With the introduction of digital technology, the automation industry is poised for a strong and radical shift. In these volatile times, enterprises are being tested in various ways – from managing cost structures to following regulatory compliance policies and stringent regulations. Also, mobility technologies and the introduction of smart sensors and wireless Internet technologies are rapidly transforming the automation industry against the background of parallel industrial revolutions such as Industry 4.0 and smart factory. Moreover, reducing operational risk – from unplanned downtime to preventing cyber attacks and ensuring the safety of personnel and the environment are some of the critical roadblocks facing the automation industry.
At Infiniti Research, we help clients reimagine business processes and operations by extending strategic insights into the automation industry to drive growth and cost efficiency. We also conduct a thorough sector-wise analysis and benchmarking exercises within the automation and controls market to provide smart insights that help companies realign their blueprint for success, venture into new markets, and acquire skills to compete with established players. Also, our analysts track the automation market to identify technical trends which can impact the demand of products and interview customers to ensure emerging preferences are captured proactively during early stages.
Market Assessment Study Helps a Leading Manufacturer Devise Effective Market Entry Strategies for CNC Metal Cutting Solutions
Machine tools used for the cutting of metals are indispensable in metalworking. While some machines such as horizontal lathes have existed in one form or another since ancient times, computer-numerical-controlled (CNC) metal cutting machines are more recent. Powered by electric motors, metal cutting machine tools are used for one of many cutting processes including turning, milling, grinding, boring, and more to achieve the desired cut on the metal workpiece. Globally, the metal cutting machine market is anticipated to witness considerable growth due to rapid industrialization and expansion of manufacturing sectors in developing countries such as India and China.
Metal cutting tools have varied forms, including plasma cutters, fiber cutters, and laser cutting devices. Among the different forms of metal cutting tools, plasma cutting equipment is majorly used for the fabrication and welding of metals as they ensure precise and accurate results compared to other product forms. a2Moreover, laser-based metal-cutting machines are also gaining immense importance as they offer a high degree of precision compared to conventional plasma cutting equipment and is expected to have a positive impact on the industry. Laser cutting is a technology that uses CO2 lasers and fibers to cut materials. These machines can cut a broad spectrum of materials ranging from steel to plastic with absolute precision. It is an indispensable manufacturing tool vital to several industries including machine tool industry, automotive industry, consumer electronics, and other manufacturing industries for manufacturing components with complex geometry. Over the past decades, the laser cutting industry has undergone significant improvements in quality and thickness of cutting material, power, and efficiency. This has subsequently resulted in the development of laser cutting machines with higher cutting speed and the ability to cut thin and thick metals on the same equipment.
With the strong growth of the automobile manufacturing industry in countries like China, Mexico, and Indonesia, the application of metal cutting machines is also expected to surge. Moreover, the increasing awareness towards the usage of metal cutting equipment with reduced lead time due to the increased importance of preventive maintenance in the manufacturing sector is also expected to increase the R&D expenditure among the key market players. Additionally, with the growing preference for automated metal cutting machines with PLC systems across various industries, the demand for such equipment is anticipated to surge in the near future.
The Business Challenge
To obtain strategic insights and understand the market potential, competitive landscape, and customer characteristics, the client – a leading manufacturer and supplier of machine tools – approached Infiniti to engage in a market assessment study, which would help them understand the future market space specific to the CNC metal cutting solutions market in the target region. The scope of this market assessment engagement was to offer actionable insights to help the client gain a detailed understanding of the size of the market, volume of the machinery imported and exported, and identify the major customer segments in terms of the volume of their business and investment.
The primary objective of this market assessment study was to provide a comprehensive analysis of the competitive landscape by identifying the leading brands in each country under focus. Additionally, the market assessment engagement also helped the client get a better understanding of the distribution organization, volume of business, financial performance, and service pricing levels of the identified brands across the target region.
An exclusive market assessment team with prior experience in handling such project was assigned to this project to track the recent developments and innovations in the market through journals and white papers. Moreover, the industry experts also reached out to key stakeholders, including channel partners, business executives, dealers, traders, and suppliers to understand their views on the market.
Solution Offered and Impact
A dedicated market assessment team with extensive experience in meeting the various information needs of leading global companies were assigned to this engagement to help clients understand the overall market, competitors’ business structure, and buying behavior of the end users. To address the clients’ business requirements, Infiniti’s research specialists followed a blended approach consisting of primary and secondary research followed by analysis and insight development for the proposed study. This was followed by data validation, cleaning, and structuring to offer valuable insights into the market’s growth prospects in Africa.
The market assessment experts also carried out secondary research for building initial hypotheses, designing the analytical framework, and identifying market stakeholders for primary research. Scrupulous secondary research was also carried out to obtain, organize, and analyze relevant published information from an extensive array of market research reports, magazines and publications, white papers, annual reports, websites of competitors, company publications, case studies, news aggregators, and industry forums. Moreover, to access relevant information regarding the CNC solutions and metal cutting tools market in Africa, our experts conducted interviews and engaged in discussions with business executives, metal cutting solution experts, product managers, manufacturers, members of trade associations, and stakeholders from the metal cutting market.
By the end of the sixth week, the client – a globally recognized machine tool builder – was able to gain an in-depth understanding of the market across the target region. The client derived numerous benefits in terms of understanding the customer segments, market size, and the competitive landscape of the CNC metal cutting solutions market across Africa.
Benefits of Our Integrated Approach?
In a short time frame of six weeks, the client saw clear benefits from this engagement. The client not only gained a holistic overview of the current market size, customer segments, and leading brands in each country under focus but also got a clear understanding of the market potential of the CNC metal cutting solutions market. Additionally, with a better understanding of the focus segments and scope of R&D in the market, the client benefitted in terms of ROI.