Frost: Electrical Discharge Machines Surpass Traditional Machining Processes
July 14, 2006
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Electrical discharge machines (EDMs) are benefiting from the growing needs of various end-user industries - including medical devices, electronics, automotive, parts manufacturing and metal working - for highly accurate machining of increasingly complex and intricate designs.
New analysis from Frost & Sullivan of the world electrical discharge machines market found earned revenues of $2,456.2M in 2005, with estimates to reach $3,907.7M by 2012.
"As the need for machining complex and intricate parts grow, the demand for sophisticated EDM is increasing," said Frost & Sullivan research analyst Arun Kumar J. "Traditional machining processes such as drilling, milling and grinding are giving way to unconventional methods such as electrical discharge machining ... thus contributing to the increased demand for EDMs."
Contactless machining and technology, such as linear motors, allow EDMs to machine tough contours with far greater accuracy than conventional processes. They provide companies with considerable savings in labor costs and time, as well as increased productivity and quality, making them a preferred option.
Analysts said recent technological developments in EDMs by vendors have further added to the appeal of these machines. For instance, modern EDMs offer advanced facilities, such as the ability to directly download computer-aided design (CAD) files from the client's location to the machine and convert them into machine codes.
This enables a significant reduction in program errors and gives modern EDMs an advantage over conventional EDMs which are prone to such errors. The resulting increase in quality and time-savings is driving demand for EDMs in the quality- and time-conscious aerospace and defense industry.
EDMs are also poised to witness growth in developing markets such as China and India due to the increased outsourcing of components from developed countries. However, analysts said penetrating these markets will be a tough task for EDM vendors since local, low-cost machine builders largely dominate them.
Multinational vendors are likely to find it difficult to match the prices offered by such indigenous builders. The challenge for these vendors is to develop and adopt different strategies to help penetrate the high-growth and lucrative developing markets.
"EDM vendors should focus on highlighting the advanced technology and the lifetime cost benefits that are associated with these machines, rather than the initial cost advantage derived from indigenous manufacturers," said Kumar. "Marketing campaigns focused on ways in which end-users can gain from these machines, enhanced with superior technology, will help boost revenues and market share in the developing countries."
Source: Frost & Sullivan.