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CGI announces intent to repurchase 2.89 million of its shares held by CDPQ

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7 months ago

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Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
cgi.com/en/newsroom

MONTRÉAL, May 27, 2024 /PRNewswire/ – CGI (TSX: GIB.A) (NYSE: GIB) announced today that it intends to enter into a private agreement with CDPQ for the purchase for cancellation of 2,887,878 of its Class A subordinate voting shares (“Class A Shares”) held by CDPQ for a price of $138.51 per Class A Share, which represents a discount to the closing price on May 27, 2024 of the Class A Shares on the Toronto Stock Exchange (“TSX”).

The transaction will be made in connection with the periodic portfolio rebalancing of CDPQ. Once completed, CDPQ will continue to hold approximately 16.29 million Class A Shares, representing approximately 7.15% of CGI’s total outstanding shares.

“CGI is an international leader in the IT industry and continues to stand out with its sustained growth and operational excellence, benefiting its shareholders,” highlights Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “We will remain a major shareholder of the company following this repurchase, and continue our commitment of over 30 years in supporting CGI’s expansion.”

“This transaction is consistent with CGI’s strategy to continuously deliver accretive value to our shareholders,” said Julie Godin, Co-Chair of the Board, CGI. “With strong profitability and cash generation—including $2.8 billion of cash readily available as at the end of March 2024—CGI’s financial strength reflects our ongoing resilience and capacity to execute on our Build and Buy profitable growth strategy.”

A favorable decision was obtained from the Autorité des marchés financiers (“AMF”) to exempt CGI from the issuer bid requirements under applicable securities legislation. The transaction is expected to be entered into later today and settled on May 29, 2024.

The share repurchase will be made under CGI’s normal course issuer bid (“NCIB”), the renewal of which was announced on January 31, 2024. Under the NCIB, CGI is authorized to repurchase up to 20,457,737 Class A Shares by February 5, 2025. The NCIB allows for purchases outside the facilities of the TSX by private agreements pursuant to exemption orders issued by securities regulators. As at May 27, 2024, CGI had repurchased 2,361,530 Class A Shares under its current NCIB.

Information regarding the share repurchase, including the number of Class A Shares purchased for cancellation and aggregate price paid, will be available on the SEDAR+ website at www.sedarplus.ca following the completion thereof. CGI will not issue any additional press release in respect of this share repurchase.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is $14.30 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

About CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2023, CDPQ’s net assets totalled CAD 434 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

Forward-looking information and statements
This press release contains “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI’s intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “believe”, “estimate”, “expect”, “intend”, “anticipate”, “foresee”, “plan”, “predict”, “project”, “aim”, “seek”, “strive”, “potential”, “continue”, “target”, “may”, “might”, “could”, “should”, and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services to address emerging business demands and technology trends (such as artificial intelligence), to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, including through the use of artificial intelligence, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI’s annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI’s annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI’s annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. 

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SOURCE CGI Inc.

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Technology

Edge Data Center Market to Grow by USD 45.1 Billion (2025-2029), Driven by Video Streaming Demand and AI Redefining the Market Landscape – Technavio

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28 minutes ago

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January 7, 2025

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NEW YORK, Jan. 7, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global edge data center market size is estimated to grow by USD 45.1 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 32.8% during the forecast period. Rising demand for video streaming services is driving market growth, with a trend towards implementation of ai in data centers. However, monitoring edge data center equipment across multiple locations poses a challenge. Key market players include 365 Data Centers, Compass Datacenters LLC, DC BLOX Inc., Dell Technologies Inc., Digital Realty Trust Inc., Eaton Corp plc, EdgeConneX Inc., Equinix Inc., Flexential Corp., Friedhelm Loh Stiftung and Co. KG, Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Johnson Controls International Plc, Panduit Corp., Schneider Electric SE, Vapor IO Inc., Vertiv Holdings Co., ATC IP LLC; Cisco Systems Inc; Endeavor Business Media LLC, IBM, NVIDIA Corporation, CommScope.

