Cutting Tools Market 2022

Industry Size, Emerging Trends, Regions, Growth Insights, Opportunities, and Forecast By 2033

Cutting Tools Market by Type (Cemented Carbide, High Speed Steel, Ceramics, Diamond, Others), by Application (Milling, Turning, Drilling, Grinding, Others), and by Region (US, Canada, Mexico, UK, Germany, France, Italy, Spain, China, Japan, India, South Korea) – Global Share and Forecast to 2033

Region: Global | Format: Word, PPT, Excel | Report Status: Published

According to the Market Statsville Group (MSG), the global cutting tools market size is expected to grow from USD 35,105.97 million in 2022 to USD 51,253.66 million by 2033, growing at a CAGR of 3.5% from 2023 to 2033. The emphasis on achieving higher productivity and reducing downtime in the any industrial sector will drive the market growth. Emerging countries like China, India, Argentina, Poland, Brazil, and others has become a hub for the manufacturing sector. The Asia-Pacific region is one of the largest exporters of goods & services considering the global scenario. The population is also enormous in the region, and the number increasing at a steady rate. To support this, the manufacturing sector must maintain the growing requirement for products and services. Hence, the smart technology is increasingly incorporated in manufacturing operations, since it helps companies to increase their productivity, maximize their resources, and help them to innovate products.

Moreover, the increasing number of smart factories in industrial sector and growing spending by manufacturers in new tools to maintain product quality and accurate measurements is expected to drive the adoption of automatic tools. On the other hand, advent of advancements along with rise in adoption of automatic tools will augment the growth of cutting tools market over the forecasting period.

Definition of the Global Cutting Tools Market

Inserts or replaceable tips are frequently used in the design of cutting instruments (tipped tools). The cutting edge in these is a distinct piece of material that is brazed, welded, or fastened to the tool body. A common material for tips is cemented carbide, polycrystalline diamond, and cubic boron nitride. Cutting tools use tool inserts include milling cutters (endmills, fly cutters), tool bits, and saw blade. A cutting tool or cutter is any tool that is used to remove some material from the workpiece to give it a certain size, shape, and accuracy. Milling and drilling tools are often multipoint cutting tools. It is a body having teeth or cutting edges on it. Grinding tools are also multipoint tools. Each grain of abrasive functions as a microscopic single point cutting edge (although of high negative rake angle), and shears a tiny chip.

COVID-19 Impact on the Global Cutting Tools Market

The novel COVID-19 has seen a significant impact on the cutting tools market. The epidemic has thrown up an unprecedented crisis for the nations and businesses across the world. The spread of coronavirus across the globe has resulted in lockdowns in the countries, which has compelled people to stay at home and forced companies to allow their employees to work at home to contain the spread of the epidemic. Every element has been affected, from raw material supplier to manufacturer and other end users. Factories and production facility have been forced to remain closed due to lockdown and social distancing measures, resulting in a sharp drop in the sales of cutting tools market on a global level. Moreover, it further affects the business of its end-use industries who opt for such tools because of its versatile benefits, which may pose a negative influence on the market growth, amidst the pandemic.

Due to lockdown or limited production, the disruption in the supply chain of materials have affected cutting tool manufacturers due to shortages from China, as most of the materials were imported from China. Additionally, the other countries were looking for supply, which increases the demand, and lead large suppliers to dominate the market prioritized big companies to SMEs at the time of recovery.

Global Cutting Tools Market Dynamics

Drivers: Increasing demand for power tools in DIY activities and households

The increasing demand for power tools in DIY activities and households is driving the growth of the cutting tools market. The need for cutting tools is rising by the construction activities in the homes and offices, which led to the demand for power cutting tools in DIY activities. The dynamics of the market of DIY power tools have been increasingly affected by changing consumer preferences. The growing popularity of DIY home projects in developed nations has attracted attention to DIY cutting tools. Homeowners have used these instruments extensively as part of the renovation, particularly with furniture. Manufacturers have also begun to use strategies that will allow them to strengthen and expand their customer relationships. Besides, seasonal sales have been used by several companies to entice potential customers and users. To boost sales, companies in the DIY power-cutting tool industry are launching frequent marketing campaigns. Customer satisfaction has become more important in the DIY power-cutting tool market. A growing number of individuals in developing nations are renovating their homes, which has resulted in a transfer of players to emerging markets. In this regard, e-commerce has created a new approach to reaching out to prospects.

The demand for cordless electric power tools will exceed that of conventional plug-in models. Brushless motors, which are more efficient than brushed motors, are being used by manufacturers to bring more powerful cordless electric cutting tools to the market. Imports of lower-cost power cutting tools will become more competitive, especially among more basic products. Thus, the cutting tools with high power available in the market and that use are rising in the construction industry is driving the market growth during the forecast period.

