Global cutting tool, machine market to grow US$7.9 in 2021

The global cutting tool and machine tool accessory market is expected to grow from $69. 47 billion in 2020 to $74. 95 billion in 2021 at a compound annual growth rate (CAGR) of 7. 9%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $101. 09 billion in 2025 at a CAGR of 8%.

The cutting tool and machine tool accessory market consists of sales of cutting tool and machine tool accessory by entities (organizations, sole traders or partnerships) that produce accessories and attachments for metal cutting and metal forming machine tools including knives and bits for metalworking lathes, planers, and shapers, measuring attachments (e. g. , sine bars) for machine tools, metalworking drill bits and taps and dies (i. e. , machine tool accessories). The cutting tool and machine tool accessory market is segmented into metalworking knives and bits; measuring attachments; metalworking drill bits; and machine tool taps and dies.

Asia Pacific was the largest region in the global cutting tool and machine tool accessory market, accounting for 41% of the market in 2020. Western Europe was the second largest region accounting for 40% of the global cutting tool and machine tool accessory market. Africa was the smallest region in the global cutting tool and machine tool accessory market.

Machine tool manufacturers are producing 3D laser processing machines to reduce processing time for laser cutting and welding applications. 3D laser is a 5-axle laser machine which cuts sheet-metal components in three dimensions. Metals including mild steel, stainless less and aluminum can be cut using lasers. Laser cutting significantly reduces the processing time required for cutting applications and thus reduces costs. Other benefits include localized laser energy input, high feed rate and minimal heat input. 3D lasers are typically used in automotive and aerospace industry for cutting or welding of aluminum parts, drilling of engine parts, and laser surfacing of used parts. According to an article published by engineering. com, laser cutting machines account for the largest segment of metal cutting machinery market thus indicating a significant rise in the use of this technology . Major companies producing 3D laser cutting machines include Mitsubishi electric, Trumpf, LST GmbH, Mazak.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the cutting tool and machine tool accessory manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and manufacturing activity declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People's Republic of China and spread globally including Western Europe, North America and Asia. Machinery manufacturers depend heavily on supply of raw materials, parts and components from different countries across the globe. As many governments restricted the movement of goods across countries, manufacturers had to halt production due to lack of raw materials and components. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the cutting tool and machine tool accessory manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Rapid advances in technology is expected to drive innovation in cutting tool and machine tool accessory manufacturing, thus driving the market during the forecast period. Furthermore, technologies such as 3D printing, artificial intelligence and big data analytics are being used in manufacturing thus resulting in higher productivity, lower operating costs and higher margins. For instance, according to a global survey by The Economist Intelligence Unit, about 90% of corporate executives felt that artificial intelligence (AI) will have a positive impact on company's growth and 86% of respondents considered that AI will help improve productivity. Lower operating costs lead to higher margins, this allows companies to increase product portfolio and to enter new markets by making investments made through cost savings. IoT applications are also being integrated into these devices to enable services such as remote monitoring, central feedback systems and to offer other services. Mobile applications, advanced sensors and embedded software also created new opportunities for companies in this market. These factors are expected to drive the cutting tool and machine tool accessory manufacturing market during the forecast period.