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Edge Data Center Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 32.8%

Market growth 2025-2029

USD 45102 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

24.8

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 47%

Key countries

US, Germany, China, Canada, UK, France; Italy; Spain; India; Japan; Australia; South Korea; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa

Key companies profiled

365 Data Centers, Compass Datacenters LLC, DC BLOX Inc., Dell Technologies Inc., Digital Realty Trust Inc., Eaton Corp plc, EdgeConneX Inc., Equinix Inc., Flexential Corp., Friedhelm Loh Stiftung and Co. KG, Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Johnson Controls International Plc, Panduit Corp., Schneider Electric SE, Vapor IO Inc., Vertiv Holdings Co, ATC IP LLC; Cisco Systems Inc; Endeavor Business Media LLC, IBM, NVIDIA Corporation, CommScope

Market Driver

Edge data centers are gaining popularity in today’s digital world due to the increasing demand for real-time data analysis, low latency, and improved application performance. Big data, artificial intelligence, cloud, streaming services, and 5G are driving this trend. Edge data centers enable businesses to process data closer to the source, reducing network traffic and improving the streaming experience for customers. E-commerce platforms like Walmart, branch offices, production floors, and remote sites benefit from edge data centers for data processing and industrial automation. Industries like logistics, healthcare, and retail are adopting edge data centers for AI applications, machine learning, and natural language processing. Companies like Dell Technologies, Equinix Inc, and EdgeConneX Inc provide components and services for edge data centers, including modular data centers, IT racks & enclosures, DCIM software, and colocation services. The edge data center market is expected to grow as more industries seek to enhance business agility and application performance while minimizing operating costs. Additionally, industries like gaming & entertainment, industrial automation, and autonomous automobiles are expected to drive further growth in the edge data center market. However, challenges such as dust, heat, and vibration must be addressed to ensure reliable remote operations. 

Edge data centers are enhancing energy efficiency through the application of Artificial Intelligence (AI). By computing server, power system, and cooling system performance, AI enables faster decision-making and efficiency. Service providers utilize AI in data center automation software to reduce human resources and optimize energy use. Additionally, AI facilitates energy-efficient cooling through controlled mechanical cooling processes, maximizing power usage effectiveness in the overall data center operation. 

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Market Challenges

Edge data centers are becoming essential for businesses to address the challenges of big data, artificial intelligence, cloud, streaming services, and 5G. These centers enable real-time data analysis, improved application performance, and better streaming experience for customers. E-commerce platforms like Walmart and industrial applications in sectors such as logistics, healthcare, and retail rely on edge data centers for business agility and reduced latency. Edge data centers are also crucial for industrial automation, autonomous automobiles, and AI applications like machine learning and natural language processing. Dell Technologies, Equinix Inc, EdgeConneX Inc, and vXchnge are key players in this market, offering components, services, and IT racks & enclosures. Edge data centers help businesses operate efficiently by minimizing network traffic and managing operating costs. Modular data centers are a popular solution for branch offices, production floors, and remote sites. However, challenges such as dust, heat, vibration, and remote operations require specialized solutions.Managing edge data centers involves overseeing unique power and cooling systems at multiple locations. Accurately maintaining an inventory of assets across these sites necessitates real-time monitoring of cabinet equipment, including servers, networking devices, power distribution units (PDUs), and patch panels, as well as infrastructure devices and structured cabling. To effectively address this challenge, end-users require a centralized dashboard displaying real-time power and environmental status of their edge data centers. This information enables early detection of potential issues such as hot spot formation, power capacity limitations, and redundancy loss. However, to efficiently manage IT equipment from the core to the edge data center, organizations must employ Network Operations Center (NOC) technicians and experts.

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Segment Overview 

This edge data center market report extensively covers market segmentation by

End-user 1.1 IT and telecommunication1.2 Manufacturing and automotive1.3 BFSI1.4 Healthcare and life sciences1.5 OthersComponent 2.1 IT infrastructure2.2 General construction2.3 Power management systems2.4 Cooling systems2.5 OthersGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and AfricaFacility size

1.1 IT and telecommunication- The edge data center market in the IT and telecommunication sectors refers to the provision of decentralized facilities designed to cater to the specific needs of these industries. Edge data centers, located near end-users or data sources, offer low latency and high-bandwidth processing and storage. In the IT segment, they support services like cloud computing, CDNs, IoT, AI, and real-time analytics, by providing local processing power, storage, and network connectivity. Telecommunication companies benefit from edge data centers by minimizing latency, offering high bandwidth, and enabling localized data processing. These data centers also enhance reliability and security. In the telecom industry, they support activities such as NFV and SDN, optimizing network performance and reducing infrastructure costs. The growth of data-intensive applications, IoT devices, real-time analytics, and cloud-based services is driving the demand for edge data centers in both IT and telecommunication sectors, leading to market expansion during the forecast period.

