Cutting Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Cutting Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The cutting equipment market is currently pegged at a value of around USD 7 billion and is expected to register a CAGR of greater than 5% during the forecast period.

Key Highlights

• The COVID-19 outbreak had a significant negative impact on the cutting equipment business. The absence of capital equipment investment, worker migration, interrupted supply chains, and other issues affect the automotive, construction, manufacturing, and other industries, which results in inconsistent orders from original equipment manufacturers. It has slowed down factory operations in the United States, Germany, China, India, and other nations. Negative demand has resulted in the construction, automotive, and other industries.
• The growth of the market is primarily driven by the increasing demand from several end-user industries, such as automotive, aerospace, and others, across the world. Oxy-fuel cutting technology is widely used due to its high speed, relatively low cost, and precision cuts. Owing to the growing demand, advanced cutting technologies are evolving, and companies are investing more in research and development (R&D) activities to gain a competitive advantage in terms of manufacturing efficiency, product pricing, and product capabilities.
• Furthermore, the market is also driven by the growing demand for fabricated metal products, the development of heavy industrial equipment, advancements in manufacturing processes, and the adoption of the latest technologies. Additionally, the demand for automated equipment is also increasing due to the shortage of skilled personnel in some of the regions studied.
• Major companies in several developed countries have started using robotics (industrial cutting robots) for their manufacturing processes to reduce their dependency on manpower. The metal fabrication market may be less prone to wild fluctuations than other industries, which will allow these conventional cutting processes to grow moderately. Since cutting machines are a sub-segment of the machine tool market, the growth of the machine tool market is a positive sign for the current market studied.
• China is the global leader in the machine tool market. Worldwide, the machine tooling sector represented a major share in terms of production volume when compared to forming technology. Nowadays, laser cutting is commonly used to cut ceramics. Ceramics play an important role in many industries owing to their thermal conductivity and electrical insulation. This kind of property has made ceramics useful for different applications.

Cutting Equipment Market Trends

Positive Outlook for the Automotive Industry

In the automotive industry, manufacturers are adopting several cutting technologies to get high-quality edges and cuts. As the automotive industry around the world gets better, there are more opportunities for cutting equipment in this industry. Cutting equipment is a big part of the automotive industry and is used in a number of ways to make car parts, frames, and other things.

Laser cutting is used at various stages of automotive manufacturing. The ever-changing landscape of the automotive industry is putting pressure on equipment manufacturers to meet requirements and create special cutting tools.

The COVID-19 pandemic and automotive semiconductor shortages resulted in lower demand and production halts for the worldwide automobile sector since 2020. Around 11.3 million vehicles were removed from production globally in 2021 as a result of the chip shortage, and predictions predict that seven more million vehicles will be removed from production in 2022 as a result of supply chain disruptions in the automotive industry. After experiencing a decline during the pandemic, global auto sales began to rebound, reaching 66.7 million units sold in 2021, according to Statista.

When it comes to production volumes, APAC is expected to grow the most, followed by North America. This is likely to increase the need for cutting equipment and other machines used in the manufacturing process.

Asia-Pacific to Register Highest Growth Rate

Analysis suggests that Asia-Pacific (APAC) will grow faster than other regions over the next few years.The region has the highest number of manufacturing plants, where the adoption of cutting machines is substantial. China is expected to be the major country in the region owing to its vast manufacturing sector. Additionally, automotive is one of China's pillar industries, and it continues to be the largest vehicle market in the world.

In ASEAN, the manufacturing sector has been one of the region's key economic growth drivers. The economies in this region have low operating costs, which attract many businesses from larger manufacturing bases. In recent times, China has seen rising wages and tighter regulations, which have led to an increase in operating costs as it shifts towards higher-value manufacturing.

To replace the role that China once played, companies are looking to the ASEAN region for lower-value production networks, which have also been largely integrated into global manufacturing value chains. As per the analysis, cutting equipment manufacturers should align their distribution channels to focus on the growing markets by serving the emerging manufacturing sectors to increase their sales.

Cutting Equipment Industry Overview

The cutting equipment market is fairly fragmented in nature, with the presence of large global players and small and medium-sized local players, with quite a few players who occupy the market share. Some of the major players in the market are The Lincoln Electric Company, Messer Cutting Systems, Colfax Corporation, Ador Welding Ltd., and Amada. When analyzing major countries' manufacturing establishments, it is revealed that many of the global companies have a footprint in the major countries.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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