Cutting Equipment Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 34.32 Billion |
| Market Size (2030) | USD 40.66 Billion |
| Growth Rate (2025 - 2030) | 3.45% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Cutting Equipment Market Analysis by Mordor Intelligence
The cutting equipment market size stands at USD 34.32 billion in 2025 and is forecast to reach USD 40.66 billion by 2030, advancing at a 3.45% CAGR. Ongoing investments in fiber laser systems, rising automation adoption, and widening material portfolios sustain steady growth even as the marketplace matures. Fiber laser technology already leads the laser segment with a 45.65% share in 2024, and ultrasonic plus AI-enabled systems are broadening the competitive set. Asia-Pacific’s manufacturing surge underpins nearly half the global demand, while electrification in automotive and precision needs in electronics pull advanced machinery spending. At the same time, high capital intensity and gaps in skilled labor temper expansion, pushing suppliers toward turnkey, software-rich, and energy-efficient offerings to defend margins and unlock replacement demand.
Key Report Takeaways
- By technology, fiber lasers commanded 45.65% of the cutting equipment market share in 2024; ultrasonic systems are projected to post the fastest 5.15% CAGR through 2030.
- By automation level, semi-automated solutions held 42.45% of the cutting equipment market size in 2024, whereas robotic and fully automated lines are on track for a 5.31% CAGR to 2030.
- By end-user industry, automotive accounted for 31.54% revenue in 2024; electrical and electronics is expected to expand at a 4.68% CAGR through 2030.
- By material type, ferrous metals led with 48.87% of the cutting equipment market share in 2024, while composites and polymers represent the fastest-growing class at 5.28% CAGR.
- By geography, Asia-Pacific captured 48.98% of the cutting equipment market in 2024 and is forecast to grow at a 4.44% CAGR to 2030.
Global Cutting Equipment Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Precision-critical fabrication in EV/ICE automotive & aerospace | +0.8% | Global, led by APAC & North America | Medium term (2-4 years) |
| Industry 4.0-driven CNC/robotic automation surge | +0.7% | Global, strong in developed regions | Long term (≥ 4 years) |
| Manufacturing capacity boom across APAC | +0.6% | APAC core, spill-over to MEA | Short term (≤ 2 years) |
| Lightweight battery housing demand in e-mobility | +0.5% | Global EV hubs | Medium term (2-4 years) |
| Post-pandemic cap-ex incentives for energy-efficient fiber lasers | +0.4% | North America & EU, selective APAC | Medium term (2-4 years) |
| Recycling of advanced composites for cold-cutting | +0.3% | Global, EU regulatory lead | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Precision-Critical Fabrication in EV/ICE Automotive & Aerospace
Design tolerances for EV battery housings and next-generation aerospace parts now fall below a millimeter, forcing plants to adopt lasers, water-jets, and ultrasonics that avoid heat-affected distortion. ANDRITZ Schuler’s Laser Blanking Line cuts high-strength steel at 45 parts per minute and trims raw-material waste by 17% through intelligent nesting. Similar precision requirements extend to composite recycling, where reclaimed wind-turbine fibers must remain intact to meet mechanical thresholds for reuse. Demand for mixed-material body structures amplifies the need for adaptive cutting parameters and in-line quality control, pushing vendors to embed vision systems and AI analytics within every workstation. As a result, high-specification machinery sees durable replacement demand even in mature plants.
Industry 4.0 Driven CNC/Robotic Automation Surge
Manufacturers increasingly link cutting machines into sensor-rich cells that self-diagnose wear, schedule service, and share production data across the factory network. TRUMPF’s TruMatic 5000 couples punch-laser tech with SheetMaster handling to load, cut, and unload parts in one closed loop, shrinking idle time and labor input. Partnerships such as Miller Electric–Novarc apply AI to weld joints previously impossible to automate, easing skilled-worker shortages. Cyber-security solutions from Bystronic and NanoLock now guard connected lasers against ransomware breaches. Collectively, these innovations let plants run small, high-mix batches with fewer operators, reshaping cost structures and accelerating the diffusion of robotics into the cutting equipment market.
Manufacturing Capacity Boom Across APAC
China, India, and Southeast Asian nations are scaling greenfield and brownfield sites to capture supply-chain realignments. HSG Laser invested USD 68.3 million in a Jinan complex that will turn out 10,000 high-power fiber lasers yearly, some rated at 120 kW for heavy-plate work. Local tool vendors extend service hubs into Korea, Thailand, and Hungary, compressing delivery times and customizing software for regional languages. Government industrial policies centered on EVs, shipbuilding, and aerospace further amplify orders. The rapid base-build boosts volumes, but also brings price pressure and motivates Western firms to localize components or partner with Asian assemblers to remain cost-competitive[1]U.S. Department of Energy, “Industrial Training and Assessment Center Grants,” energy.gov.
