Metal Cutting Tools Market Size 2024-2028

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. Market expansion hinges on various factors including heightened demand for metal components across key end-user sectors, the burgeoning market for high-speed steel-cutting tools, and the escalating imperative to innovate superior-quality products. This growth is propelled by the increasing reliance on metal parts in major industries, the expanding market for cutting-edge tools, and the persistent drive towards product excellence. As industries seek to enhance efficiency and product performance, the demand for high-quality metal parts and cutting tools continues to rise, driving growth and innovation in the market for metal components and related tools.

What will be the Size of the Market During the Forecast Period?

Market Forecast 2024-2028

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Market Segmentation

The market 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).

Market Dynamics

In the market, handheld devices, saws, grinders, shears, lathes, milling machines, CNC machines, and machining centers play a significant role in various sectors such as the Automotive, Aerospace, Construction, and Industrial Manufacturing. The integration of smart cutting tools, data analytics, and predictive analytics enhances quality assurance in the metal cutting sector. However, the high initial investment required for sophisticated materials and advanced machinery poses a challenge. The military equipment industry also relies heavily on metal cutting tools, with Industry 4.0 and additive manufacturing revolutionizing production processes. Intelligent cutting tools and quality control are crucial for maintaining sales and profitability in this market. Social distance restrictions, supply chain delays, and labour shortages further complicate matters. Despite these challenges, the market continues to evolve, offering innovative solutions for the ever-changing demands of diverse industries. 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. 

Key Market Driver- Increasing demand for metal parts in major end-user industries

The global market including saws, grinders, shears, lathes, milling machines, CNC machines, and other machinery, is experiencing significant growth due to increased investments in the automotive, aerospace, and defense industries. These sectors rely heavily on metal forming for manufacturing sophisticated components. In the automotive sector, handheld devices and manufacturing equipment like machining centers, lathe machines, boring machines, and grinding machines are essential. The aerospace sector requires high-precision cutting instruments made from advanced materials such as ceramics, polycrystalline diamond (PCD), high-speed steel (HSS), and carbide for milling, turning, drilling, and other applications.

Further, the construction sector also contributes to the market's growth. In today's manufacturing landscape, smart cutting devices, data analytics, and predictive analytics play a crucial role in ensuring quality assurance and enhancing operational efficiency. Despite high initial investments, the economic situation, social distance restrictions, supply chain delays, and labour shortage can impact sales and profitability. Additionally, the military equipment sector and the ongoing trend of Industry 4.0 and additive manufacturing contribute to the market's expansion. Intelligent cutting instruments and quality control systems are becoming increasingly important to maintain manufacturing activity and meet the demands of various industries.  All these factors will contribute a steady growth for the market during the forecast period.

Significant Market Trends- Increasing Popularity of Additive Manufacturing

The market encompasses various handheld devices and machinery, including saws, grinders, shears, lathes, milling machines, CNC machines, and machining centers. These devices are extensively utilized in sectors like automotive, aerospace, construction, and industrial manufacturing. With the advent of Industry 4.0 and additive manufacturing, the market is witnessing a shift towards smart cutting instruments, data analytics, and predictive analytics for quality assurance.

However, the high initial investment required for advanced machinery and the challenges of social distance restrictions, supply chain delays, labour shortage, and economic situation pose significant hurdles. Key players in the market offer sophisticated tools made of materials like ceramics, PCD, HSS, and carbide for applications such as milling, turning, drilling, and cutting in military equipment and various industries. Hence, additive manufacturing technology will contribute to high growth of the market during the forecast period.

Major Market Challenge - Increased competition from substitute products

The market is experiencing significant competition from advanced technologies like electrochemical machining (ECM) and electrical discharge machining (EDM). Traditional metal cutting methods employ handheld devices such as saws, grinders, and shears, as well as stationary equipment like lathes, milling machines, and CNC machines, primarily using abrasive and hard metals for cutting softer metals. However, ECM and EDM utilize electric current to eliminate unwanted metal from the workpiece through the thermoelectric process. The automotive, aerospace, construction, and industrial manufacturing sectors are major consumers of metal cutting tools.

Additionally, the integration of smart cutting instruments, data analytics, and predictive analytics enhances quality assurance. Despite the benefits, high initial investment, supply chain delays, labour shortage, social distance restrictions, and economic situation pose challenges. Machining centers, lathe machines, boring machines, grinding machines, and machinery used in manufacturing military equipment are significant investments. The adoption of Industry 4.0, additive manufacturing, and intelligent cutting devices is transforming the metal cutting sector. Sophisticated materials like ceramics, polycrystalline diamond (PCD), high-speed steel (HSS), and carbide are used extensively in milling, turning, and drilling processes. Such factors are expected to limit the market. 

