Global Micromachining Market by Process (Additive, Subtractive), by Type (Traditional, Hybrid, Non-traditional) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2019, the global micromachining market was worth USD 2.51 billion. It is expected to grow at a compound annual rate (CAGR of 7.3%) between 2020 and 2027. These systems are used to fabricate micro-components in a variety of industries, including aerospace, automotive, healthcare and consumer electronics. Market growth has been further supported by the rapid advancements in production technologies. This has resulted in shorter manufacturing times. Moreover, many companies such as Johnson Matthey or Tekniker prefer laser-based material to traditional micromachining. This bodes well for market development.

Manufacturing companies have many opportunities due to the increasing use of micro components in complex structures. These systems can be integrated with Computer-Aided Manufacturing, (CAM), to reduce the time needed for manufacturing work pieces and allow for hassle-free production. New features have been introduced as a result of the evolution of machine learning and Internet of Things (IoT), technology. For example, an app that transmits status information to supervisors/ operators via their smartphones or computers. This has had a positive impact on market growth. These features allow for proactive decision-making by managers and increase the productivity of each unit.

Market growth has been driven by the funding provided by government agencies like the U.S. National Science Foundation and the European Commission (EC) to develop micromachining systems. Omax Corporation was awarded funding under the Small Business Innovation Research grant (SBIR), in July 2017. This funding was for the development and operation of a micromachining abrasive waterjet -MicroMAX jetMachining center - that is capable of positioning accuracy below 15 microns. Some educational institutions, such as Bannari Amman Institute of Technology and Indian Institute of Technology (Mumbai), organize workshops that concentrate on research and development activities that will help to drive market growth.

There has been a rise in awareness of micromachining over the past few years. Market growth is being accelerated by the increased use of micromachining to fabricate precision instruments. MITSUBISHI HEAVY INDUSTRIES, LTD. delivered its "ABLASER" laser-micromachining system to a Japanese manufacturer. This was in July 2016. In order to increase market growth, laser manufacturers are now focusing their efforts on ultrafast lasers that can be used for micromachining applications. NKT Photonics A/S, Oxide Corporation and Oxide Corporation formed a partnership in June 2019 to combine their technologies for the development and manufacture of a variety of ultraviolet and deep UV ultrafast lasers.

These systems have been in high demand from many industries. However, market growth is likely to be impacted by their high price. Complex processes such as repetitive deposition of thin films onto wafers and more complex fabrication steps are responsible for the high cost. The use of fiber laser markers for micromachining has dramatically reduced micromachining costs. This approach has the primary advantage of being less expensive than standard equipment.

COVID-19 Impact insights

Many governments around the world have had to follow strict policies to limit movement of people as a result of COVID-19. One example of this policy was the activation by the Singapore Government of "Circuit Breaker" in April 2020, which resulted in the closing of schools and workplaces. Some of the largest players in the market, including Georg Fischer, Ltd., have seen their production capacity affected by these government policies. These players were able to submit exemption applications to prevent the negative effects of supply chain lockdowns. Makino Asia, for example, has submitted an exemption request from the suspension to be approved. The company was able to resume manufacturing.

Other players such as Electro Scientific Industries and IPG Photonics Corporation have seen their revenues fall due to the pandemic. IPG Photonics Corporation sales in March fell more than 20% year over year to USD 249 millions. The company's production capability was not affected in certain countries, such as Russia and Germany. In Germany, for example, operations were not affected at all. In Russia, production was stopped for a week. Some manufacturers report a rise in demand for their products due to micromachining being used in the manufacture of ventilators and other respiratory aid devices. Hamilton Medical, which manufactures respiratory aid devices, used TORNOS SA machinery extensively in May 2020. Hamilton Medical plans to increase its production capacity by half using TORNOS SA machinery.

