CNC milling machines market to reach revenues of US$21.55B by 2026

The CNC milling machines market is expected to grow at a CAGR of over 8.72% during the period 2020−2026, according to Arizton Advisory & Intelligence.

Key Highlights Offered in the Report:  

In 2020, APAC was the largest revenue contributor to the global CNC milling machine market, accounting for a market share of 45.59% in 2020. North America will continue its steady growth after 2021. APAC will dominate the market and is expected to witness strong traction in demand for machine tools during the forecast period.

The automotive industry and the electrical & electronics industry were the major end-users of CNC milling machines, accounting for over 60% of the total market share in terms of consumption in 2020.

Vertical CNC milling machines tools dominated the market with the total market share of over 40% in 2020. Universal CNC milling machines currently holds 20.65% share of the market; however, they expect to witness the highest CAGR of over 9.50% by product.

The 3-axis type CNC milling machine most popularly used machine and dominates the global CNC milling machine market. Other axes such as 5-axis and 6-axis CNC milling machines expect to witness the highest CAGR of over 11% during the forecast period.

Several automotive manufacturers shutdown their production facilities due to the imposed lockdown and several small businesses face disruptions in the cashflow. Therefore, the utilization of CNC milling machines declined in 2020 due to lack of investments from end-users.

Vendors expect to invest more in automation in the coming months to reduce labor dependency and the impact of lockdown/isolation measures; these expect to have a positive impact on the operational aspect of the business.

CNC Milling Machines Market – Segmentation

Vertical and horizontal milling machines both perform roughly the same operations, but the production process is different. Both types have advantages and disadvantages, and both are better suited to operations. However, since vertical milling machines are cheaper than others, they are most popular used across end-users.

The 3-Axis type CNC milling machine is the most popular concerning axis type because of its low price and simplicity to use. However, there are limitations with this type of machine as it cannot be used on a machine with complex geometry.

The demand for CNC milling machines is supposed to increase in the coming years due to expansions and investments by private and public players. Automotive, aerospace, electronics, and other industries have strengthened their presence in Europe, APAC, and North America and are still expanding in various countries.

CNC Milling Machines Market – Dynamics

CAD/CAM software is used for designing and manufacturing products and is perceived to be invincible in cost-effective precision manufacturing. CAD uses computer technology for design and design documentation. CAD/CAM applications are generally used for designing both product and programming manufacturing processes, often through CNC milling machines. One of the major differences between an open-architecture CAD/CAM system and a closed-architecture CAD/CAM system is that the former does not integrate with any other software systems deployed by other companies. Closed-architecture CAD/CAM systems are full proprietary ones, whereas open architecture systems can be integrated with the third-party systems of other vendors. This in turn facilities end-users to incorporate open-source software which is less expensive and compatible.

CNC Milling Machines Market – Geography

In 2020, APAC was the largest revenue contributor to the global CNC milling machine market, accounting for a market share of 45.59% in 2020. China accounted for a major share in the global and regional CNC milling machine market. This can be attributed to the increasing number of investments in fully automated industrial machinery and YoY growth in government spending toward defense aircraft and equipment in major economies across the region. In addition, since the Chinese market has significantly dependent on its manufacturing industries, the demand for CNC milling machine is high. Rising investments in the industrial sector and the constant shift toward urbanization are major macro factors propelling the market during the forecast period. APAC dominated the market due to the increased use of metal cutting methods in the region.