|
The COVID-19 pandemic caused a shift in project timelines and a drop in various sectors. Thus, manufacturers nowadays are focusing more on the elimination of changeover time with less space, reduced material handling, quality improvement, and decreased cycle time to produce a specific product in order to maintain business. These factors are expected to contribute to the demand for machining tools.
Machining centers global market trajectory
Amid the COVID-19 crisis, the global market for machining center is estimated at US$4 billion in the year 2020 and is projected to reach a revised size of US$5.8 billion by 2027, growing at a CAGR of 5.7% over the period 2020-2027, reported ResearchAndMarkets.com.
The market research firm also revealed that less than 5-Axis CNC vertical machining centers is projected to grow at a 5.6% CAGR to reach US$4.2 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the 5-Axis or more CNC vertical machining centers segment is readjusted to a revised 6% CAGR for the next 7-year period. This segment currently accounts for a 27.1% share of the global machining centers market.
Despite challenges, the slowly recovering automotive market in the emerging nations, namely, Thailand, Vietnam, and India can help contribute to the growth of machining centers. The resuming construction activities in various countries will likely push the need for several types of machining equipment required for this purpose. In China, the building construction industry is expected to record a CAGR of 10.0% to reach CNY 8,681.3 billion (US$ 1,290 billion) by 2024, according to ResearchAndMarkets.com (Sep 29, 2020).
Rising focus on the development of multifaceted machining centers to propel market
The initial months of nation-wide lockdowns have led to abrupt disruptions across transportation regime, supply chains of global industry markets, including production facility shutdowns. But as the market started to regain the lost momentum, industries gradually move towards post-COVID-19 world.
Several manufacturers nowadays are aiming to develop the multifaceted tools owing to their rising demand from various industries for addressing multiple operations. The latest 5-axis technology is also resulting in an ever-increasing demand for hassle-free procedures during the production of complex parts.
Multifaceted machining centers are multifunctional. They include high precision, custom finishing, improved processing type, and efficiency. The designers, at present, are focusing on developing the multifaceted machining centers. All these factors are likely to increase the machining center market revenue across the globe.
Commercial vehicles, precision engineering
In terms of application, the market is fragmented into transport machinery, automotive, precision engineering, general machinery, and others (energy, electrical, etc.). Amongst these, light commercial vehicles are projected to reach 9.49 million units in 2020 globally, with pickups contributing to 4.62 million units, Frost & Sullivan revealed (Aug. 13, 2020). Although growth may have been derailed owing to the COVID-19 outbreak, successful containment of the virus in countries such as China, Japan, and South Korea will help drive the machining tools market.
Precision engineering, on the other hand, is anticipated to be one of the fastest-growing segments in the coming years. This growth is attributable to the rising need for highly accurate and top-quality critical components from the medical and aerospace sectors. Besides, there is an increasing requirement for those machines that are capable of manufacturing products with high critical tolerance.
Overview impact of COVID-19 on machining centers market
The emergence of COVID-19 has brought the world to a standstill. This health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic.
|