Market Segmentation By Product

The market share growth by the milling tools segment will be significant during the forecast period. The market encompasses a range of devices, including handheld saws, grinders, shears, and milling machines. CNC machines and lathes are also integral components of this sector. The automotive, aerospace, construction, industrial manufacturing sectors, and military equipment industries are significant consumers of metal cutting tools

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The milling tools segment was the largest and was valued at USD 2.25 billion in 2018.  In the current economic climate, smart cutting tools equipped with data analytics and predictive analytics are driving growth, enabling quality assurance and increased efficiency. However, high initial investment in advanced machining centers, such as boring machines and grinding machines, can pose challenges. The use of sophisticated materials, such as ceramics, PCD, HSS, and carbide, in milling, turning, drilling, and other applications continues to expand. The manufacturing activity in various industries is influenced by factors like social distance restrictions, supply chain delays, labour shortages, and economic situations. The adoption of Industry 4.0 and additive manufacturing is transforming the metal cutting sector, with intelligent cutting tools and quality control playing pivotal roles. 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.

By Application

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 market caters primarily to the automotive industry, where these tools are utilized for fabricating engine parts, body components, and various automotive components such as gearboxes, disc brakes, and clutch plates. Industrial machinery, including metal-cutting tools, experiences continuous advancements due to the demand for high efficiency and accuracy in the manufacturing sector and defense industry. Precise cutting tools made of high-quality materials like tungsten carbide, cobalt, steel, and advanced alloys such as titanium, superalloys, and high-tensile steels, enable faster speed and higher horsepower in cutting-edge milling machines. Business development in this sector is driven by the increasing use of lightweight metals in automobile sheet cutting, fueled by stringent emission norms and the need for fuel efficiency. Manufacturers of metal-cutting tools aim for simplicity of use, intelligence, and cost reductions through logistics and energy cost savings, contributing to industry progress and business efficiency. Such factors increase the demand for metal cutting machines which will drive the market during the forecast period. 

By Region

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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 metal cutting tools market in APAC is experiencing significant growth due to the surge in construction activities and infrastructure development in emerging countries. This market caters to the manufacturing sector, specifically in the production of engine parts, body parts, and automotive components such as gearboxes, disc brakes, and clutch plates.

High-quality cutting instruments made of tungsten carbide, cobalt, steel, titanium, superalloys, and high-tensile steels are essential for precise cutting in industrial machinery. The increasing demand for high efficiency and accuracy, coupled with the integration of intelligence and simplicity of use, is driving business development in this sector. The automotive manufacturing sector, in particular, benefits from faster speed and cutting-edge milling machines with higher horsepower. Despite logistics and energy costs, profitability for metal-cutting tool manufacturers remains strong due to industry progress and cost reductions. The defense sector also contributes to the market's growth through product utilization in various applications. The above factor will negatively affect the market during the forecast period.

Who are the Major Market Companies?

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 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.  

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.

• Product Outlook
  • Milling tools
  • Drilling tools
  • Other tools

• Application Outlook
  • Automotive
  • Construction
  • Industrial
  • Aerospace and defense
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is a significant sector that caters to the manufacturing industry's requirement for precision and efficiency in metal cutting processes. This market encompasses a wide range including CNC machines, lathes, milling machines, grinding machines, and boring machines. These tools are essential for industries such as automotive, aerospace, construction, and heavy machinery. The market for these tools is driven by factors such as increasing industrialization, growing demand for automation, and the need for high-performance and durable tools. The use of advanced technologies like Predictive Maintenance and IoT in metal cutting tools is also gaining traction, offering benefits such as improved productivity, reduced downtime, and enhanced safety. The market for these tools is expected to grow steadily in the coming years, with key players focusing on innovation, product development, and strategic collaborations to stay competitive.

Further, the market is witnessing significant growth driven by the industrial manufacturing sector and the need for efficient processes despite fluctuating raw material prices. Real-time monitoring of the cutting process, facilitated by technologies like cubic boron nitride (CBN), ensures high accuracy and contributes to the expansion of the metal cutting tools market. Advancements in science and technology have led to innovations in the field of metal processing, resulting in tools with high precision. However, challenges such as volatile raw material costs and logistics costs persist. Despite this, the industry continues to experience growth, fueled by increasing demand for precision machining solutions and the relentless pursuit of efficiency.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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