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Research Analysis

The Edge Data Center Market is experiencing significant growth due to the increasing demand for real-time data analysis, low latency, and high performance in various industries. Big data, artificial intelligence, cloud, streaming services, and 5G are driving this trend, as businesses seek to improve business agility and enhance the streaming experience for customers. Edge data centers are being deployed in diverse settings, from e-commerce platforms and Walmart’s supply chain to branch offices, production floors, remote sites, and industrial automation. Edge data centers are essential for AI applications, machine learning, natural language processing, and other data-intensive tasks. However, they present unique challenges, such as managing operating costs, network traffic, and dealing with dust, heat, vibration, and other environmental factors. Dell Technologies and other key players are addressing these challenges with innovative solutions for remote operations and maintenance.

Market Research Overview

The Edge Data Center Market is experiencing significant growth due to the increasing demand for real-time data analysis and application performance in various industries. Big data, artificial intelligence, cloud, streaming services, and 5G are driving the need for data processing at the edge, closer to the source of data generation. Network traffic and latency are key concerns, as businesses seek to improve the streaming experience for customers, enhance business agility, and support industrial automation and AI applications. E-commerce platforms, branch offices, production floors, remote sites, and the logistics industry are among the sectors benefiting from edge data centers. Dust, heat, and vibration are challenges to be addressed in edge data center design and operations. Modular data centers, components, IT racks & enclosures, DCIM software, and services are essential for building and managing edge data centers. Industries such as healthcare & life science, retail & e-commerce, gaming & entertainment, and industrial automation are also leveraging edge data centers for data processing and AI applications, including machine learning and natural language processing. Dell Technologies, Equinix Inc, EdgeConneX Inc, and vXchnge are some of the companies providing edge data center solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userIT And TelecommunicationManufacturing And AutomotiveBFSIHealthcare And Life SciencesOthersComponentIT InfrastructureGeneral ConstructionPower Management SystemsCooling SystemsOthersGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

Sports Coaching Market , 36% of Growth to Originate from Europe, Technavio

Published

28 minutes ago

on

January 7, 2025

By

NEW YORK, Jan. 7, 2025 /PRNewswire/ — The global sports coaching market size is estimated to grow by USD 4.77 billion from 2025 to 2029, according to Technavio. The market is estimated to grow at a CAGR of 6.2% during the forecast period.

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Report Attribute

Details

Base Year

2024

Forecast period

2025-2029

Historic Data for

2019 – 2023

Segments Covered

Type (Sports camps and personalized trainings and Recreational camps), Application (Men, Women, and Kids), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Key Companies Covered

Challenger Sports, CMT Learning Ltd., Elle Football Academy, ESM Academy, Firstbeat Technologies Oy, FRONT RUSH LLC, Global Sports PD Network, Ignite Sport UK Ltd., IMG Academy, ISM Sports, Khelomore Sports Pvt. Ltd., Mentally Fit Institute, Neuro Training For Athletes, Smaller Earth Ltd., TENVIC, The Coach Crew, TrainingPeaks LLC, UK Coaching, and US Sports Camps

Regions Covered

North America, Europe, APAC, South America, and Middle East and Africa

Region Outlook

North AmericaEuropeAsiaRest of World

1. North America – Europe is estimated to contribute 36%. To the growth of the global market. The Sports Coaching Market report forecasts market growth by revenue at global, regional & country levels from 2017 to 2027. 

In 2024, North America held the largest share of the global sports coaching market, with the US being the primary contributor. The US is the leading market for sports coaching worldwide. The North American sports coaching market is projected to significantly contribute to the expansion of the global market. The continuous increase in sports participation fuels the demand for sports coaches and coaching services in the region. Government initiatives to encourage sports participation further boost market growth in North America.

