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The metal-cutting tools market size is estimated to grow at a CAGR of 4.91% between 2022 and 2027. The size of the market is forecast to increase by USD 5,753.56 million. The growth of the market depends on several factors, including the increasing demand for metal parts in major end-user industries, the rise in construction activities in emerging nations of APAC, and the increasing need to develop superior-quality products.
This cutting tool report extensively covers market segmentation by product (milling tools, drilling tools, and other tools), application (automotive, construction, aerospace and defense, electronics, 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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The increasing demand for metal parts in major end-user industries 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 Metal Cutting Tools Market Driver
The increasing demand for metal parts in major end-user industries is notably driving the metal-cutting tools market growth. Metal forming plays a crucial role in the automotive and aerospace and defense industries. Most passenger cars produced in high volumes are made of metal. Metals are the major raw materials used in these industries as they can easily be transformed and made into shapes as per the application requirements. With the current focus on lean manufacturing and enhanced operational efficiency through various measures such as cost-cutting, the metal forming process will become a highly valuable service for OEMs. Since the automotive and aerospace and defense industries are major end-users in the metal industry, increasing investments in these industries drive the global metal sawing machine market.
The aerospace and defense sector is another key end-user of metals. Companies that manufacture aircraft use specialized high-strength, lightweight alloys to manufacture aircraft components and bodies. The high focus on safety makes it necessary that even the smallest fabricated metal parts used to build aerospace components have a high tolerance and meet stringent quality standards. Besides, all metal parts used in aircraft must be durable and withstand fluctuations in pressure and temperatures, which are created during flight. The increasing investments in the automotive and aerospace and defense industry have raised the demand for metal-cutting tools.
Key Metal Cutting Tools Market Trends
The growing market for high-speed steel-cutting tools is a major trend in the metal-cutting tools market. HSS metal-cutting tools are used by companies across various sectors. Companies are using these tools for increased ease and efficiency in the development of quality products. Moreover, customers across the globe are insisting on superior-quality products in minimal time and at a reduced cost. Therefore, several organizations have begun to deploy HSS metal-cutting tools such as milling tools, drilling tools, tapping tools, reaming tools, counter-boring tools, broaching tools, and gear-cutting tools.
The effective deployment of these HSS metal-cutting tools helps in reducing the overall lead time of product development. It also enables organizations to develop products with superior quality to achieve a higher customer satisfaction level. With the growing need for the development of superior-quality products and the increase in outsourcing and investments in several developing countries, the global HSS metal-cutting tools market is expected to grow at a significant rate during the forecast period.
Key Metal Cutting Tools Market Challenge
Fluctuating raw material prices is a major challenge impeding the metal-cutting tools market growth. The capital requirement of the cutting tool manufacturers is required 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 companies. Manufacturers also incur additional costs for hiring consultants or design specialists. All these factors add to the manufacturing costs, thus affecting the growth of the global metal-cutting tools market.
Key Metal Cutting Tools Market Customer Landscape
The cutting tools market 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 Metal Cutting Tools 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.
DMG MORI Co Ltd. - The company includes machine tools, and industrial services, with a high focus on machine tools. The company under this segment?offers high-performance and high-efficiency machine tools. The company's key offerings include?a variety of cutting machines and tools.
The cutting tool market 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 tools segment will be significant during the forecast period. Milling tools, often known as milling cutters, are used in milling machines from milling operations.
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The milling tools segment shows a gradual increase in the market share of USD 2,318.53 million in 2017 and continued to grow until 2021. 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. Therefore, these factors will accelerate the focused market growth.
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APAC is projected to contribute 47% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Metal cutting tools are essential for cutting and moulding steel structures to create beams, columns, and steel members. 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 metal-cutting tools market in APAC during the forecast period.
Commercial and residential constructions are growing significantly in the emerging economies of the region. These infrastructure projects rely on the 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. The regional metal-cutting tools market is expected to grow steadily during the forecast period, owing to the need for new residential and commercial infrastructure for the expanding urban population base.
In 2020, the COVID-19 pandemic adversely impacted several countries in the region which resulted in the temporary shutdown of construction activities, automobile manufacturing, and several other business-related activities. However, in 2021, the construction, automobile, and manufacturing industries have witnessed a rebound, thus fueling the demand for metal-cutting tools, owing to the initiation of vaccination drives in the region. Therefore, the metal-cutting tools market is expected to grow during the forecast period.
The metal-cutting tool market report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
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Metal Cutting Tools Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.91% |
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Market growth 2023-2027 |
USD 5,753.56 million |
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Market structure |
Fragmented |
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YoY growth (%) |
3.9 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 47% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AMADA Co. Ltd., Amalgamations Group, Berkenhoff GmbH, CERATIZIT SA, Colfax Corp., DMG MORI Co Ltd, FANUC Corp., Gedik Welding Inc, Illinois Tool Works Inc., IPG Photonics Corp., Jenoptik AG, Jinan SENFENG Technology Co. Ltd, Kobe Steel Ltd., Laserline GmbH, Manufacturing Technology Inc., Mitsubishi Electric Corp., Sandvik Coromant, Schlatter Industries AG, The Lincoln Electric Co., and TRUMPF SE Co. KG |
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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, Market condition analysis for forecast period |
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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 Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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