The global metal cutting tool industry was valued at $65.5 billion in 2020 and is estimated to reach $107.3 billion by 2032, exhibiting a CAGR of 4.1% from 2023 to 2032.
According to Allied Market Research, which published a report on the metal cutting tool and forecasts the market between 2023–2032, the growth of the global metal cutting tool market is driven by factors such as the growth of the automotive industry, increased construction activities globally, and a rise in the manufacturing sector.
Furthermore, fluctuating prices of raw materials may limit the growth of the market. On the other hand, the increase in the adoption of Industry 4.0 is anticipated to open new avenues for the growth of the metal cutting tool market.
Report highlights
The solid round tools segment is set to maintain its leadership status throughout the forecast period, the report states.
By tool type, the solid round tool segment held the highest market share in 2020, accounting for nearly three-fourths of the global metal cutting tool market revenue, and is estimated to maintain its leadership status throughout the forecast period.
The same segment would also portray the fastest CAGR of 4.4% during the forecast period. The recent development of materials for ultimate metal removal inserts, which are lightweight and have an extended life, is expected to boost the demand for metal cutting tools. In addition, an increase in new technologies, such as state-of-the-art manufacturing technologies, 3D printing, and additive manufacturing, ease the method and enhance the standard of products. Moreover, rapid growth in the automotive industry is expected to boost market growth during the forecast period.
The lathe segment
In addition, the lathe segment is also expected to maintain its lead position during the forecast period.
By product type, the lathe segment held the major market share in 2020, contributing to nearly two-fifths of the global metal cutting tool market revenue, and is expected to maintain its lead position during the forecast period. On the other hand, the milling machine segment is expected to display the fastest CAGR of 5.0% during the forecast period. This is attributed to the increasing demand for metal cutting tools in the industrial sector.
Automotive segment
The automotive segment will continue to rule the roost by 2032. By application, the automotive segment accounted for the largest share in 2022, contributing to nearly two-fifths of the global metal cutting tool market revenue, and is projected to rule the roost by 2032.
The automobile industry has shown significant growth in the developing countries mainly in China and India. Although the industry has reached a stagnation point in the U.S. and European countries, the after-sales services, such as repairing, maintenance, and retrofitting have higher demand in these regions. Such factors propel the demand for metal cutting tools in the automotive industry globally. However, the electronics segment is expected to exhibit the fastest CAGR of 5.3% from 2023 to 2032.
Asia-Pacific to maintain its dominance
By region, the Asia-Pacific held the highest market share in 2020, accounting for more than half of the global metal cutting tool market revenue, and is expected to maintain its dominance throughout the forecast. The same region would also cite the fastest CAGR of 4.7% during the forecast period. The development of developing countries has had a significant influence on the global growth of the automotive industry. As the demand for automotive products increases in emerging markets, suppliers have the potential to benefit in this region.
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Related Glossary Terms
- gang cutting ( milling)
gang cutting ( milling)
Machining with several cutters mounted on a single arbor, generally for simultaneous cutting.
- lathe
lathe
Turning machine capable of sawing, milling, grinding, gear-cutting, drilling, reaming, boring, threading, facing, chamfering, grooving, knurling, spinning, parting, necking, taper-cutting, and cam- and eccentric-cutting, as well as step- and straight-turning. Comes in a variety of forms, ranging from manual to semiautomatic to fully automatic, with major types being engine lathes, turning and contouring lathes, turret lathes and numerical-control lathes. The engine lathe consists of a headstock and spindle, tailstock, bed, carriage (complete with apron) and cross slides. Features include gear- (speed) and feed-selector levers, toolpost, compound rest, lead screw and reversing lead screw, threading dial and rapid-traverse lever. Special lathe types include through-the-spindle, camshaft and crankshaft, brake drum and rotor, spinning and gun-barrel machines. Toolroom and bench lathes are used for precision work; the former for tool-and-die work and similar tasks, the latter for small workpieces (instruments, watches), normally without a power feed. Models are typically designated according to their “swing,” or the largest-diameter workpiece that can be rotated; bed length, or the distance between centers; and horsepower generated. See turning machine.
- milling
milling
Machining operation in which metal or other material is removed by applying power to a rotating cutter. In vertical milling, the cutting tool is mounted vertically on the spindle. In horizontal milling, the cutting tool is mounted horizontally, either directly on the spindle or on an arbor. Horizontal milling is further broken down into conventional milling, where the cutter rotates opposite the direction of feed, or “up” into the workpiece; and climb milling, where the cutter rotates in the direction of feed, or “down” into the workpiece. Milling operations include plane or surface milling, endmilling, facemilling, angle milling, form milling and profiling.
- milling machine ( mill)
milling machine ( mill)
Runs endmills and arbor-mounted milling cutters. Features include a head with a spindle that drives the cutters; a column, knee and table that provide motion in the three Cartesian axes; and a base that supports the components and houses the cutting-fluid pump and reservoir. The work is mounted on the table and fed into the rotating cutter or endmill to accomplish the milling steps; vertical milling machines also feed endmills into the work by means of a spindle-mounted quill. Models range from small manual machines to big bed-type and duplex mills. All take one of three basic forms: vertical, horizontal or convertible horizontal/vertical. Vertical machines may be knee-type (the table is mounted on a knee that can be elevated) or bed-type (the table is securely supported and only moves horizontally). In general, horizontal machines are bigger and more powerful, while vertical machines are lighter but more versatile and easier to set up and operate.
