- 2019 will be a tough year for machine builders, with overall global machine production revenue growing at a compound annual growth rate (CAGR) of 2.1 percent from 2017 and reaching US$1.6 trillion in 2022.
- Year-over-year eurozone machine production revenues are expected to contract slightly by 0.4 percent in 2019. The Asia-Pacific region will grow by low single digits, as growth in China—the largest contributor in the machine tools market—is expected to remain in the single digits, at least until 2020.
- The machine tools category comprised 5.7 percent of all global machinery production revenue in 2019. After the global economic downturn in 2015, a short 5.5 percent year-over-year growth spurt in 2017 helped revenues climb to their highest level. However, the year-over-year growth rate fell to 3.4 percent in 2018. It is expected to decline by 0.4 percent in 2019.
- The largest downstream industries in the machine tool sector are automotive, with 25 percent of revenues, and consumer electronics, with 16 percent.
The market performance of the machine tool sector is highly dependent on commodity prices, macroeconomic conditions and sector performance (e.g., automotive, construction, aerospace, and ship building). According to IHS Markit Economy and Country Risk (ECR) information, a global recession is highly unlikely to occur in 2019. However, due to weaker global trade, political uncertainties, and other headwinds, global machine tools production revenue will only begin to improve late in 2020 or early in 2021.
Automotive And Consumer Electronics Lead The Market
The poor sales of automobiles in late 2018, and the downward-trending market for smartphones and PCs, is reflected in the latest sales and production revenue estimates from IHS Markit. Other broad, underlying factors for the downturn include a weaker global trade environment, increased geopolitical tensions, lower investor confidence and declining global vehicle sales. Furthermore, the top producing and consuming countries for this type of machinery—namely, Germany and China—have been hit especially hard by the industry downturn.
Bleak Near-Term Signs For Machine Tools Production In Germany And China
In the fourth quarter of 2018, Germany’s manufacturing purchasing managers index (PMI) slipped to a 31-month low. The country’s total machinery production revenue is forecast to contract by 0.3 percent in 2019, with machine tools revenue growing at just 0.7 percent, year over year. Germany’s poor performance was caused by the global decline in automotive manufacturing. While it is difficult to isolate the main reason for the declining growth in this industry, changes in the way new vehicles are regulated is an obvious candidate.
The tedious and long approval time for regulatory compliance has proven costly to automakers. Especially in Europe, consumers are also more conscious about making new vehicle purchases, in the face of these ever-changing regulations. Although the automobile manufacturing industry has made strides in implementing new technologies, market conditions will continue to push near-term machinery investment rate to an all-time low.
Machinery production in China is also facing tremendous downward pressure, due to slowing investment, sluggish growth in downstream industries and the Sino-US trade war. China is also dealing with many of the same problems Germany is facing, including contracting automotive sales and weaker global trade.
Although national stimulus policies have been enacted, and industrial upgrades have been implemented gradually, they have not done enough to offset the economic headwinds in China. In fact, IHS Markit forecasts that China’s machinery production revenue will grow only 1.4 percent in 2019, the lowest rate since 2015. Machine tools production revenue will also suffer, contracting by 3.7 percent in 2019.
Timing Is key For AGVs, AI And Other Game-Changing Innovations
Good timing is often the key to a successful product launch. Despite the current declining economic conditions, the application of automated guided vehicles (AGVs) and AI in machine tools is expected to increase in the next few years. Some companies are more keen than others to strengthen their competitive edge during hard times.
Machine tool companies have started to include AGVs in their work flows, to load and unload materials. Normally this process would be handled by a few skilled workers, but this type of work can now be completed by a single AGV with a robotic arm.
Robotic modules with robotic arms are also used to help cutting machines load, unload and move products and manufacturing components. Hybrid solutions are now appearing, that enable machines to form and cut at the same time. This ability is particularly important for production lines that need to save space, by minimising the machine footprint.
With efficiency and precision in mind, proprietary AI systems can be used to constantly tune and optimise cutting machines in real time and without human intervention. These systems are smart enough to regulate cooling and power, which results in cost savings from less waste material, longer service intervals and reduced power usage. On top of all of that, cutting tools can be continuously tuned and adjusted to provide an optimal cut.
