

• Lathe Machines
• Milling Machines
• Laser Machines
• Grinding Machines
• Welding Machines
• Winding Machines
• Others

By End Use

• Automotive
• Aerospace & Defense
• Construction Equipment
• Power & Energy
• Industrial
• Others

By Companies

• Yamazaki Mazak Corporation (Japan)
• Doosan Machine Tools Co., Ltd. (Korea)
• Trumpf (Germany)
• Amada Machine Tools Co., Ltd (Japan)
• JTEKT Corporation (Japan)
• MAG IAS GmbH (Germany)
• Schuler AG (Germany)
• Makino (Japan)
• Hyundai WIA (Korea)
• Komatsu Ltd. (Japan)
• Okuma Corporation (Japan)
• FANUC Corporation (Japan)
• XYZ Machine Tools (U.K.)
• Mitsubishi Heavy Industries Machine Tool Co., Ltd. (Japan)
• General Technology Group Dalian Machine Tool Corporation (Liaoning Province)
• ANCA Group (Australia)