"Catapult Your Business to Fore, Gain Competitive Advantage "
The global metal cutting tools market size was USD 77.24 billion in 2019 and is projected to reach USD 101.48 billion by 2027, exhibiting a CAGR of 4.2% during the forecast period.
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 for market growth. This is attributed to the advantages offered by CNC metal cutting tools including high efficiency, transparency, cost-saving, and time efficiency.
COVID-19 Effect: Halt on Manufacturing Industries to Restrain Market Growth
The impact of the coronavirus outbreak on the market has been relatively less in the eastern countries such as China, South Korea & Japan, 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 surge at a global level. Moreover, the impact on the manufacturing industry of the 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 metal cutting tools are likely to be back on track, thus, resulting in considerable demand for machines in the coming years.
Request a Free sample to learn more about this report.
Additive Manufacturing is Expected to Increase the Market Growth
The increasing popularity and technological advances in additive manufacturing have increased the demand for metal cutting tools. For instance, the 3D printing technology that enables to create three-dimensional objects through printing is rapidly gaining the interest of key players in the industry. 3D printing benefits such as optimum use of raw materials, waste reduction, and ease of production of various complex geometries are expected to drive the market. The widespread applications of 3D printing in automotive, construction, apparels and bioprinting, medical devices, and robots are further expected to result in the growth of the additive manufacturing industry in the future.
Increasing Adoption of Industry 4.0 is Driving the 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 towards intelligent, connected, and streamlined machine systems. Through Industry 4.0 solutions, manufacturers are able to benefit in 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. The real-time quality assurance is further expected to result in increased penetration of cutting machine tools.
High Initial Investment & Fluctuating Raw Material Prices to Hinder Market Growth
Several companies are concentrated on automating their manufacturing processes; however this involves high purchasing, training, and maintenance cost of machines. Also, one of the major factors affecting the growth of the market is fluctuating raw material prices. Furthermore, amid ongoing pandemic, companies face trouble adjusting to the changing needs of the hour. The companies are currently going through a severe cash crunch, as a result of which they are required to downsize and reduce work-force. This is expected to affect companies’ revenue in the coming years based on the severity of the current economic situation because of the pandemic.
High Demand for CNC Lathe Machines to Aid Growth of the Market
Based on the product, the global market is segmented into machining centers, lathe machines, boring machines, grinding machines, milling machines, and others.
The lathe machine segment is expected to be the fastest-growing type of metal cutting tools. This is attributed to the increasing 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 growth of the metal cutting tools market.
Furthermore, machining centers hold the major market share and are expected to dominate in the forecast years. This is attributable to the increasing need for mass production from various industries including automotive. The advancements in precise cutting have resulted in increased demand for milling and boring machines. The grinding machines are gaining popularity in the machine tools industry owing to the increasing application of surface grinders, cylindrical machine grinders, tool, and cutter grinders.
To know how our report can help streamline your business, Speak to Analyst
Automotive is Expected to Remain a Dominant Segment in the Market
Based on the application, the segment is broken down into automotive, general machinery, precision engineering, transport machinery, and others.
The market has witnessed significant growth over the past few years as a result of the automotive sector. The automotive segment uses machine tools to produce various automotive parts, including disk brakes, gearboxes, engine parts, and others. Furthermore, increasing demand for industrial machinery is a result of rising demand from various industries such as aerospace, construction, and food and beverage.
Precision machinery is expected to be the fastest-growing segment owing to the need for high accuracy in various applications, including aerospace, military, and defense. The transport machinery is gaining importance due to the increasing global trade.
Asia Pacific Metal Cutting Tools Market Size, 2019 (USD billion)
To get more information on the regional analysis of this market, Request a Free sample
Based on regions, the scope of the study is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, which is further drilled down into countries.
Asia Pacific holds the major market share and is expected to remain dominant during the forecast period. This is attributed to the increasing demand from industries such as automotive, construction, and food and beverage. Rising government initiatives to promote electric vehicles is expected to push the market. For instance, China has imposed a restriction on investment in the traditional vehicles' new manufacturing plant and the local governments have also imposed a quota for EV production for all manufacturers.
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 and Africa is expected to grow owing to the increasing investments in the non-oil business. The metal cutting tools market research in Latin America is expected to grow due to the increasing demand from the automotive sector.
Leading Players are Focusing on New Product Development to Maintain their Market Position
The key manufacturers such as Doosan and Okuma Corporation are trying to bring new innovative products to the market. They 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) in order to enhance its market share in Mexico.
An Infographic Representation of Metal Cutting Tools Market
To get information on various segments, share your queries with us
The report provides an in-depth analysis of the market dynamics and competitive landscape. It provides various key insights including recent industry developments in the metal cutting tools market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.
Value (USD billion)
As per the Fortune Business Insights study, the global market value stood at USD 77.24 billion in 2019.
By 2027, the global market value is expected to reach USD 101.48 billion.
The market is projected to grow at a CAGR of 4.2%, exhibiting moderate growth during the forecast period (2020-2027)
Asia Pacific is expected to hold a dominant market share, with its value standing at USD 43.47 billion in 2019.
Within the product segment, lathe machines are expected to be the leading segment in the market during the forecast period.
Increasing adoption of industry 4.0 is driving the market
Yamazaki Mazak Corporation, Doosan Machine Tools Co., Ltd., Okuma Corporation, and FANUC America Corporation are the major players in the market.
The automotive sub-segment is expected to drive the market.
The major players in the market constitute ~55% - 60% of the market, which is majorly owed to their brand name and presence in multiple regions.
Automotive sector holds the major market share in the metal cutting machine tools market. The rise in demand for light weight vehicles is expected to drive the metal cutting machine tools market in the near future. Furthermore, the government policies to encourage electric vehicles penetration is positively contributing in the growth of the automotive industry.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry