Global Cutting Tools Market Outlook Report 2023: Developing Prominence Of Asian Manufacturing - Forecast to 2028

DUBLIN, June 28, 2023 /PRNewswire/ -- The "Cutting Tools Market - Global Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The global cutting tools market is expected to reach a value of $13.266 billion by 2028 from $9.5 billion in 2022, growing at a CAGR of 5.72% from 2022 to 2028.

The global cutting tools market is characterized by low market concentration and high competition among the major players. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong market presence.

Currently, the cutting tools market is highly fragmented and dominated by vendors such as Kennametal Inc, OGS Corporation, and Iscar Ltd, among others, alongside numerous domestic tool manufacturers that manufacture cutting tools as per the local demands and regulations.

MARKET TRENDS & DRIVERS

Rising Home Improvements & Do-It-Yourself Activities

In developed economies such as the U.S. and Europe, many adults engage in purposeful and creative leisure activities, with some investing in home improvement and maintenance based on personal interests. Consumers in countries like France, Germany, Italy, and the UK consider DIY activities a significant hobby.

The concept is also gaining popularity in developing economies such as India, Brazil, and South Africa. The growing interest among consumers in undertaking their projects and maintaining a sustainable environment has increased the demand for D.I.Y products such as cutting tools.

During the pandemic, many people turned to DIY activities to relieve stress and take care of tasks to reduce costs while staying indoors. The concept of D.I.Y is well-adopted in Western countries, with most American regions contributing to nearly 81% of the market share in the D.I.Y industry. This trend is expected to continue during the forecast period.

The surge in the D.I.Y industry is projected to grow due to the high penetration of media presence, including television, social media, and videos, which have helped recreate home improvement projects. Western countries like North America and Canada actively engage in D.I.Y activities. Additionally, many retail stores like supermarkets and hypermarkets have enabled significant growth for many vendors in the D.I.Y segment.

Rising Usage of Cutting Tools In General Manufacturing Industries

Cutting tools are crucial in manufacturing, particularly in producing general machinery, automobiles, aviation and aerospace, energy, medical equipment, rail transit, molds, machine tools, and other industries.

The automotive manufacturing process heavily relies on cutting tools as they are one of the key components of the process. The traditional procedures have been replaced with new techniques like high-speed cutting, dry machining, hard machining, and advanced cutting technology.

The automotive sector has significantly shifted towards using professional tools such as Carbide Cutters. This transformation is driven by the need for high product quality and precision, which is required to produce high-value parts. The industrial circle has gradually moved from traditional machining to high-performance cutting tools that provide greater efficiency and accuracy.

Furthermore, due to machinery and equipment automation and the growing need for high-performance, high-precision machining equipment has become essential to industry growth. As a result, the demand for high-efficiency and performance-cutting tools is increasing. Such factors drive the development of new cutting technologies in the cutting tools market.

SEGMENTATION ANALYSIS

INSIGHTS BY TOOL TYPE

The dominance of the indexable tool type segment in the global cutting tools market in 2022 can be attributed to its modern turning operations.

This has displaced previous common tool types, such as HSS, brazed-carbide, and custom form tools, before the widespread use of CNC machines. Indexable turning tools, when used in conjunction with the multiple-axis motion of a CNC machine tool, make it easier to create complex shapes, eliminating the need for dedicated turning tools.

However, solid round tools are experiencing high growth rates in the global cutting tools market due to their ability to cover all application types within solid carbide drilling, milling, HSS tapping, reaming, and threading. Each solid round tool is designed to meet the requirements of high quality, precision, and maximum productivity, allowing for optimal machining processes.

INSIGHTS BY PRODUCT TYPE

The global cutting tools market by product segments as groovers, reamers, milling cutters, drills, and others.

In 2022, the Groover product type dominated the industry. These tools are highly used with lathes to cut channels on the end of a workpiece or into an existing bore. Groovers are also utilized for various applications, including creating recesses for retaining rings and necking workpieces to ensure a clean fit when mating parts.

Additionally, a grooving tool is a cutting tool that removes material to form grooves, channels, or other cross-sectional shapes on the workpiece. A groove may be cut with an end mill having one fixed cutter and another moveable cutter placed at each side. Such tools are also called profile mills when they produce linear cuts along the length of the item being milled.

INSIGHTS BY MATERIAL TYPE

The cemented carbide material type segment dominated the global cutting tools market and was valued at over USD 3.2 billion in 2022.

This market is highly fragmented and consists of many companies operating on both global and regional levels. This indicates that manufacturers of cutting tools possess significant bargaining power over suppliers. Cemented carbide tools are primarily used for high-precision work involving greater shape, size, and structure complexity.

However, specialized cutting tools are more cost-effective and efficient for specific tasks. The APAC and North American regions are expected to have the largest share in the global cemented carbide industry. Vendors in these areas are anticipated to benefit from abundant raw material availability and will provide a competitive advantage to vendors regarding the selling price.

The high availability of other raw materials, such as steel, in countries like China, India, and the U.S., is also expected to lead to high growth rates for high-speed steel (HSS) tools. This is expected to enable vendors to further enhance their profit margins by maintaining good supplier-vendor relationships.

INSIGHTS BY END-USER

The automotive industry is the largest end-user segment in the global cutting tools market. Drilling and fastening tools are the primary tools for tightening fasteners, engine mounting, and other joint works.

With the global electric vehicles market growing at almost 60% annually, expansion and increased production facilities are expected to increase the demand for cutting tools. This can be more prominent in countries such as China, Japan, the US, and Western Europe, where the production of EVs is more likely to accelerate during the forecast period.

INSIGHTS BY DISTRIBUTION CHANNEL

The offline distribution channel had the highest global cutting tools market in 2022. Factors such as the broader reach in areas that lack better connectivity and high consumer trust associated with touching and experiencing the quality of products are driving the growth of this segment.

Although the online segment holds a relatively lower market share, it is expected to grow faster than offline distribution channels.

Market Opportunities & Trends

• Emerging Construction Industry
• Rising Demand For Luxury Vinyl Tiles
• Robust Increase In New Construction And Remodeling In Residential Sector

Market Growth Enablers

• Rising Home Improvements & Diy Activities
• Rising Usage Of Cutting Tools In General Manufacturing Industries
• Developing Prominence Of Asian Manufacturing

Market Restraints

• Low-Cost Labor
• Oscillation In Cost Of Raw Materials

Key Company Profiles

• Kennametal Inc.
• OSG Corporation
• Iscar Ltd

Other Prominent Vendors

• Mapal
• Makita Corporation
• Robert Bosch
• Stanley Black & Decker
• Kelin Tools
• ICS Cutting Tools Inc
• Snap-on Incorporated
• OTTO BAIER GmbH
• Hilti Corporation
• Sandvik AG
• Ingersoll Cutting Tools
• FRASIA SA
• KYOCERA
• J SCHNEEBERGER Maschinen AG
• VOLLMER
• CERATIZIT Group
• HIKOKI

For more information about this report visit https://www.researchandmarkets.com/r/5r7qo8

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