---

Market Overview

---

The global cutting tools market achieved a valuation of USD 9.50 billion in 2022 and is projected to reach USD 13.26 billion by 2028, with a compound annual growth rate (CAGR) of 5.72% during the forecast period. This growth can be attributed to continuous innovation within the industry, resulting in upgraded cutting tools with improved features and functions. The market is primarily driven by rapid industrialization and increasing usage in both household and commercial sectors. These cutting tools find widespread application in industries such as automobiles, aerospace, construction, wood, and power generation. They are also utilized for various household projects including hole-making and Do-It-Yourself (DIY) activities.

The global cutting tools market has experienced significant growth since 2021, largely due to the increasing popularity of power and hand tools. The metalworking industry serves as a major driver for this market, but cutting tools are also extensively used in other commercial sectors. Cutting and shaping tools are primarily employed across industries such as metalworking, woodworking, construction, handicrafts, and any field requiring shaping or scraping operations. Additionally, the automotive sector in the Asia-Pacific (APAC) region witnesses significant demand from emerging economies like India and China. Cutting tools such as drills, center drills, piloted reamers, piloted core drills, and reamers play a crucial role in automotive manufacturing. There is considerable potential for further growth in this sector due to increased productivity. The global construction sector is also expected to expand due to rising housing demand driven by population growth, increased disposable income, and infrastructure upgrades necessitated by robust industrialization.

Moreover, the United States has become a hub for investments in the oil and gas sector due to rising well efficiencies and low production costs. It is also witnessing increased exploration and production deals in the oil industry, attracting foreign investors seeking to capitalize on profit opportunities. Furthermore, oil and rig activities in the region are expected to rise following the approval of numerous projects, thereby boosting the cutting tools market during the forecast period.

In developed economies like the United States and Europe, many adults engage in purposeful and creative leisure activities, often investing in home improvement and maintenance projects based on personal interests. Countries such as France, Germany, Italy, and the UK consider DIY activities a significant hobby. The concept is also gaining popularity in developing economies like India, Brazil, and South Africa. The growing interest among consumers in undertaking their own projects and maintaining a sustainable environment has increased the demand for DIY products, including cutting tools. During the pandemic, DIY activities gained traction as people sought stress relief and cost-saving measures while staying indoors. The Western countries, particularly in North America, contribute to nearly 81% of the market share in the DIY industry and this trend is expected to continue. The surge in the DIY industry is projected to be driven by media presence, including television, social media, and videos, which have facilitated the recreation of home improvement projects. Western countries like North America and Canada actively participate in DIY activities, and retail stores such as supermarkets and hypermarkets have contributed significantly to the growth of vendors in the DIY segment.

Cutting tools play a crucial role in manufacturing, particularly in the production of general machinery, automobiles, aviation and aerospace equipment, energy systems, medical devices, rail transit, molds, machine tools, and other industries. The automotive manufacturing process heavily relies on cutting tools as they are an integral part of the production process. Traditional techniques have been replaced by advanced methods like high-speed cutting, dry machining, hard machining, and other cutting-edge technologies. The automotive sector has witnessed a significant shift towards the use of professional tools like Carbide Cutters to meet the demand for high-quality and precise production of valuable components. The industry has transitioned from traditional machining to high-performance cutting tools that offer enhanced efficiency and accuracy. Furthermore, the increasing automation of machinery and equipment, coupled with the growing need for high-performance and high-precision machining, has become crucial for industry growth. Consequently, there is a rising demand for efficient and high-performance cutting tools, driving the development of new cutting technologies within the cutting tools market.

---

Market Segmentation

---

The market is segmented based on various factors, including tool type, product, end-user, distribution channel, and geography.

Segmentation by Tool Type
Indexable
Solid Round

Segmentation by Product
Groovers
Reamers
Milling Cutters
Drills
Others

Segmentation by Material Type
Cemented Carbide
High-Speed Steel
Ceramics
CBN
Others

Segmentation by End-User
Automotive
General Manufacturing
Oil & Gas
Aerospace & Defense
Electronic & Electricals
Medical
Others

Segmentation by Distribution Channel
Offline
Online

Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain
Asia-Pacific – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, UAE

The dominant position of the indexable tool type segment in the global cutting tools market in 2022 can be attributed to its utilization in modern turning operations. This has displaced previously common tool types such as HSS, brazed-carbide, and custom form tools, which were commonly used before the widespread adoption of CNC machines. When used in conjunction with the multiple-axis motion of a CNC machine tool, indexable turning tools make it easier to create complex shapes, eliminating the need for dedicated turning tools. However, solid round tools are experiencing high growth rates in the global cutting tools market due to their versatility in covering all application types within solid carbide drilling, milling, HSS tapping, reaming, and threading. Each solid round tool is designed to meet the requirements of high quality, precision, and maximum productivity, enabling optimal machining processes.

