Market Insights
The aerospace cutting tools market is set to grow at a promising CAGR of 8.4% over the next five years to reach US$ 4.7 Billion in 2028.
Aerospace cutting tools are specialized tools mounted onto machines that are used in the aerospace industry for precision cutting, shaping, and machining of various materials, including metals, composites, and alloys. These cutting tools are designed to meet the stringent requirements of the aerospace industry, where accuracy, reliability, and performance are critical. These tools comprise wedge-shaped and sharp-edged tools, used during machining to remove the extra layers of material from a workpiece by shear force to achieve the desired shape, size, and accuracy. These tools are usually built of a material that is harder than the material to be cut in order to perform effective cutting operations.
With the emergence of the COVID pandemic in 2020, there were significant effects on various industries, and the cutting tool industry was no exception. With the spread of the virus and the implementation of lockdown measures, the market witnessed a disruption in its supply chain. Restrictions on transportation, factory closures, and labor shortages led to delays and the unavailability of raw materials and components necessary for manufacturing aerospace cutting tools, affecting the overall production schedules and the market. As a result, the demand for aerospace cutting tools witnessed a massive decline of 27.1% in 2020.
However, the long-term interpretations for the market still seem favorable and fruitful. With the expected increase in the production rate of key programs (A320neo, B737 Max, A220, B787, and A350XWB) and the introduction of new aircraft programs (C919, MC-21, B777x, etc.), the demand for aerospace cutting tools is also likely to increase. This will drive the market in the coming years, ultimately helping the industry stakeholders cross their pre-pandemic levels by 2026.
Recent Market JVs and Acquisitions:
Over the past few years, there have been a fair number of strategic alliances, including M&As, JVs, etc., across the globe. Some of them have been mentioned below:
- In February 2023, Arch Cutting Tools Corporation announced the acquisition of Custom Carbide Cutter Inc., a Cincinnati-based company that provides high-quality cutting tools to manufacturers and distributors, serving the automotive and aerospace industries, shipyards, and medical facilities.
- In July 2022, Sandvik completed the acquisition of Preziss, a Spain-based solutions provider for aluminum and composite machining. The acquisition strengthens the company’s offering towards the provision of lightweight components for the automotive and aerospace markets, driving the shift toward more sustainable transportation and reduced fuel consumption.
- In May 2021, GWS Tool Group acquired Indexable Cutting Tools, Inc., a Canada-based company. The acquisition strengthened the company’s overall offering with the provision of high-performance cutting tools in the aerospace & defense, power generation, automotive, and medical industries.
- In December 2019, Seco Tools, a division of Sandvik Machining Solutions, acquired the cutting tools division of QUIMMCO CENTRO TECNOLÓGICO (QCT), a privately owned Mexican company offering integral machining solutions. With the acquisition, Seco Tools enhanced its manufacturing and reconditioning capabilities in the growing Mexican market, serving customers in a wide range of industries, including aerospace, automotive, energy, and transportation.
Segments' Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Raw Material-Type Analysis
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Cemented Carbide, Ceramic, and Others
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Cemented carbide is expected to maintain its market dominance as well as witness the fastest growth, in the next five years.
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Product-Type Analysis
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Inserts, Round tools, and Tools & Tooling Systems
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Inserts are anticipated to be the dominant as well as the fastest-growing product type, in the years to come.
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Machine-Type Analysis
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Milling Machines, Turning Machines, and Others
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Milling machines are expected to be the dominant as well as the fastest-growing machine type, during the forecast period.
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Aircraft-Type Analysis
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Civil Aircraft and Military Aircraft
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Civil aircraft is expected to maintain its market dominance as well as witness the faster growth, in the next five years.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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North America is expected to remain the largest market over the next five years, whereas Europe is likely to grow at the fastest rate.
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Material Type
The market is segmented into cemented carbide, ceramic, and others. Among these material types, cemented carbide is expected to maintain its market dominance as well as witness the fastest growth, over the next five years. Cemented carbide's hardness and wear resistance make it an ideal choice for machining critical aerospace parts, especially those in high-stress areas like turbine engines, which require materials with excellent wear resistance to withstand harsh operating conditions. Furthermore, in aerospace manufacturing, cutting tools made from cemented carbide are widely used for machining complex shapes. These tools enable higher cutting speeds and feed rates, leading to increased machining productivity. As a result, cemented carbide is the most favored material type in the aerospace cutting tool market.
Product Type
The market is segmented into inserts, round tools, and tools & tooling systems. Among these product types, inserts is expected to maintain its market dominance as well as witness the fastest growth during the forecast period. These cutting tools are typically used in indexable cutting tools such as milling cutters and turning tools. They are engineered with advanced geometries and coatings to optimize cutting performance. They are designed to be easily replaceable when the cutting edge becomes dull or worn out, which makes them more cost-effective in the long run.
Machine Type
The market is segmented into milling machines, turning machines, and others. Among these machine types, milling machines are expected to remain the dominant segment of the market during the forecast period. Milling machines can handle diverse materials and are equipped with various cutting tools and tool holders, making them versatile for a wide array of aerospace applications. These machines enable the mass production of identical parts and can achieve high levels of precision and accuracy.
Aircraft Type
The market is segmented into civil aircraft and military aircraft. Despite taking a nosedive in 2020, civil aircraft is expected to remain the most dominant segment of the market by aircraft type, during the forecast period. The return to service of the B737Max, the entry of new programs (C919, B777x, and MC-21), and the expected recovery in the production rates of the A320 and B737 programs are likely to fuel the segment’s growth.
Regional Analysis
North America is expected to remain the largest market for aerospace cutting tools during the forecast period, driven by the presence of a large number of aircraft OEMs, tier players, cutting tool manufacturers, and material suppliers. The USA is likely to remain the leading market, both in North America and globally, during the forecast period. Concurrently, Europe is likely to be the fastest-growing region during 2023-2028, with France, Germany, and the UK being the major contributors.
The aerospace cutting tools market is segmented into the following categories:
By Material Type
- Cemented Carbide (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Ceramic (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Product Type
- Inserts (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Round Tools (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Tools & Tooling Systems (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Machine Type
- Milling Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Turning Machines (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Aircraft Type
- Civil Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Military Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Key Players
The aerospace cutting tools market is populated by several regional and global players. The major market players have an excellent product development capability and they compete on some of the governing factors including price, product offerings, quality, regional presence, etc. These players hold distinct capabilities in manufacturing aerospace cutting tools. A majority of the players are located in the North American region, with Europe and the Asia-Pacific regions being home to some key companies as well. As a whole, the following are the key players in the global aerospace cutting tools market:
- Sandvik AB
- IMC Group
- Kennametal Inc.
- OSG Corporation
- Sumitomo Electric Industries Ltd.
- Mitsubishi Materials Corporation
- KYOCERA Precision Tools
- Zhuzhou Cemented Carbide Cutting Tools Co., Ltd.
- Ceratizit Group
- KORLOY
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aerospace cutting tools market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
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