Axis Insights

With a market share of over 40%, the 3-axis segment dominated 2019. Segment demand is driven by the increased use of 3-axis systems for fabricating lens arrays, and other non-rotationally-symmetric free-form optics. Segment growth has been further accelerated by the increased focus on key market participants in the development of 3-axis micromilling machines. Segment growth has been accelerated by the cost advantages offered by 3-axis machines over 5-axis or 4-axis machines. YASDA PRECISION TECHNOLOGY K.K. was the first to introduce their 3-axis machines in November 2017. Yasda YMC 430 micromilling machine was introduced by YASDA PRECISION TOOLS K.K. It is used for mold making and injection molding in the automotive and healthcare industries.

Due to the faster cutting speed, the 5-axis segment will experience the greatest CAGR during the forecast period. Micromachining on 5-axis allows for the fabrication of extremely complex parts from solids that cannot be cast. These machines are being used to produce artificial bones, titanium creations for artistic purpose, and architectural doors frames. This bodes well for the segment's growth. Market players are emphasizing 5-axis systems, which are expected to positively impact the segment's growth. Georg Fischer, Ltd., for example, introduced a 5-axis laser micromachining machine-ML-5 in April 2018. It provides motion control, precise part handling, and high acceleration to provide ultra-precise machining.

Type Insights

With a market share of approximately 50%, the non-traditional segment was the dominant market player in 2019. The extensive use of technology such as laser, electrochemical machining (ECM), or electrodischarge machining (EDM) is what explains the market's dominance. EDM micromachining offers advantages like superior consistency, simultaneous cutting and material compatibility. It also eliminates finishing. Spray hole drilling in gasoline and diesel injection nozzles, and micro-drilling valve plates are some examples of non-traditional applications. The segment is also growing because of the increased use of non-traditional methods for the fabrication of healthcare components, electronic tooling, micro molds, MEMS sensors, submarine actuators, and motors.

Micro-milling, which has become a fast and versatile method of removing material and creating microstructures, is expected to drive the traditional segment to a significant increase in CAGR during the forecast period. The growing demand for mass production in aerospace and defense sectors, as well as other industrial verticals, is driving the adoption of traditional systems. There has been an increase in the use of traditional methods to fabricate miniaturized electronic parts, such as micro-steps antennas. This bodes well for segment growth. The growth is expected to be further fueled by the increasing use of these systems for the fabrication of printed circuit board used in consumer electronics.

Process Insights

With a market share of over 40%, the subtractive segment was the dominant player in 2019, with more than 40%. The market's dominant segment was the subtractive, with a share of more than 40% in 2019. This is due to its cost- and time-savings and widespread use in mass production. It is able to process large quantities of material and can be used for manufacturing large objects. The segment has seen a rise in use of the process to fabricate hard metals, wood, or thermoplastics. New tools have improved flexibility and ability to perform multiple operations using the same tool, which has allowed end-user companies to reduce their floor space requirements.

Additive micromachining has become a popular method of fabricating components for aircraft, medical implants and dental restorations. Furthermore, this process is also used in the deposition of thin-film layers on semiconductor wafers for the development of Microelectromechanical Systems (MEMS) sensors. Many companies such as Makino, IPG Photonics Corporation and 3D-Micromac AG are also launching additive micromachining system that will fuel segment growth in the future. 3D-Micromac AG's DMP74 additive micromachining system was introduced in November 2019. It is used for the production of micro metal parts. These systems machine workpieces by selectively melting a powder material layer by layer.

End-use Insights

With a market share of more than 20%, the automotive segment was the dominant player in 2019. This is due to an increasing demand for technology to machine fuel injectors used in automobiles. The automotive sector has seen significant growth due to the increasing production of electric cars in which micromachining is used extensively in the development of electro-voltaic cells. The growth has been fueled by the increasing demand for laser micromachining for remote welding of door panels and seat structures. These systems are also being used to fabricate various sensors in automobiles, such as ultrasonic sensors and position sensors.