By Teik Chuan Goh, analyst, manufacturing technology, IHS Markit
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According to Research And Markets, the global metal stamping market is projected to grow at a CAGR of 3.9 percent from 2018 to reach USD 289.2 billion by 2023. Contributing factors for this growth include rising urbanisation and industrialisation, growth of the automotive industry, increasing demands from the aerospace and aviation industry and a rise in technological advancements. To add to this trend, the increased adoption of sheet metal across manufacturing industries and the blooming of metal stamping facilities has further supported the metal stamping market. However, the emergence of plastics and composite materials have also hindered market growth.
Blanking processes currently hold a huge market share and this can be attributed to the popularity of the technique among the automotive, aerospace and aviation and consumer electronics sector as this is a process that can mass produce precise and superior quality metal work pieces in large volumes at low costs. Similarly, the application of metal stamping in the automotive industry is highly popular, especially in China and India as both countries are experiencing rapid technological advancements and possess a large number of automotive metal stamping companies.
Growth of the market in Asia Pacific is expected to continue as the region held the largest share of the global metal stamping market in 2017, followed by Europe and North America. This can be attributed to factors such as the displacement of manufacturing from the west to the east, rising regional industrialisation,increased investment inflows and industrial growth across numerous sectors.
According to a report by Credence Research entitled “Plasma Cutting Machines Market- Growth, Future Prospects, and Competitive Landscape, 2018-2026”, the plasma cutting machines market estimated to grow with a CAGR of 5.8 percent during the forecast period from 2018 to 2026. This is because plasma cutting machines are becoming increasingly important cutting tools among other non-conventional machine processes and this can be attributed to its ability to shear through metal sheets and tubing with high thickness, making it highly relevant for the automotive, industrial manufacturing, aerospace and HVAC industries.
Since the conception of plasma cutting, the principal of using hot gas in the form of plasma to cut through heavy metals and alloys has made a transition from simple machines to advance high-definition CNC plasma cutting machines. Furthermore, the introduction of new alloys and the integration of the associated alloys into several end-use applications have further propelled the usage of plasma cutting machines. While the continuous development of machines, introduction of duel flow plasma nozzles (shielded and unshielded) and incorporation of CNC have enhanced the accuracy and quality of outputs from plasma cutting.
Looking towards the future, Asia Pacific is expected to lead the market and developing countries such as China, India, and South Korea are expected to continue improving their manufacturing capabilities to match optimum product quality. The aforementioned countries are also extensively including non-conventional machining processes including plasma cutting machines in their manufacturing facilities and the continued growth of the industrial manufacturing and automotive sector is also expected to bolster Asia Pacific’s stake in the plasma cutting machines market.
Major notable players in the field include AJAN ELEKTRONIK, Automated Cutting Machinery, C&G Systems, ERMAKSAN, Esprit Automation, HACO, Hornet Cutting Systems, Miller Electric Mfg, MultiCam, SICK, SPIRO International, The Lincoln Electric Company, Voortman Steel Machinery and Würth.
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Welding is a fabrication process that joins materials through coalescence, while cutting refers to the slicing of steel or other metals of different thickness through the use of different cutting equipment. And both are often used together in metalworking industries in manufacturing processes or for the production of outputs. Based on the product type, the welding and cutting equipment market can be further divided into five categories: arc welding equipment, gas welding equipment, MIG welders, plasma cutting equipment and others. While from the perspective of the end-user, the welding and cutting equipment market can be divided into another five categories: energy industry, shipbuilding industry, construction industry, automobile industry and others.
However, based on findings by Persistence Market Research, welding and cutting equipment are mostly deployed by the energy, automotive and construction industries as of now. And due to the rapid growth of industry 4.0, demand for welding and cutting equipment has increased globally. In particular, Asia-Pacific has risen up as the largest market for welding and cutting equipment, followed by North America and Europe and China and India are the key countries for the growth of the industry due to the high industrial growth rate, high growth rate in the construction sector and high growth rate of automotive industry in both countries. In fact, China’s economy is expected to continue growing by 7.8 percent and as of 2012, China has emerged as the largest steel nation globally. Meanwhile, countries that are part of the BRIC group (Brazil, Russia, India, and China) have also been highlighted as fast growing regions for the welding and cutting market.
