Computer Numerical Control in Japan Trends and Forecast
The future of the computer numerical control market in Japan looks promising with opportunities in the aerospace & defense, automobile, electronics, healthcare, and industry machinery markets. The global computer numerical control market is expected to reach an estimated $1641.7 billion by 2031 with a CAGR of 3.5% from 2025 to 2031. The computer numerical control market in Japan is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing demand for production efficiency, the growing need for customized production, and the rise in demand for mass-production plants.
• Lucintel forecasts that, within the machine tool type category, lathe will remain the largest segment over the forecast period.
• Within the end-use category, industry machinery will remain the largest segment.
Emerging Trends in the Computer Numerical Control Market in Japan
Japan has historically been a leader in precision manufacturing industries and industrial automation, with the computer numerical control (CNC) market being no exception. Recently, the market has capitalized on trends fueled by innovation, shifts in market demand, and the ongoing pursuit of efficiency. As Japanese manufacturers place greater emphasis on digital transformation, sustainability, and precision, the CNC market is transforming at an unprecedented rate. In light of this, here are five trends that will impact the future of CNC systems and technologies in Japan.
• Inclusion of Artificial Intelligence (AI) in CNC Systems: Similar to other industries, CNC systems are adopting AI to improve performance, automation, and overall productivity. AI-powered algorithms can learn to optimize cutting paths, monitor and mitigate production errors, and adjust to changing conditions. This leads to lower waste and downtime while enhancing overall operational efficiency and manufacturing quality control. Moreover, AI is capable of predicting wear and proactively maintaining parts, which helps in minimizing disruptive operational consequences. Using AI ensures higher operational productivity, quicker turnarounds, and more precise manufacturing processes for Japanese manufacturers.
• Adoption of 5G for Real-Time Machine Monitoring: 5G is expanding the capabilities of CNC machines by fostering advanced connectivity. Users will now be able to perform data analytics and monitor the machine’s performance remotely. This feature will ultimately facilitate predictive maintenance and instantaneous troubleshooting. The high bandwidth of 5G technology is essential for the transmission of large data sets. This trend allows manufacturers to optimize their operations for maximum efficiency. It also fosters the reduction of downtime experienced by machines, enhances efficiency, and improves conformity with Industry 4.0.
• Development of Hybrid CNC Machines: CNC machines that leverage both additive and subtractive manufacturing methods, known as hybrid CNC machines, are rapidly gaining acclaim in Japan. These systems allow more complex geometrical shapes to be printed in several materials through the integration of 3D printing and traditional CNC machining. These innovations enable faster production times, greater design flexibility, and reduced material usage. Hybrid machines allow the construction of highly precise components in fewer steps, increasing the efficiency and cost-effectiveness of production lines.
• Increased Focus on Maintenance of Sustainable Manufacturing: Sustainability is of prime importance in the Japanese CNC market. Modern processes encourage the creation of energy-efficient and "green" CNC technologies, so technological innovations are being made to reduce waste and energy depletion. Many CNC manufacturers are adopting sustainable practices like energy-saving motors and using recyclable materials in machine construction. Additionally, producing components with calculated minimal material waste is receiving heightened attention in the country, in alignment with its environmental policy and global sustainability goals.
• Improved HMI Designs Including IVRS and HMI Development: There has been an increase in activities directed toward the development of user-friendly interfaces and providing modern solutions for human-machine interaction (HMI), which is another important development in Japan’s CNC industry. Modern CNC systems can be operated by personnel with minimal knowledge because they are equipped with sophisticated touchscreen systems, augmented reality (AR) glasses, and voice activators. Faster setup and fewer errors will benefit operator productivity overall. Enhanced HMIs make it easier for non-technical personnel to operate sophisticated CNC machines, thus increasing overall manpower productivity while also decreasing expenditures on training.
New trends taking shape in Japan aim for greater productivity alongside improved machine capabilities and flexibility in modern manufacturing. The integration of machines with AI technology, the emergence of 5G, hybrid machine development, green advocacy, and user interface improvements are all designed to make industrial processes more efficient, sustainable, and innovative. As these trends are developed, Japan should be able to maintain its leadership in advanced manufacturing technologies while meeting the needs of the rapidly changing international community.
