Metal Cutting Tool Market Expected to Reach $107.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Metal Cutting Tool Market," The metal cutting tool market was valued at $65.5 billion in 2020, and is estimated to reach $107.3 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032. The global metal cutting tool market size was 2,339 units million in 2020 and is projected to reach 3,237 million units by 2032, registering a CAGR of 2.8% from 2023 to 2032. 

Metal cutting tool have a primary purpose of removing leftover material from a manufactured piece of metal by using the process of shear deformation. There are mainly two types of metal cutting tool that are normally used; single point tool and multi-point tool. In addition, Single-point tool are mainly used to get rid of extra material through cutting edges in the process of shaping, turning and other related procedures. However, the multi-point tool is a part of crucial processes such as grinding, drilling, and milling.

Major factors such as rise in demand from several industries, such as automation and construction and rise in demand for power tool from household, are expected to boost the metal cutting tool market growth during the forecast period. In addition, rapid expansion in the automotive sector is expected to boost the demand for the metal cutting tools, and positively affect the metal cutting tool market forecast. Moreover, rise in manufacturing of light vehicles is anticipated to develop rapid need for welded automotive components, thus, creating demand for metal cutting tools.

Metal cutting tool have enabled hassle-free production of components, reducing the time required for manufacturing workpieces. In addition, several large manufacturing facilities are increasingly using these tools. Moreover, the growing commercial demand for cutting tool has helped increase the market size. However, high initial cost along with high operating and maintenance cost is expected to hinder the growth of the market during the forecast period. In addition, lack of skilled personnel to operate machine equipped with metal cutting tool and rise in daily wages hamper the growth of metal cutting tool market.

During the lockdown, owing to the COVID-19 situation, various manufacturers in the metal cutting tool industryhad to stop their business production in countries such as China, the U.S., and India. This break directly impacted sales of metal cutting tool companies. In addition, lack of manpower and raw materials led to halt in supply of cutting tool. However, reopening of production facilities and introduction of vaccines for coronavirus disease are anticipated to lead to re-opening of metal cutting tool companies at their full-scale capacities.

Major players are adopting product launch and business expansion as key developmental strategies to improve the product portfolio of metal cutting tool market, and also help them gain a major metal cutting tool market share. For instance, in May 2022, Hilti Corporation introduced SCM 22-A Cordless Metal Saw for cutting and trimming of sheet metal. This aims to improve the product portfolio.

On the basis of tool type, the market is segmented into indexable inserts and solid round tool. In 2022, the solid round tool segment accounted for the largest share of the overall metal cutting tool market. Rapid growth in the automotive industry is expected to boost the market growth during the forecast period. In addition, rise in production of light vehicles is expected to develop rapid need for new welded automotive components, thus creating the demand for metal cutting tool during the forecast period. The growth in demand for metal cutting tools from various other sectors, such as construction, automotive, and aerospace & defense is boosting the growth of the market during the forecast period.

By product type, the metal cutting tool market is segmented into lathe, drilling machine, milling machine, grinding machine, and others. The lathe segment held the largest market share in 2022.  The growing automotive production demand, high demanding end-user industries, growing dominance of CNC lathes, and increase in need for smart and sustainable manufacturing are expected to boost the demand for metal cutting tools in the market. In addition, the automotive industry requires various parts for production, such as the engine cylinder heads and others is expected to boost the market growth.

On the basis of application, the market is categorized into automotive, aerospace & defense, construction, electronics, and others. The automotive segment held the largest market share of the metal cutting tool market in 2022. The growing demand for metal cutting tool from various end-user industries, such as aerospace & defense, automotive, construction, and electronics is expected to surge the growth of the market. In addition, the increasing popularity and technological advancements in additive manufacturing has increased the demand for metal cutting tool. For instance, growth in 3D printing technology is anticipated to increase the demand for metal cutting machineries during the forecast period. 

Asia-Pacific is one of the fastest growing regions globally, attributed to its large population and low-cost manufacturing sector. China and Japan are leading manufacturers of automobiles and construction machines. Furthermore, the construction and manufacturing industries in countries such as India, Indonesia, Vietnam, and Bangladesh are experiencing significant growth. These factors boost the demand for metal cutting tool as they are extensively used in construction and automotive industries. In addition, the Asia-Pacific region is home to major metal cutting tool manufacturers, such as Ehwa Diamond, Iscar Ltd, and Makita Corporation.

Key Findings Of Study

• The report provides an extensive analysis of the current and emerging global metal cutting tool market trends and dynamics. 
• By tool type, the solid round tool segment dominated the market in terms of revenue in 2020.
• By product type, the lathe segment registered the highest growth in terms of revenue in the global metal cutting tools market in 2020.
• By application, the electronic segment are projected to register the highest growth rate in the coming years.
• The report provides an extensive analysis of the trends and emerging opportunities of the market. 
• In depth, the global metal cutting tool market analysis is conducted by constructing estimations for the key segments between 2020 and 2032.