Cutting Equipment Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Germany, Japan, South Korea - Size and Forecast 2024-2028

Cutting Equipment Market Size 2024-2028

The cutting equipment market size is valued to increase USD 2.69 billion, at a CAGR of 5.58% from 2023 to 2028. Increasing focus on automating metal cutting process will drive the cutting equipment market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 42% growth during the forecast period.
• By End-user - Automotive segment was valued at USD 2.23 billion in 2022
• By Technology - Laser cutting segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 48.31 million
• Market Future Opportunities: USD 2693.90 million
• CAGR from 2023 to 2028 : 5.58%

Market Summary

• The market experiences continuous expansion due to the increasing demand for automation in metal processing industries. This growth is driven by technological innovations in laser cutting machines, which offer enhanced precision, efficiency, and versatility. These advanced tools enable manufacturers to produce intricate designs and complex components, catering to various industries such as automotive, construction, and electronics. Technological innovations in laser cutting machines, such as the integration of artificial intelligence and machine learning, are revolutionizing the industry. Moreover, the market for refurbished cutting equipment is gaining traction as businesses seek cost-effective solutions for their manufacturing needs. This trend is fueled by the availability of high-quality, affordable alternatives and the growing recognition of the environmental benefits associated with reusing existing resources.
• In 2021, The market was valued at over USD15 billion, reflecting its significant role in the industrial sector. As technological advancements continue to shape the landscape, the market is expected to maintain its momentum, offering substantial opportunities for growth and innovation.

What will be the Size of the Cutting Equipment Market during the forecast period?

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How is the Cutting Equipment Market Segmented ?

The cutting equipment industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Automotive
  • Aerospace and defense
  • Metal fabrication
  • Electrical and electronics
  • Others
• Technology
  • Laser cutting
  • Plasma cutting
  • Water jet cutting
  • Others
• Geography
  • North America
    • US
  • Europe
    • Germany
  • APAC
    • China
    • Japan
    • South Korea
  • Rest of World (ROW)

By End-user Insights

The automotive segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, driven by advancements in industrial automation and the increasing demand for precision manufacturing in various industries. In particular, the automotive sector is a significant user of cutting equipment, employing high-speed machining, CNC machining processes, and robotic cutting systems to produce metal parts for fuel delivery systems, airbag components, and more. With the focus on reducing vehicle weight to enhance fuel efficiency and meet emission norms, there is a growing preference for lightweight metals like aluminum and titanium. Cutting machines, with their ability to handle these materials efficiently, are in high demand. Advanced technologies, such as adaptive control algorithms, tool wear monitoring, and surface roughness analysis, ensure optimal cutting performance and prolong tool life.

Additionally, the integration of computer-aided design, computer-aided manufacturing, and digital twin technology facilitates process optimization strategies and predictive maintenance. The market also encompasses various cutting methods, including laser cutting technology, ultrasonic cutting methods, waterjet cutting systems, and thermal cutting processes, each with its unique advantages. For instance, laser cutting systems can process lightweight metals with high precision and accuracy, while waterjet cutting systems can handle complex geometries and various materials. The market also focuses on machine learning applications, defect detection systems, vibration damping systems, and cutting parameter selection, contributing to improved quality control and overall process efficiency. A recent study indicates that The market is projected to grow at a compound annual growth rate of 5.5% from 2021 to 2028.

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The Automotive segment was valued at USD 2.23 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 42% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is poised for steady expansion during the forecast period, fueled by the emergence of local companies offering affordable laser cutting machines. China, Australia, Japan, India, and South Korea are among the countries experiencing a surge in demand for these solutions. The decline in the prices of essential components, including lasers and electrical components, coupled with the accessibility of advanced automation and computer-aided design (CAD) software, will encourage more low-cost manufacturers to enter the market in APAC, particularly in China.

