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Carbide Tools Market Size, Share & COVID-19 Impact, By Product Type (Drilling Tools, Milling Tools, Turning Tools, and Others (Taps & Dies, Reamers), By Coating Type (Coated, and Non-coated), By Configuration (Hand Based, and Machine Based), By End User (Automotive, Construction, Metal Fabrication, Electronics & Electrical, Aerospace, Others (Mining, and others)), and Regional Forecast, 2022-2029

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI106914



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The global carbide tools market size was valued at USD 10.39 billion in 2021 and is projected to grow from USD 10.65 billion in 2022 to USD 15.47 billion by 2029, exhibiting a CAGR of 5.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with carbide tools experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global carbide tools market had exhibited a decline of -5.2% in 2020 as compared to 2019. 

These tools are also known as cemented carbide or carbide-tipped cutting tools. Carbide cutting tools or inserts have been the most widely used tools in the manufacturing sector for the last few decades. It is manufactured from tungsten powder and carbide powder. These materials are harder than steel (thrice the hardness of steel), heat resistive, fast speed, reduced recycle time, and are less expensive. A rise in demand for these products from various industries such as metal fabrication, automotive, construction, furniture, and industrial machineries which drives the growth of the global market.  These tools are a form of cutting tools and utilize in heavy-duty machines such as drilling machines, CNC machines, lathe machines, and milling machines.

The global market is anticipated to grow significantly in the forecast period due to major key players introduce novel wear-resistant grades and expanded the tipped tools in various diameter ranges. Such product developments of existing product lines is anticipated to boost the demand for these tools and drive the market's growth. A rise in residential and commercial construction activities, which in turn, rising investments in public infrastructure globally, which, in turn, boosts the demand for drill bits, which drives the market growth.

For instance, in May 2022, the Spain government planned to spend USD 448 million on the development of the Xerta Senia Canal. The project was started in Quarter 1 (January 2022- March 2022), and will be completed by Quarter 4 (October 2024 - December 2024). Such factors boosted the growth of the global market. In addition, rapid infrastructural development in developing countries such as China, India, Brazil, and others, boosts the demand for these products.

COVID-19 Impact:

Halted Manufacturing Sectors to Hinder Market Growth During the Pandemic

The partial or complete lockdown was implemented globally due to the COVID-19 outbreak, resulting in the downfall of many manufacturing processes. In addition, halted construction-related activities, manufacturing facilities, and disruption in the supply chain negatively impacted the growth of the market. For instance, the net sales of OSG Corporation based in the U.S. dropped by 17.8% from 2019 -2020.

The major players witnessed a substantial drop in revenue generated during 2020. For instance, net sales of Kennametal Inc. dropped by around 20.6% in 2020 compared to 2019.  In the long term, the COVID-19 pandemic is anticipated to positively affect the global market. In addition, the pandemic negatively impacted the manufacturing industry and disruption in the supply chain of such products. According to government restrictions, lockdown was initiated globally, which declined the demand for such tools in the transportation and automotive sectors, restraining the market growth. According to International Air Transport Association (IATA), the aerospace sector has suffered from a decline of around 75.6% in the passenger traffic in the aerospace industry globally. However, the decline in the demand for these tools in aerospace sectors hampers the market's growth.

According to different sources, from the 2nd quarter of 2020, the demand for these products are kept on growing and is set to register a significant growth. Furthermore, technologically advanced products and work on research & development projected to hold the process of long-term market growth.


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Technological Advancement in the Product to Trigger Market Growth

Nowadays, major players are focusing on introducing new technological advancements with barrel tools and damped boring bar technology to intensify the market competition. In addition, key players are also focusing on introducing a new range of technologically advanced carbide cutting tools. For instance, in April 2020, LMT Tools India Pvt Ltd launched innovative RMC cutters for 5-axis CNC machines. The new innovative RMC cutters have features such as reduced operation costs, and increased operations productivity. It operates with less vibration as compared to other conventional tools. In addition, in October 2021, Walter AG introduced a new Walter Titex D170 carbide tipped tools for machining centers and CNC machines. It has a 50% longer tool life than conventional type of tools. Such technological advancements in these products are anticipated to boost the demand for these products in the future ahead.