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Segmentation Overview

Type 1.1 Sports camps and personalized trainings1.2 Recreational campsApplication 2.1 Men2.2 Women2.3 KidsGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Fastest growing segment:

The sports coaching market’s largest segment in 2024 was sports camps and personalized training. This sector’s growth is significant due to the increasing player participation in international sports and domestic leagues. In emerging countries, the launch of new domestic leagues, such as Pro Kabbadi League (PKL), Indian Super League (ISL), Hockey India League (HIL), and Premier Badminton League (PBL), provides young talents an opportunity to showcase their abilities. These leagues have been successful in identifying and nurturing new talents, leading to an increase in enrolment in sports coaching centers. Additionally, government initiatives to promote sports participation in countries like China, the US, and Singapore contribute to the segment’s growth. Overall, the sports camps and personalized training segment is expected to witness a year-over-year growth during the forecast period.

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Research Analysis

The Sports Coaching Market is experiencing significant growth due to the integration of software technology into coaching and training. Coaches and trainers are leveraging online platforms, smartphones, and laptops to provide real-time analysis and individualized assistance to athletes in various sports industries. Virtual platforms offer democratic, autocratic, and holistic coaching styles, allowing sportspersons to choose the approach that best suits their needs. Wearable devices like Fitbit trackers and smartwatches provide performance tracking and data analysis, enhancing training plans and virtual coaching sessions. Educational materials, video lectures, and customized training plans are also available online, offering professional advice and access to expertise that was once limited to in-person interactions. Overall, technology is revolutionizing the sports coaching landscape, enabling more effective and efficient training and performance analysis.

Market Overview

The Sports Coaching Market is experiencing significant growth due to the integration of software technology into coaching and training. Coaches and trainers are leveraging online platforms, smartphones, and laptops to connect with athletes, regardless of location. Virtual platforms and video analytics platforms enable data collection through biometric sensors, wearable devices like Fitbit trackers and smartwatches, and real-time performance tracking. Artificial Intelligence and Machine Learning are used for data analytics, software development, and hardware infrastructure. Schools and sports clubs are adopting these technologies for individualized assistance, performance analysis, communication tools, and training plans. Pricing models range from one-time license-based to subscription-based. Various sports, including baseball, fitness, soccer, basketball, swimming, and golf, are utilizing these technologies. Autocratic, democratic, and holistic coaching styles are being augmented by sports coaching platforms, virtual coaching sessions, and educational materials. Virtual reality technologies offer personalized coaching experiences, while video analysis and biomechanics provide professional advice. Referees, physiotherapists, physiologists, nutritionists, and sports scientists are also benefiting from these advancements. The Sports industry is embracing digital platforms for non-professional and professional sports, with baseball, fitness, soccer, basketball, swimming, and other sports segments adopting these technologies. Virtual simulations, gamification, interactive learning, leaderboards, badges, points, and polls are enhancing the user experience. Wearable technologies, such as heart rate monitors and performance metrics, offer real-time insights. Overall, the Sports Coaching Market is revolutionizing the way coaches, trainers, and athletes interact and improve performance.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation
 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

CNC Vertical Machining Centers Market to Grow by USD 1.09 Billion (2025-2029), Driven by Demand for CNC Tools and AI-Powered Market Evolution – Technavio

Published

28 minutes ago

on

January 7, 2025

By

NEW YORK, Jan. 7, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global CNC vertical machining centers market size is estimated to grow by USD 1.09 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 5% during the forecast period. Increasing demand for cnc-incorporated machine tools is driving market growth, with a trend towards emergence of autonomous and electric cars. However, availability of horizontal machining centers and refurbished vertical machining centers poses a challenge. Key market players include Bharat Fritz Werner Ltd., Chiron Group SE, DMG MORI Co. Ltd., DN Solutions Co. Ltd., Gebr. Heller Maschinenfabrik GmbH, GF Machining Solutions AG, Haas Automation Inc., Hurco Companies Inc., Jyoti CNC Automation Ltd., Komatsu Ltd., Makino Milling Machine Co. Ltd., Maschinenfabrik Berthold Hermle AG, Maxmill Machinery Co. Ltd., Micromatic Machine Tools Pvt. Ltd., Mitsubishi Electric Corp., Okuma Corp, SCM GROUP Spa, Shandong Luzhong Machine Tool Co. Ltd., Shenyang Yiji Machine Tool Sales Co. Ltd., and Yamazaki Mazak Corp..

