Analysis of the Necessary Environment for China's CNC Machine Tool Market


Release Date:

2021-09-09

  Since entering the new century, China's machine tool industry has experienced nearly a decade of continuous rapid development, achieving remarkable accomplishments that have attracted worldwide attention. In 2009, the industry's economic scale ranked first in the world. In 2010, the entire industry completed an industrial output value of nearly 550 billion yuan, with metal processing machine tools accounting for 20.9 billion USD, approximately one-third of the global total. Alongside the rapid growth in economic scale, the product structure level of the machine tool industry has continuously improved, technological innovation capabilities have significantly strengthened, and the overall quality and market competitiveness of industry enterprises have steadily increased. In 2010, the industry produced over 220,000 CNC machine tools, with a domestic market share of 57%. Mass production of domestically made mid-range CNC machine tools was launched, some high-end CNC machine tools began entering core manufacturing fields of key industries and were initially applied, achieving important breakthroughs in a few core manufacturing areas.

  China's CNC machine tools started relatively late, originating in the 1980s. After 30 years of ups and downs, they have moved from the growth stage into maturity. CNC machine tools, as the main processing machines in manufacturing, are primarily used in aerospace, shipbuilding, automobile manufacturing, and weapons manufacturing industries. Luo Baihui, CEO and Secretary-General of the International Mold Association, stated that China is currently in the mid-stage of industrialization. A number of high-growth industries based on heavy industry, such as automotive, steel, machinery, molds, electronics, and chemicals, are developing strongly. The future demand for machine tools, especially CNC machine tools, is robust. In 2010, the annual production of CNC machine tools reached 2.39 million units, a year-on-year increase of 56%. From 2005 to 2010, the average annual growth rate of CNC machine tools was 30.2%, indicating rapid industry growth.

  With the continuous expansion of the industry scale, domestic high-end CNC machine tools have made significant progress, and mid-to-high-end products have achieved major breakthroughs, comprehensively improving the overall level of China's CNC machine tools. However, rapid industrial development has also brought challenges: 1. Low level of CNC integration. Currently, the CNC rate of production value is less than 30%, and the CNC rate of consumption value is less than 50%, while developed countries are around 70%. High-end CNC machine tool supporting components can only be imported; 2. Slow development of functional component production. The performance of functional components directly affects the overall technical level and performance of CNC machine tools, restricting the development speed of the main machine. Their development status is closely related to the market competitiveness of machine tools. Currently, the development of functional component enterprises in China is very lagging; 3. Low product structure level. Although the industry scale is large overall, products remain at the mid-to-low end of the global industrial chain. Domestic market demand and industry supply capacity are mismatched, with a large number of imported machine tools entering the domestic market.

  Guided by the scientific outlook on development, transforming the development mode, adjusting the structure, focusing on the domestic mid-to-high-end market, and leading with an innovation-driven strategy, the overall strategy of key breakthroughs to drive the overall situation is adopted. The role of major special projects is leveraged to achieve a shift in the industry's work focus. Specifically, the industry's work focus should shift to serving the core manufacturing fields of key national economic industries; shift to continuously increasing the domestic market share of mid-to-high-end CNC machine tools; and shift to continuously increasing the domestic market share of mid-to-high-end CNC systems and functional components. During this shift in work focus, the industry is promoted to transition from a development model based on scale expansion to one based on technological progress, gradually forming a group of internationally influential world-renowned brands and leading enterprises, and achieving the phased goal of transforming the industry from large to strong.