Cutting Tools Market Overview:
The global cutting tool market is poised for steady growth, reaching US$48,052.96 million by 2031 from US$37,745.37 million in 2024, at a CAGR of 3.5% (2025-2031). This growth is driven by advancements in automation, digital manufacturing, and the increasing demand for high-precision, customized tooling solutions. The adoption of advanced materials like carbide, polycrystalline diamond (PCD), and cubic boron nitride (CBN) is enhancing tool efficiency and durability. Key industries such as automotive, aerospace, and electronics—especially in the Asia Pacific region—are fueling demand, supported by rapid industrialization and expanding manufacturing activities. Emerging trends include the integration of AI and IoT in machining processes, the rise of sustainable tooling solutions, and a shift towards lightweight materials to improve performance and energy efficiency. Additionally, significant R&D investments by industry leaders are accelerating technological innovations, further driving market expansion.
Report Coverage
The report “Cutting Tools Market – Forecast (2025-2031)”, by IndustryARC, covers an in-depth analysis of the following segments of the Cutting Tools Industry.
By Tool Design: Single-Point, Double-Point, And Multi-Point Cutting Tools.
By Product Type: Drilling & Boring (Solid Standard Drilling, Solid Deep Drilling, Indexable Insert Drilling, Reamers, Countersinking, Counterboring, Spindle Drilling/Boring Tools, Combination Drilling, Modular Drilling, Threading, And Others), Milling (End/Face Milling, Slit/Slot Milling, Plunge Milling, Contour Milling, Profiling & Gear Cutting, Threading, Micromachining, Helical Milling, And Others), Turning (Standard Turning, Parting/Grooving, Profiling, Micromachining, Threading, And Others), Sawing & Cutting (Circular Saw Cutting, Hack Saw, Band Saw, Die Cutting, And Others), Finishing (Grinding, Honing, Lapping), And Other Cutting Tools.
By Tool Category: Solid Cutting Tools, Tipped Tools, Pointed Tools, And Indexable Tools (Inserts Only, Tool Holder, Cutter Assembly With Insert & Holder, And Others).
By Tool Coating: Uncoated And Coated Tools (PVD coated, CVD coated).
By Motion Of The Tool: Translatory, Reciprocating, And Rotary Motion Tools.
By End-User: Aerospace, Defense & Military, Automotive, Chemical, Food & Beverage, Agriculture, Oil & Gas, Mining, Paper & Pulp, Textile, Telecommunication, Construction & Infrastructure, Electronics, Power Generation, White Goods & Consumer Products, Medical, Railways, Industrial Machinery & Capital Goods, Woodworking, Metal, And Others.
Key Takeaways
• APAC Market Dominance & Growth: APAC led the Cutting Tool Market with a 51% share in 2024, driven by rapid industrialization, infrastructure investments, and manufacturing expansion in China, India, and Japan. The segment is projected to grow at a CAGR of 4.0% due to increasing demand for affordable tools.
• Automotive Sector Driving Demand: The strong growth of the automotive industry in China, Japan, India, and South Korea fuels demand for advanced cutting tools, enhancing manufacturing and assembly processes.
Cutting Tools Market Segmentation Analysis - By Tool Design
In 2024, the Solid Cutting Tools segment in the Cutting Tool market generated 12368.47 million in revenue and is projected to reach 14806.49 million by 2031, growing at a CAGR of 2.5% (2025–2031). The Single Point Cutting Tool segment plays a key role in turning, shaping, and planning operations, especially in automotive, aerospace, and general manufacturing, where precision machining is crucial. These tools offer cost-efficiency by enabling insert replacement instead of full tool replacement. The market is further driven by precision engineering demands and large-scale projects like Siemens Mobility’s 2023 contract for 1200 locomotives, where these tools are essential for machining axles and motor shafts.
Similarly, the Multi-Point Cutting Tool segment, including milling cutters, drills, and reamers, is vital for drilling, milling, and grinding in heavy machinery and construction. The expansion of infrastructure projects, particularly in emerging markets, is increasing demand for these tools. Industrial investments, such as Toyota Motor North America’s $282 million expansion in June 2024 for drivetrain production, further emphasize their role in ensuring precision manufacturing of drivetrain components.
