Metal Cutting Tools Market Report 2026

The metal cutting tools market size has grown strongly in recent years. It will grow from $31.66 billion in 2025 to $33.5 billion in 2026 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to growth of automotive manufacturing, expansion of conventional machining workshops, increasing demand for metal fabrication, adoption of CNC machines in industrial plants, rise of mass production manufacturing.

The metal cutting tools market size is expected to see strong growth in the next few years. It will grow to $44.09 billion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to growth in electric vehicle production, increasing automation in manufacturing facilities, rising demand for lightweight and high-strength components, expansion of aerospace and defense manufacturing, adoption of smart and connected machining systems. Major trends in the forecast period include rising demand for high-precision machining tools, increasing adoption of CNC and multi-axis cutting tools, growth in use of advanced tool materials such as carbide and ceramics, rising focus on tool longevity and wear resistance, expansion of metal cutting applications in automotive and aerospace.

The increasing demand for automotive manufacturing is anticipated to drive the expansion of the metal cutting tools market in the coming years. Automotive includes the design, engineering, manufacturing, and servicing of motor vehicles such as cars, trucks, motorcycles, and other vehicle types. Metal cutting tools play a critical role in automotive manufacturing by enabling precise machining and shaping of metal components, supporting efficient production processes, and meeting strict tolerance requirements for automotive parts. For example, in April 2024, data from the International Organization of Motor Vehicle Manufacturers (OICA), a France-based global automotive industry body, showed that worldwide motor vehicle production reached 93,546,599 units, reflecting a notable increase compared to prior years and highlighting a strong recovery in automotive manufacturing. Therefore, the growing demand for automotive production is contributing to the growth of the metal cutting tools market.

Major players in the metal-cutting tools market are emphasizing the development of high-power laser cutting systems to improve accuracy, boost cutting speeds, and efficiently process thicker metal materials. A high-power laser cutting system is an industrial solution that utilizes focused laser beams to precisely cut and form metal components, delivering benefits over traditional cutting techniques through higher speed, greater material thickness capability, and improved energy efficiency. For example, in March 2023, Gweike Tech Company Limited, a China-based laser technology firm, partnered with BWT to launch a 135 kW laser cutting machine in Jinan, Shandong. Built for industrial-scale metal fabrication, this system allows rapid processing of thick metal sheets, enhances operational performance, and supports large-scale manufacturing operations.

In July 2024, Harvey Performance Company LLC, a US-based supplier of specialized precision cutting tools and machining solutions, acquired ATA Group for an undisclosed sum. Through this acquisition, Harvey Performance sought to broaden its global presence and enhance its product offerings in the metal cutting tools market by incorporating ATA’s wide portfolio of precision-engineered cutting tools along with its well-established international distribution network. ATA Group Limited is an Ireland-based producer and distributor of precision cutting tools serving industries such as aerospace, power generation, and electronics.

Major companies operating in the metal cutting tools market report are Sandvik AB, Kennametal Inc., Mitsubishi Materials Corporation, Kyocera Corporation, Seco Tools AB, Walter AG, ISCAR Ltd., Tungaloy Corporation, Ceratizit S.A., Dormer Pramet, Guhring KG, OSG Corporation, Mapal Dr. Kress KG, Sumitomo Electric Industries Ltd., Greenleaf Corporation, Allied Machine & Engineering Corp., Ingersoll Cutting Tool Company, Emuge-Franken Group, Komet Group GmbH, LMT Tools Group.

North America was the largest region in the metal cutting tools market share in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the metal cutting tools market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the metal cutting tools market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The metal cutting tools market consists of sales of single-point tools, multi-point tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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