Recent Developments in the Computer Numerical Control Market in Japan
In its quest to embrace the new age of Industry 4.0 and boost global competitiveness, Japan is witnessing substantive shifts in its CNC market. The emerging trends in automation, digitization, and precision machining are changing the operational processes of CNC machines. The drivers of these changes are enhancing operational productivity, improving the carbon footprint, and providing manufacturers with better technology to meet the changing production landscape. A few notable shifts that have emerged over the last five years directly influence the Japanese economy and CNC market.
• Growth of Fully Automated CNC Systems: Japan’s efforts toward fully automated CNC systems have shifted the paradigm of manufacturing. It is now possible for machines to carry out sophisticated activities independently, thanks to the use of robotic arms and AI systems. Automated CNC systems are employed across a wide range of sectors, from automotive to aerospace, resulting in faster production cycles, lower labor costs, and higher precision. This aids Japan in improving productivity and maintaining global competitiveness, while also ensuring that products are of the highest quality and minimizing human error.
• Shift Toward Advanced Data Analytics and IoT Integration: The use of IoT devices and advanced data analytics has emerged as a new frontier in the transformation of CNC machines in Japan’s manufacturing industry. These systems offer real-time monitoring, which improves decision-making, predictive maintenance, and optimization of production schedules. Manufacturers can monitor the machine’s health, spot inefficiencies, and foresee failures before they occur. With IoT-enabled CNC machines, efficiency can be continuously improved by constant feedback, with minimal downtime and overall lower production costs.
• Investment in Advanced Material Processing Capabilities: CNC technologies have recently been upgraded to process more advanced materials, such as composites, ceramics, and hard metals. Japan’s CNC manufacturers have begun investing in these new machines as they are essential for industries like medical devices, aerospace, and high-tech electronics. These new systems assist in the creation of advanced components that require enhanced material strength, durability, and precise dimensions. As a result, the range of industries that CNC machining can support has greatly expanded.
• Shift Toward Smaller, Precision-Focused Machines: Due to the increasing demand for accuracy and miniaturization from the medical and electronics industries, Japanese CNC manufacturers are focusing their efforts on smaller machines. These new compact machines have high-precision machining capabilities while also requiring less space to operate. With the ever-growing demand for micro-manufacturing components, Japan’s CNC market is evolving to cater to these needs with advanced, multifunctional, high-accuracy machines.
• Integration of Older CNC Models with Additive Manufacturing Processes: Japan is a leader in integrating CNC machining with 3D printing technology. By combining both processes, manufacturers can produce customized, complex parts faster and more efficiently. This integration enables manufacturers to reduce lead times, improve part designs, and minimize production costs. The combination of additive and subtractive techniques breaks the barriers of each process and allows for innovative product designs in automotive, aerospace, and medical devices.
These innovations are transforming material automation and precision in Japan’s CNC industry. As a country that values data-based decision-making and sophisticated manufacturing processes, Japan is emerging as a frontrunner in high-precision technologies. These innovations are enabling manufacturers to optimize processes, reduce expenditures, and meet the requirements of different industries around the world. Japan’s CNC manufacturers will continue to be at the forefront of global advancements in manufacturing technologies.
Strategic Growth Opportunities for Computer Numerical Control Market in Japan
Significant changes in the computer numerical control (CNC) market in Japan have emerged due to new technologies, the necessity for precision, and an increasing focus on sustainability. With the rise of Industry 4.0 in Japan, new opportunities are targeting the automotive, aerospace, electronics, and medical device markets. Businesses are increasingly innovating to enhance the efficiency, autonomy, and flexibility of their machines due to growing market needs. Below are five key growth opportunities across different applications within Japan’s CNC market.
• Automotive Industry Growth: The automotive industry remains well-positioned from the Japanese OEM perspective, continuing to dominate the CNC market’s growth. This is particularly true for manufacturers of electric and autonomous vehicles, as well as conventional cars, who are working to design and fabricate more detailed and sophisticated automotive parts. For certain components, such as engine parts and transmission and chassis systems, accuracy is crucial, making CNC machines indispensable in their production. In addition to advanced customization, major demand shifts are seen toward lightweight materials and energy efficiency in automotive designs. Manufacturers are incorporating automation and AI-powered CNC systems to improve production capacities and time to market, meeting the changing needs of the automotive industry, alongside the high target of efficient, precise machining.
