The U.S. computer numerical control (CNC) machine market size was valued at USD 7.88 billion in 2016 and is projected to expand at a CAGR of more than 4.0% from 2017 to 2025. Increasing demand for mass production of automotive parts and growing number of manufacturing units are presumed to fuel the product demand over the forecast period. Technological advancements, such as usage of computerized codes and automation, help overcome human errors and downtimes to achieve cost-efficiency, better quality, and productivity. This is also expected to drive the market growth in coming years.
U.S. CNC machine market revenue, by type, 2014 - 2025 (USD Billion)
Growing applications of Machine Learning (ML) in various fields, such as controllers and monitoring devices, are estimated to drive the market demand. Its advantages including reduction of operational cost by eliminating the need to have several supervisors on the shop floor and reduction of floor space required, would also fuel market demand.
Rapid penetration of the Internet of Things (IoT) within CNC machines has led to development of software applications that are compatible with PCs and smart devices. This allows operators and supervisors to control the machine from distant locations. Furthermore, it is anticipated to bring innovative technologies in the field with respect to automation, resulting in more efficiency. All these factors are expected to augment the market growth over the forecast period.
In recent times, advancements in technology have enabled manufacturers to come up with solutions that reduce significant amount of repetitive work, thereby reducing machining time. If the machining time for one component reduces by even 5 minutes, the entire time saved during the operation is enough to produce 10 new objects, which improves productivity. A higher machining time even outweighs setup costs, material costs, and costs for custom finishing of the job/workpiece. Owing to all these consequences, manufacturers have shifted their focus toward automation and reducing machining time through latest software and connectivity network. Such developments are anticipated to increase the product sales over the forecast period.
Segmentation by Type
The lathe machine segment led the U.S. computer numerical control machines market in 2016 and is expected to maintain its dominance over the forecast period. They enhance the surface finish of the product and allows the users to work on complex operations. Modern CNC lathes can cut variable pitch threads without the need for changing gears, thereby improving productivity on the shop floor. This will escalate demand for CNC lathe over the forecast period.
Penetration of computer numerical control within milling machineries is growing at a faster pace on account of advancements in technology such as Computed Aided Manufacturing (CAM). This is expected to fuel the product demand over the forecast period. Use of computer numerical control programming results in an improved accuracy of the tasks to be performed.
Developments in the laser technology has increased the use of fiber optics lasers in machining and laser technology, which is expected to benefit the market growth. Computer numerical control in grinding machines amplifies the speed at which the tasks are performed with higher accuracy. However, materials are removed at a quicker rate when these machineries are used along grinding machines, which uplifts the requirement of coolant to prevent overheating. This will lead to a steady growth in this segment.
Various factors, such as high accuracy and improvement in welding speed, are expected to fuel the demand for CNC-based welding machineries over the forecast period. Moreover, use of CNC technology increases the number of coils per winding. Various advantages, such as 100% repeatability, reduced redundancy, and increased flexibility, are expected to increase their demand in upcoming years.
Segmentation by End Use
• Aerospace & Defense
• Construction Equipment
• Power & Energy
Product penetration within the automotive segment is likely to expand at a lucrative CAGR over the forecast period. Various functions, such as metal cutting and manufacturing of small components, are expected to increase their demand in the automobile industry over the forecast period.
Power stations involve complex processes with critical operation methods requiring higher level of accuracy. Implementation of computer numerical control technology in power and energy has been benefiting the sector and is expected to witness a rapid growth in the years to come. Moreover, the segment is expected to witness high product demand owing to growing number of power plants across the country. Industrial applications segment is projected to be the largest among other end-users, owing to various operations such as metal removal, forming, metal cutting, welding, shaping and shearing that are performed on tiny workpieces.
Market players are experiencing extreme competition from their global counterparts, which has led to greater market opportunities. Furthermore, large players are continuously investing in R&D to come up with new technologies and retain their market share. Some of the key companies in the U.S. CNC machines market are Allied Machine & Engineering Corp., GSK CNC Equipment Co., Ltd., Dr. Johannes Heidenahain GmbH, and Sandvik AB.
Research Support Specialist, USA