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The metal-cutting tools market size is estimated to grow by USD 7.26 billion at a CAGR of 5.86% between 2023 and 2028. The growth of the market depends on several factors such as increasing demand for metal parts in major end-user industries, growing market for high-speed steel-cutting tools, and increasing need to develop superior-quality products.
The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Metal forming plays a crucial role in the automotive, aerospace, and defense industries. Most passenger cars produced in high volumes are made of metal. They are the major raw materials used in these industries as they can easily be transformed and made into shapes as per the application requirements. Further, 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.
However, 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 industries have raised the demand. All these factors will contribute a steady growth for the market during the forecast period.
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. Further, the initial cost of 3D printers is significantly high, but the continuous use of this technology can gradually reduce the incremental unit costs for manufacturers.
Moreover, 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 and strengthen the market growth. Hence, additive manufacturing technology will contribute to high growth of the market during the forecast period.
The capital requirement of the cutting tool manufacturers is required to provide advanced and innovative 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%. According to the National Investment and Facilitation Agency, from April through February of FY23, India's total output of crude steel was 113.44 million tons (MT), its total consumption of finished steel was 107.20 MT, and its total production of finished steel was 109.35 MT.
However, there is a high probability of fluctuation in prices because of the high demand for steel across various industries. 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 which will hurt market growth. Such factors are expected to limit the market.
The market share growth by the milling tools segment will be significant during the forecast period. These are often known as milling cutters, are used in milling machines for 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 tools segment was the largest and was valued at USD 2.25 billion in 2018. Because high-speed, it provide an affordable means of boosting productivity for machine shops of all sizes, there will be a greater demand for milling tools during the forecast period. Even manufacturers of specialized products, like those who finish dies and moulds or use HSM to make EDM electrodes, have discovered that this machining process reduces production costs, enhances quality, and shortens production times. Further, HSM was first mainly utilized in the die/mold business, but it is now much more commonly employed in a variety of other industries, such as aerospace, automotive, micromachining, and general and precision machining. Thus, owing to the abovementioned factors, the segment is expected to grow, which, in turn, will drive the growth of the market during the forecast period.
Based on application, the market has been segmented into automotive, construction, industrial, aerospace and defense. The automotive segment will account for the largest share of this segment.? The automotive industry is the primary user of metal cutting machines, which are used to cut metal parts deployed in almost every system of automotive vehicles, ranging from fuel delivery systems to airbag components. Technological advances, fueled by the implementation of stringent emission norms and the increasing demand for fuel efficiency, have boosted the demand for lightweight metal parts, such as aluminium and titanium, in passenger vehicles. Such factors increase the demand for metal cutting machines which will drive the market during the forecast period.
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APAC is estimated to contribute 47% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The regional steel cutting tools market is expected to grow steadily owing to the need for new residential and commercial infrastructure for the expanding urban population base. Commercial and residential constructions are growing significantly in the emerging economies of the region. The Government of India allocated USD 7.2 billion for implementing the Smart Cities Mission. Cities selected for the mission have a combined population of 130 million, equating to 35% of the country's urban population. The government selected 23 cities in the first phase and planned to increase the number to 100 in the next phase.
In addition, the recent policy announcements from Beijing led to an increase in the IMF's prediction. The IMF, however, nevertheless predicted that GDP would drop to 4.6% in 2019 as a result of the real estate market's ongoing downturn and the weakening of external demand. China is the largest consumer in the APAC region. The above factor will negatively affect the market during the forecast period.
Companies 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.
AMADA Co. Ltd - The company offers metal cutting tools named as HPSAW 310 Band Saw Machine.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including 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, Mitsubishi Electric Corp., Sandvik AB, Schlatter Industries AG, The Lincoln Electric Co., TRUMPF SE Co. KG, and Manufacturing Technology Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Market is driven by the demand for tools and equipment used in manufacturing metal components. These include handheld devices such as saws, grinders, and shears, as well as specialized machines like CNC machines. The market focuses on waste reduction and quality improvement in metal cutting processes.
Advanced technologies like the Automated Virtual Metrology (AVM) system enable real-time quality assurance, enhancing the precision and efficiency of metal cutting equipment. As industries strive for greater efficiency and precision in metal cutting operations, the market for metal cutting tools continues to evolve with innovative solutions to meet these demands.
Metal Cutting Tools Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.86% |
Market Growth 2024-2028 |
USD 7.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.9 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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, Mitsubishi Electric Corp., Sandvik AB, Schlatter Industries AG, The Lincoln Electric Co., TRUMPF SE Co. KG, and Manufacturing Technology Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 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. |
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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
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