How big is the Cutting Tool Market | Drivers & Future Trends 2025

Q: What is the market size of the cutting tool market in 2025 and the projected size by 2031?

Cutting tool market size is approximately USD 36.2 billion in 2025 and is projected to reach around USD 53.6 billion by 2031.

Q: What is the CAGR of the cutting tool market during 2025–2031?

The cutting tool market is expected to grow at a CAGR of 5.7% during the forecast period.

Q: What are the major trends in the cutting tool market?

Cutting tool market trends include the adoption of carbide tools, smart manufacturing integration, sustainability in tool materials, and demand for precision tools.

Q: What are the key drivers of the cutting tool market?

Cutting tool market is driven by industrial growth, increasing automation, advancements in tool technology, and rising demand in automotive and aerospace sectors.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5585

Publication Date: Jul 2025

What is the Cutting tool Market Size?

According to 6Wresearch internal database and industry insights, the Global Cutting tool market was valued at USD 26.5 Billion in 2024 and is expected to reach USD 38 Billion by 2031, growing at a compound annual growth rate of 5.30% during the forecast period (2025-2031).

This market is experiencing robust growth owing to increasing demand from the automotive, aerospace, construction, and heavy machinery sectors. Rising industrialization, ongoing infrastructure projects, and the push for high-precision manufacturing are significantly boosting the market. Additionally, advancements in material science and the growing trend of automation in metalworking processes are propelling the need for advanced cutting solutions.

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Major Growth Factors of the Cutting tool Industry

Expansion in automotive and aerospace industries
Increased demand for high-performance tooling
Rapid industrialization in emerging economies
Rise in infrastructure and construction activities
Growing adoption of CNC machines
Technological advancements in tool materials
Demand for customized and application-specific tools
Increasing investments in manufacturing automation

Cutting tool Market Trends

Cutting tool market is estimated to have major shift toward the use of coated and carbide-based tools for improved durability and precision. Automation and smart manufacturing are fostering demand for efficient and adaptive tooling systems. Furthermore, there's a growing preference for sustainable and eco-friendly tool materials, aligning with green manufacturing initiatives.

Emerging Developments in the Cutting tool Industry

Cutting tool market is experiencing the robust growth in tool coating technologies, integration of AI and IoT for real-time tool monitoring, and development of multi-functional tools that reduce changeover time. Additionally, the incorporation of 3D printing in tool manufacturing is paving the way for design flexibility and rapid prototyping.