The aerospace and defense sector has seen a rise in electronic assembly, sensor, actuator, optical MEMS and actuator fabrication over the past few years. The aerospace and defense sector is expected to expand at a significant CAGR during the forecast period. These systems can also be used in aerospace and defense to make components for various systems like control panels for cockpits and flight control & actuation, missile detection & tracking, light detection and range (LIDAR), military robotics, and others. These sensors are used for tactical grade inertial applications such as platform stabilization, structural modeling and structure health monitoring.

Regional Insights

With a market share of more than 30%, the Asia Pacific was the dominant region in 2019. Regional growth is being driven by the presence of large automotive component manufacturing nations like China, India, South Korea, and India. Micromachining is used to fabricate major automotive components, including fuel injectors, automotive sensor, and electrical assemblies. Companies such as Synova SA or Okuma Corporation have been focusing their efforts on setting up new micromachining centers in this region, which has fueled the segment's growth. Synova SA, a world-leading manufacturer of laser-based micromachining equipment, opened a new center in Mumbai (India) in April 2018. A number of major manufacturers, such as AMADA WELDTECH Co. Ltd.; Han's Laser Process Industry Group Co. Ltd.; Makino and MITSUBISHI Heavy Industries, LTD., have contributed to a greater awareness of the technology.

France, Italy, Germany and Germany are the top European automotive producers. As a result, they will see the fastest growth over the forecast period. In FY2018, Germany was responsible for nearly 6 million cars and 22.7% of all exports. The demand for micromachined parts in the rail and energy industries has increased, which is expected to drive further growth of the region's market. Manufacturing companies in the region are also shifting quickly to new machining technologies as well as new materials in healthcare and aerospace.

Market Share Insights & Key Companies

Coherent, Inc., Georg Fischer Ltd., and Makino all focus on their R&D activities in order to identify long-term growth opportunities. Georg Fischer Ltd.'s R&D costs were USD 130m, USD 129m, and USD 115m in FY2019. This allowed the company to launch new products. In July 2018, Georg Fischer Ltd. launched the new Microlution advanced laser micromachining system, ML-5. This machine offers positional feedback and high precision laser cutting.

Others, such as Georg Fischer Ltd., IPG Photonics Corporation, and AMADA WELD TECH Co., Ltd., are focusing their strategies on mergers, acquisitions, partnerships. Georg Fischer Ltd., for example, announced in May 2016 that it had acquired Microlution, Inc., a U.S.-based company that developed micromachining systems for laser cutting and milling applications for aerospace and defense industries. Georg Fischer Ltd. was able to expand its technology portfolio to satisfy the demand of aerospace and defense manufacturers. The micromachining market is dominated by the following players:

• AMADA WELD TECH Co., Ltd.

• Coherent, Inc.

• Electro Scientific Industries

• Georg Fischer Ltd.

• Han's Laser Process Industry Group Co. Ltd.

• IPG Photonics Corporation

• Makino

• MITSUBISHI Heavy Industries, LTD.

• OpTek Ltd.

• Oxford Lasers

Up Market Research published a new report titled “Micromachining Market research report which is segmented by Process (Additive, Subtractive), by Type (Traditional, Hybrid, Non-traditional), By Players/Companies Electro Scientific Industries, AMADA WELD TECH Co Ltd, Han’s Laser Process Industry Group Co Ltd, Coherent Inc, MITSUBISHI HEAVY INDUSTRIES LTD, Oxford Lasers, Makino, Georg Fischer Ltd, IPG Photonics Corporation, OpTek Ltd”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Micromachining Market Report Segments:

The market is segmented by Process (Additive, Subtractive), by Type (Traditional, Hybrid, Non-traditional).

Micromachining Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Micromachining Market

Overview of the regional outlook of the Micromachining Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Micromachining Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Micromachining Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Additive

                2. Subtractive

                1. Traditional

                2. Hybrid

                3. Non-traditional

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Micromachining Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Micromachining Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.