The Global Metal Cutting Tool Market size is expected to reach $97.1 billion by 2030, rising at a market growth of 4.8% CAGR during the forecast period. In the year 2022, the market attained a volume of 4,753.2 thousand units, experiencing a growth of 4.1% (2019-2022).
As the automobile sector continues to expand and change, there is an increase in the demand for highly precise cutting tools. Cutting tool manufacturers invest in research and development to meet the automotive industry's stringent requirements for precision and quality. Therefore, the automotive segment captured $25,015.6 million revenue in the market in 2022. The high demand for vehicles necessitates efficient and accurate manufacturing processes, and metal cutting tools play a crucial role in meeting these demands. This results in continuous technological advancements in cutting tool materials, coatings, and designs, which benefit the automotive sector and other industries that require precision machining.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In July, 2023, Proterial, Ltd. introduced a motor that does not require the rare earth element neodymium to work in electric vehicles (EVs). The new motor functions using magnets that do not contain neodymium. In April, 2023, Kennametal Inc. added eight new products to its metal cutting tools and solutions portfolio. These new products provide wear resistance, better performance, productivity, and a variety of applications across various markets.
Based on the Analysis presented in the KBV Cardinal matrix; Proterial, Ltd is the forerunners in the market. In August, 2023, Proterial, Ltd. launched a magnet for use in electric vehicles, which need one-fifth the amount of terbium. The new magnet reduces the amount of terbium used in the production material phase to lessen risks in electric vehicle production. Companies such as Komatsu Ltd., FANUC Corporation, Sandvik AB are some of the key innovators in the market.
Industries like aerospace, automotive, construction, and energy consistently need these tools to produce precision components and parts. The ongoing demand from these sectors helps create a steady and reliable market, reducing the risk of market fluctuations. The consistent demand from multiple sectors serves as a stabilizing factor for the market. Additionally, high demand encourages investment in research and development (R&D) within the industry. All these factors are expected to drive the demand for these in the upcoming years.
New materials and coatings are engineered to be harder and more wear resistant. This results in improved tool life, which reduces the frequency of tool changes and downtime. As a result, manufacturers experience increased machining efficiency and productivity. Advanced cutting tool materials and designs allow for higher cutting speeds and feeds, improving machined parts' precision and surface finish. This is particularly critical in industries like aerospace and medical devices, where tight tolerances and smooth surfaces are essential. These factors aid in the growth of the market.
SMEs often have limited budgets and resources compared to larger corporations. High upfront costs for these can deter SMEs from investing in advanced, high-quality equipment. As a result, they may opt for lower-quality or less expensive alternatives, which could affect the overall quality and precision of their machining processes. SMEs that cannot afford these tools of high-quality may find it challenging to compete with larger enterprises that can invest in top-tier equipment. These factors are expected to hinder the growth of the market.
On the basis of product type, the market is divided into lathe, drilling machine, milling machine, grinding machine, and others. In 2022, the drilling machine segment witnessed a substantial revenue share in the market. The global manufacturing and construction sectors have been expanding, driven by population growth and urbanization. Drilling machines are needed in these industries for various tasks, including making holes for fasteners, pipelines, electrical wires, and structural elements.
On the basis of application, the market is divided into automotive, electronics, construction, aerospace & defense, and others. In 2022, the electronics segment witnessed a substantial revenue share in the market. The constant demand for smaller and more compact electronic gadgets, such as smartphones, tablets, and wearables, has necessitated the development of increasingly intricate and minute components. This demand for miniaturization requires highly precise machining, making them indispensable for the electronics sector.
Based on tool type, the market is bifurcated into indexable inserts and solid round tools. The solid round tools segment held the largest revenue share in the market in 2022. One of the key drivers of growth in the solid round tools segment is the continuous development of advanced tool materials. Manufacturers have made significant progress in producing cutting tools with superior hardness, wear resistance, and thermal stability. High-speed steel (HSS), carbide, ceramic, and, more recently, superhard materials like cubic boron nitride (CBN) and polycrystalline diamond (PCD) have become more accessible and affordable.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 66 Billion |
| Market size forecast in 2030 | USD 97.1 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 4.8% from 2023 to 2030 |
| Number of Pages | 389 |
| Number of Table | 753 |
| Quantitative Data | Volume in Thousand Units, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Product Type, Tool Type, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured the highest revenue share in the market in 2022. Asia-Pacific has emerged as a global manufacturing hub, with countries such as China, Japan, South Korea, and India playing pivotal roles. The rapid industrialization and growth of manufacturing industries in the region have fuelled the demand for these. These tools are essential for shaping raw materials into various components in diverse sectors, including automotive, aerospace, electronics, and construction.
Free Valuable Insights: Global Metal Cutting Tool Market size to reach USD 97.1 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Proterial, Ltd (Hitachi, Ltd), TRUMPF SE + Co. KG, Tiangong International Company Limited, Kennametal Inc., FANUC Corporation, Berkshire Hathaway, Inc. (International Dairy Queen Inc.), Sandvik AB, Amada Co., Ltd., Komatsu Ltd., and Okuma Corporation
By Product Type (Volume, Thousand Units, USD Billion, 2019 to 2030)
By Application (Volume, Thousand Units, USD Billion, 2019 to 2030)
By Tool Type (Volume, Thousand Units, USD Billion, 2019 to 2030)
By Geography (Volume, Thousand Units, USD Billion, 2019 to 2030)
The Market size is projected to reach USD 97.1 billion by 2030.
Rising Manufacturing Activities in Various Industries are driving the Market in coming years, however, Cost Concerns Related to High-Quality Metal Cutting Tools restraints the growth of the Market.
Proterial, Ltd (Hitachi, Ltd), TRUMPF SE + Co. KG, Tiangong International Company Limited, Kennametal Inc., FANUC Corporation, Berkshire Hathaway, Inc. (International Dairy Queen Inc.), Sandvik AB, Amada Co., Ltd., Komatsu Ltd., and Okuma Corporation
In the year 2022, the market attained a volume of 4,753.2 thousand units, experiencing a growth of 4.1% (2019-2022).
The Automotive segment is registering maximum revenue in the Market, by Application in 2022; thereby, achieving a market value of $33.5 billion by 2030.
The Asia Pacific region is generating the highest revenue in the Market, by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $42.8 billion by 2030.
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