Digitalisation, Industry 4.0 drives demand for DRO systems
The Global Digital Readout (DRO) market size reached US$770.5 million in 2018, according to the latest market study by Future Market Insights.
Worldwide demand for Digital Readout (DRO) systems recorded Y-o-Y growth of 4.1% in 2022, and thus, the market is expected to reach US$863.4 million in 2023.
Over the assessment period (2023 to 2033), Global Digital Readout system sales are projected to record 6.2% CAGR and reach to a market size of US$ 1,575.6 million by 2033-end. The market for Digital Readout (DRO) Systems, which are advanced measurement tools used to monitor machine tool movements, is projected to experience significant growth in the coming years due to increasing demand for precise manufacturing processes across various industries.
The demand for DRO systems is set to rise as manufacturing embraces digitalisation and Industry 4.0 principles. With a focus on process optimisation, productivity enhancement, and quality control, businesses recognise the advantageous features provided by DRO systems, driving their adoption in the industry.
Other Drivers Propelling the Demand for Digital Readout (DRO) include:
The ability of DRO systems to complete applications faster and with greater accuracy is indeed a driver for their adoption. By eliminating the need for manual calculations and measurements, DRO systems reduce human error and increase productivity.
Many companies choose to retrofit their existing machine tools instead of investing in new equipment. Retrofitting with DRO systems allows manufacturers to enhance the functionality and performance of older machines, improving accuracy and productivity.
DRO systems incorporate advanced data analysis capabilities. They can collect and analyse data on machining operations, including position, velocity, and tool usage.
Common issues that lead machinists to purchase a DRO unit are misreading the hand wheel dials, losing count of the wheel rotations, and the nuisance of switching from metric to imperial, which is easily done with a DRO.
Challenges for Companies /Manufacturers in the Digital Readout (DRO) Market:
The high initial cost of Digital Readout System is a key obstacle for small and medium-sized enterprises, restricting market growth.
Different industries and applications have specific requirements when it comes to DRO systems. Manufacturers face the challenge of meeting diverse customer demands for their specific needs. This may involve adapting DRO systems for specific machines, integrating with other equipment or software, or accommodating specialised measurement needs.
The complexity of DRO System installation and maintenance requires skilled professionals, which is a challenge for companies operating in regions with a shortage of skilled labor.
Opportunities in the Digital Readout (DRO) Industry
Industries such as aerospace, defense, medical, and electronics are increasingly adopting DRO technology to achieve higher precision and efficiency. Manufacturers can seize these opportunities by targeting these specific sectors and geographical regions with tailored solutions and localised support.
The Digital Readout industry continues to witness technological advancements, such as the integration of wireless connectivity, cloud-based data storage and analysis, and advanced user interfaces.
The rise of industrial automation, Industry 4.0 and the integration of digital technologies in manufacturing processes are driving the demand for DRO systems.
Latest Trends in the Digital Readout (DRO) Market:
The use of Digital Readouts (DRO) in novel applications such as medical facilities and laboratories.
The adoption of wireless connectivity in DRO systems is on the rise. Wireless technologies such as Bluetooth and Wi-Fi enable operators to remotely access and control DRO systems from a distance.
DRO systems are increasingly being integrated with advanced manufacturing technologies such as Computer Numerical Control (CNC), robotics, and additive manufacturing.
2018 to 2022 Digital Readout (DRO) Demand Outlook Compared to 2023 to 2033 Forecast
From 2018 to 2022, the Global Digital Readout (DRO) market experienced a CAGR of 4.1%, reaching a market size of US$863.5 million in 2023.
From 2018 to 2022, the Global Digital Readout (DRO) industry witnessed steady growth due to the rising demand of digitalisation and industry 4.0. The increasing focus on precision, efficiency and automation in manufacturing process, by advancements of DRO technology has to contribute to the adoption of these system by machine shops and automotive industry.
Future Forecast for Digital Readout (DRO) Industry
Looking ahead, the Global Digital Readout (DRO) industry is expected to rise at a CAGR of 6.2% from 2023 to 2033. During the forecast period, the market size is expected to reach US$1,575.6 million.
The Digital Readout (DRO) industry is expected to continue its growth trajectory from 2023 to 2033, the development of the manufacturing industries, especially in automotive, aerospace and electronics industry is the demand for advances machining equipment and tools. The increasing adoption of digitalisation and Industry 4.0 concepts in manufacturing is expected to further the demand for DRO systems. As businesses aim to optimise their processes, improve productivity, and enhance quality control, the benefits offered by DRO systems.
The market is also likely to witness significant growth in the Asia Pacific region and Eastern Africa due to the presence of significantly developing economies. However, market growth may be hindered by the emergence of alternative technologies and the high installation and maintenance costs associated with Digital Readout (DRO) System.
Regional Insights
The United States is experiencing a surge in the digital readout (DRO) market as the manufacturing sector increasingly adopts advanced technologies.
The Unites States Digital Readout (DRO) system market, as detailed in the report by Future Market Insights, generated sales amounting to US$ 76.9 million in 2018. The market observed a 4.1% year-on-year growth in 2022 and is estimated to reach US$ 94.9 million in 2023. Over the assessment period from 2023 to 2033, the United States market is projected to expand at a compound annual growth rate (CAGR) of 6.3%, culminating in a market size of US$ 174.9 million by the end of 2033.
In the United States the Digital Readout (DRO) industry is expected to witness growth due to increasing focus of the users on reducing manual calculations and minimising human errors, DRO systems enable faster and more accurate machining processes, resulting in increased productivity and output.
How Key Players Stay Competitive in the Digital Readout (DRO) Industry?
The Digital Readout (DRO) industry is highly competitive, with numerous players vying for market share. In such a scenario, key players must adopt effective strategies to stay ahead of the competition.
Key Strategies Adopted by the Players
Product Innovation
Companies invest hugely in research and development to introduce innovative products that offer enhanced efficiency, reliability, and cost-effectiveness. Product innovation enables companies to differentiate themselves from their competitors and cater to the evolving needs of customers.
Strategic Partnerships and Collaborations
Key players in the industry often form strategic partnerships and collaborations with other companies to leverage their strengths and expand their reach in the market. Such collaborations also allow companies to gain access to new technologies and markets.
Expansion into Emerging Markets
The Digital Readout (DRO) industry is witnessing significant growth in emerging markets such as China and India. Key players are expanding their presence in these markets by establishing local manufacturing facilities and strengthening their distribution networks.
Mergers and Acquisitions
Key players in the Digital Readout (DRO) industry often engage in mergers and acquisitions to consolidate their market position, expand their product portfolio, and gain access to new markets.
Key Developments in the Digital Readout (DRO) Market:
Newall has introduced an innovative feature called Tool Datum Memory for turning applications on the DP700 DRO (Digital Readout). This development is based on customer feedback and aims to enhance the use of tool offsets during turning operations, particularly when utilising quick-change or turret style tool posts.
In 2022, Fagor Automation, a renowned provider of automation systems and solutions, has announced a collaboration with APLOS CNC Machine Tool Manufacturing, a leading manufacturer of CNC machine tools. This collaboration signifies a significant development in the industry.