In terms of product segments, groovers, reamers, milling cutters, drills, and others comprise the global cutting tools market. In 2022, the groover product type dominated the industry. These tools are extensively used with lathes to cut channels on the end of a workpiece or into an existing bore. Groovers are also employed for various applications, including creating recesses for retaining rings and necking workpieces to ensure a clean fit when mating parts. A grooving tool is a cutting tool that removes material to form grooves, channels, or other cross-sectional shapes on the workpiece. A groove may be cut with an end mill having one fixed cutter and another movable cutter placed at each side. Such tools are also referred to as profile mills when they produce linear cuts along the length of the item being milled. Grooving inserts can be made from carbide, ceramic, diamond, or PCD (polycrystalline cubic boron nitride). While these inserts are mainly used by metalworking industries like aerospace and defense equipment manufacturers, non-metal manufacturing companies such as medical device makers utilize them for grooving medical-grade plastic parts.

The cemented carbide material type segment dominated the global cutting tools market in 2022, with a valuation of over USD 3.2 billion. This market is highly fragmented and consists of numerous companies operating globally and regionally. This indicates that cutting tool manufacturers possess significant bargaining power over suppliers. Cemented carbide tools are primarily employed for high-precision work involving greater shape, size, and structural complexity. However, specialized cutting tools are more cost-effective and efficient for specific tasks. The APAC and North American regions are projected to have the largest share in the global cemented carbide industry. Vendors in these regions are expected to benefit from abundant raw material availability, which provides them with a competitive advantage in terms of selling price. The high availability of other raw materials, such as steel, in countries like China, India, and the U.S., is also anticipated to lead to high growth rates for high-speed steel (HSS) tools. This is expected to enable vendors to enhance their profit margins by maintaining good supplier-vendor relationships.

The automotive industry represents the largest end-user segment in the global cutting tools market. Drilling and fastening tools are primarily used for tightening fasteners, engine mounting, and other joint works. Sanders and angle grinders are utilized for smoothing and polishing vehicle parts and chassis. With the global electric vehicles market growing at an annual rate of almost 60%, expansion and increased production facilities are expected to drive the demand for cutting tools. This trend is particularly prominent in countries such as China, Japan, the U.S., and Western Europe, where the production of EVs is likely to accelerate during the forecast period.

In 2022, the offline distribution channel accounted for the highest share in the global cutting tools market. Factors such as broader reach in areas with limited connectivity and the high consumer trust associated with physically touching and experiencing the quality of products are driving the growth of this segment. Although the online segment holds a relatively smaller market share, it is expected to grow at a faster rate compared to offline distribution channels.

APAC was the largest cutting tools market in 2022 due to its diverse range of industries, including manufacturing, services, automobiles, and electrical. This, in turn, increases the demand for a unique assortment of cutting tools with precise performance. While Japan and South Korea are major manufacturers and exporters of electrical appliances and automobiles, Singapore excels in construction facilities. Furthermore, the increasing purchasing power of consumers and the rising DIY culture among both young and experienced consumers are driving the regional residential tools market, including cutting tools. Additionally, the comparatively lower penetration of cutting tools in countries like India and China, due to limited awareness and operating knowledge, presents a natural growth opportunity for cutting tool vendors.

---

Competitive Landscape

---

The global cutting tools market exhibits characteristics of low market concentration and intense competition among key players. In order to establish a strong market presence, vendors are compelled to adapt and refine their unique value propositions. Currently, the cutting tools market is highly fragmented and primarily dominated by renowned vendors such as Kennametal Inc., OGS Corporation, and Iscar Ltd. These companies operate alongside numerous local tool manufacturers who cater to specific regional demands and regulations.

To maintain a competitive edge, vendors must continuously develop new patented designs and ergonomic features that align with upcoming innovations. During the forecast period, many international players are expected to expand their global footprint by offering industry-leading solutions. This expansion will particularly focus on fast-developing countries in Europe, the United States, and the GCC region, as they seek to capture a larger market share. Furthermore, the overall growth of the cutting tools market will be fueled by the improving global economic conditions.

Key companies profiled in this report include Kennametal Inc., OSG Corporation, Iscar Ltd, Mapal, Makita Corporation, Robert Bosch, Stanley Black & Decker, Kelin Tools, ICS Cutting Tools Inc, Snap-on Incorporated, OTTO BAIER GmbH, Hilti Corporation, Sandvik AG, Ingersoll Cutting Tools, FRASIA SA, KYOCERA, J SCHNEEBERGER Maschinen AG, VOLLMER, CERATIZIT Group, HIKOKI.

---

Key Questions Answered

---

What is the market size of the global cutting tools industry?

The global cutting tools market was valued at USD 9.50 billion in 2022 and is projected to reach USD 13.26 billion by 2028.

What is the growth rate projected for the global cutting tools market?

The global cutting tools market is expected to grow at a compound annual growth rate (CAGR) of 5.72% from 2022 to 2028.

Which region holds the largest market share in the global cutting tools industry?

APAC dominates the global cutting tools market, accounting for nearly 38% of the market share in 2022.

Who are the major players in the global cutting tools market?

The major players in the global cutting tools market include Kennametal Inc., OSG Corporation, and Iscar Ltd.

What are the key trends observed in the cutting tools market?

The significant trends in the cutting tools industry include the emergence of the construction sector, increasing demand for luxury vinyl tiles, and a robust growth in new construction and remodeling activities in the residential sector.