Die-cutting Machine Market is anticipated to expand at a high CAGR over the forecast period.
The die-cutting machine market is expected to show steady growth during the forecast period. A die-cutting machine is used for cutting various materials into precise shapes and sizes. It operates by applying pressure to a metal die, which is a specialized tool shaped to the desired pattern or design and can cut paper, cardboard, fabric, leather, and metal. Such machine finds applicability in numerous sectors, such as packaging, automotive, electronics, and medical. Bolstering growth in such end-users, coupled with the establishment of manufacturing facilities, is driving the die-cutting machine market growth.
Die-cutting machines allow for precise and high-speed cutting of a variety of packaging materials such as cartons, labels, and corrugated boards. As the e-commerce and retail sectors expand globally, there is an increasing demand for efficient packaging solutions, which has positively impacted the overall packaging sector growth. For instance, according to the Packaging Corporation of America, in 2022, $7,780.7 million revenue was generated in packaging, and $622.1 million revenue was generated by paper, which represented a significant increase in revenue compared to the year 2021.
Die-cutting machines provide efficient and accurate cutting solutions owing to which they are widely used to manufacture automotive components such as gaskets, labels, foam inserts, and seals. By cutting through a variety of materials such as rubber, plastic, and metal, die-cutting improves overall quality and durability. Booming demand for advanced vehicles coupled with urbanization has led to the establishment of new automotive production facilities. For instance, in February 2023, BMW Group announced to invest in its production plant in San Luis Potosí, Mexico, where the company will manufacture NEUE KLASSE by 2027.
Technological innovations have improved speed, accuracy, monitoring, and versatility in cutting various materials. These technological advancements attract customers looking for higher productivity and cost-efficiency, which extensively increased their adoption in numerous manufacturing facilities. For instance, SBL Machinery offers SBL-820SE, which is an automatic platen die-cutting and creasing machine that consists of an advanced large-size touchscreen monitor system for easy operation and troubleshooting as well as offers a maximum punching speed of 8000S/H.
Asia Pacific is anticipated to account for a significant share of the die-cutting machine market due to the establishment of numerous manufacturing facilities in the major economies in the region. For instance, in January 2024, VinFast, Vietnam's leading electric vehicle (EV) manufacturer, and the Tamil Nadu State Government announced a landmark partnership in a Memorandum of Understanding (MoU) for the construction of an integrated electric vehicle facility in Tamil Nadu, India. Additionally, in November 2023, Polestar expanded its manufacturing footprint to South Korea with the production of Polestar 4 set to begin in Busan in 2025. Moreover, in June 2023, Garrett Motion completed the development of its automotive plant in Wuhan, China.
Die-cutting machines are very expensive to buy initially, and the high initial cost may limit small and medium-sized businesses from implementing this technology, particularly if they have limited budgets or capital resources, which may affect the die-cutting machines market growth.