Global Market Study on Cutting Tool Inserts: ‘Replacement’ Remains the Key Revenue Generator


Cutting Tool Inserts  Market
  • Published On : Sep-2019 |
  • Pages : 269 Pages |
  • Format :

Persistence Market Research (PMR) recently published a market study on the global market for cutting tool inserts. The study provides detailed assessment on the key market dynamics, including the drivers, trends, opportunities restraints, and detailed information about the cutting tool inserts market structure. The market study presents exclusive information about how the cutting tool inserts market will grow over the forecast period of 2019-2029.

Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, value chain, supply chain analysis, and Compounded Annual Growth Rate (CAGR) are explained in PMR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the cutting tool inserts market during the forecast period.

The study is relevant for stakeholders in the cutting tool inserts market, including cutting tool inserts manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market. Stakeholders in the cutting tool inserts market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in PMR’s study.

The study also includes statistics as well as facts related to the macro as well as microeconomic factors that are impacting developments in the market. It also offers actionable insights based on the future trends in the cutting tool inserts market. Furthermore, small businesses and new entrants in the cutting tool inserts market too can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market.

Key Segments of the Cutting Tool Inserts Market

PMR’s study on the cutting tool inserts market is divided into three significant segments, such as delivery form, application and region. This report offers comprehensive data and information about the important market dynamics and growth parameters related to these categories.

Material

Substrate

Application

End Use Industry

Region

  • Bulk Containers
  • Cast Iron
  • Threading
  • Transportation
  • North America
  • Diamond/DLC
  • Stainless Steel
  • Milling & Shearing
  • Woodworking
  • Latin America
  • Carbides
  • Hardened Steel
  • Parting & Grooving
  • Medical
  • Europe
  • CBN (Cubic Boron Nitride)
  • Non Ferrous Materials
  • Drilling & Boring
  • Die & Mould
  • APAC
  • Ceramics
  • Titanium & HRSA
  • MEA

Key Questions Answered in PMR’s Cutting Tool Inserts Market Report

  • Which regions will continue to remain the most profitable regional markets for cutting tool inserts market players?
  • Which factors will induce a change in the demand for cutting tool inserts during the assessment period?
  • How will changing trends impact the cutting tool inserts market?
  • How can market players capture the low-hanging opportunities in the cutting tool inserts market in developed regions?
  • Which companies are leading the cutting tool inserts market?
  • What are the winning strategies of stakeholders in the cutting tool inserts market to upscale their position in this landscape?

Cutting Tool Inserts Market: Research Methodology

In PMR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the cutting tool inserts market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure accuracy and reliability of the conclusions.

Secondary resources referred to analysts during the production of the cutting tool inserts market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary resources and secondary resources acts as a validation from companies in the cutting tool inserts market, and makes PMR’s projection on the growth prospects of the cutting tool inserts market more accurate and reliable.

Cutting tool inserts, as have a limited life span of mere 15 minutes, a majority of the revenues in the cutting tool inserts market is generated through replacement. Constant need for replacement via new units is expected to create an incremental growth for cutting tool inserts market in the near future. With high replacement rates and never ending demand, the scenario calls for great opportunities for the cutting tool inserts market.

Moreover, reduced aftermarket costs continue to prompt end users to use cutting tool inserts at a higher rate. Established sales and distribution networks across different geographical regions will remain pivotal in shaping the market for cutting tool inserts. Leading manufacturers remain focused on providing sound after sales services, which is another strong factor driving the growth of cutting tool inserts market.

Proliferation of Metal Cutting Industries in Asian Markets Pushing the Growth of Cutting Tool Inserts Market in APAC

Developing regional markets, such as APAC and Europe, are projected to witness a steady growth in the cutting tool market spurred by rapid economic development. These regions are estimated to hold a prominent share in the cutting tool inserts market over the forecast period. Moreover, the North American region has substantially gained noteworthy market share of ~20% in 2018.

Increase in the demand for advanced technologies in the field of aerospace has given wings to the cutting tool inserts market. With rising competition in the field of aerospace and marine, the requirement of jet engines, turbines, transmission parts and other vital components of aircraft or submarine has significantly increased the need for machining these components thereby increasing the scope for cutting tool inserts market.

global cutting tool inserts market

With the rise in the operations of metal cutting industry in the growing economies of APAC region, the scope for better sales of cutting tool inserts has increased. Metal cutting industries contribute to various end use sectors such as automotive, construction, railway etc. The development of new manufacturing centers, in Asia Pacific is one of the prominent drivers of the market. The rising demand in the region is led by a healthy increase in manufacturing and industrial output in countries such as China & India. China, particularly, is expected to showcase a strong market growth owing to the country’s growing investments in cutting tools and its swift expansion of manufacturing base.

