Metal Cutting Tools Market Size, Share & COVID-19 Impact Analysis, By Product (Machining Centers, Lathe Machines, Boring Machines, Grinding Machines, Milling Machines, and Others), By Application (Automotive, General Machinery, Precision Machinery, Transport Machinery, and Others), and Regional Forecast, 2022-2029

The global metal cutting tools market size was valued at USD 73.29 billion in 2021. The market is projected to grow from USD 75.97 billion in 2022 to USD 105.46 billion by 2029, exhibiting a CAGR of 4.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with metal cutting tools experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -5.1% in 2020 compared to 2019.

The increasing demand for metal-cutting equipment from various industries, including aerospace, defense, automotive, and industrial machinery results in the growth of the market. The surging demand for efficient equipment in critical and complex machine component requirements is expected to drive the industry in the near future. Furthermore, the increasing popularity of CNC machines is also a factor driving the market growth. This is attributed to the advantages offered by CNC metal cutting tools, including high efficiency, transparency, cost-saving, and time efficiency. The research report provides and describes market estimations and growth opportunities across diverse geographies.

COVID-19 IMPACT

Halt on Manufacturing Industries to Restrain Market Growth During Pandemic

The influence of the coronavirus outbreak on the market has been relatively less in the eastern countries, such as Japan, China, and South Korea, whereas the western part of the world has suffered drastically. In the short term, the major impact primarily lies due to the disruption of manufacturing activities globally. The enormity of these disruptions increases as the number of cases surges at a global level. Moreover, the impact on the manufacturing industry of metal cutting tools will be far more extensive if the virus impacts other main industrial countries beyond India, China, and Germany. In the long term, the industries related to the application of these cutting tools are likely to be back on track, resulting in substantial demand for machines in the future.

LATEST TRENDS

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Substantial Increment in Popularity of Additive Manufacturing to Boost Market

The increasing advancement and introduction of novel technologies in the sector of additive manufacturing are gaining unprecedented popularity in the market over the recent past across the globe. The application of 3D printing is expected to emerge as the future of prototype manufacturing across numerous industries due to its effective time optimization and cost-effective manufacturing. Moreover, 3D printing provides benefits such as optimum use of raw materials, waste reduction, and ease of production of various complex geometries that are expected to drive the market. The widespread applications of 3D printing in the automotive industry, construction, apparel and bio-printing, medical devices, and robots are further expected to result in the growth of the additive manufacturing industry in the future.

DRIVING FACTORS

Increasing Adoption of Industry 4.0 is Driving Market

The demand for automation in factories is increasing the utilization of smart manufacturing technologies for production processes and product development. This is attributed to the benefits such as improved productivity, product quality, and ease of coping with labor shortages. The manufacturing and machinery operations will witness a paradigm shift from conventional methods toward intelligent, connected, and streamlined machine systems. Through Industry 4.0 solutions, manufacturers are able to benefit from operational savings, efficient energy usage, enhanced and automatic virtual metrology, and enhanced human-machine interfaces.

Quality assurance plays a significant role in the manufacturing field and is directly related to the equipment used. The adoption of Industry 4.0 solutions has introduced the real-time quality assurance process through an Automated Virtual Metrology (AVM) system. Real-time quality assurance is further expected to result in increased penetration of cutting machine tools.

RESTRAINING FACTOR

High Initial Investment & Fluctuating Raw Material Prices to Hinder Market Growth

Numerous manufacturing companies are focused on automation of manufacturing operations within the facilities to reduce the expenditure on high labor wages, upgrade productivity, and increase process optimization in their overall operations. However, the entire process requires procurement, installation, and timely maintenance of all types of machinery. However, severe cash crunch during restrictions of the pandemic and post-pandemic has created a serious hindrance to market growth. Moreover, difficulties in cross-border trade after the Ukraine and Russia conflict have further increased problems for procurement of raw materials and increased uncertainties and disruptions in the market.

SEGMENTATION

By Product Analysis

High Demand for CNC Lathe Machines to Aid Growth of Market

Based on product, the global market is segmented into machining centers, lathe machines, boring machines, grinding machines, milling machines, and others.

The lathe machines segment is expected to be the fastest-growing segment due to the demand for metal cutting tools. This is attributed to the growing demand from the automotive sector. Moreover, the high popularity of CNC lathe machines will drive the market. The benefits offered by CNC lathes, including high efficiency, production of complex devices, efficient mass production, and low maintenance are resulting in the metal cutting tools market growth.

Furthermore, the machining centers segment holds the major market share and is expected to dominate in the forecast period. This is attributable to the increasing need for mass production from various industries, including the automotive sector. Advancements in precise cutting have resulted in increased demand for milling and boring machines. Grinding machines are gaining popularity in the machine tools industry owing to increasing applications of surface grinders, cylindrical machine grinders, tools, and cutter grinders.

