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The Cutting Equipment Market market is forecast to increase by USD 2.53 billion, at a CAGR of 5.52% between 2022 and 2027. The market share's growth hinges on various factors. Primarily, there's a notable emphasis on automating metal cutting processes, streamlining efficiency and precision. Additionally, there's a surge in demand for fiber laser cutting machines, driven by their superior capabilities in various industrial applications. Moreover, the aerospace and defense industry's escalating investment plays a pivotal role, as it necessitates advanced cutting technologies for intricate components and materials. These trends collectively fuel the expansion of the cutting equipment sector, driving innovation and competitiveness. As industries increasingly prioritize efficiency, precision, and advanced capabilities, the market for cutting equipment is poised for sustained growth, catering to evolving industrial needs and demands.
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This market report extensively covers market segmentation by end-user (automotive, aerospace and defense, metal fabrication, electrical and electronics, and others), technology (laser cutting, plasma cutting, water jet cutting, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is driven by a myriad of factors across various industries. Heavy industrial equipment, fabricated metal goods, and ships require precise cutting for construction and maintenance. Innovations in oxy-fuel, plasma, and laser cutters cater to diverse materials like synthetic, metallic, and non-metallic. Sectors like automotive, aerospace, and marine demand high-quality edges for optimal performance. However, challenges persist, including the need for advanced cutting methods, tools, and meeting stringent standards across manufacturing sectors. Navigating these trends and challenges is crucial for the continued growth and competitiveness of the market. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. A holistic analysis of drivers, market trends and analysis, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing focus on automating the metal cutting process is the key driver notably driving the growth of the market share. The metal-cutting process has been mechanized, and manufacturers are taking various initiatives to develop automated cutting equipment. The increasing need to meet market expectations for raised flexibility and personalization of product design and dimensions throughout the cutting process has enabled the integration of all manufacturing processes. Moreover, robots are used to enhance the laser-cutting process. The application of robotics in the metalworking industry ranges from applications such as cutting, cleaning of various materials, marking, and drilling.
Additionally, compared with a manual cutter, an automated system enables the cutting operation to be performed without the guidance of an operator and takes much less time, besides the minimization of raw material wastage. The critical processes that require an expert operator and which eliminate possible errors and improve overall consistency and efficiency are controlled and managed by computer numerical control (CNC). Such developments are expected to fuel the market growth and trends during the forecast period.
Technological innovations in laser cutting machines is the key trend notably driving the growth of the global market. The use of different types of materials and the rising number of small and medium enterprises in the metal fabrication industry have boosted the demand for compact laser cutting machines, especially in the electronics and electrical and medical device manufacturing industries. Owing to the use of different materials and flexible production processes, manufacturers demand robust laser cutting machines which minimize the time for process change and machine setup. companies are focusing on offering compact laser cutting machines that require a small space for installation and have 3D profiling capabilities.
However, developing small CNC machines for laser cutting machines is complicated and expensive. End-users depend on metal fabrication tools, such as laser and waterjet cutting machines, for perfection in metal cutting, but the development of compact laser cutting machines has helped in cutting different types of parts of electrical and electronic products. Some market players also provide integrated systems for metal-cutting applications. Currently, the number of companies providing compact laser-cutting products is low, the rising awareness and increasing need for compact laser-cutting machines in small and medium scale enterprises will attract a large number of companies. Hence, these trends will fuel the growth of the market during the forecast period.
Increasing demand for refurbished cutting equipment is the major challenge for the growth of the market. In the last few years, some manufacturing industries in the US and Europe were closed because of high labor costs and strict pollution laws, which resulted in the high availability of refurbished cutting equipment. The end-users in the market are dominated by numerous small-scale and medium-sized fabricators. Additionally, some regional market players provide cutting equipment for rent on an hourly basis to fabricators.
