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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