Metal Cutting Tools Market: Political Turmoil to Disrupt the Supply Chain, Affecting Vendor Profits

Metal Cutting Tools Market was valued at USD 73.5 Billion in 2021, and is expected to reach USD 107.7 Billion by 2029, exhibiting a CAGR of 4.9 % during the forecast period (2022-2029)

The term "machine tools" refers to a group of tools used to turn metals or other materials into various machine components. A machine tool is also described as a power-driven machine used to cut or structure metals. The metal cutting tools sector is critical to the global industry. The quality of tools used in metal cutting operations has a significant impact on the manufacturing industry's competitiveness. The metal cutting tools provides vital inputs to all production industries.

The performance of the metal cutting tools market is critical to the global growth of the manufacturing sector. Many vital and high-priority end-use industries, including automotive, heavy equipment, military, aerospace, and casting, rely on a robust metal cutting tools market to support their operations. Metal cutting tool technological advancements have resulted in more robust goods capable of multitasking with little to no human interaction. Increased automation in machine tools enabled greater precision in metal and other material cutting and chipping.

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Metal Cutting Tools Market Trends
Metalworking Machinery Manufacturing Companies Deploying Laser Cutting Technologies to Enhance Production Capacities

To improve processing time for laser cutting and welding applications, machine tool manufacturers are developing 3D laser processing equipment. A 3D laser is a 5-axle laser equipment that cuts three-dimensional sheet metal components. Lasers can cut metals such as mild steel, stainless steel, and aluminium. Laser cutting drastically decreases the processing time necessary for cutting applications, lowering expenses. Other advantages include concentrated laser energy input, high feed rate, and low heat input. In the automotive and aerospace industries, 3D lasers are commonly used for cutting or welding aluminium components, drilling engine parts, and laser surface of used parts. Laser cutting machines dominate the metal cutting tools industry, suggesting a huge increase in the utilisation of this technology. Major companies producing 3D laser cutting machines include Mitsubishi electric, Trumpf, LST GmbH, Mazak.

Machinery Manufacturing Companies Investing in Producing 6-Axis CNC Milling Machines

Advanced 6-axis CNC milling machines are available from machine tool manufacturers to effectively create complicated components. CNC milling is a subset of computer numerically controlled (CNC) machining. This entails using computers to control machine tools such as lathes, mills, routers, and grinders. The 6-axis CNC machine turns a raw metal bar from both ends of the fixture into the finished product. This provides high-quality goods while reducing mistakes. CNC milling aids in the short-run manufacture of complicated parts as well as the fabrication of one-of-a-kind precision components. Major companies in metal cutting tools market manufacturing 6-axis CNC milling are Yamazaki Mazak, DMG MORI, ERLO, Giben International, Haas Automation, Knuth Machine Tools, IMSA.

Metal Cutting Tools Companies Investing in Additive Manufacturing Technologies to Produce Customized Machine Tools

Machine tool manufacturers are using additive manufacturing technology to provide clients with customised designs. Additive manufacturing is the use of 3D printing to generate functional components such as prototypes, tooling, and end-of-life production parts. Additive manufacturing allows for the low-cost creation of small quantities of complex parts with complex designs. It offers a great degree of design freedom, functional feature optimization and integration, and product customisation. Major companies in metal cutting tools industry using additive manufacturing include ExOne, EOS, Concept Laser, XJet, Renishaw.
Metal Cutting Tools Market Drivers
Industrial & Economic Growth in Asia Pacific Region to Boost Metal Cutting Tools Market Growth

Over the past few decades, rising nations in APAC have begun to challenge their established counterparts in global manufacturing due to fast economic development, markets with potentially large consumption, and improving industrial and manufacturing competitiveness. These economies are making significant progress in all forms of manufacturing, accounting for up to 65% of production through low and medium technology-enabled businesses that use machine tools.

Currently, APAC accounts for 45-50% of the hi-tech manufacturing market, with precision parts playing a significant role. Automotive, aerospace, electronics, and medical device companies are expecting to migrate up the value chain in the next years, with leading manufacturing centres in Asia, such as India and China, spending heavily on infrastructure development. This presents exciting potential for accessory and precision parts contract makers, as well as power tool manufacturers, in the form of a wide end-user base and cooperation with companies in emerging nations to meet this high demand growth. Thanks to the above mentioned factors, metal cutting tools market is expected to grow during the forecast period.

Advancements in Metal Cutting Tools Market due to Industry 4.0

Currently, APAC accounts for 45-50% of the hi-tech manufacturing market, with precision products being a crucial component. Automotive, aerospace, electronics, and medical device companies are intending to migrate up the value chain in the next years, with leading manufacturing centres in Asia, such as India and China, investing in massive infrastructure development. This presents potential prospects for accessory and precision components contract makers, as well as power tool manufacturers, for high-end specialised assembly operations in the form of a wide end-user base and collaborations with companies in emerging nations to meet this high demand growth in the metal cutting tools market.

