According to a new report published by Allied Market Research, titled, "Tooling Market by Type and End-User Industry: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global tooling market size is expected to reach $368.5 billion in 2026, from $200.8 billion in 2018, growing at a CAGR of 8.0% from 2019 to 2026. In 2018, dies & molds dominated the market, in terms of revenue, accounting for over 36.8% share of the global tooling market.
The tooling industry is the backbone of every manufacturing plant. The quality of tools used during the manufacturing process will directly affect the quality of the end product manufactured by the end-user industries such as automotive, aerospace, marine, defense, plastics, electronic & electrical, and many others. The basic tools required in any manufacturing process are dies & molds and machine tools such as drills, grinders, metal forming, boring machines, forges, jigs & fixtures, and gauges. Moreover, the market is directly affected by fluctuations and developments occurring in the end-user industries. For instance, increase in demand of consumer electronics is increasing the production of electronic and electrical devices, which in turn boosts the market growth. However, adoption of 3-D printing is expected to restrain the growth of the market.
The developments in automation and penetration of IoT in the manufacturing process of tooling are anticipated to provide lucrative opportunities for the growth of the tooling market. The automation facilities provide better productivities and enhanced product qualities, which also develop the quality of the end product. Furthermore, growth in power generation using renewable resources fuel the requirement of tools for the manufacturing of new parts in the wind power plants such as jet propellers, engine bodies, windmill shafts, and many others.
Europe accounted for the highest revenue in 2018 compared to other regions due to new innovations and technological advancements, and adoption of tools in major sectors such as automotive, aerospace & defense, and others. In Asia-Pacific and North America, tools have its application in industries such as electronics & electrical industries, plastic industry, automotive industry, and others.
Increase in need for automation and rise in popularity of artificial intelligence technologies in the manufacturing processes increase product quality and reduce production time significantly. Moreover, automation also enhances the tooling process for manufacturing of electronic goods, which have delicate and small sized machine parts. In addition, new customized tools manufactured using carbide have greater strength and provide precise tooling processes. These factors are expected to boost the market growth.
Europe is a pioneer in the tooling market, owing to expansion of the automotive sector in this region. Therefore, tooling market’s share is the highest among countries such as Germany, France and the UK. In addition, increase in demand for tools from the electronics & electrical industry is expected to boost the market growth.
Key Findings of the Tooling Market :
- In 2018, the dies & molds segment dominated the global market, in terms of revenue.
- The automotive segment is expected to be the largest customer for the tooling market players globally.
- Asia-Pacific is projected to be one of the most dominant regions and is expected to witness a high growth rate during the tooling market forecast period.
The major players operating in the tooling industry include Bharat Forge Limited, Carlson Tool & Manufacturing Corp., Doosan Machine Tools Co. Ltd., Godrej & Boyce Manufacturing Co. Ltd., Omega Tool Corp., Parpas S.p.A (GRUPPO PARPAS), Samvardhana Motherson Group, Unique Tool & Gauge Inc., Sandvik AB, and Yamazaki Mazak Corporation.