PMRREP13255
12 Sep 2025 Industrial Automation
187 Pages
The global cutting equipment market size is likely to be valued at US$ 5.3 Bn in 2025 and is expected to reach US$ 7.6 Bn by 2032 growing at a CAGR of 5.2% during the forecast period from 2025 to 2032.
Key Industry Highlights:
| Global Market Attribute | Key Insights |
|---|---|
| Cutting Equipment Market Size (2025E) | US$ 5.3 Bn |
| Market Value Forecast (2032F) | US$ 7.6 Bn |
| Projected Growth (CAGR 2025 to 2032) | 5.2% |
| Historical Market Growth (CAGR 2019 to 2024) | 4.5% |
Increasing demand for mechanized cutting equipment in fabrication is expected to be one of the major trends fueling the market growth in the near future. In developed countries, the shortage of skilled labor drives the demand for cutting-edge automation technology for fabrication and manufacturing purposes.
A key driver of the cutting equipment market is the rapid integration of advanced technologies and automation, transforming traditional cutting processes into highly efficient, precise, and intelligent operations. Modern systems are increasingly adopting Industry 4.0 principles, incorporating artificial intelligence (AI), machine learning (ML), and IoT-enabled connectivity to enhance performance.
AI and ML algorithms optimize cutting parameters in real-time, predict maintenance requirements, and adapt to different materials and workpieces with minimal human intervention. These innovations are especially evident in laser cutting machinery, where recent systems have achieved cutting speeds up to 2.8 meters per second and acceleration of 2.1g, underscoring the industry’s push toward productivity and high precision.
Beyond performance, this technological evolution reduces downtime, minimizes errors, and improves resource utilization. The combination of smart automation and advanced capabilities enables manufacturers across automotive, aerospace, and textiles to meet rising demand for customization and high-quality production, positioning technological advancement as a central growth driver for the industry.
A major restraint for the cutting equipment market is the increasing preference for refurbished machines among small and medium-sized fabricators. High upfront costs of advanced automated cutting systems, especially laser-based machines, make it difficult for budget-constrained fabricators with cyclical production and low output to justify such investments.
This challenge is amplified by the closure of several manufacturing facilities in the U.S. and Europe due to rising labor costs and strict environmental regulations, which has resulted in a steady supply of second-hand equipment.
Refurbished machines provide a cost-effective alternative, enabling fabricators to maintain operations without significant capital expenditure. Additionally, some regional players have begun offering hourly rental services for cutting equipment, further reducing the incentive to purchase new machinery and limiting overall market growth.
The cutting equipment market presents a strong opportunity fueled by rapid growth in automotive and textile manufacturing, alongside the rising use of advanced materials across industries.
Global automotive production reached 89.8 million units in 2023, creating significant demand for cutting solutions designed for interior components and specialized materials. Similarly, China’s textile exports, valued at 1.12 trillion yuan in 2023, highlight the industry’s increasing need for efficient, precise, and flexible cutting technologies.
Beyond traditional sectors, the proliferation of advanced materials such as composites, ceramics, carbon fiber, and fiberglass is reshaping application requirements. With over 129,000 print and cut devices already in use worldwide, manufacturers are responding by developing specialized cutting systems that combine multi-tool functionality with automated material handling.
This evolution is particularly relevant in high-performance industries like aerospace and renewable energy, where precision cutting of advanced materials is critical. As demand for customization, efficiency, and sustainability grows, cutting equipment providers have a substantial opportunity to capture new markets.
The laser cutting machine product segment dominated the metal cutting machines industry in 2025 by accounting for a share of over 54.2% of the market in terms of revenue as these machines offer excellent power efficiency and higher precision than mechanical cutting. They work exceptionally well on hard metals such as steel and mild steel but not on highly reflective metals such as aluminum and copper.
Waterjet cutting machines utilize a mixture of water or pure water and abrasive material as a cutting media for over 10-inch-thick metal sheets or plates.
For instance, Flow International Corporation Mach 500 machine can quickly and accurately cut up to 24 inches in thickness. Furthermore, the machine is equipped with the latest technology including a dynamic waterjet system, a 94 thousand psi pump for precision shapes, and rapid drilling.