• Industry 4.0: It advocates the integration of the manufacturing plant with other business functions, including inbound logistics, outbound logistics, and customer services, to develop a holistic and adaptive automation system architecture that can make use of machine tools.

• Industry 4.0 for Process: It describes smart-networked sensors as a foundational part of the Industry 4.0 process architecture. These sensors will communicate with the automation system and control and interact with business systems.

Growth in Investments in Metal Cutting Tools to Drive the Metal Cutting Tools Market

Metal cutting tools have traditionally been an investment-driven business. Because to the increase in industrialisation, the global metal cutting tools market saw massive investments. In terms of investments in the metal cutting tools market in 2019, China was one of the biggest stockholders. The country controls over 41% of the metal cutting tools industry. Per capita income for discretionary expenditure on manufactured goods and services is expected to grow. Even if the market saw lower investment in 2020, there is still plenty of room for growth. China continues to be a major force in the global metal cutting tool market.
Metal Cutting Tools Market Restraints
Political Turmoil to Cause Restraints for Metal Cutting Tools Trade

The political turmoil has disrupted the supply chain, affecting vendor profits significantly. As a result, they have had to raise their pricing in order to retain their profit margins. Tariffs and other limitations imposed by the United States on Chinese goods and services in 2018 and 2019 shook markets, as did China's retaliatory actions. Businesses in major countries, large and small, are making modifications to counteract the two countries' trade war.
Despite the fact that the trade war ended before the coronavirus struck, many of the tariffs on USD 0.50 trillion worth of items between the two competitors are now in jeopardy. This increases demand unpredictability and price fluctuation, which is a further impediment to metal cutting tools industry growth. All of these scenarios put strain on firms and their supply chains. As a consequence, political unrest is expected to restraint the global metal cutting tools market growth prospects during the forecast period.

Rise in Material Cost to Restraint Metal Cutting Tools Market Growth

Raw materials constitute the single largest cost for machine tools. These costs comprise approximately 50%−60% of the overall cost of production. Ferrous and nonferrous metals, notably steel and aluminium, are important raw materials for the machine tool industry. Raw material price fluctuation is a severe threat to vendor profitability. Other operating expenditures, such as labour pay, are also rising sharply. All of these considerations make it difficult for vendors to offer highly efficient power tools at reasonable prices in order to compete in the market. Volatility in raw material prices also impacts suppliers' and end-user industries' calculations and predictions, disrupting their growth strategies. As a result, changes in raw material costs, particularly carbon steel, aluminium, and tungsten, is expected to hamper the growth of the machine tools industry.
Metal Cutting Tools Market Segment Analysis
Based on Product Type, the lathe machines segment dominated the product type segment in 2021 and is expected to be the fastest-growing segment thanks to the demand for metal cutting tools during the forecast period. This is due to increased demand from the automobile industry. Furthermore, the prevalence of CNC lathe machines will propel the market. The advantages provided by CNC lathes, such as high efficiency, manufacturing of complicated devices, efficient mass production, and minimal maintenance, are driving the growth of the metal cutting tools market.

Furthermore, the machining centres segment dominates the market and is expected to continue to do so during the forecast period. This is due to the growing need for mass manufacturing in a variety of industries, including the automobile sector. Precision cutting advances have raised demand for milling and boring equipment. Grinding machines are becoming more common in the machine tool business as the applications of surface grinders, cylindrical machine grinders, tools, and cutter grinders increase.

Based on Application, the automotive sector dominated the applications segment in terms of metal cutting tools market revenue share in 2021. The development and production of numerous automotive parts for modern and high-end automobiles have been critical drivers in determining market development. Automotive components such as gearboxes, clutch plates, and advanced disc brakes are boosting the market's demand for effective metal cutting tools during the forecast period.

Furthermore, rising demand for industrial machinery stems from a variety of industries, including aerospace, construction, and food and beverage. The precision engineering market is expected to surpass its competitors due to a steady increase in demand for accuracy in components and fabrication of extremely precise parts for use in aerospace and defence gear or military equipment. Transport machinery is also expected to acquire significant impetus as cross-border trade between different nations across the globe expands.
Metal Cutting Tools Market Regional Insights
Asia Pacific region held the largest revenue share of the global metal cutting tools market, accounting for a market share of 46.57% by consumption value and 51.17% by production value in 2021. China accounted for a major share in the metal cutting tools industry, in APAC as well as globally. Rising industrial investment and the ongoing urbanisation are important macro drivers driving the metal cutting tools market over the forecast period. Growth in developing nations has played a vital impact in the global development of the automobile sector. Vendors have potential chances to capitalise on as demand for automotive vehicles rises in emerging markets.

