Carbide is an essential element that frequently coexists with other natural elements, including boron, silicon, metal, and steel. Machine tools and tool holders made of carbide are quite durable, so they may last longer while keeping the cutting edges. Due to their distinct qualities, such as high machining temperatures, cutting-edge retention speed, short cycle times, superior wear resistance, and long working life, these tools are widely used in machining applications. Growing advancements in manufacturing design and expanding demands to increase production effectiveness are laying the groundwork for manufacturers to look into better machine tool products, driving demand for carbide tools. The market is anticipated to experience growth during the forecast period due to the rising popularity of carbide tools, particularly in manufacturing applications. Additionally, these carbide tools are employed in production facilities for the furniture & carpentry, energy & power, healthcare equipment, railway, automotive, aerospace, and railway industries. The design and production of a product in these industries require specialized cutting tools, which drives the price of carbide tools.
The unusual coronavirus has quickly spread across many nations and regions, significantly impacting both individual lives and the community as a whole. It began as a crisis for human health but now poses a serious threat to international trade, the economy, and finance. The COVID-19 pandemic has caused several products in the carbide tools industry to stop being produced due to ongoing lockdowns in important international countries. Market participants would only be able to sustain a complete lockdown for a few whiles before they would need to change their investment strategies. With the introduction of the COVID-19 vaccine to the market, the number of cases is anticipated to decline in the near future. Additionally, it is anticipated that this will result in the revival of carbide tool businesses operating at full capacity, which will help the market recover by the beginning of 2022.
Demand for Carbide Tools Products to Rise in the Manufacturing Sector to Drive Market Growth
The demand for these items is increasing in key manufacturing industries, including automotive, construction, electronics, and aerospace, among others, due to advantages like high efficiency, hardness, and productivity improvement. The need for such items is predicted to rise, propelling market expansion as infrastructure-related activities increase in developing nations like India, China, Brazil, and others. Drilling, milling, and turning tools are frequently made with these products. The demand for cars and automobiles is fueled by the rapid urbanization and industrialization of developed nations like France, Germany, and the U.S. This element is predicted to stimulate market expansion.
Fluctuations in Raw Material Costs will Reduce Demand for Products
Crucial raw materials utilized by manufacturing include metal alloys, stainless steel, and other metals. Raw materials prices, including those for metal and stainless steel, are erratic. The fluctuation in raw material costs can impact the prices of these products and the makers' profitability. For instance, if the cost of steel, metal, and alloys increases, this fluctuation may raise the cost of such products, which may impact market sales. For instance, steel costs varied from USD 500 to USD 800 before the COVID-19 epidemic. Following the COVID-19 pandemic, steel traded for USD 1,800, a 200% increase in cost. The fluctuation in the price of these raw materials, which are imported from other nations, is influenced by exchange rates. The fluctuation in raw material prices will likely constrain the market's expansion.
Based on product, the carbide tools market is segmented into drilling tools, miling tools, turing tools and others. The milling tools category dominated the market in 2021. Due to their heat resistance, these mills are used in high-speed applications to cut extremely hard materials like non-ferrous metals, plastics, alloys, and cast iron. Additionally, mills can rotationally cut materials in lateral and horizontal orientations. Sales in the sector are expected to increase due to the expanding use of mills for cutting jewelry designs, wood engravings, and machine parts.
By configuration, the market is segmented into hand-based and machine-based. The hand-based category dominated the market in 2021 due to these products' extensive use in the manufacturing, automotive, and industrial sectors, which helps for a significant share in the global market. Besides, due to the use of these tools in CNC, milling, lathe, drilling machines, and high-speed cutting machines, the machine-based segment is expected to dominate the market during the forecast period. These elements fuel the market's expansion.
By coating, the market is segmented into coated and non-coated. The coated category dominated the market in 2021 due to the employment of coated inserts in aerospace, automobile, and other industries. Additionally, coated drills and bits enhance cutting efficiency, decreasing machining time and expenses. As a result, the sector commands the market for the forecast duration. Besides, due to their affordability compared to coated types of tools and widespread adoption in electronics and carpentry applications, the non-coated segment is predicted to experience strong growth.
By End User Industry
By end user industry, the market is segmented into automotive, electronics & electrical, aerospace, marine & defense, plastics, construction & mining, and others. The automotive category dominated the market in 2021. The segment is expected to be driven by the growing use of carbide turning tools in processes such as hole-making, face milling, and crankshaft metal machining needed to produce automobile parts. Using tungsten carbide in ball joints, brakes, and crankshafts gives performance cars great weather resistance. One important factor driving up sales in the segment is the rising production and sales of hybrid electric vehicles in developed nations.
Europe is projected to hold the largest share of the carbide tools market over the forecast period due to robust economic growth in the U.K. and countries like Germany. A strong infrastructure sector and the presence of significant cutting tool producers in the European region both helped the market flourish. The need for these products is also fueled by the established infrastructure sector and utility business. It is also widely utilized in the construction, aerospace, and automotive industries. The demand for these instruments is anticipated to rise due to this aspect, accelerating market expansion.
On the other hand, the Asia Pacific carbide tools market is anticipated to grow significantly over the forecast period due to an increase in companies producing construction and automotive equipment, which drives the market's expansion. The rise in the number of developing economies in the area is also anticipated to contribute to the expansion of the market for carbide tools. In addition, developing nations like India, Indonesia, and Vietnam are becoming more urbanized and industrialized, which increases the demand for round tools, drill bits for CNC machines, and lathe machines that support market expansion. Such occurrences encourage market expansion in the Asia Pacific area.
LIST OF KEY COMPANIES PROFILED:
- KYOCERA Corporation
- Sandvik AB
- YG-1 Co., Ltd.
- Makita Corporation
- CERATIZIT S.A.
- Mitsubishi Materials Corporation
- Guhring Limited
- Allied Machine & Engineering Corp.
- IMC Group
- OSG Corporation
- Kennametal Inc.
- Elementos de Mecanismos, S.A. de C.V. (Elmec)
- Fullerton Tool Company
- Sumitomo Electric Hartmetall GmbH
- Xinrui Industry Co., Ltd.
- Sorma S.p.A.
- Fratelli Vergnano Srl
- TDC Cutting Tools Inc.
- TSUNE SEIKI CO., LTD.
- Cutoutil Hardware Tools Co.,Ltd.
KEY INDUSTRY DEVELOPMENTS:
- February 2022: A new line of tools to create narrower grooves has been introduced by Horn, a major grooving tool supplier based in the United States. The business could then upgrade its slot milling circular interpolation system. Various coatings are available for exchangeable inserts to suit the material being machined. Due to its mass, the solid carbide tool shank can dampen vibration during milling.
- January 2022: Guhring, Inc., a well-known producer of round shank cutting tools with its corporate office in Brookfield, has declared that it will be introducing its novel product line at the Birmingham NEC in March. Additionally, the RF100 Sharp Series, its sharpest solid carbide milling tool, will make its debut. It is thought to be the best option for trochoid cutting, roughing, ramping, finishing, helical milling, and slotting.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Product, By Configuration, By Coating, By End User Industry and By Geography|
|By End User Industry||