The electrical discharge machines (EDM) market is valued at US$4.696 billion in 2019 and projected to expand at a CAGR of 7.13% over the forecast period to reach US$7.098 billion by 2025. Electrical discharge machining is a non-traditional precision machining process, whereby a typically conductive material workpiece has features created by the controlled erosion of a material using electrical discharges (sparks). EDM plays an important role in manufacturing processes for a broad range of industries such as electronics, medical, and aerospace manufacturing and is also essential for manufacturing precision military parts. Burgeoning demand for precision machine parts in several industries such as automotive, and healthcare among others is a key driving factor boosting the demand for electrical discharge machines during the forecast period. The market is expected to grow at a steady pace owing to the increasing usage of EDM’s in medical manufacturing and power generation as they provide superior accuracy and precision.
However, slow material removal rate, additional time and cost required in the case of RAM/Sink EDM, and availability of traditional machine processes is restraining the market growth. Simultaneously, the covid-19 pandemic has led to a devastating effect on the different industries such as automotive, manufacturing, and electronics, thus, impacting the demand. Geographically, the North American region is expected to hold a significant share over the forecast period owing to the faster adoption of advanced technologies. The Asia Pacific region is expected to increase its share over the forecast period owing to the influx of investment in the manufacturing industry, and the well-positioned automotive industry.
The growing requirement for precision in different component manufacturing.
The manufacturing industry is developing at a rapid ace owing to the advancing component quality requirements and the amendments in the industry standards. This is encouraging the industry players to adapt and make use of electric discharge machines for manufacturing purposes such as wire cutting, fabrication of high precision gears, components, and machine some elements with a high degree of precision. This factor is driving market growth over the forecast period.
Moreover, the skill gap is widening among the workers to improve and enhance their technical knowledge by making the use of high durability and good quality materials to get a product that is able to adhere to the industry standards. Hence, this factor is also contributing to fueling the demand for these machines and in turn leading to a surge in the market growth.
Furthermore, the market players are involved and participating in the market by launching new and enhanced products in order to cater to the burgeoning demand from different end-user industries to strengthen their market position and contribute to the market growth. For example, In October 2019, GF Machining Solutions, which is involved in the manufacture and the sale of engineering solutions for different end-user industries announced the launch of their new product called the “Agie Charmilles Cut P 500 Pro Wire-Cutting EDM”. It was announced at the EMO 2019 (Exposition Mondiale de la Machine-Outil), a trade fair at which different machine utility tools are showcased. It is product is designed with an easy to use interface and will be launched in mid-2020.
The demand from the automotive is anticipated to slow down while the manufacturing industry offers good growth opportunity
By end user industry, the electrical discharge machines market is segmented as manufacturing, energy and power, electrical and electronics, healthcare, and automotive. Manufacturing dominates the global EDM market owing to increasing manufacturing bases, especially across the developing economies of the world such as the Asia Pacific region. Energy and power segment provide a great opportunity for EDM manufacturers to expand their market share. This is due to the shift towards renewable energy sources across the globe on account of rising electricity prices and stringent environmental regulations. Healthcare will witness a significant growth in the CAGR between 2019 and 2025 owing to rising demand for highly advanced medical devices such as the medical implants for effective treatment of the expanding base of patient population suffering from chronic diseases and age-associated diseases which is found quite prevalent among the geriatric population of the world which include comorbid and multimorbid cases as well. The process is highly useful in the surface modification of implant materials and is considered as the most non-conventional manufacturing methods. For example, in the case of knee or joint replacement surgeries, surface topology of the implant material plays a significant role in the surgery success. However, in the current COVID-19 scenario, the shut-down of manufacturing units in many parts of the world due to the lockdown and social distancing measures, the market is expected to experience a downfall in 2020. Simultaneously, as a result of covid-19, the manufacturing operations in the automotive sector has also been impacted severely. According to the China Association of Automobile Manufacturers (CAAM) estimates, a MOM decline was noticed in the auto sales in the month of February and March, accounting for 79% and 43%. It has been further predicted by CAAM that auto sales will decline by 15% in 2020.
The Asia Pacific EDM market is poised to grow rapidly during the forecast period.
By the geography, the electrical discharge machine (EDM) market is segmented as North America, South America, Europe, Middle East and Africa, and Asia-Pacific. North America and Europe hold the major share of global electrical discharge machines market. European market’s dominance is attributed to strong growth of end-use industries including aerospace and automotive and the corresponding boost to tool making industry in the region. According to International Special Tooling and Machining Association (ISTMA), tools and mold-making industry is experiencing positive response in terms in sales and exports as companies in European countries such as Portugal are heavily investing in new technologies to guarantee flexible solutions to their clients. APAC is expected to witness the fastest regional market growth during the projected period owing to expanding manufacturing base supported by growing adoption of automation across different industries in countries like India, China, and Australia.