Overall, the market is projected to grow at a substantial rate through 2020 due to increasing demand from the energy, automotive and construction industries. But market growth is also constrained by a decreased growth of the ship building, aerospace and defense industries. Key players in the industry include Illinois Tool Works Inc., Lincoln Electric Holdings Inc., Victor Technologies International Inc., Colfax Corp., ESAB, Panasonic Corp., Sonics & Materials Inc., Charter International Ltd. and Denyo Co. Ltd.
According to Research And Markets, the global 3D laser scanners market is expected to grow from USD 2.30 billion in 2017 to USD 5.46 billion by 2026 with a CAGR of 10.1 percent. And factors contributing to this growth are the rising level of eminent control and check up standards offered by 3D laser scanners as well as the significant rise in adoption of 3D laser scanners in different industries and the growing demand for 3D printers globally. However, the high expense associated with 3D laser scanners in the market is also a key factor inhibiting market growth.
3D laser scanners are capable of producing lasers to compute and capture size and shape of free forms in order to generate accurate “cloud points” which are then predicted by specialised software on computers for further probe or study. This is favourable for the probing of contoured surface and complex geometries which mandate accurate data sets in order for effective study and development.
Similarly, 3D laser scanners are pivotal in quality control measures which is in turn an important part of the production process. Currently, some of the key players in the global 3D laser scanner market include Nikon Metrology NV, Hexagon AB, Rapid3D Ltd., Topcon Corporation, Perceptron, Inc., Kreon Technologies, 3D Digital Corporation, Nextengine, Inc., Dewalt Corporation, ShapegrABBer Inc., Wenzel America, Ltd., Riegl Laser Measurement Systems GmbH, Faro Technologies, Inc., Trimble Inc., Basis Software, Inc, Proto3000 Inc., Laser Design, ShapeGrabber Inc., JoeScan, Laser Scanning, Creaform, Wenzel America, Ltd., Dewalt Corporation and Carl Zeiss Optotechnik GmbH.
Sheet metal is widely used in the metalworking industry. Metal such as brass, aluminium, steel, copper, nickel and tin are processed into flat or thin sheets. These thin sheets of metal can then be cut, bent or moulded into different shape and sizes for use in the automobile, aerospace and steel industries.
The major sheet metal markets are the developing regions in Asia Pacific such as China and India due to the large demand for sheet metal in the automobile industry. According to market research by Technavio, Asia Pacific led the market in 2017 with a market share of nearly 45 percent and is expected to dominate the market through 2022, with an increase in market share by nearly three percent.
Aluminium is also a big driver for the sheet metal industry as it is a major raw material used across industries. “The production process for aluminum releases high quantities of carbon emissions, negatively impacting the environment. This has been overcome by new advances in technology to reduce the carbon dioxideemissions and production-related expenses. For the process, inert anodes are used instead of carbon-rich anodes, leading to the production of oxygen instead of carbon dioxide. Thus, the increasing adoption of such manufacturing processes across the globe will increase the production of aluminum, in turn, driving the production of sheet metals in the future,” said a Senior Analyst for metals and minerals at Technavio.
Key players in the global sheet metals market include Associated Materials, ABC Sheet Metal, A&E Manufacturing Company, ATAS International, BlueScope Steel, Bud Industries, General Sheet Metal Works, NCI Building Systems, Nucor Corporation, United States Steel Corporation, Alcoa, Wise Alloys L, Noble Industries, Prototek, Autoline Industries, Humble Manufacturing, Gupta Metal Sheets, Gajjar Industries, Dhananjay Group, Rajhans Pressings, Nimex International, Kay Jay, Samesor, Fabrimech Engineers, Deepesh pressing, Southwark Metal, PROTO-D ENGINEERING, PEPCO MANUFACTURING COMPANY, Northern Manufacturing, Vinman Engineering Private, Aero Tech Manufacturing, Dulocos Conveyors and Moulds, SSR Metals Private, Fabrinox, and Acosta Sheet Metal Manufacturing.
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A new update to the Worldwide Semiannual 3D Printing Spending Guide from International Data Corporation (IDC) shows that global spending on 3D printing (including hardware, materials, software, and services) will hit US$13.8 billion in 2019. This is an increase of 21.2 percent from 2018. By 2022, IDC expects worldwide spending to be nearly US$22.7 billion with a five-year compound annual growth rate (CAGR) of 19.1 percent.