Restraints: High cost of cutting tools

Several companies are interested in automating their manufacturing processes. However, this comes at a high cost in terms of machine purchase, training, and maintenance. In addition, changing market prices are one of the critical factors affecting market growth. During the COVID-19 pandemic, businesses struggled to adapt to shifting demands. Companies are currently experiencing a severe financial constraint, and as a result, they have been forced to downsize and cut their workforce. Based on the severity of the present economic situation as a result of the pandemic, this is likely to impact company revenue in the coming years.

For instance, a shop trying to save money on its cutting tool purchases is likely to consider two factors: tool life and tool price. The cost of the cutting-edge tool is only 3% of the overall cost. It applies them to three alternative expense strategies. The comparison estimates labor cost $10 per component. Thus the 3% for cutting tools is 30 cents, the 17% for workpiece materials is $1.70, and so on. The cost of cutting tools is included in the variable costs. Cutting tools (3 %) and Workpiece materials (17%) are additional costs incurred exclusively during manufacturing. Thus, the high cost associated with the cutting tools is restraining the market growth during the forecast period

Opportunities: Increasing Government Projects in Industry 4.0

The governments are focusing on the launches of the various projects to develop the industry; among the various projects, Industry 4.0 is to create opportunities for the growth of the cutting tools market during the forecast period. The convergence of Industry 4.0 with cutting tools is a significant factor that promises a profusion of trade and adoption prospects in the cutting tools industry. Sandvik Coromant, a manufacturer of cutting tool systems, has unveiled its ‘CoroPlus' suite of Industrial Internet of Things (IIOT) solutions, assisting industrialists in preparation for Industry 4.0. According to the company, this idea combined with cutting tools focuses on improving output control and efficiency while reducing costs through a network of connected machining and access to production data and expert knowledge.

Apart from this, countries are investing in adopting Industry 4.0, which is estimated to provide lucrative growth opportunities in the global power tools market. For instance, under the “Make in India” initiative, in 2019, the Indian Government launched an initiative SAMARTH Udhyog to create an ecosystem for the propagation of Industry 4.0 set of technologies in every Indian manufacturing by 2025 in MNC, large, small, or medium-scale Indian companies.

Scope of the Global Cutting Tools Market

The study categorizes the cutting tools market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

  • Cemented Carbide
  • High Speed Steel
  • Ceramics
  • Diamond
  • Others

By Application Outlook (Sales, USD Million, 2019-2033)

By Region Outlook (Sales, USD Million, 2019-2033)

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • Germany
    • Italy
    • France
    • UK
    • Spain
    • Poland
    • Russia
    • The Netherlands
    • Norway
    • Czech Republic
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Malaysia
    • Thailand
    • Singapore
    • Australia & New Zealand
    • Rest of Asia Pacific
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • The Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
    • Northern Africa
    • Rest of MEA

Cemented Carbide segment accounts for the largest market share by type

Based on the type, the market is divided into cemented carbide, high speed steel, ceramics, diamond and others. The cemented carbide segment is expected to dominate the market share in 2022 in the global cutting tools market. The cemented carbide segment currently dominates the market share in the cutting tools market. The development in manufacturing design and necessity to accomplish production efficacy is setting the base for manufacturer’s investigation of superior end products, therefore growing the demand for carbide tools. The cemented carbide tool is highly significant and extensively used in machining application owing to its significant features such as high speed, reduces cycle time, retains cutting edge at high machining temperature, exceptional wear resistance at cutting edge, long working life, and others.

The rising production demand to capitalize on the bourgeoning global requirements is enforcing industrialist to install advance tools to support efficient operations and dwell higher outputs in lesser time, thereby creating a lucrative growth opportunity for cutting tools.

Asia Pacific is expected to witness the largest market share by Region

Based on the regions, the global cutting tools market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific is projected to account for the highest market share in 2022. The industry in Asia Pacific accounted for the largest market share in 2020. This growth is mainly due to the participation of leading players offering advanced technologies and services to all sectors of the country. In addition, the growing adoption of automation and rising automotive industry in the region is expected to boost demand for cutting tools over the forecast period. Asia Pacific is likely to rise at the fastest CAGR of almost the forecast era. Countries like India and China are making rapid progress towards automation of all industries, and are the most populated and manufacturing hub for various industrial sector which are projected to increase the demand for cutting tools in the region.