Post-Pandemic Cap-Ex Incentives for Energy-Efficient Fiber Lasers
Governments now tie capital grants to efficiency improvements, nudging shops to retire aging CO₂ lasers. The U.S. Department of Energy disbursed USD 40 million via Industrial Training and Assessment Center grants to 219 small and mid-size plants that pledged lower energy intensity. On the product side, nLIGHT’s tunable-beam Corona fiber laser offers CO₂-class edge quality at lower wattage, slashing electrical bills and maintenance cycles. Similar aid programs in the EU earmark funds for clean-energy upgrades inside legacy heavy-industry zones. These incentives bring forward replacement timetables and keep fiber installations on a growth trajectory even when macro demand slows.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High upfront capital & integration costs | -0.6% | Global, hardest for SMEs | Short term (≤ 2 years) |
| Global shortage of skilled CNC/CAM technicians | -0.4% | Global, severe in developed markets | Long term (≥ 4 years) |
| Supply-chain volatility for optics & chips | -0.3% | Global, high-tech clusters | Medium term (2-4 years) |
| Garnet abrasive scarcity for water-jet OPEX | -0.2% | Global, regional spikes | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Upfront Capital & Integration Costs
Smart lasers, robots, and storage towers demand not only machine purchase but also reinforced floors, power upgrades, and ERP links, all of which raise project budgets beyond many smaller shops. TRUMPF’s fully automated cells illustrate the hurdle: the laser, punch head, and SheetMaster loader require synchronized software licenses and safety fencing that push payback periods past three years for low-volume users. Public-sector grants cover up to 50% of outlays, yet application cycles and matching-fund rules can defer purchase decisions. Meanwhile, compliance with ISO 12100 machine-safety norms mandates guarding and risk assessments that add further cost layers. Until prices taper or leasing models proliferate, capital intensity will cap penetration rates among SMEs.
Global Shortage of Skilled CNC/CAM Technicians
As machine complexity rises, the pool of operators proficient in advanced G-code, nesting software, and preventive maintenance lags behind equipment shipments. U.S. manufacturing associations forecast a six-figure talent gap by 2030, with retirements outpacing new entrants. Vendors respond by embedding “no-code” interfaces; Lincoln Electric’s vision-based Inrotech robots select paths automatically, cutting programming time to minutes. Shaper Tool’s handheld CNC uses computer vision to self-correct deviations, lowering the skill threshold for precise routing. Still, onboarding and retention costs remain elevated, especially for rural plants. The talent crunch slows ramp-ups and raises downtime risk, dampening the overall cutting equipment market trajectory.
Segment Analysis
By Technology: Fiber Lasers Consolidate Leadership
Fiber lasers accounted for 45.65% of 2024 revenue, maintaining the largest slice of the cutting equipment market. Their high electrical-to-optical efficiency, lower service needs, and tight kerf widths suit both ferrous and non-ferrous metals. nLIGHT’s Corona beam-shaping unit showcases the segment’s pace, letting users toggle ring modes on the fly for thick or thin plates without optics swaps. CO₂ platforms still survive in shops focused on thicker stainless edges, but incremental sales now gravitate toward fiber as ownership costs continue to compress.
Laser demand also benefits from tighter floor-space utilization, as single-head machines reach kilowatt ratings once reserved for large gantry systems. Over 2025-2030, ultrasonic and hybrid laser-plasma rigs are expected to post the fastest 5.15% CAGR, yet they start from a narrower base. Supplier roadmaps bundle AI vision, automated nozzle changeovers, and predictive lens cleaning, further cementing fiber’s hold on the cutting equipment market[2]MicroStep Europa, “Multifunctional Plasma Systems,” microstep.eu.
Note: Segment shares of all individual segments available upon report purchase
By Automation Level: Semi-Automated Lines Dominate the Mid-Term
Semi-automated setups held 42.45% of the cutting equipment market size in 2024, reflecting widespread use of shuttle tables, nesting software, and operator-assisted loading. Plants enjoy flexibility while trimming manpower, making semi-auto the entry point for many SMEs. Yet fully robotic cells, integrating gantry loaders and AGVs, look set for a 5.31% CAGR through 2030 as ISO 10218-2:2025 eases cobot adoption.
Return-on-investment improves when multiple peripheral tasks, such as deburring and part sorting, join the same work cell. TRUMPF’s sensors check suction-cup vacuum in real time, avoiding crashed cuts and raising lights-out reliability. Meanwhile, low-cost cobots with 15 kg payloads now operate at under USD 30,000, putting unattended night shifts within reach for job shops. These trends point to automation’s rising share of the cutting equipment market, even if human-in-the-loop workflows persist.