Together, 3D printers and materials will account for more than two thirds of the total worldwide spending throughout the forecast period, reaching US$5.3 billion and US$4.2 billion respectively in 2019. Services spending will trail slightly behind, reaching US$3.8 billion in 2019 and this will be led by on-demand parts services and systems integration services. Spending growth for materials and software will outpace the overall market with five-year CAGRs of 20.3 percent and 17.1 percent respectively.
Discrete manufacturing will be the dominant industry for 3D printing, delivering more than half of all worldwide spending throughout the 2018-2022 forecast. Healthcare providers will be the second largest industry with a spending total of nearly US$1.8 billion in 2019, followed by education (US$1.2 billion) and professional services (US$898 million). Consumer spending will account for less than 5 percent of the worldwide total at US$647 million. By 2022, IDC expects process manufacturing to move into the number 5 position ahead of the consumer segment. The industries that will see the fastest growth in 3D printing spending over the five-year forecast are healthcare (29.8 percent CAGR) and transportation (28.3 percent CAGR).
The leading use cases for 3D printing are prototypes, aftermarket parts, and parts for new products. As the primary use cases for the discrete manufacturing industry, these three use cases will account for 43 percent of worldwide spending in 2019. As spending by the healthcare industry rises, dental objects and medical support objects will become the fourth and fifth largest use cases in 2022, followed closely by specialized tools. The use cases that will see the fastest spending growth are tissue/organ/bone (42.9 percent CAGR) and dental objects (33.1 percent CAGR).
“As anticipated, we are seeing a wider adoption of 3D printing use cases worldwide,” said Marianne D’Aquila, Research Manager, Customer Insights and Analysis at IDC. “3D printing has moved beyond its early days of prototyping in manufacturing and is proliferating to other use cases and industries. The benefits of customised, cost-effective printing are being realised in a more diverse manner, as exemplified by growing spend in aftermarket parts in manufacturing, surgical models in healthcare, and architectural designs in professional services, to name a few.”
“We’ve seen a lot of development on the 3D printing technology side in 2018. Rapid increases in production speeds combined with major advances in 3D printing materials is enabling the use of 3D printing in manufacturing across a wider range of applications,” said Tim Greene, Research Director, Hardcopy Peripherals and 3D Printing at IDC. “As more users recognise these benefits they are looking for more ways to use the technology, which drives higher levels of equipment utilisation for prototyping, tooling, and real manufacturing.”
The United States will see the largest spending total in 2019 (nearly US$5.0 billion) followed by Western Europe (US$3.6 billion) and China (nearly US$2.0 billion). The regions that will see the fastest spending growth over the five-year forecast period are Latin America (25.3 percent CAGR) and China (21.6 percent CAGR). Five of the nine geographic regions are expected to see compound annual growth rates greater than 20 percent over the forecast period.
The Worldwide Semiannual 3D Printing Spending Guide quantifies the opportunity for 3D printing, which enable the creation of objects and shapes made through material that is laid down successively upon itself from a digital model or file. Spending data is available for 15 use cases across 20 industries in nine geographic regions. Data is also available for 3D printing hardware, materials, software, and services. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of 3D printing expenditures today and over the next five years.
In its first forecast of the 3D scanner market, International Data Corporation (IDC) projects that worldwide 3D scanner shipments will grow to more than 273 million units in 2022 with a compound annual growth rate (CAGR) of 18.0 percent over the 2018-2022 forecast period. Total market value is expected to reach USD 1.74 billion in 2022 with a five-year CAGR of 11.5 percent.
Since the development of 3D scanners, the market has been largely focused on a few industries and use cases. Oil refineries and related plants are one of the largest clients for these products on an industrial level and manufacturing, particularly the auto industry, has used 3D scanning as a means of determining quality control and inventory management. Als0 as prices have come down over the past ten years, the market for 3D scanners has begun to expand and starting with ocular and dental use cases, the medical field has been exploring the use of 3D scanners for a variety of applications.
“The fragmented and concentrated nature of the 3D scanning market kept the market from expanding in the past. Within the past decade, continued interest in various vertical industries and similar factors leading to the growth of the 3D printer market are starting to push the market toward more mainstream applications. Our forecast looks at the main influences that push this market forward, and what we expect will lead to future developments,” said Max Pepper, Research Analyst, Imaging, Printing, Document Solutions at IDC.