• Expansion of the Aerospace Industry: The aerospace sector in Japan offers potential growth for CNC technologies as there is a growing demand for high-precision parts and components needed for aircraft. The production of advanced turbine blades and other highly complex and strength-demanding parts requires CNC systems. With increased requirements for both commercial and defense aircraft, Japanese suppliers are focusing on advanced CNC machines that improve precision machining and material processing. The demand for Japanese-manufactured composites and other lightweight materials is increasing due to their high standards for production efficiency.
• Manufacturing Medical Devices: The expansion of medical device manufacturing in Japan provides a significant growth opportunity for CNC systems. Surgical instruments, implants, and other intricate parts, along with diagnostic equipment, are essential components of a medical device. The increased popularity of personalized medicine and custom-made 3D-printed implants and prosthetics enhances the demand for CNC machines with added flexibility. The incorporation of AI and real-time monitoring on CNC machines enables increased production cycles, customization, and product quality while also decreasing waste and operational costs in the medical device sector.
• Electronics Manufacturing: Japan has a dominant position in the global electronics manufacturing sector. Consequently, CNC systems are crucial in the production of consumer electronics, semiconductors, and other microelectronics-level components. For instance, circuit boards, connectors, and enclosures require precision machining, which is only possible with CNC systems. The intense miniaturization of devices calls for even higher adaptability from machines, as they need to work with very small geometric shapes. Additionally, the greater productivity requirements, speed of production, and lower operational costs in this sector create new challenges for more efficient, economical, and automated CNC systems. Only in this way can Japan maintain its dominance in the electronics manufacturing industries.
• Renewable Energy Industry: Japan’s shift toward sustainability and decreasing carbon emissions has positively impacted growth in the renewable energy industry. More CNC technologies are being adopted in the production of components for wind turbines, solar panels, and even energy storage systems. Exact tolerances are needed when manufacturing parts like turbine blades, gearboxes, and solar panel frames. These components increasingly demand high-precision CNC manufacturing. Increased demand for renewable energy infrastructure results in greater production needs, which, in turn, increases the production efficiency required to achieve global sustainability goals. This presents an opportunity for CNC manufacturers to advance sustainable production techniques and energy-efficient CNC systems.
The CNC market in Japan is transforming due to new strategic growth opportunities in the automotive, aerospace, medical devices, electronics, and renewable energy sectors. Japanese manufacturers can exploit these emerging markets while preserving the high-quality CNC technologies that exist in the country by optimizing production processes through constant innovation.
Computer Numerical Control Market in Japan Driver and Challenges
In Japan, the computer numerical control (CNC) market is influenced by various technological, economic, and policy factors. These drivers and challenges greatly influence the development, implementation, and adoption of CNC technologies across various industries. The concept of Industry 4.0, improvements in AI technologies, the need for more efficient and cleaner manufacturing systems, and changes in global supply chains are some of the notable market factors. However, challenges such as the high cost of automation, the growing skill gap in the workforce, and issues around regulatory compliance remain significant barriers. Here are the primary effects of the drivers and challenges on Japan’s CNC market.
The factors responsible for driving the computer numerical control market in Japan include:
• Introduction of Automation & Robotics: In Japan, the integration of automation and AI in CNC systems is on the rise, resulting in more advanced AI systems. AI systems can analyze data from machines, optimize production techniques, and even forecast the need for maintenance. Automation in CNC machines increases production efficiency, decreases human errors, and reduces running expenses. Japan is the leading nation in AI and robotics, enabling manufacturers to compete globally amidst the increasing demand for speed and accuracy.
• Adoption of ‘Quality Accuracy’ Manufacturing: Due to Japan’s high-quality reputation in the automotive, aerospace, and medical industries, CNC-powered robotics and AI systems are in high demand. With competition making it necessary to achieve extreme accuracy in component manufacturing, Japanese CNC systems have made it easier than ever. Japanese manufacturers now can produce powerful, professional-grade devices with high precision, representing an advanced shift in CNC capabilities. This is key to the steady growth in global competition.
• Focus on Sustainability and Green Manufacturing: Japan’s green tech advancements have greatly impacted the CNC market, with manufacturers aiming to create energy-compliant and environmentally sustainable machining technologies. Due to the increasing focus on waste management, environmentally conscious practices, such as using recyclable materials and energy-efficient motors in CNC machines, are on the rise. As sustainability becomes a more prominent global issue, Japanese manufacturers are seeking innovative ways to accomplish their environmental goals through increased green manufacturing platforms.