Increasing Demand for These Products in Manufacturing Sector to Boost Market Growth.

Rising demand for these products for vital manufacturing sectors such as automotive, construction, electronics, and aerospace, among others, due to benefits such as highly efficient, hardness, and improving productivity, drive the growth of the global market. An increase in infrastructure-related activities in developing countries such as India, China, Brazil, and others is anticipated to boost the demand for such products and drive market growth. These products are widely used for drilling, milling, and turning tools. Rapid industrialization and urbanization in developed countries such as France, Germany, and the U.S. fuel the demand for cars and automobiles. This factor is expected to fuel market growth. For instance, urbanization in the U.S. increased by 1.2% from 2018 to 2021. Such factors are driving the growth of the market.


Fluctuation in Raw Material Prices to Hamper Product Demand

Metal alloys, stainless steel, and other metals are vital raw materials used by manufacturers. Prices of raw materials such as metal and stainless steel are volatile. The volatility in the prices of raw materials can affect the prices of these products and also affect the manufacturers' profitability. For example, if there is a rise in the prices of steel, metal, and alloys, this fluctuation can increase the prices of such products, which could affect the sales of the market. For instance, before the COVID-19 pandemic, steel prices ranged from USD 500 to USD 800. After the COVID-19 pandemic, steel prices costing increased by 200%, trading at a price of USD 1,800. These raw materials are imported from other countries, and fluctuation in raw materials prices depends on exchange rates. Hence, the fluctuation in raw material prices is anticipated to act as restraints on the growth of the market.


By Product Type Analysis

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Increasing Demand for Milling Tools in Manufacturing Sector Drives the Growth of the Market

The product type segment is classified into drilling tools, milling tools, turning tools, and others. The milling tools exhibit the highest CAGR of 5.3% during the forecast period. (2022-2029).

The milling tools are a major contributor in the market, owing to high efficiency, rigidness, and hardness. It is used in the construction and automotive industries due to its efficiency.

The drilling tools segment is expected to witness a substantial growth rate due to features such as high precision, reduced waste, and improved operations productivity. Such tools are largely adopted in the automotive, electronics, and aerospace industries.

The turning tools segment is projected to propel significant growth due to rising demand for round tools and reamers in CNC machines and lathe machines. In addition, these tools are utilized in various industrial sectors such as construction machines, automotive, furniture & carpentry, and healthcare equipment sectors.

The others segment includes taps & dies and reamers. A rise in the use of taps & dies in CNC machines, lathe machines, and milling machines. Such instances drive the growth of the global market.  

By Coating Type Analysis

Coated Segment Set to Observe Significant Growth Due to Rise in Demand of These Products from Automotive Sector

The coated type segment is categorized into coated and non-coated.

The coated segment dominates the market during the forecast period, owing to the use of coated inserts in automotive, aerospace, and other sectors. Also, coated drills and bits help in improving the efficiency of cutting, which reduces machining time and costs. As a result, the segment dominates the market for the forecast period.

The non-coated segment is anticipated to witness strong growth due to their affordability compared to coated types of tools and are widely adopted in electronics and carpentry applications.

By Configuration Analysis

Increasing Adoption of Such Tools in the Manufacturing Sector to Trigger Market Growth

The configuration segment is categorized into hand-based and machine-based.

The hand-based segment is anticipated to witness strong growth, owing to these products being largely utilized in manufacturing sectors, automotive, and industrial applications which aid for prominent share in the global market.

The machine-based segment dominates the market over the forecast period, owing to the adoption of these tools in high-speed cutting machines, CNC machines, lathe machines, milling machines, and drilling machines. Such factors drive the growth of the market.   

By End User Analysis

Automotive Segment Set to Dominate the Market Owing to Rising Manufacturing-Related Activities

The market segmentation based on the end-user segment is segmented into automotive, construction, metal fabrication, electronics & electrical, aerospace, and others. 