For the purposes of this forecast, a 3D scanner is a metrological device that can optically identify, analyse, collect, and display geometric shapes or three-dimensional environments within a digital environment using computer-aided modeling. Optical 3D scanners use a variety of technologies, including structured light (both “blue light” and “white light”), laser triangulation, time of flight, phase shift, stereoscopic, infrared laser, and photogrammetry. IDC’s definition does not include contact scanners.
The 3D scanner market can be segmented into two sub-markets for handheld and stationary configurations. Handheld 3D scanning devices have a handle and are meant to be physically moved around an object to scan while being held. Stationary 3D scanners are those devices that do not fit the definition of a “handheld” device and includes shoulder- and cart-mounted devices as well as scanners attached to robotic arms.
In 2017, stationary scanners represented 57 percent of worldwide 3D scanner shipments with the remaining 43 percent belonging to handheld scanners. By 2022, IDC expects shipments of handheld scanners will grow to 45 percent of the overall market. This is largely due to the growth in the <USD 5,000 price band where handheld units are more popular and improvements in handheld technology among professional and industrial-focused products. In terms of market value, higher-priced stationary 3D scanners are expected to maintain their 89 percent share of overall market value throughout the forecast.
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Worldwide spending on the Internet of Things (IoT) is forecast to reach USD 745 billion in 2019, an increase of 15.4 percent over the USD 646 billion spent in 2018, according to a new update to the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Spending Guide. In all, IDC expects that worldwide IoT spending will maintain a double-digit annual growth rate throughout the 2017-2022 forecast period and surpass the USD 1 trillion mark in 2022.
“Adoption of IoT is happening across industries, in governments, and in consumers’ daily lives. We are increasingly observing how data generated by connected devices is helping businesses run more efficiently, gain insight into business processes, and make real-time decisions. For consumers, access to data is changing how they are informed about the status of households, vehicles, and family members as well as their own health and fitness,” said Carrie MacGillivray, Vice President, Internet of Things and Mobility at IDC. “The next chapter of IoT is just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world.”
The industries that are forecast to spend the most on IoT solutions in 2019 are discrete manufacturing (USD 119 billion), process manufacturing (USD 78 billion), transportation (USD 71 billion), and utilities (USD 61 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management. In transportation, more than half of IoT spending will go toward freight monitoring, followed by fleet management. IoT spending in the utilities industry will be dominated by smart grids for electricity, gas, and water. The industries that will see the fastest compound annual growth rates (CAGR) over the five-year forecast period are insurance (17.1%), federal/central government (16.1 percent), and healthcare (15.4 percent).
The IoT use cases that will see the greatest levels of investment in 2019 are driven by the industry spending leaders: manufacturing operations (USD 100 billion), production asset management (USD 44.2 billion), smart home (USD 44.1 billion), and freight monitoring (USD 41.7 billion). The IoT use cases that are expected to deliver the fastest spending growth over the 2017-2022 forecast period provide a picture of where other industries are making their IoT investments. These include airport facility automation (transportation), electric vehicle charging (utilities), agriculture field monitoring (resource), bedside telemetry (healthcare), and in-store contextualised marketing (retail).
IoT services will be the largest technology category in 2019 with USD 258 billion going toward traditional IT and installation services as well as non-traditional device and operational services. Hardware spending will be close behind at USD 250 billion led by more than USD 200 billion in module/sensor purchases. IoT software spending will total USD 154 billion in 2019 and will see the fastest growth over the five-year forecast period with a CAGR of 16.6 percent. Services spending will also grow faster than overall IoT spending with a CAGR of 14.2 percent. IoT connectivity spending will total USD 83 billion in 2019.
The United States and China will be the global leaders for IoT spending in 2019 at USD 194 billion and USD 182 billion respectively. They will be followed by Japan (USD 65.4 billion), Germany (USD 35.5 billion), Korea (USD 25.7 billion), France (USD 25.6 billion), and the United Kingdom (USD 25.5 billion). The countries that will see the fastest IoT spending growth over the forecast period are all located in Latin America: Mexico (28.3 percent CAGR), Colombia (24.9 percent CAGR), and Chile (23.3 percent CAGR).
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