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The cutting tool inserts market is estimated to grow at a CAGR of 5.93% between 2022 and 2027. The size of the market is forecast to increase by USD 2,046.36 million. The growth of the market depends on several factors, including growth in demand for fabricated parts, the rise in construction activities in emerging nations of APAC, and the increasing need to develop superior quality products.
This report extensively covers market segmentation by application (milling tool inserts, drilling tool inserts, rotary tool inserts, turning tool inserts, and others), type (carbide tool inserts, Cubic Boron Nitride inserts, ceramic inserts, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global cutting tool inserts market as a part of the global electrical components and equipment market within the global electrical equipment market. The parent global electrical components and equipment market cover companies engaged in the manufacturing of electric cables and wires, electrical components, and electrical equipment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rise in construction activities in emerging nations of APAC is notably driving the market growth, although factors such as fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Cutting Tool Inserts Market Driver
The rise in construction activities in emerging nations of APAC is notably driving market growth. The global construction market is witnessing huge growth across various regions. The number of smart cities is expected to rise significantly by 2025. It is expected that a total of 67 new smart cities will be built during the forecast period. The rising population density in urban areas is expected to drive the demand for new cities to accommodate the growing number of people.
The Smart Cities Mission, the Make in India initiative, and the Housing for All program are expected to trigger construction activities in India. The Government of India started its Smart Cities Mission in 2015, which aims at building new smart cities across the country. The Government of India allocated close to USD 880 million for the Smart Cities Mission for 2019-2020. Such development initiatives have provided high growth opportunities to the vendors in the cutting tool inserts market. Thus, such factors are anticipated to boost the growth of the global market during the forecast period.
Significant Cutting Tool Inserts Market Trend
Additive manufacturing is an emerging trend in market growth. The manufacturing industry has witnessed the advent of a revolutionary technology known as 3D printing. 3D printing, also known as additive manufacturing, is the process of creating three-dimensional objects using a digital file. The process usually involves building the product in thin layers one by one. 3D printing enables the production of complex geometries that are either arduous or impossible with traditional manufacturing techniques.
The additive nature of 3D printing, unlike traditional printing technologies, optimizes the use of the material and therefore minimizes the wastage of material. Replacing traditional manufacturing techniques with 3D printing will result in a significant reduction of capital costs, raw material costs, and costs to reclaim scrap. The use of 3D printing can result in the manufacturing of parts that are significantly cheaper than the ones manufactured traditionally, thus offsetting the high initial costs. Therefore, further improvements in 3D printing technology and its increased adoption will lead to a complete shift in the way manufacturing is done. All these factors will boost the growth of the global market during the forecast period.
Major Cutting Tool Inserts Market Challenge
Fluctuating raw material prices are a major challenge impeding market growth. Turning tool manufacturers require to invest a high amount of capital to provide advanced and innovative tools in the market, which has grown considerably. Inputs such as iron and steel, aluminum, stainless steel, titanium, brass, copper, and other alloys are necessary to manufacture machine tools for drilling, boring, lathes, gear cutting, grinding, and polishing machines. These raw materials account for about 48% of the overall manufacturing cost of machine tools, while labor costs account for about 27%.
The fluctuating raw material prices disrupt the pricing strategy of machine tool manufacturers. In addition, the necessity to train the workforce increases the cost to the company. Manufacturers also incur additional costs when hiring consultants or design specialists. All these factors add to the manufacturing costs, which will hinder the growth of the global market during the forecast period.
Key Cutting Tool Inserts Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cutting Tool Inserts Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Nano Diamond Products DAC - The company operates under one segment. The company under this segment focuses on developing diamond products, cBN products, and polycrystalline products. The key offerings of the company include cutting tools.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the milling tool inserts segment will be significant during the forecast period. Milling tools, often known as milling cutters, are used in milling machines to perform various types of milling operations. Milling cutters are available in various types, such as slitting cutters, milling cutters, end mills, and gear cutters. They all are used for different sets of applications.
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The milling tool inserts segment was valued at USD 1,285.05 million in 2017 and continue to grow by 2021. Milling cutters and gear cutters are majorly adopted in the automotive, aerospace, shipbuilding, and industrial machinery industries owing to their high precision. The cold forging dies, die-casting molds, aluminum aerospace parts, and cutting tool insert parts are milled using milling tool inserts. Although there are different types of milling tool inserts available in the market, the high strength and toughness provided by carbide and CBN inserts make them an efficient choice for milling operations in the mass production process in the end-user industry. Thus, owing to such factors the segment is expected to grow during the forecast period.
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APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The increasing number of construction activities in emerging countries and the rising government spending on the development of infrastructure will drive the growth of the market in APAC during the forecast period. The exponential population growth in APAC is leading to an increase in demand for new residential houses in the region. Increasing urbanization in this region has increased the need for smart and sustainable infrastructure solutions. As a result, various enterprises in this region are investing in the construction of residential buildings. Such infrastructure projects rely on structural metal fabrication to make various structural metal products. Metal machining allows the easy fabrication of mezzanines, access platforms, columns, trusses, beams, industrial stairs, and handrails. These factors will positively impact the market growth during the forecast period.
The market in APAC was negatively impacted in 2020 due to the COVID-19 outbreak. However, in 2021, vaccines were introduced across the region, which resulted in the lifting of lockdown restrictions. The operations of the market gradually resumed owing to the ease in lockdown restrictions, as most automotive manufacturing units were reopened in the region. Construction activities were restarted in 2021, which surged the demand for cutting tool inserts. The regional market is expected to grow during the forecast period, owing to the need for new residential and commercial infrastructure for the expanding urban population base.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cutting Tool Inserts Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
Market growth 2023-2027 |
USD 2,046.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.25 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Diamond Industrial Co. Ltd., CERATIZIT SA, Element Six UK Ltd., ILJIN Diamond Co. Ltd., IMC BV, Kennametal Inc., Knight Carbide Inc., KYOCERA corp., LOVEJOY Tool Co. Inc., Mitsubishi Materials Corp., NACHI FUJIKOSHI Corp., NanoDiamond Products DAC, Compagnie de Saint Gobain S.A., Sandvik AB, Sumitomo Corp., Tyrolit Schleifmittelwerke Swarovski KG, YG 1, ARCH Cutting Tools, B.R. Meccanica Italy, and Tomei Diamond Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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