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CNC Vertical Machining Centers Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 5%

Market growth 2025-2029

USD 1090.8 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

4.8

Regional analysis

APAC, Europe, North America, South America, and Middle East and Africa

Performing market contribution

APAC at 38%

Key countries

US, China, Germany, Japan, Canada, Italy, India, South Korea, UK, and France

Key companies profiled

Bharat Fritz Werner Ltd., Chiron Group SE, DMG MORI Co. Ltd., DN Solutions Co. Ltd., Gebr. Heller Maschinenfabrik GmbH, GF Machining Solutions AG, Haas Automation Inc., Hurco Companies Inc., Jyoti CNC Automation Ltd., Komatsu Ltd., Makino Milling Machine Co. Ltd., Maschinenfabrik Berthold Hermle AG, Maxmill Machinery Co. Ltd., Micromatic Machine Tools Pvt. Ltd., Mitsubishi Electric Corp., Okuma Corp, SCM GROUP Spa, Shandong Luzhong Machine Tool Co. Ltd., Shenyang Yiji Machine Tool Sales Co. Ltd., and Yamazaki Mazak Corp.

Market Driver

The CNC vertical machining centers market is experiencing significant growth due to increased demand for metal components in various industries. Hard metals, steel, and aluminum are popular materials in manufacturing, particularly for complex jobs and industrial processes. Templates and cams are essential tools for CNC machining, enabling efficient manufacturing of metal components. Vertical machining centers are ideal for manufacturing molds, die cavities, engine propellers, and impellers. Advanced CNC controls, high-speed spindles, and automatic tool changers enhance production capacity and efficiency. Giant manufacturing countries lead the market, with trends towards automation technologies such as collaborative robots and lights-out production. The manufacturing industry segment is a major consumer, with the electrical industry, automotive, and aerospace sectors driving demand. Raw materials like steel, carbon, and electricity costs impact CNC machining capacity. CNC machining centers are used for milling, drilling, and cutting various workpieces, including metals and wood. The market for CNC machining centers is expanding, with applications in the industrial automation market, electronic products, semiconductors, and consumer electronics. Horizontal machining centers and CNC milling machines are alternative solutions, with 3-axis and advanced tool axes offering flexibility for milling and rotary cutting. The market for CNC machining centers is expected to grow, driven by the increasing demand for automation and the need for high-precision components. 

The global shift towards electric vehicles (EVs) is significantly impacting the CNC vertical machining centers market. With the elimination of traditional internal combustion engine (ICE) components like exhaust systems, pistons, valves, crankshafts, engine blocks, and exhaust headers, the demand for machined parts is decreasing. This reduction in demand may lead to market contraction, potentially affecting numerous vendors in this complex industry. Simultaneously, the automotive sector’s growing focus on autonomous vehicles presents new opportunities for innovation and growth in manufacturing processes. 