All of these advancements in the automotive sector will promote machine tool demand in the region. Emerging market development has been solid, with continued industrialisation and foreign trade activities, particularly in BRICS nations. China's substantial fiscal stimulus measures have propelled it to the forefront of developing economies in recent years. In recent years, China has maintained its position as the world's largest automobile market. The automobile sector in India is competitive and quickly growing. Many automakers are joining the market to capitalise on its enormous potential. Economic growth in the BRICS countries is now driving growth rates in the automobile sector.

Europe was the second-largest metal cutting tools market, accounting for a share of 40.09% in terms of production in 2021. Germany dominated the region, where metal cutting tools are in great demand. Robotics is seeing rapid growth in European areas such as the United Kingdom, Germany, and France, and these gadgets are quickly gaining acceptance among end users. Governments' primary concern is infrastructure, which is a major contribution to the growth of machine tools. However, infrastructure development has reached various stages in recent years.

The European Union created a number of projects as part of the European Digital Agenda. The European Union (EU) prioritised innovation and investment in ICT-based services in order to improve public services and quality of life. The notion of smart cities is gaining traction in order to meet these goals. It is the result of significant technical, economic, and environmental developments, such as climate change, economic restructuring, and the shift to online retail and entertainment. ICT-based services drove the growth of the production line among regional enterprises. This has increased the use of metal cutting tools.

In North America, the demand for machine tools is significantly higher in the automotive and industrial machinery sectors. The US and Canada are major contributors to the demand for machine tools and dominate the North America metal cutting tools market, thanks to the growing adoption of machine tools in the region. South America metal cutting tools market puts more emphasis on infrastructure standards. The increasing number of foreign investments and the abundant availability of resources coupled with government initiatives in major countries are increasing the productivity in the metal cutting tools market in the region. In Middle East and Africa region, the abundant availability of raw materials and resources is expected to drive the demand from the Middle East and Africa metal cutting tools industry. The demand for metal cutting tools is expected to be driven predominantly by the automotive and industrial machinery sectors on account of higher automation.
Metal Cutting Tools Market Scope: Inquire before buying



Metal Cutting Tools Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 73.5 Bn.


Forecast Period 2022 to 2029 CAGR:
4.9%
Market Size in 2029:
US $ 107.7 Bn.


 Segments Covered:
by Product Type
• Machining Centers
• Lathes
• Boring
• Grinding
• Milling
• Others


by Application
• Automotive
• General Machinery
• Precision Engineering
• Transport Machinery
• Others


by Tool Type
• Indexable Inserts
• Solid Round Tools


by Material
• Cemented Carbide
• Ceramics
• Polycrystalline Diamond (PCD)
• Cubic Boron Nitride (CBN)
• Exotic Materials
• Others



Metal Cutting Tools Market Key Players
• Kennametal Inc.
• OSG Corporation
• ISCAR LTD
• MAPAL Dr. Kress KG
• Makita Corporation
• Robert Bosch GmbH
• Stanley Black and Decker
• Klein Tools
• Guhring
• ICS Cutting Tools
• Snap-on Incorporated
• Hilti Corporation
• Sandvik AG
• Ingersoll Cutting Tools
• FRAISA SA
• KYOCERA Cutting Tools Group
• Xiamen Golden Egret Special Alloy Co. Ltd.
• Hartmetall-Werkzeugfabrik Paul Horn GmbH
• Asahi Diamond Industrial Co. Ltd.
• Ceratizit S.A.
• Koki Co. Ltd.

Frequently Asked Questions:

1] What is the growth rate of the Global Metal Cutting Tools Market?
Ans. The Global Metal Cutting Tools Market is growing at a significant rate of 4.9% during the forecast period.

2] Which region is expected to have the highest growth rate in the Global Metal Cutting Tools Market?
Ans. The Asia Pacific region is expected to hold the highest growth rate in the Metal Cutting Tools Market.

3] What is the market size of the Global Metal Cutting Tools Market by 2029?
Ans. The market size of the Metal Cutting Tools Market by 2029 is expected to reach USD 107.7 Bn.

4] What are the major key players of the Global Metal Cutting Tools Market?
Ans. The major key players of the Global Metal Cutting Tools Market are Kennametal Inc.
OSG Corporation, ISCAR LTD, MAPAL Dr. Kress KG, Makita Corporation, Robert Bosch GmbH and Stanley Black and Decker.

5] What are the major factors affecting the growth of the Global Metal Cutting Tools Market?
Ans. The industrial & economic growth and advancements in metal cutting tools market due to industry 4.0 are the major factors expected to drive the Global Metal Cutting Tools Market during the forecast period.