Material Removal Tools Market Size, Share & Industry Analysis, By Tool Type (Corded and Cordless), By Material Type (High Speed Steel, Ceramics, Diamond, and Others), By Industry (Aerospace, Automotive, Chemical, Construction, Defense/Military, Electronics, Oil & Gas, Metal & Mining, and Others), and Regional Forecast, 2025 – 2032

The global material removal tools market size was valued at USD 7.98 billion in 2024 and is projected to grow from USD 8.35 billion in 2025 to USD 12.07 billion by 2032, exhibiting a CAGR of 5.4% during the forecast period. Asia Pacific dominated the global market with a share of 51.50% in 2024.

The material removal tools market is driven by the dynamic market demand for various products, including drills, cutters, saws, and others. Material removal tools include high-speed steel, ceramics, diamond, and others, offering either cordless power tools or corded professional tools. The evolving market landscape is marked by intense competition among established players such as Robert Bosch, Hilti, Koki and new regional entrants. The market’s nature is closely aligned with the manufacturing sector’s growth, exhibiting a derived demand from customer end use.

During the COVID-19 pandemic, the power tool market fell to negative levels owing to the immediate shutdown of factories, disruption in transportation, destabilization of the economy, and related ecosystem etc. The integration of Industry 4.0 elements, such as AI, IIoT, and Robotics, is transforming the market's growth.

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IMPACT OF RECIPROCAL TARIFFS

Volatile Market Dynamics and Disturbed Trades are Restructuring the Market

Due to the trade war, prominent tool manufacturers experience additional risks, such as decreased foreign demand, research and development investment, and thereby fueling the need for a resilient supply chain. Further, the impact of tariffs on power tools is a major reason for the market restructuring. Many manufacturers are focusing on identifying new markets and increasing their offerings in existing markets, supporting the merger and acquisition strategies of major manufacturers globally. The reciprocal tariffs' impact is very high in the short term, as it would delay order proceedings, and in the long term, it would create a price pressure on the end user, creating difficulties for the market.

• For instance, in April 2025, Stanley Black & Decker, a prominent power tools manufacturer, said that they were raising their prices and shifting their supply chain in response to the Trump administration’s tariffs. The prices will be raised in the second quarter of 2025 and further in the third quarter.

MARKET DYNAMICS

Market Trends

Demand for Efficient and Ergonomic Products Fuel Market Trend

Innovative and battery-enabled power tools in the material removal category are shaping market trends. End-users are significantly adopting products that are easy to operate and deliver maximum efficiency and throughput. Products designed to be ergonomically compliant and handle complex material removal operations are forecast to shape market trends for material removal tools.

• For instance, in November 2024, Festool, a prominent power tool manufacturer, launched a cordless electric sander that delivers maximum freedom of movement. The integrated LED lights further improve the surface view and reveal unevenness.

Market Drivers

Rising Technological Advancements in Cutting Tools Bolster Market Growth

Growth in the material removal tools is significantly enhancing the production efficiency and precision of the material removal process, owing to advancements in abrasive technology. Further, the expansion of the product line with innovative products pushing the capabilities of the cutting processes by minimizing failure and boosting production is proliferating the material removal tools market growth.

• For instance, in May 2024, Makita U.S.A. Inc. introduced its innovation accessory category of diamond blades optimized for use with battery-powered cordless grinders and cutters. These blades feature ultra-thin kerfs that can deliver faster cuts per charge.

Market Restraints

Supply Chain Tensions and Trade Conflicts are Hindering Market Growth

The ongoing trade disputes and geopolitical trade tensions between major countries impacted by the high tariffs are creating a void in the market where demand is growing and supply is shrinking, leading to price volatility. Further, the supply chain is the major factor that hampered the business, as tariffs caused inventory diversion and re-negotiations of sourcing materials, hindering market growth. Also, the presence of efficient machine tools and Computer Numerical Control (CNC) technology is further declining the product sales in the long term.

Market Opportunities

Advancement in Product Handling is Driving Opportunities across Professional Space

Technological advancements in sawing and cutting processes, including impact material usage such as High-Speed Steel (HSS) in saw blade manufacturing, which promotes ease of working and product handling, are extending the material removal tools market potential. These features offer convenience in operating modern power tools and high uptime as they provide more operational productivity and fewer failures. All these latest advancements in the removal tools segment create new market trends that will expand the material removal tools market share during the forecast period.

• For instance, in March 2024, Makita U.S.A. Inc., a leading high-quality tool manufacturer, launched two new jigsaws on its XGT platform for fine woodworking. The 40V Barrel grip jigsaw offers an ergonomically designed grip with a large variable speed trigger and lock-on button for convenience.

Segmentation Analysis

By Tool Type

Recursive Corded Tools in Industrial Cutting Demand Drive Dominance

The tools type segment is categorized into corded and cordless.

Corded material removal tools are dominating the tool type segment owing to their high-quality precision and efficiency, driving organic sales from commercial and industrial customers. Moreover, material removal tools are growing progressively, gaining the highest CAGR owing to their easy handling and quality production output that benefits stakeholders and professional workers across various industries.