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Market Challenges

The CNC vertical machining centers market faces several challenges in manufacturing metal components for various industries. Hard metals and steel require high CNC machining capacity and advanced controls for efficient production. Aluminum, used in flat works and manufacturing molds and die cavities, presents challenges due to its heat sensitivity. Manufacturing complex jobs in hard metals, steel, and aluminum for industries like aerospace, automotive, and heavy machinery requires vertical machining centers with high-speed spindles and automatic tool changers. The cost of raw materials, such as steel and carbon, as well as electricity, impacts the profitability of CNC machining centers. The manufacturing industry segment seeks automation technologies like collaborative robots and lights-out production for increased efficiency. In contrast, horizontal machining centers cater to industries producing large components, such as engine propellers and impellers. The industrial automation market’s growth in sectors like the electrical industry, electronic products, semiconductors, and consumer electronics drives the demand for CNC machining centers. CNC milling machines, with their tool axes, are essential for milling and cutting workpieces made of metal, wood, and other raw materials. The use of CAM software and rotary cutters enhances the productivity of CNC machining centers. Ferrous and non-ferrous metals, including metals used in industrial processes, present unique challenges for CNC machining centers. Overall, the CNC machining centers market must adapt to these challenges to remain competitive in the evolving manufacturing landscape.The CNC vertical machining center market in mature industries of the US and Europe is facing challenges due to rising labor costs and stringent emission norms, leading to the closure of several manufacturing operations. This surplus of used equipment has increased the availability of refurbished CNC vertical machining centers in the market, making it a cost-effective option for industries in developing countries like China, India, and Singapore. However, the affordability of refurbished machines may hinder the demand for new CNC vertical machining centers. Additionally, CNC horizontal machining centers can serve as viable alternatives, adding complexity to the market dynamics.

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Segment Overview 

This cnc vertical machining centers market report extensively covers market segmentation by  

Product 1.1 Less than 5-axis1.2 5-axis or moreEnd-user 2.1 Automotive2.2 Aerospace2.3 Metal fabrication2.4 OthersGeography 3.1 APAC3.2 Europe3.3 North America3.4 South America3.5 Middle East and Africa

1.1 Less than 5-axis-  CNC vertical machining centers come in three variants: 2.5-axis, 3-axis, and 4-axis. In 2.5-axis machines, only two axes can rotate simultaneously. In contrast, 3-axis and 4-axis models enable the cutting tool to move around three axes (X, Y, and Z) and a rotating X-axis, respectively. While 2.5-axis machines are mostly outdated, 4-axis models have gained popularity. However, 5-axis CNC vertical machining centers lead the market due to their extensive capabilities. For simple metal designs like gear cutting, 3-axis and 4-axis machines are preferred due to their affordability. The adoption of 3+2 CNC vertical machining centers is increasing, offering a cost-effective way to upgrade capabilities. SMEs and start-ups, constrained by budgets, will continue to drive demand for 3-axis CNC vertical machining centers, fueling market growth.

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Research Analysis

CNC Vertical Machining Centers (VMCs) are essential machines in the manufacturing industry for producing metal components from hard metals, steel, aluminum, and various ferrous and non-ferrous metals. VMCs utilize Computer Numerical Control (CNC) technology, including templates, cams, and rotary devices, to precisely machine parts along the spindle axis. These machines are widely used in the manufacturing industry segment for producing complex components in large quantities. CNC VMCs can be integrated with collaborative robots for lights-out production and CAM software for optimized tool path planning. Rotary cutters and milling machines are common types of VMCs used for cutting and milling materials like wood, steel, and electrical industry components. The tool axes in VMCs can be configured to accommodate various cutting tools, enabling the production of intricate parts for diverse industries, including automotive, aerospace, and industrial automation market.

Market Research Overview

CNC Vertical Machining Centers (VMCs) are essential machines used in manufacturing industry for producing metal components from hard metals, steel, and aluminum. VMCs utilize Computer Numerical Control (CNC) technology, templates, cams, and rotary devices to machine complex jobs on flat works, molds, die cavities, engine propellers, and impellers. Industrial processes, including manufacturing activities in giant manufacturing countries, increasingly rely on VMCs for their high precision and efficiency. VMCs can be distinguished from Horizontal Machining Centers (HMCs) by their vertical spindle axis. Advanced CNC controls, high-speed spindles, automatic tool changers, and automation technologies such as collaborative robots enable lights-out production. CNC machining capacity is influenced by raw material costs, including steel, carbon, and electricity, as well as the manufacturing industry segment. CNC machining centers are used in various industries, including electrical, automotive, aerospace, and consumer electronics, to produce parts for semiconductors, printed circuit boards, heat sinks, and more. Milling, rotary cutters, and milling machines are common applications for VMCs, which can machine metal, wood, and other materials using tool axes.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductLess Than 5-axis5-axis Or MoreEnd-userAutomotiveAerospaceMetal FabricationOthersGeographyAPACEuropeNorth AmericaSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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