Competitive Landscape: Global Cutting Tools Market

The cutting tools market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global cutting tools market are:

  • CeramTec
  • CERATIZIT
  • Greenleaf Corporation
  • Guhring, Inc.
  • Hitachi Metals America, Ltd.
  • Indexable Cutting Tools
  • ISCAR Headquarters
  • D. Hendley & Associates
  • Kennametal
  • KYOCERA Global
  • LMT Tools
  • MAPAL Inc.
  • Nachi America Inc.
  • Romay Corporation
  • Sandvik
  • Seco Tools
  • Sumitomo Electric
  • TaeguTec India Pvt Ltd
  • TIVOLY Group
  • Tungaloy America
  • Union Tool Corp.
  • YG-1

Recent Development

  • In September 2021, Tungaloy announced the expansion of 21 additional inserts to its TungCut multifunctional grooving and parting-off tool system in 2.0 mm width and imperial specifications. TungCut offers various insert and tool holder solutions to ensure the best possible results in OD/ID grooving, face grooving, groove turning, and parting operations.
  • In June 2021, CeramTec GmbH introduced CeramCreator, a new online configurator that makes searching for the right product and material more accessible and faster. This will enable the latest cutting tool to be available online, and the self-configurator guides customers through the process in a self-explanatory and intuitive way.
  • In September 2020, Tungaloy’s has announced the launch of new grade AH6225 for preventing built-up edge in turning Austenitic stainless steel. Shafts, rods, joint parts, bearings, valves, nuts, couplings, semi-conductor elements, and many more austenitic stainless steels turning applications advantages from Tungaloy's AH6225 grade. Tungaloy's cutting tool technology provides remarkably consistent and predictable machining processes.
  • In September 2020, the company has announced the launch of the UDCBH (ball) to the already extensive UDC range as a new “H” (high speed) series.
  • It's the long-awaited UDC 3rd generation series, with improved diamond coating and optimum cutting edge treatment over the "F” series.
  • In February 2020, Guhring UK has introduced Markforged additive manufacturing into their custom cutting tool line. Gurhing will utilize their Metal X 3D printer and produce an H13 Tool Steel milling cutter with a uniquely designed infill for increased efficiency. This new tool minimizes the weight of the part by 60% and the cost by 75%, thereby allowing the team to open new revenue streams and better serve their customers.

Key Issues Addressed

  • What is the market size by various segmentation of the cutting tools by region and its respective countries?
  • What are the customer buying behavior, key takeaways, and Porter's 5 forces of the cutting tools market?
  • What are the key opportunities and trends for manufacturers involved in the cutting tools supply chain?
  • What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
  • What and how regulations, schemes, patents, and policies are impacting the growth of the market?
  • What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
  • The market player positioning, top winning strategies by years, company product developments, and launches will be?
  • How has COVID-19 impacted the demand and sales of cutting tools in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
  • Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.
What is the growth rate of cutting tools market? The global cutting tools market is expected to register a CAGR of 3.5%, during the forecast period (2023 to 2033). Which type held the highest growing rate in the market of cutting tools? On the basis of type, the cemented carbide segment has the highest growing rate during the forecast period (2023-2033). Which region has accounted for the largest cutting tools market share? In 2022, Asia Pacific held the largest share in the global cutting tools market, followed by Europe. Who are the key players in the cutting tools market? In the global market of cutting tools manufacturers are CeramTec, CERATIZIT, Greenleaf Corporation, Guhring, Inc., Hitachi Metals America, Ltd., Indexable Cutting Tools, ISCAR Headquarters, D. Hendley & Associates, Kennametal, KYOCERA Global, LMT Tools, MAPAL Inc., Nachi America Inc., Romay Corporation, Sandvik, Seco Tools, Sumitomo Electric, TaeguTec India Pvt Ltd, TIVOLY Group, Tungaloy America, Union Tool Corp. and YG-1. What are the factors that are driving global market of cutting tools? The emphasis on achieving higher productivity and reducing downtime in the any industrial sector will drive the market growth. Emerging countries like China, India, Argentina, Poland, Brazil, and others has become a hub for the manufacturing sector.

Frequently Asked Questions

  • Key Issues Addressed
  • What is the market size and growth rate for different segmentations at a global, regional, & country level?
  • What is the customer buying behavior, key takeaways, and Porter's 5 forces of the market?
  • What are the key opportunities and trends for manufacturers involved in the supply chain?
  • What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
  • What and how regulations, schemes, patents, and policies are impacting the growth of the market?
  • How will existing companies adapt to the new change in technology?
  • The market player positioning, top winning strategies by years, company product developments, and launches will be?
  • How has COVID-19 impacted the demand and sales of in the market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
  • Who are the leading companies operating in the market? Also, who are the prominent startups that disrupt the market in coming years?
  • PUBLISHED ON: Dec, 2022
  • BASE YEAR: 2022
  • STUDY PERIOD: 2019-2033
  • COMPANIES COVERED: 15
  • COUNTRIES COVERED: 24
  • NO OF PAGES: 237

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