Segmentation:
By Type
By Application
By End-User Industry
By Geography
However, slow material removal rate, additional time and cost required in the case of RAM/Sink EDM, and availability of traditional machine processes is restraining the market growth. Simultaneously, the covid-19 pandemic has led to a devastating effect on the different industries such as automotive, manufacturing, and electronics, thus, impacting the demand. Geographically, the North American region is expected to hold a significant share over the forecast period owing to the faster adoption of advanced technologies. The Asia Pacific region is expected to increase its share over the forecast period owing to the influx of investment in the manufacturing industry, and the well-positioned automotive industry.
The growing requirement for precision in different component manufacturing.
The manufacturing industry is developing at a rapid ace owing to the advancing component quality requirements and the amendments in the industry standards. This is encouraging the industry players to adapt and make use of electric discharge machines for manufacturing purposes such as wire cutting, fabrication of high precision gears, components, and machine some elements with a high degree of precision. This factor is driving market growth over the forecast period.
Moreover, the skill gap is widening among the workers to improve and enhance their technical knowledge by making the use of high durability and good quality materials to get a product that is able to adhere to the industry standards. Hence, this factor is also contributing to fueling the demand for these machines and in turn leading to a surge in the market growth.
Furthermore, the market players are involved and participating in the market by launching new and enhanced products in order to cater to the burgeoning demand from different end-user industries to strengthen their market position and contribute to the market growth. For example, In October 2019, GF Machining Solutions, which is involved in the manufacture and the sale of engineering solutions for different end-user industries announced the launch of their new product called the “Agie Charmilles Cut P 500 Pro Wire-Cutting EDM”. It was announced at the EMO 2019 (Exposition Mondiale de la Machine-Outil), a trade fair at which different machine utility tools are showcased. It is product is designed with an easy to use interface and will be launched in mid-2020.
The demand from the automotive is anticipated to slow down while the manufacturing industry offers good growth opportunity
By end user industry, the electrical discharge machines market is segmented as manufacturing, energy and power, electrical and electronics, healthcare, and automotive. Manufacturing dominates the global EDM market owing to increasing manufacturing bases, especially across the developing economies of the world such as the Asia Pacific region. Energy and power segment provide a great opportunity for EDM manufacturers to expand their market share. This is due to the shift towards renewable energy sources across the globe on account of rising electricity prices and stringent environmental regulations. Healthcare will witness a significant growth in the CAGR between 2019 and 2025 owing to rising demand for highly advanced medical devices such as the medical implants for effective treatment of the expanding base of patient population suffering from chronic diseases and age-associated diseases which is found quite prevalent among the geriatric population of the world which include comorbid and multimorbid cases as well. The process is highly useful in the surface modification of implant materials and is considered as the most non-conventional manufacturing methods. For example, in the case of knee or joint replacement surgeries, surface topology of the implant material plays a significant role in the surgery success. However, in the current COVID-19 scenario, the shut-down of manufacturing units in many parts of the world due to the lockdown and social distancing measures, the market is expected to experience a downfall in 2020. Simultaneously, as a result of covid-19, the manufacturing operations in the automotive sector has also been impacted severely. According to the China Association of Automobile Manufacturers (CAAM) estimates, a MOM decline was noticed in the auto sales in the month of February and March, accounting for 79% and 43%. It has been further predicted by CAAM that auto sales will decline by 15% in 2020.
The Asia Pacific EDM market is poised to grow rapidly during the forecast period.
By the geography, the electrical discharge machine (EDM) market is segmented as North America, South America, Europe, Middle East and Africa, and Asia-Pacific. North America and Europe hold the major share of global electrical discharge machines market. European market’s dominance is attributed to strong growth of end-use industries including aerospace and automotive and the corresponding boost to tool making industry in the region. According to International Special Tooling and Machining Association (ISTMA), tools and mold-making industry is experiencing positive response in terms in sales and exports as companies in European countries such as Portugal are heavily investing in new technologies to guarantee flexible solutions to their clients. APAC is expected to witness the fastest regional market growth during the projected period owing to expanding manufacturing base supported by growing adoption of automation across different industries in countries like India, China, and Australia.
Segmentation:
By Type
- Sinker EDM
- Wire EDM
By Application
- Die Making
- Mold Making
- Hole Drilling
- Others
By End-User Industry
- Manufacturing
- Energy and Power
- Electrical and Electronics
- Healthcare
- Automotive
By Geography
- North America
- South America
- Europe
- Middle East and Africa
- Asia Pacific
Table of Contents
1. INTRODUCTION3. EXECUTIVE SUMMARY
2. RESEARCH METHODOLOGY
4. MARKET DYNAMICS
5. ELECTRICAL DISCHARGE MACHINES MARKET ANALYSIS, BY TYPE
6. ELECTRICAL DISCHARGE MACHINES MARKET ANALYSIS, BY APPLICATION
7. ELECTRICAL DISCHARGE MACHINES MARKET ANALYSIS, BY END USER INDUSTRY
8. ELECTRICAL DISCHARGE MACHINES MARKET ANALYSIS, BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- AAEDM Corporation
- Adron Tool Corporation
- Accutex Technologies Co., Ltd.
- Excetek Technologies Co.,Ltd.
- GF Machining Solutions Management SA
- Mitsubishi Electric Corporation
- OSCARMAX EDM
- Kent Industrial USA, Inc
Methodology
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