The automotive segment dominates the market due to rising manufacturers of automotive machines, thereby driving the demand for these tools. In addition, the rise in urbanization in various developing countries such as India, Brazil, Africa, and others enhances the demand for more automotive vehicles such as cars, bikes, and trucks. Such instances drive the demand for these tools and cater to improving the carbide tools market share.  

The construction segment is projected to grow with substantial growth, owing to increased residential and commercial construction-related activities among developed and developing countries, which boosted the demand for these tools for drilling machines, driving the market growth.  

The metal fabrication and electronics & electrical segment is anticipated to witness moderate growth, owing to the rise in demand for these tools across electronics devices as well as metal fabrication sectors. In addition, growth in industrial sectors in developing countries, thereby driving the demand for these tools. Such instances will cater to the market growth.

The aerospace segment is projected to witness decent growth, owing to an increase in manufacturing and production activities in aerospace and aircraft machineries. In addition, rising passenger traffic which is impacted by the boom in countries such as India, and China, which are registering rapid development in the aerospace industry, drive the market growth.

The others segment includes mining and carpentry. This segment is projected to witness decent growth, owing to the adoption of these types of tools for mining and carpentry sectors. Such instances boost the market growth.


Europe Carbide Tools Market Size, 2021 (USD billion)

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The scope of the global market is characterized into five regions, namely North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Europe is anticipated to have a dominant market share in the global market owing to strong economic growth in the countries including Germany, and U.K. A good infrastructure industry and the presence of large manufacturers of cutting tools in the European region, contributed positively to the growth of the market.

U.K. to Witness Fastest Growth Attributed to Adoption of Technological Advancements in These Tools

Several manufacturers, such as Guhring Ltd, Garr Tools Ltd, Ceratizit S.A., and Sandvik AB have the highest geographical presence in the U.K. In addition, the well-established infrastructure sector and utility industry fuel the demand for these products. Also, it is widely used in various automotive, construction, and aerospace industries. This factor is expected to increase demand for these tools, which fuels the market's growth.  

Asia Pacific region is projected to grow with the highest growth owing to an increase in the manufacturers of automotive and construction machinery, which fuels the growth of the market. In addition, rising urbanization and industrialization in developing countries such as India, Indonesia, and Vietnam which boost the demand for round tools, and drill bits for CNC machines, and lathe machines, which cater to the market growth. Such instances fuel the market growth in Asia Pacific region.

North America is growing with steady growth with an increase in product launches by improving the supply chain of these products. In addition, growth in the automotive industry, as a result, increases the demand for round tools and milling tools which triggers market growth. Also, the presence of major players such as Kennametal Inc, Greenfield Inc., OSG Corporation, and Fullerton Tool Company Inc in the U.S., which maintains the supply chain of these products, boost the market growth.   

Latin America is expected to witness moderate growth. It is mainly due to growing industrialization across various industries such as carpentry, automotive, construction, and metal fabrication sectors. Also, rising urbanization in countries such as Brazil, Argentina, and Costa Rica, which increased the sales of automotive vehicles across Latin America, which directly contributed positively to the market growth. These factors fuel the demand for carbide-tipped tools across Latin America.

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The Middle East and Africa are projected to have potential growth due to rising ongoing construction projects such as Assima Tower Building, Ciel Tower, and others. This factor is projected to boost the demand for these tools while construction activities propel the market growth in the Middle East.    


Prominent Players Emphasize on Strategies to Improve Overall Market Presence

Key players have adopted key developmental strategies such as product launches, acquisitions, and business expansion to improve carbide carbide-tipped tools' product portfolio and global manufacturers' geographical location. Moreover, key players are more d on adopting advancements in such products such as barrel tools, and damped bar boring technology, which fuels the market's growth in upcoming years.

Horn Cutting Tools Ltd to Introduce State-of-The-Art Tools for Manufacturing Industries  

In December 2021, Horn Cutting Tools Ltd, based in the U.K., launched a new series of carbide inserts such as IG3 and IG6. It is best suitable for turning machines. It has a thickness of 0.005mm. It can perform at a higher temperature of up to 11000 C. These inserts have features such as high precision rigidness, which extend the life of the product 10 times as of conventional carbide inserts. Such products are largely utilized by end users such as the automotive, construction, and electronics industries.  



