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Asia Pacific drives tooling market growth

Source:Technavio     Date:2022-08-11
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The tooling market size is expected to increase by USD 9.84 billion between 2020 and 2025, according to the latest research report by Technavio. The market observed a YOY growth of 4.16% in 2021 and the growth momentum is expected to accelerate at a CAGR of 5% during the forecast period. The report identifies APAC as the key market for tooling products. The thriving construction industry and increasing government spending on infrastructure development are creating significant opportunities for vendors to grow in the region.

The market observed maximum demand for milling tools from end-users. The segment is driven by the strong growth of end-user industries such as automotive, energy, and aerospace. The need for high-precision metal tools has increased the consumption of milling tools in the segment. The market growth in the segment will be significant during the forecast period.

APAC will account for 56% of the overall market growth during the forecast period. The increase in the demand for passenger and commercial vehicles and investments by global OEMs to set up manufacturing plants in the APAC countries are driving the growth of the regional market. China, Japan, and South Korea (Republic of Korea) will emerge as key markets for tooling in APAC.

The market is mainly driven by rising industrial automation globally. The rise in labor costs and the growing shortage of labor has forced many industrial operators to invest in automation technologies. This has spurred the demand for advanced tools to meet the complex machining needs of automated technologies. In addition, many emerging economies are working on creating a favorable environment for the manufacturing sector to increase their net exports. All these factors are expected to foster the growth of the global tooling market during the forecast period.

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