Cutting Tools Market Segmentation Analysis – By Product Type
In 2024, the Drilling & Boring segment of the Cutting Tool market generated $10,462.52 million in revenue and is projected to reach $13,296.38 million by 2031, growing at a CAGR of 3.4% (2025-2031). The demand for advanced cutting tools is rising across industries such as aerospace, automotive, electronics, healthcare, and oil & gas, driven by the need for precision machining of composites, high-strength alloys, and exotic metals. The shift toward automation and digital integration in manufacturing is further boosting demand for high-performance tools that enhance productivity and machining quality. Milling cutters are witnessing rapid advancements, with simulation and modeling technologies optimizing tool design, extending longevity, and improving efficiency. Mitsubishi Materials’ XC5010 CVD-coated ceramic inserts and Sumitomo Electric’s SEC-Sumi Dual Mill™ highlight innovations enhancing high-speed cutting and roughing operations in sectors like automotive, aerospace, and industrial machinery. Similarly, turning tools are evolving with coatings, optimized geometries, and smart technologies for real-time monitoring, improving durability and precision. The launch of Kennametal’s VT850 vertical turning lathe in November 2023 underscores the demand for high-precision machining solutions, while advancements like the Silent Tools Plus program reduce vibrations for superior hole quality. Sawing and cutting tools are also evolving with carbide, ceramic, and diamond coatings, enhancing sharpness, longevity, and efficiency. The integration of automation and robotics is streamlining cutting processes, improving accuracy, minimizing waste, and optimizing production. Additionally, modern bandsaws and advanced blade materials have made metal shaping more cost-effective and efficient. Meanwhile, finishing tools are gaining traction, especially in automotive and hybrid manufacturing, where precise, polished surfaces are crucial for engine components, transmission parts, and body panels. The need for seamless integration of traditional and additive manufacturing is further fueling innovation in high-precision finishing solutions, reinforcing their significance in high-tech industrial applications.
Cutting Tools Market Segmentation Analysis - By Tool Category
Coated Cutting Tools dominated the Cutting Tool market, generating $22,970.63 million in revenue and projected to reach $30,556.21 million by 2031 at a CAGR of 4.1% (2025-2031). These tools, available in single-layer and multilayer coatings, enhance machining by reducing friction, increasing hardness, and improving wear resistance, ensuring longer tool life and superior surface finish. In aerospace, coatings like titanium aluminum nitride (TiAlN) provide exceptional wear resistance and thermal stability for machining high-strength alloys and titanium, while in automotive applications, coated tools boost precision, durability, and efficiency for manufacturing high-performance components. The demand for customized coatings tailored to high-speed steel and carbide tools is growing, optimizing performance in extreme temperatures and abrasive environments. Meanwhile, uncoated cutting tools remain essential, with manufacturers refining HSS and carbide to enhance durability and lifespan. Uncoated cemented carbide tools are gaining traction in machining HRSA and titanium alloys, particularly in low-speed turning due to their superior wear resistance. Their integration with CNC machines and automated systems is further improving precision, efficiency, and productivity, reinforcing their significance in modern industrial applications.
Cutting Tools Market Segmentation Analysis - By Cutting Tool Materials
In 2024, the largest segment in the Cutting Tools Market by cutting tool materials is High-Speed Steel (HSS), with a revenue of $11,640.57 million. HSS leads the market due to its excellent hardness and wear resistance, making it ideal for high-speed cutting tasks in industries like automotive and aerospace. It is expected to grow at a CAGR of 3.9% from 2025 to 2031. Tungsten Carbides follow, with a revenue of $7,544.85 million, valued for their durability and high-temperature resistance, especially in heavy-duty applications like mining and oil & gas, and are projected to grow at a 3.0% CAGR. Ceramics, contributing $3,516.58 million, are used for high-speed cutting and finishing, benefiting from increased demand for precision in machining, and are expected to grow at a 3.6% CAGR. Cermets ($2,102.51 million) offer superior wear resistance and are used in high-temperature environments, while Cubic Boron Nitride (CBN)/Polycrystalline Cubic Boron Nitride (PCBN) ($2,216.60 million) are preferred for cutting hard metals. Diamond tools ($3,995.30 million), offering unmatched hardness, are vital for fine finishes. Additionally, Stellite and Cemented Carbide materials are used in specialized applications, with Stellite growing at a 3.5% CAGR and Cemented Carbide at 4.2%.