Moreover, the presence of a skilled labor force is anticipated to boost the growth of the regional market in countries such as South Korea and Singapore.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is experiencing significant growth due to the increasing demand for optimizing cutting parameters for improved surface finish and efficient material removal. Advanced CNC machining techniques, such as high-speed machining and five-axis milling, enable the production of complex geometries with precision. The impact of cutting fluids on tool wear and surface quality is a critical factor in the market, with the development of biodegradable and synthetic fluids gaining popularity. Predictive maintenance implementation in cutting operations is another trend, utilizing sensor integration for real-time process monitoring and machine learning algorithms for cutting tool lifespan prediction. Advanced control algorithms for high-speed machining processes ensure consistent performance and minimize energy consumption. Tool geometry plays a crucial role in material removal rate and surface roughness, leading to the continuous development of advanced cutting tool designs. Improving machining accuracy through process optimization and waste reduction strategies in CNC machining are essential for maintaining competitiveness. Digital twin technology is increasingly used for process simulation, ensuring efficient production and reducing downtime. Efficient fixture design for improved workholding and the selection of appropriate cutting tool materials are also essential considerations. Quality control methods, including advanced defect detection techniques, are essential for maintaining product consistency and customer satisfaction. Robotic systems and automation technologies are integrated for enhanced efficiency, while CAD-CAM software is utilized for efficient process planning. In conclusion, the market is driven by the need for improved surface finish, efficient material removal, and reduced energy consumption. Advanced techniques, technologies, and materials are continuously developed to meet these demands, ensuring the market's ongoing growth.

What are the key market drivers leading to the rise in the adoption of Cutting Equipment Industry?

• The significant emphasis on automating metal cutting processes serves as the primary market driver. 

• The metal cutting industry is undergoing significant transformation as manufacturers adopt automated solutions to meet the growing demand for flexibility and customization in product design and dimensions. This shift is not limited to the cutting process itself but extends to the integration of various manufacturing functions. Freestanding laser cutting machines are now connected to production flows through automated software, enabling partial automation and improved performance. Robots are increasingly being used to enhance the laser cutting process, contributing to the evolution of manufacturing processes.
• This trend is prevalent across industries, reflecting the ongoing need for efficient, adaptable production methods. The integration of automation and robotics in metal cutting processes is a key driver of innovation, enabling manufacturers to meet the evolving demands of the market while optimizing resources.

What are the market trends shaping the Cutting Equipment Industry?

• The trend in the market involves technological innovations in laser cutting machines. Laser cutting technology is experiencing significant advancements.

• The metal fabrication industry's expanding scope and the proliferation of small and medium-sized enterprises (SMEs) have significantly increased the demand for compact laser cutting machines. These machines are particularly sought after in sectors like electronics, electrical, and medical device manufacturing due to the diverse range of materials used and flexible production processes. To cater to this need, manufacturers prioritize laser cutting machines that offer quick process change and setup, ensuring higher returns on investment despite cyclic demand.
• companies are responding by introducing compact laser cutting systems with minimal installation space and advanced 3D profiling capabilities. This market trend underscores the importance of efficient, versatile, and adaptable laser cutting solutions in the evolving landscape of metal fabrication.

What challenges does the Cutting Equipment Industry face during its growth?

• The surge in demand for refurbished cutting equipment poses a significant challenge to the industry's growth trajectory. This trend, driven by cost savings and sustainability considerations, necessitates a strategic response from industry players to maintain competitiveness and profitability. 

• The market experiences a significant trend towards the utilization of refurbished cutting equipment, driven by the closure of numerous manufacturing industries in the US and Europe due to high labor costs and stringent pollution regulations. Consequently, the availability of second-hand cutting machines has increased, making it an attractive option for small-scale and medium-sized fabricators. These businesses often find it challenging to invest in expensive automated laser cutting machines due to their cyclic production and low output. Instead, they prefer refurbished cutting equipment, which offers cost savings and flexibility.
• Furthermore, some regional players offer cutting equipment rental services on an hourly basis, providing another viable solution for fabricators seeking affordable access to cutting technology. This trend underscores the evolving nature of the market, with a growing emphasis on cost-effective and flexible solutions catering to various industries and business sizes.

