Cutting tools market to hit US$13.26B by 2028

According to Arizton's latest research report, the cutting tools market will grow at a CAGR of 5.72% from 2022 to 2028.

Globally, new construction and remodeling in the residential sector are on the rise among customers. The COVID-19 pandemic has brought about a few emerging characteristics and disordering for the new-age construction and remodeling era across the expanding industry. Post-pandemic, people focus on working remotely to sell and buy new homes or renovate their flats or residential homes. Furthermore, the demand for specialty constructions such as flooring, interior design, and aesthetic constructions is expected to increase by over 12% throughout the projection period. As a result, the power & hand tool market is anticipated to grow, thereby supporting the cutting tools market.

Over the last few decades, rising urbanization and population growth have propelled the global construction sector. Due to enormous prospects in residential, commercial, and infrastructure building, the construction sector is expected to increase. Due to rising urbanization in large cities, most emerging countries have expanded housing building and infrastructure spending. Mergers and acquisitions, in which large and well-established organizations purchase companies and join the construction sector, have also been increasingly common in recent years. In the construction business, over 100 cross-border agreements were registered in 2019, nearly 45% being mergers and acquisitions among worldwide enterprises. In the construction business, APAC had the biggest mergers and acquisitions.

Vendors Insights

A fundamental shift in competition is anticipated in the market due to several upcoming construction projects in the residential and commercial areas. Many vendors are looking to expand their product portfolios using the latest technologies to widen their footprint in the market and cater to a growing customer base. Furthermore, vendors in the market must devote significant efforts and resources to launch innovative and upgraded cutting tools with better performance that cater to consumer demands. Vendors must continuously analyze market trends to design, develop, and manufacture new products with distinctive features like better lifespan, additional oil injection, and improved heat resistance.

The market competition is expected to intensify further with an increase in product expansions, technological innovation growth, and mergers and acquisitions activities, which broaden the scope for consuming a wide range of cutting tools in the market. Arizton believes that global players will grow inorganically by acquiring regional or local players in the future. Furthermore, companies with better technical and financial resources can develop innovative products with required accessories, threatening competitors' products and making them non-competitive and even obsolete before recovering R&D and commercialization costs.