Cordless tools are significantly expanding market share due to the early adopters switching to cordless and being easy to use in complex operations.

By Material Type

Advancements in Abrasives for Precision Results Diamond Tools Product Demand

The market is categorized by material type into high-speed steel, ceramics, diamond, and others.

The diamond tools' material blades are witnessing the highest growth owing to advancements in cutting tools' abrasive material, which benefits end users with maximized productivity and efficient cutting.

High-Speed Steel (HSS) material type tools are witnessing moderate growth due to consistent demand from the commercial sector, demanding high performance and better finishing. Ceramics and other tool types are significantly expanding the application owing to the recursive demand from professional material removal applications.

By Industry

Bolstered Use in Automotive Sector is Proliferating Segment Growth

The industry segment is categorized into aerospace, automotive, chemical, construction, defense/military, electronics, oil & gas, metal & mining, and others.

The automotive industries are showcasing maximum growth due to the high usage of tools to meet complex bodywork finishing and other industrial operations. The sector is dominating the material removal tool demand, proliferating recurring revenue streams in the long term.

Moreover, the transition towards Industry 4.0 and increasing preference for electric power tools across emerging sectors such as defense/military, construction, aerospace, and others will significantly create opportunities for removal tools.

Material Removal Tools Market Regional Outlook

The market is categorized by region into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Asia Pacific

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Asia Pacific is the dominant region, strengthening removal tools in densely populated countries such as China, India, and Japan. The tool offers plenty of opportunities owing to the pronounced high-precision metal processing demand across the electric vehicles and renewable energy sectors. Also, investments in this region are either through partnership or direct entry, providing a push to revenue growth or expanding the material removal tools market size during the forecast period.

North America

The North American market is mature yet steadily growing. It is driven by the need for more compact and powerful material removal tools that are easy to operate and provide efficient output. The presence of the finest power tool manufacturers and the integration of the latest innovations also drive growth. 

The U.S. is a leading market in North America, gaining the highest market share owing to the increasing demand for cordless and battery-powered tools. The presence of prominent power tool manufacturers and end users solidifies this presence.

Europe

The Europe region is showcasing moderate growth, underpinned by its strict product policy and safety compliance. Moreover, the growing demand for ergonomically developed products that comply with European safety standards strengthens market demand.

Middle East & Africa

The Middle East & Africa market is witnessing stable growth, primarily driven by the increasing focus on industrialization and investment in infrastructure development by Saudi Arabia, Qatar, Kuwait, and African countries. All these developments and catalytic boosters are helping the market grow.

Latin America

The Latin American market is estimated to record the slowest growth during the forecast term. Few investment plans and stagnant domestic demand make it a stringent market. However, partnerships and acquisitions could create plenty of new opportunities for expansion.

COMPETITIVE LANDSCAPE

Key Industry Players

Focus of Major Companies on Portfolio Enhancements and Innovations is Driving Growth

Key players in the material removal tools market operating worldwide are focusing on enhancing their products and new product launches. Businesses are focusing on introducing products with advanced precision cutting capabilities, with faster cuts in a single charge to benefit end-users. Further, businesses are focusing on enhancing their product portfolio with more affordable and enhanced offerings to drive growth.

• For instance, in September 2024, Milwaukee Tool introduced next-generation deep cuts and band saws that deliver better user-cutting performance. The new band saws cut 4-inch black iron pipes 20% faster than old ones.

LIST OF KEY MATERIAL REMOVAL TOOLS COMPANY PROFILED

• Atlas Copco AB (Sweden)
• Emerson Electric Co. (U.S.)
• Enerpac Tool Group (U.S.)
• Hilti Corporation (Liechtenstein)
• Ingersoll Rand (U.S.)
• Koki Holdings Co., Ltd. (Japan)
• Makita Corporation (Japan)
• Robert Bosch GmBH (Germany)
• Stanley Black & Decker Inc. (U.S.)
• Techtronic Industries Co. Ltd. (China)

KEY INDUSTRY DEVELOPMENTS

• February 2025: Makita Inc., a high-quality professional tool manufacturer, has introduced the XDefence tool management XGT communication adapter. It enables communication between XGT series batteries and tools, and PC tool management software, benefiting from better tool management and increased security.
• November 2024: Makita Inc. has introduced a 40V high-powered XGT battery that can deliver more power and run cooler. The batteries are designed to deliver high power under heavy load applications and are 35% more powerful, compact, and cooler than existing battery lines.
• November 2024: Makita Inc. has released two new corded drills to its expansive line of hand tools. They offer a powerful motor and variable speed ideal from 0 to 3,000 RPM for improved drilling performance on a variety of materials.
• October 2024: Makita Inc. released a new 40V max XGT 9-inch power cutter designed to deliver more power and less vibration than previous models. The tool is suitable for masons, general contractors, hardscape contractors, fire and rescue professionals, and many others.
• October 2024: Makita U.S.A. Inc. has released a new breaker hammer for the XGT platform. The new breaker offers the concrete user the effectiveness of a corded or pneumatic breaker. The product features Anti-Vibration Technology (AVT) that effectively lowers vibrations during operations.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, tool types, and industry. It also offers insights into market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

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Report Scope & Segmentation