• Emergence of Smart Manufacturing and IoT Technology Adoption: The development of smart manufacturing, which goes hand in hand with the adoption of IoT technologies, is another critical factor influencing the demand for CNC machines. IoT-capable CNC machines enable remote oversight, predictive servicing, and data-driven enhancements. They provide better connectivity within the manufacturing space, adding value by optimizing processes and minimizing idle time. The increasing focus on Industry 4.0 and smart factories in Japan is propelling the use of IoT devices in CNC processes, making them more usable and advanced.
• Increasing Need for Customization and Flexibility: There is a growing demand for more customizable products, especially within the medical and consumer electronics sectors. This demand leads to an increase in the versatility and sophistication of CNC systems. Manufacturers are now producing smaller, customized batches of high-precision components that require CNC machines with complex shape cutting and material versatility. The speed at which production lines can be adjusted becomes critical in addressing market demands, making flexibility a powerful motivator in the CNC industry.
Challenges in the computer numerical control market in Japan are:
• Initial Investment in Automation Technology: Compared to selling a single CNC integrated workstation, advanced CNC systems become increasingly expensive with the introduction of automation and AI technologies. Many small manufacturers may not be able to afford the initial investment, despite the improved speeds and efficiency promised by CNC peripheral systems over time. These technologies are prohibitively expensive for small manufacturers, posing a significant barrier to adopting automation in CNC.
• Lack of Sufficient Skilled Workers: Japan has been experiencing a constant shortage of skilled workers in its CNC market. This poses great difficulty, especially with the rapid advances in technology that are becoming more prevalent in the industry. Operating and maintaining CNC systems requires trained personnel, and the aging workforce in Japan, along with the difficulty of attracting younger employees to the manufacturing industry, has created a talent gap. Addressing this challenge will require manufacturers to focus on training and recruitment to develop a sustainable workforce capable of operating and maintaining complex CNC systems.
• Keeping Up with Regulatory Compliance and Standards: Another hurdle is the need for regulatory compliance alongside fulfilling additional stringent standards for the CNC industry in Japan. With globalization, the Japanese economy is interdependent, and manufacturers have an added burden to comply with several international norms and quality standards. This is especially difficult for companies in the aerospace and medical sectors, where safety and quality compliance norms are very high. These businesses must ensure compliance with both local regulations and global directives, increasing the complexity of regulatory compliance and its associated costs.
CGS experts have noted that Japan is advanced in terms of CAD/CAM CNC technologies, techniques, and engineering practices. However, as with other countries, high system costs, skilled labor shortages, and strict regulatory policies are significant obstacles. Japan remains the world leader in high-precision manufacturing technologies, and as long as Japan and the U.S. compete, the world can benefit from this healthy rivalry.
List of Computer Numerical Control Market in Japan Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, computer numerical control companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the computer numerical control companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Computer Numerical Control Market in Japan by Segment
The study includes a forecast for the computer numerical control market in Japan by machine tool type and end use.
Computer Numerical Control Market in Japan by Machine Tool Type [Analysis by Value from 2019 to 2031]:
• Lathes
• Mills
• Routers
• Grinders
• Others
Computer Numerical Control Market in Japan by End Use [Analysis by Value from 2019 to 2031]:
• Aerospace & Defense
• Automobile
• Electronics
• Healthcare
• Industry Machinery
• Others
Features of the Computer Numerical Control Market in Japan
Market Size Estimates: Computer numerical control in Japan market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Computer numerical control in Japan market size by machine tool type and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different machine tool type and end use for the computer numerical control in Japan.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the computer numerical control in Japan.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the computer numerical control market in Japan?
Answer: The major drivers for this market are increasing demand for production efficiency, growing need for customized production and rise in demand in mass production plants.
Q2. What are the major segments for computer numerical control market in Japan?
Answer: The future of the computer numerical control market in Japan looks promising with opportunities in the aerospace & defense, automobile, electronics, healthcare, and industry machinery markets.
Q3. Which computer numerical control market segment in Japan will be the largest in future?
Answer: Lucintel forecasts that lathe will remain the largest segment over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the computer numerical control market in Japan by machine tool type (lathes, mills, routers, grinders, and others), and end use (aerospace & defense, automobile, electronics, healthcare, industry machinery, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?