Cutting Tools Market Segmentation Analysis - By Machine Type
In 2024, the largest segment in the Cutting Tools Market by machine type is Standalone Machine Tools, with a revenue of $31,611.13 million, driven by their versatility and demand in high-precision, high-volume manufacturing processes. Hand Power Tools follow as the second-largest segment, generating $4,601.01 million, benefiting from growing DIY activities and demand for portable tools, with a moderate CAGR of 2.9%. Benchtop/Desktop Machine Tools, with a revenue of $1,533.23 million, serve smaller-scale manufacturing needs, offering precision at a lower cost, though it sees slower growth at a CAGR of 1.7%.
Cutting Tools Market Segmentation Analysis - By Motion of Tool
In 2024, the largest segment in the Cutting Tools Market by motion of the tool is Rotary, with a revenue of $25,251.98 million. This segment leads due to its extensive use across industries like automotive, aerospace, and manufacturing, where high precision and continuous operation are essential. Rotary tools, used in drilling, milling, and grinding, are critical for producing intricate, high-accuracy parts, and the segment is expected to grow at a moderate CAGR of 3.5% from 2025 to 2031. The Translatory motion segment follows with a revenue of $6,869.34 million. Translatory tools, which move linearly, are commonly employed in turning and slotting operations, and their demand is driven by high-efficiency production processes in industries such as metalworking and machining. This segment is projected to grow at a solid CAGR of 3.8% from 2025 to 2031, due to the increasing need for faster, more efficient tools in automated production lines. The Reciprocating motion segment, generating $5,624.06 million in 2024, includes tools that move back and forth, such as saws and shapers. These tools are primarily used in industries like woodworking and metalworking for specific cutting and shaping tasks. The Reciprocating segment is expected to experience slower growth, with a CAGR of 2.6% from 2025 to 2031, due to its more specialized application compared to rotary and translatory tools. Despite the slower growth, reciprocating tools remain essential for tasks requiring precise back-and-forth motion.
Cutting Tools Market Segmentation Analysis - By End-Users
In 2023, the Industrial Machinery & Capital Goods segment dominated the Cutting Tool Market, capturing a 15% share, primarily due to advancements in manufacturing technologies, increased automation, and the rising demand for high-precision tools across industries such as automotive, aerospace, and heavy engineering. The integration of AI-driven machining processes and Industry 4.0 initiatives further strengthened the segment's growth. Meanwhile, the Medical segment is projected to grow at a CAGR of 5.3% during the forecast period, driven by the increasing demand for high-performance cutting tools in orthopedic and dental implant manufacturing. In response to machining challenges posed by materials like titanium and cobalt-chromium alloys, ISCAR launched innovative cutting tools in 2023, including PICCOCUT for miniature components, SUMOCHAM drills for deep-hole drilling, and barrel-shaped endmills for enhanced surface finishing in multi-axis machining. These advancements significantly improve efficiency, precision, and tool life, catering to the evolving needs of the medical industry.
Cutting Tools Market Segmentation Analysis - By Geography
In 2024, the largest segment in the Cutting Tools Market by geography is APAC, with a revenue of $19,430.19 million. This region leads due to its rapidly growing industrial sectors, particularly in countries like China, Japan, India, and South Korea, where high demand for cutting tools is driven by manufacturing in industries such as automotive, electronics, and heavy machinery. APAC is expected to maintain strong growth, with a CAGR of 4.0% from 2025 to 2031, fueled by increasing automation, industrialization, and infrastructure development. Following APAC, North America holds the second-largest market share with a revenue of $7,562.55 million in 2024, driven by its advanced manufacturing capabilities, particularly in the automotive, aerospace, and machinery sectors. This region is projected to grow at a CAGR of 3.0% from 2025 to 2031. Europe, generating $7,243.88 million in 2024, benefits from a strong manufacturing and precision engineering base, with industries like automotive, aerospace, and electronics driving demand. This market is expected to grow at a CAGR of 2.4% from 2025 to 2031. South America, with a revenue of $2,452.36 million, continues to develop, particularly in mining, construction, and automotive sectors, and is expected to grow at a CAGR of 3.5% from 2025 to 2031. Middle East & Africa, generating $1,056.4 million, is the smallest market but holds potential due to growing construction and oil & gas sectors, with a moderate growth rate of 2.7% CAGR from 2025 to 2031.
Cutting Tools Market Drivers
Demand from the Automotive Sector is Propelling the Cutting Tools Market.
