The Computer Numerical Controls (CNC) market has exploded in the last two years, lead by the surge in production of machine tools in the European and Asian markets, according to a new study from ARC Advisory Group, Dedham, Mass. The market was $6.1 billion in 2007 and is forecast to surpass $7.7 billion in 2012, according to the study, Computer Numerical Controls Worldwide Market Outlook.
The CNC market remains highly consolidated with nearly two-thirds of it dominated by FANUC and Siemens. Competition among the top three suppliers is aggressive, as the Asian market grows. The issue at stake is installed base; purchasers in this market rarely switch suppliers due to the investment in personnel training and the ability to move applications from one machine to the next.
Emerging economies such as Russia, India, China, and Eastern Europe will continue to propel overall market growth with an unprecedented number of relatively low-valued machine tools built in these regions, according to the new report. Factors such as increasing consumer demand from the growing middle class, adding new infrastructure to become part of the global community, and the need to produce and save energy to cope with rising energy demands are contributing to the demand for CNC-based machine tools. For more information, visit www.arcweb.com/res/cnc.
