Optical Coordinate Measuring Machine Market - Growth, Trends, and Forecasts (2022 - 2027)

Key Highlights

• The Optical Coordinate Measuring Machine Market is expected to register a CAGR of 1.85% over the forecast period. A major driver for increased quality control has been the advent of Industry 4.0, a radical approach to production, where quality control has become a significant process. Therefore, automated measurement solutions in the wake of the Industry 4.0/digital transformation shift have enabled tight control of production processes. ​
• The need for continuous measurements due to industries' shift to smart/digital manufacturing is also developing a requirement for CMMs. Industries, such as automotive, aerospace and defense, electronics, and semiconductors, witnessed increasing complexity of devices and demand for precise measurements due to smart devices. The growing manufacturing in these sectors will be the primary revenue stream for vendors in the market studied during the forecast period.
• Multi-sensor capability CMMs, on the other hand, emerged wherein different sensor technologies in a single measuring equipment solution allow part topology and geometrical part features to be inspected in a single part inspection set-up. Using tactile, optical, and laser sensors integrated into a single measurement platform offers an extension to measurement capabilities.​
• For instance, in March 2021, Hexagon's Manufacturing Intelligence division introduced a new coordinate measuring machine (CMM) that overcomes challenges expected in measuring delicate components such as smartphone camera lens assemblies, allowing manufacturers to perform quality inspections four to six times faster than conventional methods while maintaining uncompromising sub-micron accuracy.
• Further, the market is driven by product innovations catering to the needs of manufacturing industry needs. For instance, in February 2022, Made to Measure, a prominent provider of metrology equipment and services, launched the AccuFLEX series of coordinate measuring machines (CMMs). The new machine line, which is built in the United States, includes bridge, shop floor, horizontal, and gantry variants to service a variety of industries and applications.
• The CMM's adaptability allows manufacturers to evaluate various components using multiple sensor technologies such as touch-trigger and scanning contact probes, noncontact laser/vision sensors, and roughness sensors. Further, there are also a variety of CMM software solutions available to handle human or automated measurements and simple surface scanning and 3D modeling.
• The global trends in stationary CMM were witnessing steady growth with demand predominantly from automotive and aerospace industries. However, disruption caused by the COVID-19 pandemic resulted in demand contraction across these industries. The US industrial production saw a massive decline in April 2020, as the COVID-19 pandemic led many factories to slow operations or shut down completely in compliance with state regulations. As per Federal Reserve's Industrial Production and Capacity Utilization, the manufacturing output was hit hard, dropping by 13.7% over March, the steepest fall in the 101-year history of the industrial production index in the country. Reportedly, the automobile, fast-moving consumer goods, and pharma sectors were hit majorly because of supply issues in China.​

Key Market Trends

Automotive Segment is Expected to Witness Significant Growth

• The automotive industry is facing ever-reducing design-to-production times, automotive manufacturers and suppliers have embraced industrial metrology and 3D measurement as enablers of productivity, and thus, there is an increased demand for optical CMM within the industry.
• For instance, OGP UK's FlexPoint range represents a new generation of large-format multi-sensor coordinate measuring systems support various tactile and non-contact sensors, point and line scan lasers, white light sensors, and a unique video sensor, all powered by advanced ZONE3 3D CAD-based metrology software.
• Recent trends include moving off-line quality inspection to near-line or in-line measurement techniques, allowing higher sampling rates and faster inspection times. The most advanced automotive OEMs are working on automating assessment and integrating metrology data with product lifecycle management systems, statistical process control, and supply chain management software.
• Furthermore, the increasing emphasis on innovations in electric vehicle and autonomous cars are expected to fuel the adoption and demand for optical coordinate measuring machines over the forecast period. The recent goal of the German government is to produce and put 6 million electric vehicles on road by 2030, creating increased demand from the automotive sector.
• Moreover, In December 2021, Hyundai announced plans to invest Rs 4,000 crores (USD 530.25 million) in R&D in India, intending to launch six EVs by 2028. Further, according to OICA, around 26.3 million vehicles are expected to sell globally in 2021. Such developments are expected to enhance the growth of the market. ​​

Asia Pacific is Expected to Witness Significant Growth

• The Asia Pacific region is expected to witness robust growth during the forecast period, mainly due to the increasing demand for optical coordinate measuring machines among emerging economies. China, India, and Japan are expected to witness high demand primarily related to end-user industries such as electronics and heavy machinery.
• Various automotive giants and aerospace establishments in the region are interested in highly accurate coordinate measurement solutions. For instance, according to ITA, China is the world's second-largest and fastest-growing civil aerospace and aviation services market. According to the Civil Aviation Administration of China (CAAC), the country had 241 large commercial service airports by the end of 2020.
• In many industries, the increasing quality of Chinese manufactured precision products has been due to the growing use of coordinate measuring machines (CMM) by its manufacturing companies over the past decade. However, the core precision motion components of servo motors and measuring scales are predominately sourced outside of China, leaving very little product differentiation between the numerous CMM suppliers. This factor offers growth opportunity for raw material suppliers in the region.
• Furthermore, the automotive sector is anticipated to remain the main driver of the increasing robot installations in India. It is likely to be among the primary sources of demand in the market. In addition, according to IBEF, India could be a leader in shared mobility by 2030, opening up opportunities for electric and autonomous vehicles. Further, The Indian passenger car market was valued at USD 32.70 billion in 2021 and is expected to grow to USD 54.84 billion by 2027.
• In Japan, bridge-type CMM machines are increasingly gaining popularity. The market vendors are also investing in software solutions to enhance their offerings and product accuracy.
• Moreover, owing to multiple governmental initiatives in the region that are strengthening the manufacturing industry, key countries such as China and Japan are contributing to the growth of the Optical CMM market in this region during the forecast period. Furthermore, countries like China and India are among the fastest-growing economies globally. Various international companies are starting to build their production units in these countries primarily to reduce their overall production cost and increase profitability. Such positive developments are expected to increase the market growth during the forecast period.

Competitive Landscape

The market appears to be moderately fragmented, and the significant strategies adopted by the major players are product innovation and mergers and acquisitions, primarily to expand their product portfolio and geographic reach. Some of the major players in the market are Hexagon AB and Carl Zeiss AG, among others.

• March 2022 - Hexagon has installed a new coordinate measuring machine on the LFM. Leibniz-IWT currently has an adaptable model for industrial metrology in the form of a high-precision Leitz Reference Xi 7.7.5 model. The device uses a scanning measuring head in conjunction with a rotary-swivel joint and a sensor-changing device in addition to rigid measuring heads. A new optical probe (line sensor Nikon LC15Dx) also enables the measurement of more acceptable surface structures. The diverse set of sensors, and their combination, opens up a vast range of possibilities. Even components can be measured with minimal measurement error with a measuring range of 700 mm on the X- and Y-axis and 500 mm on the Z-axis.
• March 2021 - Hexagon has introduced a new precision non-contact CMM sensor. A new high-speed, non-contact sensor from Hexagon's Manufacturing Intelligence division for use with coordinate measurement machines (CMMs) addresses the growing demand from the consumer electronics and medical industries to rapidly inspect delicate parts with a variety of surface finishes, including those produced via additive manufacturing, without applying damaging pressure.

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