The growing demand from the automotive sector is significantly driving the cutting tools market, as precision machining is essential for manufacturing engine parts, transmissions, chassis, and interiors. With the adoption of advanced materials like high-strength steels, aluminum alloys, and composites, cutting tools must ensure high precision, durability, and efficiency. The global automotive market's expansion, fueled by increasing consumer demand, technological advancements, and the shift towards electric vehicles (EVs), further boosts the need for high-performance cutting tools. In 2023, global car production surged by 10.2% to nearly 76 million units, reflecting heightened manufacturing activity and a rising demand for machining solutions. Innovations in cutting tool technology, such as advanced coatings and optimized geometries, enhance wear resistance and performance to meet industry standards. Additionally, strategic investments like Nidec Machine Tool Corporation’s new cutting tool factory in India, launched in June 2023 to increase production capacity by 1.5 times, highlight the industry's focus on meeting growing demands efficiently. Such advancements reinforce the critical role of cutting tools in supporting the evolving automotive manufacturing landscape.
The Rising adoption of Industrial Automation and CNC Machining
The growing adoption of industrial automation and CNC machining is driving demand for high-precision cutting tools capable of handling complex geometries and advanced materials. CNC machines require durable and efficient tools to optimize manufacturing accuracy and reduce costs. Partnerships like Mitsubishi Electric India CNC’s collaboration with SolidCAM, signed in April 2023, aim to enhance CNC control systems and machining performance across industries. Automation and CNC machining improve productivity by enabling high-speed, 24/7 operations, necessitating long-lasting cutting tools that minimize downtime. In line with this trend, R-Tools Ltd invested in a CNC tool grinding machine in November 2023 to enhance drill reconditioning services, boosting efficiency and reducing costs. As industries like aerospace, automotive, and electronics embrace more complex manufacturing processes involving composites, titanium alloys, and hardened steels, the demand for advanced cutting tools continues to grow, driving innovation and competitiveness in the global market.
Cutting Tools Market Challenges
Fluctuating Raw Material Prices Hampering the Market Growth
Fluctuating raw material prices, particularly for tungsten carbide, high-speed steel, and cobalt, pose significant challenges for the cutting tool market by increasing production costs and squeezing profit margins. Price volatility disrupts supply chains, leading to uncertainties in procurement, inventory management, and production schedules. Additionally, unpredictable costs can hinder innovation, as manufacturers may hesitate to invest in new technologies without a stable cost structure. Geopolitical factors, trade disputes, and currency fluctuations further amplify price instability, creating regional cost variations that complicate financial planning. While hedging strategies can mitigate some risks, smaller manufacturers often struggle with limited resources to manage such fluctuations effectively. In this competitive landscape, companies must balance pricing strategies, cost efficiencies, and alternative sourcing to maintain market positioning and long-term sustainability amidst ongoing raw material price uncertainties.
Cutting Tools Market Competitive Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Drilling Fluids Market. Major players in the Cutting Tools Market include: Sandvik Coromant, IMC Companies, Mitsubishi Materials, Sumitomo Electric, CERATIZIT Group, KYOCERA Corporation, Kennametal Inc., OSG Corporation, Gühring KG, and Hartmetall-Werkzeugfabrik Paul Horn GmbH and others.
Recent Developments
• In October 2024, Sandvik Coromant introduced CoroCut® 2 with -RF geometry for precise profiling and the GC1205 grade for parting and grooving aged nickel-based HRSA. Designed to enhance stability, tool life, and surface integrity, these innovations cater specifically to aerospace applications, ensuring improved performance and efficiency in machining challenging materials.
• In December 2023, Mitsubishi Materials Corporation launched VQ4MVM, a new carbide insert grade optimized for high-speed machining. Engineered for enhanced wear resistance and reliability, VQ4MVM is designed to improve productivity and tool longevity in precision machining applications, catering to the demands of industrial manufacturing.
• In December 2024, TaeguTec India, in collaboration with Machine Maker, launched “PRECISION UNLOCKED,” a seven-episode Cutting Tool Knowledge Series aimed at improving machining productivity. As a leading tooling solutions provider, TaeguTec India supports industries such as automotive and aerospace, emphasizing precision and efficiency in manufacturing.
• In August 2024, Ceratizit USA launched a high-performance end mill for titanium and super alloys, alongside its expanded cutting tool portfolio and upcoming catalog. This showcase reinforces its role in the global carbide supply chain and commitment to delivering advanced machining solutions.
