There has been a dramatic shift in power in the global CNC market from Japan to Europe, according to the market analyst, the ARC Advisory Group. The market "is being reshaped as the two leading suppliers, Siemens and Fanuc, battle for a dominant position," says Sal Spada, ARC`s director of discrete industries.

"A market once dominated by Fanuc has seen one of the most significant shifts in the past 15 years," Spada reports. The weak Japanese economy has forced the country`s CNC suppliers to look for business outside their domestic "comfort zone". Fanuc has been struggling and has had to alter its business focus.

At the same time, Siemens has benefited from a resurgence in the European machine tool market. The pent-up demand in the domestic European market is still being met, while the weak Euro has helped to boost exports.

The global market for CNC hardware, software and services was worth $3.7bn last year and is predicted to grow to $5.1bn by 2005 - an annual growth rate of 6.7%.

ARC suggests that the acquisitions, mergers and joint ventures of recent years have made the strong market leaders even stronger. It predicts that after this consolidation phase, the only survivors will be niche players and global suppliers including Siemens, Fanuc, Mitsubishi and Bosch Rexroth.