Europe Computer Numerical Control Machine Market Size, Share & Trends Analysis Report By Type (Lathe Machines, Milling Machines, Laser machines), By End Use, By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The Europe computer numerical control machine market size was valued at USD 21.50 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2021 to 2028. The growth of the market can be attributed to the increasing demand for computer numerical control (CNC) machines from automotive manufacturers. The growing preference for automation to reduce overall operating costs also bodes well for the growth of the market. However, the outbreak of the COVID-19 pandemic and the subsequent lockdowns and restrictions being imposed as part of the efforts to arrest the spread of coronavirus are expected to take their toll on the market. Operations at manufacturing units, factories, offices, and stores, among other establishments, have been suspended temporarily, thereby disrupting the supply chains and trading activities, and subsequently affecting the revenue streams.

The strong emphasis incumbents of various industries and industry verticals, including aerospace and defense and automotive, are putting on mass production is driving the adoption of automatic machines. Advances in technology, which can potentially help in reducing the machining time, are also expected to contribute to the growth of the market. The growing energy industry, particularly in France, which is driving the need for precision and accuracy while manufacturing parts, such as rotor shafts and turbines, is expected to play a vital role in the growth of the market. At the same time, advances in wireless communication technology have added IoT compatibility to computer numerical control machines, thereby adding to the convenience to the end-users and contributing to the growth of the market.

The growing preference for automation and the aggressive adoption of the latest technologies and computer-aided manufacturing (CAM) and CNC techniques are expected to drive the demand for CNC machines in Europe. Research funding schemes being announced by various governments in collaboration with universities are also encouraging companies to pursue R&D activities, thereby ensuring greater prospects for the growth of the market. The presence of various technology developers and manufacturers of high-end machining centers required for milling, boring, pressing, bending, cutting, and several other operations, also bodes well for the growth of the CNC machines market in Europe.

Manufacturers of CNC machines are focusing on the latest advances in the field of software to enhance the connectivity of machines as part of the efforts to add to the convenience of operators and improve the flexibility on machining shop floors. Several companies are investing aggressively in R&D activities to improve the machine design to reduce the floor space machines occupy and allow multiple operations to be carried out by the same machine, thereby improving the productivity of the machining shop. For instance, Biesse Group, a manufacturer of CNC machines, invested around USD 35 million in research and development activities, including technology upgrades, new product development, and updates to existing products, in 2020.

However, despite the advantages CNC machines can offer over conventional machines, the high purchasing and maintenance costs associated with CNC machines are expected to restrain the growth of the market over the forecast period. The safety regulations for such machines, such as mandatory dry runs of the machines, are also expected to hinder the growth of the market to a certain extent. The significant investments required for training the existing machine operators to operate the modern CNC machines are also emerging as another potential market restraint. Nevertheless, CNC machine vendors, such as The Shoda Company; Haas Automation, Inc.; and SCM Group; are responding to the situation by offering various training programs.

Type Insights

The lathe machines segment accounted for the largest revenue share of over 25% in 2020. Lathe machines have wide-ranging applications across various industries and industry verticals owing to their ability to machine all kinds of rotating surfaces. Lathe machines can perform various operations, such as knurling, drilling, chambering, and reaming, among others. Lathe machines are dominating the market, particularly owing to their multifunctional features.

The milling machines segment is anticipated to grow considerably over the forecast period. Milling machines aid in the process of metal removal while improving the accuracy of machining. The ability of milling machines to perform operations on slots, gears, shafts, spiral surfaces, and several other curved surfaces is expected to drive the demand for milling machines over the forecast period. The demand for winding machines is also expected to grow remarkably over the forecast period. Winding machines are typically used for the production of motors, transformers, and solenoids.

End-use Insights

The industrial segment accounted for the largest market share of over 20% in 2020. CNC machines are particularly used by incumbents of the industries and industry verticals that involve manufacturing, metal cutting, metal removing, fabrication, and other machining operations to perform the machining of workpieces. CNC machines can potentially improve the productivity of manufacturing units and reduce operational costs significantly, thereby driving the demand for CNC machines.

The automotive segment is anticipated to grow significantly over the forecast period. Europe is considered the automotive hub of the world. The presence of major automotive manufacturers in European countries, such as Germany, France, Italy, and the U.K., is primarily driving the demand for CNC machines across Europe. CNC machines can help in producing high-value parts with accuracy and machining intricate parts without employing any additional resources. Hence, the demand for computer numerical control machines from the incumbents of the power and energy industries is also increasing significantly.

Country Insights

Germany dominated the Europe CNC machines market in 2020 with a revenue share of over 35%. Incumbents of various industries and industry verticals based in Germany are putting a strong emphasis on automation and are hence adopting CAM and CNC techniques. The German government is equally encouraging companies to collaborate with universities and pursue R&D activities.

The CNC machines market in Italy is anticipated to grow significantly over the forecast period. The growth can be attributed to the rising demand for computer numerical control machines from the incumbents of the manufacturing industry in Italy. The Italian manufacturing industry includes a few multinational companies and several SMEs. Meanwhile, the growth of the CNC machines market in France can be attributed to the flourishing energy industry in the nation. Parts, such as turbines, which form an inseparable part of the energy industry, need to be machined with high accuracy. France also has the second-largest railway network in Europe, and hence, computer numerical control machines are used extensively in France for machining steel plate wheels and frames of rail cars, among other parts.

Key Companies & Market Share Insights

The market can be described as a highly fragmented market owing to the presence of several market players, including both established, and local and regional market players, catering to a limited number of clients. Hence, the market is witnessing intense competition among the market players. The intensifying competition is prompting several market players to focus on launching new products and upgrading their existing products. For instance, in November 2020, Hurco Companies Inc. introduced three models of CNC turning centers, include TM10Mi XP, TM8Mi XP, and M12Mi XP, as part of the efforts to expand its existing product range.

Research and development activities play a vital role in the development of CNC machines. As this is an established market with several active players spread all over the world, the market participants focus on adopting the latest technologies to offer innovative features, such as connectivity between computers and CNC machines and software solutions facilitating remote monitoring of the CNC machines through computers. Some of the prominent players operating in the Europe computer numerical control machine market are:

• Amada Machine Tools Co., Ltd.

• Amera-Seiki

• DMG Mori Co., Ltd.

• Dalian Machine Tool Group Corporation

• FANUC Corporation

• Haas Automation, Inc.

• Hurco Companies, Inc.

• Okuma Corporation

• Shenyang Machine Tool Co., Ltd.

• Yamazaki Mazak Corporation

Europe Computer Numerical Control Machine Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the Europe computer numerical control machine market report based on type, end-use, and country:

• Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2028)

  • Lathe Machines

  • Milling Machines

  • Laser Machines

  • Grinding Machines

  • Welding Machines

  • Winding Machines

  • Others

• End-use Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2028)

  • Automotive

  • Aerospace & Defense

  • Construction Equipment

  • Power & Energy

  • Industrial

  • Others

• Country Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2028)

  • Germany

  • Italy

  • France