Worldwide CNC market plateaus

According to a study by ARC Advisory Group, the computer numerical controls (CNC) market faces an uncertain future after strong sales from 2009 to 2011.

11/26/2012


The Computer Numerical Controls (CNC) market experienced robust growth in 2011.  After the market suffered as a result of the financial crisis, culminating in a trough in 2009, the market has rebounded to exceed its previous peak of over $6 billion in 2008. This growth cycle in 2010 and 2011 was led by the recovery in machining for the automotive and oil and gas industries, and also by the continued rapid growth in Asia Pacific.

“The Computer Numerical Control market in 2011 reflects a recovery in manufacturing investment, but with many investment cycles coming to an end, the future remains very uncertain,” according to Research Director Sal Spada and Research Analyst David Lavieri, the principal authors of ARC’s “Computer Numerical Controls Worldwide Outlook” market research study.

Capital Investment Cycle

During the recessionary period in 2009 and the first half of 2010, companies conserved scarce capital by redeploying aging machines instead of purchasing new machines. Starting in late 2010, this trend began to reverse, as companies loosened their purse strings to invest in their operations and replace old machinery. In particular, automotive manufacturers strongly invested in new CNC control machines. These investments are typically cyclical, and there remains a question if these investments will sustain the CNC market over the next few years. 

Multi-tasking Machines Regain Attention

Though multi-tasking machines have existed for a number of years, the technology has continued to gain traction as a growing application for CNC controls. Offering simultaneous operation of various applications (milling, turning, grinding, etc.), multi-tasking machines is the natural extension of the machining center.  Not only do these machines decrease the total number of machines necessary, but also the total production time. Like the machining center, it reduces set-up and transfer times and improves cycle time. Due to the need for fewer machines, it also reduces the factory’s overall energy costs, as it saves on costly auxiliary equipment and coolants.

Uncertain Future for China

Though China continued to be a major growth market in 2011 for CNC controls, future growth in the region is less certain. As a result of its dominantly export-oriented economy, the country’s domestic market for machine tools is highly dependent on the economies of the developed world, particularly the United States, Europe, and Japan; these economies have struggled and demand declined sharply in the recession, causing inventories of Chinese manufactured products to skyrocket, and tempering the demand for future machine demand.

ARC Advisory Group

www.arcweb.com 



Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
November 2018
Reliable wireless operations; PID tuning tips; Process control data quality; Cyber protection and integration
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
Material Handling
This article collection focuses on how modern supply chain must run at warp speed, and how the tools available—from conveyors and robots to automatic picking systems and digital orders—have evolved to keep pace with the speed of change.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
November 2018
Reliable wireless operations; PID tuning tips; Process control data quality; Cyber protection and integration
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
Material Handling
This article collection focuses on how modern supply chain must run at warp speed, and how the tools available—from conveyors and robots to automatic picking systems and digital orders—have evolved to keep pace with the speed of change.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
November 2018
Reliable wireless operations; PID tuning tips; Process control data quality; Cyber protection and integration
October 2018
HMI hardware evolution, Data acquisition strategies, Matching motors and drives, Machine vision advice
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
Material Handling
This article collection focuses on how modern supply chain must run at warp speed, and how the tools available—from conveyors and robots to automatic picking systems and digital orders—have evolved to keep pace with the speed of change.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me