Furthermore, many end-users particularly in APAC, are ready to buy refurbished cutting equipment, which is available at low prices. Also, the maintenance service provided by manufacturers renders them attractive to small and medium enterprises with smaller or limited production cycles. Hence, the rising refurbished market has negatively impacted the demand for new cutting equipment and is expected to impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
In the market segmentation, heavy industrial equipment stands as a crucial sector, demanding robust cutting solutions for manufacturing and assembly processes. Similarly, fabricated metal goods require precise cutting techniques to meet diverse specifications and standards. Ships and heavy engineering applications necessitate specialized equipment to fabricate and maintain intricate components. The automobile sector relies on efficient cutting tools for sheet metal processing and assembly. Shipbuilding sector and other heavy engineering sectors demand high-performance oxy-fuel and plasma cutters for large-scale fabrication projects. Laser cutters are indispensable in working with synthetic material, metallic material, and non metallic material across various industries, ensuring high quality edges and intricate designs. Cutting methods and tools play pivotal roles in enhancing efficiency and precision across manufacturing sectors, including automotive sectors, aerospace sectors, electrical and electronics sectors, and marine and construction sectors. Moreover, the sheet metal fabrication industry heavily relies on advanced cutting technologies for diverse applications in infrastructure-related operations.
The automotive segment will account for a major share of the market's growth during the forecast period.? The automotive industry is the primary user of cutting machines and equipment, which is used to cut metal parts deployed in almost every system of automotive vehicles, ranging from fuel delivery systems to airbag components. Vehicle manufacturers use laser systems in various applications such as headliners, carpets, trunk liners, metal gaskets, decorative brackets, fittings, and fuel systems. Technological advances, fueled by the implementation of stringent emission norms and the rising demand for fuel efficiency, have propelled the demand for lightweight metal parts, such as aluminum and titanium, in passenger vehicles.
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The automotive segment was valued at USD 2.15 billion in 2017 and continued to grow until 2021.? One of the main reasons for the increased demand for cutting equipment is the continuous advancement in automotive design and technology. Modern vehicles feature complex, lightweight construction and advanced materials such as high-strength steel and composites. These require precise cutting techniques to ensure assembly accuracy and maintain material integrity. These reasons will fuel the growth of the market through the automotive segment during the forecast period.
Based on technology, the market has been segmented into laser cutting, plasma cutting, water jet cutting, and others. The laser-cutting?segment will account for the largest share of this segment.? Laser cutting equipment has high-power lasers that can vaporize a range of materials, from steel to plastic, with high precision. These machines are used to cut various materials for numerous industries, such as automotive, aerospace and defense, electrical and electronics, and industrial machinery. The demand for laser cutting is rising owing to increasing demand from various industries such as automotive.
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APAC is estimated to contribute 42% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Owing to the emergence of local companies that provide low-cost laser-cutting machines, the market in APAC will grow consistently during the forecast period. Countries such as China, Australia, Japan, India, and South Korea are likely to show a rapid demand for cutting equipment. Moreover, factors such as government initiatives, a growing standard of living, a strong industrial base, and rising demand for automobiles manufactured in the region are driving the growing demand for cutting equipment in the automotive industry in APAC.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
In the ever-evolving landscape of the market, various sectors such as oxy fuel, infrastructure related operations, and fabricated metal products drive demand for innovative solutions. From synthetic materials metallic materials non metallic materials, diverse substrates require precision cutting technology to meet the stringent standards of sectors like the automotive sector, aerospace sector, electrical and electronics sector, and marine and construction sector. Advanced techniques like carbon arc cutting find application in critical sectors such as aerospace and defense industry and shipbuilding industry, while the adoption of robotic cutting equipment enhances manpower utilization. Challenges like disrupted supply chain necessitate agile responses from original equipment manufacturers. Amidst fluctuations in car sales and oil and gas sector, the cutting tool consumption remains vital, supporting automotive manufacturing and power and energy sector and bolstering industrial networks serving high end industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.52% |
Market growth 2023-2027 |
USD 2.53 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.0 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amalgamations Group, Berkenhoff GmbH, ESAB Corp., FANUC Corp., Gedik Holding, Illinois Tool Works Inc., IPG Photonics Corp., Jenoptik AG, Jinan Senfeng Laser Technology Co. Ltd., Koike Aronson Inc., KYOCERA Corp., Laserline GmbH, Mitsubishi Electric Corp., Plansee SE, Sandvik AB, Schlatter Industries AG, The Lincoln Electric Co., TRUMPF SE Co. KG, AMADA Co. Ltd., and DMG MORI Co. Ltd. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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