  • February 2022- Peak Toolworks acquired Tooling Concepts Inc, based in the , offering cuttings and milling tools. The acquisition was made to improve the geographical presence in the Midwestern U.S. countries such as Indiana, Michigan, and Minnesota.

  • July 2021 – Sandvik AB signed and acquired a 67% share of Chuzhou Yongpu Carbide tipped Tools Co Ltd, based in China, which deals in carbide cutting tools, and cutting tools. The acquisition was made to improve the product portfolio of carbide tools across diversified geographies.    

  • March 2021 – Plansee Group holds around 50% shares of Ceratizit S.A., based in Luxembourg.  The acquisition helped to improve the diversity in its product portfolio.

  • February 2021 – Mitsubishi Materials Corporation acquired 30% shares in Mantoverde Copper Mine based in Chile, Delas in cutting tools, and carbide tipped tools. The acquisition was made for around USD 275 million. The acquisition helped to improve the product portfolio   of the companyfor industrial sectors such as automotive, construction, and others.

  • November 2020-  GWS Tool acquired Carbide Tools Mfg Inc, based in the U.S., offering cutting tools and metal cutting tools. The acquisition helped improve the product capacity of round tools and tipped tools for manufacturing industries.


An Infographic Representation of Carbide Tools Market

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The global carbide tools market research report focuses on leading regions across the globe to offer a better understanding to end-users. Moreover, the report offers insights into the industry dynamics and analyzes technologies utilized at a rapid pace across the world. It also displays some key factors and restraints to help the readers gain in-depth knowledge about the market.

Report scope & segmentation



Study Period

2018 – 2029

Base Year


Estimated Year


Forecast Period

2022 – 2029

Historical Period

2018 – 2020


Value (USD billion)


Product Type, Coating Type, Configuration, End User, and Region

By Product Type

  • Drilling Tools

  • Milling Tools

  • Turning Tools

  • Others (Taps & Dies, Reamers)

By Coating Type

  • Coated

  • Non-coated

By Configuration

  • Hand Based

  • Machine Based

By End User

  • Automotive

  • Construction

  • Metal Fabrication

  • Electronics & Electrical

  • Aerospace

  • Others (Mining, and others)

By Region

  • North America (Product Type, Coating Type, Configuration, End User, and Country)

    • U.S. (By Product Type)

    • Canada (By Product Type)

    • Mexico (By Product Type)

  • Europe ( Product Type, Coating Type, Configuration, End User, and Country)

    • Germany (By Product Type)

    • Italy ( By Product Type)

    • France ( By Product Type)

    • U.K. (Product Type)

    • Rest of Europe

  • Asia Pacific ( Product Type, Coating Type, Configuration, End User, and Country)

    • China (By Product Type)

    • India (By Product Type)

    • Japan (By Product Type)

    • Australia (By Product Type)

    • Rest of Asia Pacific

  • Middle East and Africa ( Product Type, Coating Type, Configuration, End User, and Country)

    • GCC Countries (By Product Type)

    • South Africa (By Product Type)

    • Rest of the Middle East and Africa

  • Latin America ( Product Type, Coating Type, Configuration, End User, and Country)

    • Brazil (By Product Type)

    • Argentina (By Product Type)

    • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says the market stood at USD 10.39 billion in 2020.

Fortune Business Insights says the market will reach USD 15.47 billion in 2029.

Registering a CAGR of 5.5%, the market will exhibit strong growth during the forecast period.

Rapid deployment of carbide tools in multiple industrial sectors is expected to drive market growth.

OSG Corporation, Sandvik AB, Kennametal Inc, Guhring Ltd, and Sumitomo Electric Industries Ltd are the top companies in the global market.

The milling tools segment is expected to capture the highest CAGR in the market.

The non-coated segment is expected to capture the highest CAGR in the market.

Asia Pacific region is expected to capture the highest CAGR in the market.

High initial investment and fluctuation in raw material prices are restraining the markets growth.

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