Furthermore, in developing regions such as Bangladesh and Philippines, the infrastructure growth scenario, regulations and policies, and the steps taken to promote businesses, particularly in the manufacturing sector, is likely to have a favorable effect on the cutting tool inserts market proposing huge investment opportunities in the near future.

Thriving Automotive Industry Significantly Contributing to Market Growth

The automotive industry is rapidly expanding along with substantial growth in infrastructure-related industries including railways, energy, and road construction in countries such as India, Indonesia, Thailand, and Vietnam. The cutting tool inserts global market’s application segment consists of Threading as the dominant player in this sector. The other applications are milling & shearing, parting & grooving and drilling & boring.

The third most preferred application segment is parting & grooving which is expected to go hand in hand with drilling and boring application segment. This is estimated to fuel the market growth owing to its various applications in the manufacture of engines, gears, transmission components, bearings, brake rotors, and other components. Based on these factors, it is estimated that the market for cutting tool inserts is likely to grow at a remarkable pace in developing countries. As a result, the companies are opening new centers to strengthen its customer support base in the market which is anticipated to show continued high growth.

Shortage of Skilled Labor Continues to Pose a Threat to Market Growth

The Asia Pacific market is emerging as a center for services and industrial production, thus providing a robust network for industrial exports globally, especially in electrical and technological goods. As a result, Asia Pacific has now become an attractive market for foreign investments, as most of the firms seek to benefit from available technical skills and comparatively low labor costs. Yet, there is an increasing shortage of skilled labor due to the economic transition to services and economies which are highly industrialized. This may curb the economic growth owing to deterring foreign investments and reduced labor productivity. However, the impact will remain low as investments in education sector will offset the skilled labor shortage.

Increasing Influence of Regional Players

The global market for cutting tool inserts is evenly balanced between the large players, who hold 55%-55% share in the overall market with global presence through local distributors. The global market for Cutting Tool Inserts is dominated by the large players such as Sandvik AB and Kennametal Inc. in the overall market, capable of reaching out directly to customers through different sales channels managed by local distributors. These companies are strategically focusing on creating flexible structure by reorganizing workforce and increasing sales through distribution sales channels to increase profitability.

Moreover, growth in the aftermarket business by the global roll-out of customer service centers, improved customer offerings, such as new e-solutions, and increased productivity through data-driven predictive maintenance will also remain key focus areas for the companies. The emerging players are focusing on launching new products and expansion of production capacities in order to enter into the market.

The Analyst’s Viewpoint

A widespread view of the cutting tool inserts market has led analysts to conclude that the market is growing at an impressive rate with APAC and Europe holding a large share of the global cutting tool inserts market. The APAC cutting tool inserts market is expected to be an opportunistic market in terms of sales. Increasing demand from the end use industries such as automotive and medical among others is expected to positively impact the cutting tool inserts market .The cutting tool inserts market is characterized by the presence of few big players from Europe and the Asia Pacific region. The carbide sector is expected to dominate the global cutting tool inserts market throughout the forecast period.

The carbide type of cutting tool inserts, especially Tungsten carbide inserts are used extensively across the APAC region accounting to more than 60% of the total market. The carbide type of cutting tool inserts are expected to cross 173 '000 Units by the end of 2029. Increasing demand from end-use industries such as transportation and construction has yielded to increase in the demand for stainless steel and cast iron machining which is performed using carbide type of tool inserts. Technological innovations by key market participants will also give impetus to the cutting tool inserts market. The scope of increasing applications related to the use of cutting tool inserts is estimated to bolster the growth of the market during the forecast period.

Company Profiles

  • Sandvik AB
  • Sumitomo Electric Carbide Inc.
  • Saint Gobain
  • KennaMetal
  • KYOCERA Corporation
  • Mitsubishi Materials Corporation
  • Asahi Diamond Industrial Co. Ltd.
  • SHOWA DENKO K.K.
  • ISCAR LTD.
  • Knight Carbide, Inc.
  • ILJIN DIAMOND CO., LTD.
  • Tomei Diamond Co.,Ltd.
  • Sinter Sud S.p.A.
  • Element Six
  • Total Carbide Ltd.
  • YG-1 Co. Ltd.
  • NGK Spark Plugs Co. Ltd. (NTK Cutting Tools)
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