Contraction Expected in China’s CNC Machine Tool Market

GCiS China Strategic Research estimates that the domestic market for CNC metalcutting machine tools in China was valued at RMB 90.2 billion (nearly $14.5 billion) by the end of 2013. The study draws on a three-month primary survey of 67 market suppliers, channel players and experts.

According to the report, the Chinese market will experience a downturn relative to the GDP growth rate in the next few years, driven by contractions in major downstream industries, as well as a lag effect in sales as manufacturers across multiple industries struggle to reach optimal output capacity rates prior to looking to new machine tool purchases. However, as downstream growth rates stabilize, the domestic market for CNC machine tools is expected to expand, with growth rates reaching positive numbers by late 2016.

The report analyzes six CNC metalcutting machine tool products: CNC machining centers, lathes, milling machines, drills, grinders and boring machines. According to report findings, the market is gradually shifting toward higher-quality machine tools that can carry out multiple functions autonomously. The majority of CNC machine tools in China are used to manufacture automobiles and construction machinery, followed by aircraft and telecom equipment. Other key applications include instrumentation devices, electrical equipment, ships and agricultural machinery. The report also predicts that automated machinery will continue to be in demand regardless of economic downturns.