By End-User Industry: Automotive Retains Volume Crown
The automotive sector generated 31.54% of 2024 turnover, topping all industries within the cutting equipment market. Lightweight multi-material body-in-white designs and battery-pack enclosures require precise, low-spatter edges on mixed alloys. ANDRITZ Schuler’s blanking cell delivers 17% steel savings, highlighting automakers’ focus on scrap reduction.
Electronics manufacturing, led by semiconductor back-end packaging and 5G hardware, is forecast to log the fastest 4.68% CAGR to 2030. Demand for micro-kerf cuts and low-burr profiling escalates as component sizes shrink. Vendors are releasing sub-50 µm beam-diameter lasers and UV water-jet hybrids to tap this growth pocket, balancing the mature vehicle segment’s slower climb.
Note: Segment shares of all individual segments available upon report purchase
By Material Type: Ferrous Metals Still Rule, Composites Accelerate
Ferrous metals represented 48.87% of global sales in 2024, anchoring the cutting equipment market share. Steel service centers rely on fiber lasers up to 120 kW to slice a 40 mm plate in a single pass while preserving bevel accuracy. Aluminum and titanium adoption in mobility sectors adds alloy diversity, though it remains within the metal domain.
Composites and polymers, grouped under “others,” are projected to grow at a 5.28% CAGR as recyclers and EV makers request defect-free cold cuts. Water-jets dominate thicker laminate trimming, while ultrasonic knives from FRIMO or Emerson’s Branson range handle interior panels without fraying. Cutting OEMs that broaden tool heads and software databases for carbon fiber, thermoplastics, and engineered wood stand to outpace peers wedded solely to metal workflows.
Geography Analysis
Asia-Pacific captured 48.98% of 2024 revenue and is on course for a 4.44% CAGR to 2030, buoyed by capacity additions across China, India, and the ASEAN corridor. HSG Laser’s USD 68.3 million Jinan campus exemplifies the scale, promising 10,000 high-power units per year and shortening lead times for local buyers. Policy push for EVs, aerospace, and shipbuilding funnels continuous orders, while domestic toolmakers extend overseas after-sales centers to support exports[3]China Daily, “Machine-Tool Industry Growth,” chinadaily.com.cn.
North America holds a robust installed base and benefits from fresh incentives that defray upgrade costs. The Department of Energy’s USD 40 million grant pool in 2024 subsidized efficiency retrofits for 219 factories across 38 states, accelerating fiber laser adoption. In addition, the USD 750 million Advanced Energy Manufacturing and Recycling program earmarks funds for plant rehabs in coal-impacted regions, nudging metal shops toward cleaner, automated lines. Canada’s automotive cluster and Mexico’s near-shoring boom further lift regional demand.
Europe leverages precision-engineering heritage and regulatory heft to sustain sales, even amid slower macro growth. Bystronic’s Intelligent Cutting Process autonomy kit, winner of the Swiss Technology Award, underscores R&D leadership in fully unattended lasers. Germany drives global standards through DIN committees, shaping ISO rules that favor high-spec safety architectures. EU environmental directives also spur investments in composite recycling plants, indirectly pulling orders for ultrasonics and water-jets. Secondary growth pockets appear in the Middle East, Africa, and South America, where infrastructure build-outs prompt first-time purchases of mid-range plasma and oxy-fuel machines.
Competitive Landscape
Market concentration remains moderate, with leading vendors expanding through mergers and AI-rich collaborations. United Grinding’s USD 720–744 million takeover of GF Machining Solutions unites grinding, EDM, laser, and additive assets under one roof, forming a portfolio that stretches from tool-room proto to ultra-precision finishing. TRUMPF’s tie-up with SiMa.ai embeds edge AI chips capable of processing 3,000 images per second to verify cut quality in real time, setting a high bar for integrated intelligence.
Asian entrants escalate the contest on price-performance. Han’s Laser runs multiple Chinese campuses and a Dallas service hub, leveraging 6,900+ patents to ship roughly 30,000 machines worldwide. HSG’s 120 kW lasers cut thick steel up to twice as fast as many Western models, eroding the pricing premium long held by European brands. Western players answer with service contracts, IIoT analytics, and finance packages to protect installed bases and margin.
Technology whitespace encourages smaller innovators. Shaper Tools, now part of TTS Tooltechnic Systems, sells a handheld CNC guided by onboard vision, breaking traditional notions of fixed-bed milling. Bystronic’s NanoLock partnership adds cyber-immunity as a differentiator, while Lincoln Electric’s Inrotech deal folds adaptive vision into robotic welding to reduce programming labor. Overall, suppliers able to bundle machines, software, safety, and financing in one value stack are best placed to extract premium in the evolving cutting equipment market.