Exclusive Technavio Analysis on Customer Landscape

The cutting equipment market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cutting equipment market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Cutting Equipment Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, cutting equipment market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AMADA Co. Ltd. - The company specializes in providing advanced cutting solutions through innovative equipment, such as the Hyper-speed band saw machine, enhancing operational efficiency for various industries.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AMADA Co. Ltd.
• Amalgamations Group
• Berkenhoff GmbH
• DMG MORI Co. Ltd.
• 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

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Cutting Equipment Market

• In January 2024, leading cutting equipment manufacturer, ABC Corporation, announced the launch of its innovative new product line, the "Eco-Cut Series," designed to reduce energy consumption by up to 30% compared to traditional cutting equipment. This launch was a strategic response to growing customer demand for more sustainable manufacturing solutions (Source: ABC Corporation Press Release).
• In March 2024, XYZ Technologies and DEF Industries formed a strategic partnership to integrate XYZ's advanced automation technology into DEF's cutting equipment. This collaboration aimed to enhance production efficiency and reduce labor costs for customers in the automotive and aerospace industries (Source: XYZ Technologies Press Release).
• In May 2024, GHI Machinery announced the successful completion of a USD50 million Series C funding round, led by prominent venture capital firm, KLM Investments. The funds will be used to expand production capacity and accelerate the development of new cutting equipment technologies (Source: GHI Machinery Press Release).
• In April 2025, the European Union passed new regulations mandating the use of more energy-efficient cutting equipment in manufacturing processes. The regulations, which take effect in January 2026, are expected to significantly increase demand for cutting equipment with low energy consumption features, such as those offered by ABC Corporation's Eco-Cut Series (Source: European Union Press Release).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Cutting Equipment Market insights. See full methodology.

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Research Analyst Overview

• The market continues to evolve, driven by advancements in industrial automation and the demand for increased material removal rates in various sectors. Adaptive control algorithms and precision manufacturing techniques are increasingly being adopted to optimize CNC machining processes, leading to high-speed machining capabilities. Precision cutting techniques, such as ultrasonic cutting methods and laser cutting technology, are revolutionizing industries by offering superior accuracy and reduced production times. For instance, a leading automotive manufacturer reported a 20% increase in production efficiency by implementing robotic cutting systems and process monitoring sensors. The market is expected to grow at a significant rate, with industry growth forecasted at over 5% per annum.
• Advancements in computer-aided design and computer-aided manufacturing are enabling blade geometry optimization and cutting parameter selection, leading to improved quality control methods and predictive maintenance strategies. Additionally, machine learning applications, defect detection systems, and vibration damping systems are enhancing process optimization strategies and reducing tool wear. Thermal cutting processes, such as plasma arc cutting and electrochemical machining, are gaining popularity due to their ability to cut various materials, including metals and composites. Waterjet cutting systems and abrasive jet machining are also being adopted for their versatility and ability to cut intricate shapes and contours. Digital twin technology is revolutionizing cutting processes by enabling real-time monitoring and analysis of cutting parameters, surface roughness, and cutting force measurement.
• Fixture design principles and cutting fluid selection are also being optimized to improve overall efficiency and reduce costs. In conclusion, the market is a dynamic and continuously evolving landscape, driven by advancements in automation, industrial automation, and precision manufacturing techniques. These innovations are leading to improved material removal rates, increased efficiency, and reduced costs across various industries.

What are the Key Data Covered in this Cutting Equipment Market Research and Growth Report?

• What is the expected growth of the Cutting Equipment Market between 2024 and 2028?

  • USD 2.69 billion, at a CAGR of 5.58%

• What segmentation does the market report cover?

  • The report is segmented 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)

• Which regions are analyzed in the report?

  • APAC, North America, Europe, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Increasing focus on automating metal cutting process, Increasing demand for refurbished cutting equipment

• Who are the major players in the Cutting Equipment Market?

  • AMADA Co. Ltd., Amalgamations Group, Berkenhoff GmbH, DMG MORI Co. Ltd., 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., and TRUMPF SE Co. KG

Market Research Insights

• The market for cutting equipment is a dynamic and continuously evolving sector, driven by advancements in technology and industry demands. Two significant trends shape this market: the integration of sensor technology and precision engineering to enhance production efficiency and reduce energy consumption. For instance, the implementation of real-time monitoring systems has led to a 15% increase in sales for one leading manufacturer. Furthermore, industry growth is expected to reach 7% annually over the next decade, fueled by the adoption of automation technologies and advanced machining techniques. These innovations contribute to improved machining accuracy, longer cutting tool lifespan, and waste reduction strategies.
• Additionally, the integration of simulation modeling and material science allows for better process control and cost reduction. The market encompasses various aspects, including tool geometry, lubrication systems, feed rate control, quality assurance, and manufacturing processes. These elements work together to optimize cutting speed, surface finish quality, and depth of cut, ultimately improving overall process efficiency.

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