By Application Analysis

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Automotive to Remain a Dominant Segment in the Market

Based on application, the market is broken down into automotive, general machinery, precision engineering, transport machinery, and others.

The automotive sector has been at the forefront of applications in terms of market revenue generation in the recent past. The development and manufacturing of various automotive parts for modern and high-end vehicles have been the crucial factors shaping the market development. Automotive parts, such as gearboxes, clutch plates, and modern disk brakes, are increasing the demand for effective metal cutting tools in the market. Furthermore, increasing demand for industrial machinery is a result of rising demand from various industries such as aerospace, construction, and food & beverage.

The precision engineering segment is anticipated to outpace its counterparts over a continuous increment in demand for precision in components and manufacturing of highly accurate parts for application in aerospace and defense machinery or for application in military equipment. Transport machinery is also estimated to gain noteworthy traction due to augmentation in cross-border trade amongst numerous economies across the globe.

REGIONAL INSIGHTS

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Based on region, this market includes North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America, which is further drilled down into countries.

Asia Pacific holds the major market share and is anticipated to remain dominant during the forecast period. This is due to the increasing demand from industries such as construction, automotive, and food & beverage. Rising government initiatives to promote electric vehicles are expected to push the market. For instance, China has imposed a restriction on investment in the traditional vehicles' new manufacturing plants and the local governments have also imposed a quota for EV production for all manufacturers.

India is Projected to Register Significant Market Development Due to Spurring Manufacturing Clusters in the Country

Considerable efforts across the country to bolster the network of manufacturing clusters are expected to emerge as a driving factor behind the fast-paced development of the market across India. Favorable policies to encourage the establishment of manufacturing facilities for automotive manufacturing and precision engineering products are boosting the development prospects for the market. India is also keen on the development of its transportation hubs to facilitate easy and hassle-free cross-border trade from its manufacturing hubs to have an extensive export reach in the global market.

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Europe and North America are expected to exhibit lucrative growth during the forecast period as a result of increasing demand for prefabricated metals. The Middle East & Africa is expected to grow owing to increasing investments in the non-oil business. The market in Latin America is expected to grow due to increasing demand from the automotive sector.

KEY INDUSTRY PLAYERS

Leading Players are Focusing on New Product Development to Maintain their Market Position

The key market players, such as Doosan and Okuma Corporation, are trying to bring innovative products to the market. The increasing number of manufacturers in the market is intensifying the competitive landscape of the global market. Thus, key players are focusing on high functional efficiency and improved capacity. Furthermore, the companies are focusing on organic growth factors such as mergers and acquisitions in the machine tools industry that are expected to drive the metal market. For instance, Sandvik Machining Solutions acquired QUIMMCO CENTRO TECNOLÓGICO (QCT) to enhance its market share in Mexico.

List of Key Companies Profiled:

• Yamazaki Mazak Corporation (Japan)


• Doosan Machine Tools Co., Ltd. (U.S.)


• Trumpf (Germany)


• Amada Machine Tools Co., Ltd (Japan)


• JTEKT Corporation (Japan)


• Okuma Corporation (Japan)


• Hyundai WIA (South Korea)


• FANUC America Corporation (Japan)


• Komatsu Ltd. (Japan)


• Makino (Japan)

KEY INDUSTRY DEVELOPMENTS

• May 2022: Sandvik AB, which operates as one of the prominent manufacturers of metal cutting tools, has recently acquired Preziss, which deals as a developer of solutions for aluminum and composite machining.


• June 2020: Miranda Tools, which is a wholly-owned subsidiary of Ashok Piramal Group, was bought by Dormer Pramet.


• September 2019: Star Micronics Co., Ltd. is set to launch SX-38, a high-functioning large diameter (38 mm) model by April 2020. It is a Swiss-type automatic lathe developed especially for manufacturing sectors such as automotive, aerospace, and medical applications.


• June 2022: Milwaukee Tools has recently introduced its innovative wrecker integrated with NITROUS CARBIDE SAWZALL Blade. The product is designed to operate more effectively on a wide range of metals that is ideal to operate in demolition and remodeling jobs at construction sites.


• March 2022: Sandvik Coromant announced the launch of CoroDrill 860-PM, which provides premium performance in drilling operations and also provides superior durability to tools, improving the operational life of the tools.


• April 2022: Mitsubishi Materials Corporation Metalworking Solutions Company increased its product portfolio and introduced two double-sided inserts, which are a wiper type and precision grade M class type.

REPORT COVERAGE:

An Infographic Representation of Metal Cutting Tools Market

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The global metal cutting tools industry report provides an in-depth market analysis with market dynamics and competitive landscape. It provides various key insights, including recent industry developments in the market such as mergers & acquisitions, SWOT analysis, macro and microeconomic factors, and company profiles.

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