Cutting Equipment Industry Leaders
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TRUMPF SE + Co. KG
-
Lincoln Electric Holdings, Inc.
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ESAB Corp. (ex-Colfax)
-
Bystronic AG
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Hypertherm Associates
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: ANDRITZ Schuler unveiled Laser Blanking Line 1.18 DFT delivering 17% material savings and 45 ppm output for steels above 1,000 MPa.
- March 2025: Bystronic launched ByTube Star 330 tube laser with 40-ft loading and 10 kW option.
- March 2025: Miller Electric and Novarc partnered on AI-powered collaborative welding under the Miller Copilot label.
- January 2025: TTS Tooltechnic Systems acquired Shaper Tools, adding computer-vision handheld CNC to its catalog.
Global Cutting Equipment Market Report Scope
Cutting equipment is the part of machine tools that are utilized to remove excess material from a workpiece with a cutting medium. These machines are specifically utilized across boring, slotting, and lathe machines. The cutting equipment market is segmented by technology (laser, plasma, waterjet, flame, and others), by end-user (automotive, aerospace and defense, electrical and electronics, construction, and other end users), and by geography (North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America). The report offers market size and forecasts for Cutting Equipment Market (in USD Billion) for all the above segments.
| Laser | Fiber |
| CO₂ | |
| Solid-state / Other | |
| Plasma | High-definition |
| Conventional | |
| Water-Jet | Abrasive |
| Pure | |
| Flame / Oxy-fuel | |
| Ultrasonic & Emerging |
| Manual |
| Semi-automated |
| Robotic / Fully-automated |
| Automotive |
| Aerospace & Defense |
| Electrical & Electronics |
| Construction & Infrastructure |
| Metal-Fabrication Job Shops |
| Shipbuilding |
| Energy & Power |
| Others (Medical Devices, etc.) |
| Ferrous Metals |
| Non-Ferrous Metals |
| Composites |
| Glass/Ceramics/Stone |
| Others (Polymers/Plastics/Wood, etc.) |
| North America | United States |
| Canada | |
| Mexico | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Spain | |
| BENELUX (Belgium, Netherlands, and Luxembourg) | |
| NORDICS (Denmark, Finland, Iceland, Norway, and Sweden) | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| Australia | |
| South Korea | |
| ASEAN (Indonesia, Thailand, Philippines, Malaysia, Vietnam) | |
| Rest of Asia-Pacific | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| Qatar | |
| Kuwait | |
| Turkey | |
| Egypt | |
| South Africa | |
| Nigeria | |
| Rest of Middle East and Africa |
| By Technology | Laser | Fiber |
| CO₂ | ||
| Solid-state / Other | ||
| Plasma | High-definition | |
| Conventional | ||
| Water-Jet | Abrasive | |
| Pure | ||
| Flame / Oxy-fuel | ||
| Ultrasonic & Emerging | ||
| By Automation Level | Manual | |
| Semi-automated | ||
| Robotic / Fully-automated | ||
| By End-User Industry | Automotive | |
| Aerospace & Defense | ||
| Electrical & Electronics | ||
| Construction & Infrastructure | ||
| Metal-Fabrication Job Shops | ||
| Shipbuilding | ||
| Energy & Power | ||
| Others (Medical Devices, etc.) | ||
| By Material Type | Ferrous Metals | |
| Non-Ferrous Metals | ||
| Composites | ||
| Glass/Ceramics/Stone | ||
| Others (Polymers/Plastics/Wood, etc.) | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Italy | ||
| Spain | ||
| BENELUX (Belgium, Netherlands, and Luxembourg) | ||
| NORDICS (Denmark, Finland, Iceland, Norway, and Sweden) | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| Australia | ||
| South Korea | ||
| ASEAN (Indonesia, Thailand, Philippines, Malaysia, Vietnam) | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Saudi Arabia | |
| United Arab Emirates | ||
| Qatar | ||
| Kuwait | ||
| Turkey | ||
| Egypt | ||
| South Africa | ||
| Nigeria | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
How large is the cutting equipment market in 2025?
The cutting equipment market size is USD 34.32 billion in 2025.
What is the forecast CAGR for cutting machinery through 2030?
Global revenue is projected to rise at a 3.45% CAGR between 2025 and 2030.
Which technology currently leads global sales?
Fiber lasers hold the top spot with 45.65% of 2024 revenue and continue to gain share.
Which region is growing the fastest?
Asia-Pacific commands 48.98% of demand and is forecast to expand at a 4.44% CAGR through 2030.
What factor most restrains SMEs from upgrading equipment?
High upfront capital and integration costs remain the main barrier, especially for smaller manufacturers.
Which end-use sector is expanding quickest?
Electrical and electronics manufacturing is expected to post a 4.68% CAGR through 2030 thanks to rising semiconductor and consumer device volumes.
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