In 2025, the automotive category held the top spot. This might be linked to the increased demand for automobiles as well as the expanding use of bending and cutting equipment in the booming automotive sector. Cutting and bending machines have several uses in the automotive industry, which include everything from designing, developing, creating, and manufacturing automotive cars and all their parts and components.
One of the tools that is most frequently used to guarantee the dependability and safety of the finished product during various phases of automotive manufacturing is the laser cutting machine.
Metal cutting machines are widely used to manufacture paving & earth moving equipment and cranes required in industrial construction. They also cut holding tanks, corrugated steel, gates, elevators, stairs, bridges, and other metal components used in residential and commercial construction. Increasing infrastructural activities in major economies such as China and India will fuel the demand for metal-cutting machines in the next few years.
The Asia Pacific region emerges as the most dominant in the cutting equipment market in the forecast period, primarily owing to factors such as the continued industrialization of countries like China, India, and South Korea. This has increased the need for more sophisticated cutting methodologies, mainly in the automobile, aerospace, and electronics industries. Due to this, these industries, the need cutting tools that would enable them to produce larger quantities of output in the shortest time possible, but at the same time produce quality outputs.
Besides, greater government policies put in place to support industrial growth and development and promote advancements in technology also contributed to driving the market in the region. Furthermore, the market has highly developed competitors of cutting equipment and consumables manufacturers such as Japan and Taiwan that improve the market competitive environment and stimulate products’ development. Therefore, Asia Pacific stands out as a rather large segment of the cutting equipment market that is predicted to continue its dominance with higher growth rates in the future.
Europe also occupies a sizeable proportion in the global metal cutting tools market largely due to its well-developed and mature manufacturing sector, especially in car manufacturing, aerospace industry, and general engineering internationally.
Germany and other countries represent the leading nations in the European market with high usage of precision CNC equipment, and always in need of high-quality cutting equipment of these key segments. A high industrial activity level of the continent supports a constant demand for effective and precise metal cutting applications.
European metal cutting tools industry is very well developed due to its manufacturing base and stable demand by industries such as automotive and aerospace industry. The trend of moving to precision CNC and digitally integrated tooling systems is being accelerated by federal-level programs such as the EU clean industrial deal (to amass more than 100 billion euros to finance clean manufacturing) and in the region by institutions such as the German government promoting the uptake of precision CNC and digitally integrated tooling systems.
Moreover, the capacity to produce high-quality-based production, circular economy concepts, and sustainable tooling systems implemented in Europe coupled with high-skilled workforce and robust R&D system make the region a manufacturer and consumer of high-performance and future-ready cutting tools in large quantities.
The global cutting equipment market is shaped by leading players who are spearheading technological innovation and market growth. These companies are advancing the industry through the integration of Industry 4.0 features, emphasizing automation, IoT connectivity, and real-time monitoring. A strong shift toward sustainable manufacturing is also evident, with a focus on eco-friendly machinery and energy-efficient technologies.
Market leaders are enhancing value by combining cutting-edge hardware with advanced CAD/CAM software and cloud-based platforms, creating comprehensive digital solutions. Strategic collaborations, especially in emerging markets and with technology providers, are playing a vital role in expanding global reach.
Additionally, significant investments in research and development are driving the creation of versatile, multi-functional cutting systems designed to handle a wide range of materials and applications across industries.
The cutting equipment market is estimated to be valued at US$ 5.3 Bn in 2025.
The key demand driver for the cutting equipment market is the growing need for precise, efficient, and automated cutting solutions across manufacturing, construction, and metal fabrication industries.
In 2025, the Asia Pacific region will dominate the market with an exceeding 30% revenue share in the global cutting equipment market.
Among the cutting technology, laser technology held the highest preference, capturing beyond 54.2% of the market revenue share in 2025, surpassing other products.
The key players in the cutting equipment market are Illinois Tool Works, The Lincoln Electric Company, Colfax Corporation, Koike Aronson, Inc., GCE Group, and Ador Welding Ltd.
| Report Attribute | Details |
|---|---|
| Historical Data/Actuals | 2019 - 2024 |
| Forecast Period | 2025 - 2032 |
| Market Analysis Units | Value: US$ Bn, Volume: Units |
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| Competitive Analysis |
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| Report Highlights |
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By Cutting Technology
By End-User
By Region
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