Cutting Tools Market Size - By Tool Type, By Process, By Material Type, By End Use, By Distribution Channel Industry & Forecast, 2025 - 2034

Cutting Tools Market Size

The global cutting tools market size was valued at USD 9.1 billion in 2024 and is expected to reach USD 16.4 billion by 2034, growing at a CAGR of 6.1% from 2025 to 2034. The worldwide market for cutting tools is on an upward swing, mainly because modern production methods keep improving. As more factories embrace automation and Industry 4.0 concepts, they need tools that cut with extreme accuracy. Such precision equipment is vital for turning out defect-free parts in key fields like automotive, aerospace, and electronics. On top of that, the growing use of lightweight materials-such as composites and high-strength alloys-requires sophisticated cutters that can slice through these hard, thin sections without breaking.

A second major driver is the broad expansion of construction and infrastructure work. Many fast-growing economies are pouring money into roads, bridges, and buildings, raising the need for cutters fitted to large machines and site equipment. At the same time, manufacturers everywhere are searching for ways to use power and raw stock more wisely, which pushes them toward tools that waste little metal and last longer. Together, these trends paint a bright picture for the cutting tools industry in both the near and medium-term future.
 

 Cutting Tools Market Trends

• Recent developments in the cutting tools industry show a clear move toward greener production methods. Makers now design blades and bits that use less power during machining and leave a lighter environmental footprint. This shift mirrors broader world efforts-and new rules-that urge firms to cut carbon emissions.
   
• At the same time, smart features such as the Internet of Things and artificial intelligence are creeping into shop-floor tools. With on-the-spot data and predictive alerts, these connected devices boost output and keep unplanned stops to a minimum.
   
• Another rising trend is the push for made-to-order cutting tools. Manufacturers across sectors want gear that matches their own process exactly, so they gain the highest accuracy and speed.
   
• In response, engineers are leaning on methods like additive printing to craft these custom pieces quickly and cost-effectively. A wider factory culture of digital twins and automation then creates the ideal setting for such innovation, propelling the market forward.
   

Cutting Tools Market Analysis

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Based on tool type, the market is segmented into indexable, solid round. The indexable segment accounted for revenue of around USD 5.6 billion in 2024.
 

• Economists point to the segment's rising appeal, which rests on two main advantages: cost savings and broad adaptability. Because users can swap out worn inserts rather than discarding the whole tool, daily operating costs shrink. That feature has won favor in precision-driven sectors such as automotive and aerospace, where every thousandth matters.
   
• High-speed machining is another driver; Indexable tools withstand faster feeds and longer runs, delivering durability that operators prize.
   
• Sustainability is now part of the picture as well. Swapping inserts produces less scrap metal and aligns with the industry shift toward greener factories. New coating techniques further boost tool life and cutting power, widening the range of tasks Indexable designs can handle. Taken together, these trends suggest the Indexable segment will continue expanding through the forecast period.

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Based on the process, the global cutting tools market is categorized milling, drilling, boring, turning, grinding, others. The milling segment held around 33.1% of the market share in 2024.
 

• The milling segment is growing rapidly because technology handles a broad variety of tasks in many industries.
   
• Makers turn to milling tools when they need complex profiles with high accuracy, and that reliance shows up in automotive, aerospace, and electronics work. As product designers push for lighter, tougher parts, those same tools gain ground because they cut advanced materials with ease.
   
• New features are another reason milling tools stay in the spotlight. Multi-purpose designs coupled with hard, slick coatings improve cutting life while keeping shop-floor costs down for operators. On top of that, links to modern CAD-CAM programs let engineers plan set-ups virtually, boosting speed and precision on each run.
   

Based on the process, the global cutting tools market is categorized cemented carbide, high-speed steel, ceramics, cubic boron nitride, polycrystalline diamond, exotic materials, stainless steel. The cemented carbide segment held around 23.1% of the market share in 2024.
 

• Demand for cemented carbide inserts and end mills is climbing thanks to the material's extreme hardness and wear resistance at high speeds. Such traits suit high-performance runs in automotive, aerospace, and heavy-equipment shops, where failure is not an option. As manufacturers tighten tolerances, CNC users find that carbide tools deliver the accuracy and repeatability they require.
   
• Researchers and manufacturers increasingly embrace automated plants and Industry 4.0 technologies, raising demand for cemented carbide cutting tools. High-speed, high-heat machines need edges that last, and carbide meets that need. At the same time, ever-more intricate part shapes push designers toward tailored carbide inserts.
   
• On the sustainability side, companies now fund recyclable carbide products and greener making methods to stay ahead of tightening rules and corporate pledges. The ability to reclaim tungsten scrap also cuts raw-material bills while shrinking each tool makers carbon footprint.

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In terms of the country, the U.S. dominates with an overall North America cutting tools market and valued at USD 2.6 billion in 2024.
 

• A large and varied manufacturing base powers this dominance. Growth comes especially from the automotive and aerospace sectors, which demand ultra-precise tools to hit strict quality benchmarks. Expansion of robotics, sensors, and cloud analytics in the shop adds extra momentum to the market.
   

The Europe cutting tools industry dominated a revenue share of around 23.9% in 2024 and anticipated to grow with a CAGR of around 5.2% from 2025 to 2034.
 

• In Germany the story is similar but faster, since automotive makers and machine builders already covet cemented carbide. Exacting craftsmanship, compact E-car parts, and lightweight aerospace assemblies keep orders steady. Local companies therefore pioneer smart features-like sensors that gauge wear in real time-placing them a step ahead of competitors elsewhere.
   

The Asia Pacific cutting tools market accounted for around 29.3% of the revenue share in 2024 and anticipated to grow with a CAGR of around 5.6% from 2025 to 2034.
 

• China accounted for 34.1% share of the global cutting-tool market in 2024 because low wages and deep supply chains keep its factories running around the clock. Demand flows from huge automotive, electronics, and construction sectors that need sharp, reliable bits every day. As more shop floors adopt robots, hi-tech software, and cloud analytics, the quest for automation-grade tools has skyrocketed. State-supported push to make components at home rather than importing them only adds fuel. Finally, strict quality rules drive manufacturers to seek high-precision products, widening the market still further.
   

The MEA region held approximately 3.6% share of the cutting tools market in 2024 and anticipated to grow at a CAGR of around 4.1% from 2025 to 2034.
 

• As part of Vision 2030, Saudi Arabia is channeling much of its ambition into infrastructure, defense production, and general industry, and that push is steadily boosting the market for high-end cutting tools. Cemented-carbide bits and blades are becoming the go-to choice in the new metal shops and precision mills rising within the special economic zones. At the same time, government plans to localize more production and cut import bills are opening the door wider for local tool makers.
   

Cutting Tools Market Share

• In 2024, key companies including Ingersoll Cutting Tools, OSG Corporation, Sandvik Coromant, Kennametal Inc., Seco Tools AB, held a combined market share of 25-30%.
   
• Ingersoll Cutting Tools aims to widen its portfolio by introducing new geometries and chip-breaking features, zeroing in on the aerospace and die-and-mold markets.
   
• OSG Corporation is pouring resources into R&D to produce ultra-precise carbide drills and end mills, while increasingly emphasizing eco-friendly coatings and smart tool-monitoring systems.
   
• Sandvik Coromant uses its digital machining platform and AI analytics to deliver predictive maintenance and on-the-fly tool tuning, boosting productivity for customers.
   
• Kennametal Inc. follows a twin approach that blends novel materials with tooling packages tailored for the energy and transportation industries.
   
• Seco Tools AB builds localized service hubs and strategic alliances to deepen customer ties and supply custom solutions for demanding machining tasks.
   

Cutting Tools Market Companies

Major players operating in the cutting tools industry are:

• Ceratizit S.A.
• Cougar Cutting Tools
• Emuge Corporation
• Greenleaf Corporation
• Ingersoll Cutting Tools
• Iscar Ltd.
• Kennametal Inc.
• Mapal Inc.
• Mitsubishi Materials Corporation
• Mohawk Special Cutting Tools
• OSG Corporation
• Sandvik Coromant
• Seco Tools AB
• Tungaloy Corporation
• Walter Technologies
   

To stand out, cutting-tool makers are pouring money into fresh ideas and better designs. R&D teams study how end users are changing, then apply new alloys and advanced coatings so every drill and insert lasts longer and cuts cleaner. Digital tools on the shop floor now link machines, sensors, and suppliers in real time, trimming waste and speeding delivery. Manufacturers also build one-off solutions by talking directly with customers, an approach that turns orders into partnerships and keeps brand loyalty high. Finally, firms are pushing into fast-growing markets abroad to spread risk and tap fresh sources of revenue.
 

 Cutting Tools Industry News

• In January 2024, Seco Tools collaborated with Siemens to integrate AI-driven predictive maintenance features into cutting tools for enhanced operational efficiency.
   
• In November 2023, Mitsubishi Materials launched a new range of eco-friendly cutting tools designed for high-precision applications in the electronics and automotive industries.
   
• In April 2023, Kennametal Inc., a global leader in industrial technology, added eight new metal cutting tools and solutions to its portfolio. The new solutions provide enhanced productivity, wear resistance, and performance for a variety of applications across end markets, including general engineering, aerospace, medical, energy, and transportation.
   

This cutting tools market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Tool Type

• Indexable
• Solid Round

Market, By Process

• Milling
• Drilling
• Boring
• Turning
• Grinding
• Others

Market, By Material Type

• Cemented Carbide
• High-Speed Steel (HSS)
• Ceramics
• Cubic Boron Nitride (CBN)
• Polycrystalline Diamond (PCD)
• Exotic Materials
• Stainless Steel

Market, By End Use

• Automotive
• Aerospace & Defense
• Construction
• Electronics
• Power Generation
• Oil & Gas
• Woodworking
• Die and Mold Manufacturing

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia    
  • Indonesia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • Saudi Arabia
  • UAE
  • South Africa