Precision Tools Market: Current Analysis and Forecast (2023-2030)

Report Description

The precision tools market is expected to grow at a strong CAGR of around 12.78% during the forecast period due to rising automation in industries. Automation is now a prevailing phenomenon in global industries, with the objective of enhancing efficiency, productivity, and quality. The incorporation of automation systems with precise tools has expedited the expansion of the precision tools market. By employing automated machining processes, manufacturers can achieve greater throughput, minimize human errors, and ensure enhanced consistency in their operations. The implementation of industrial robots is a significant factor driving automation in the precision tools market. Collaborative robots (cobots) and automated guided vehicles (AGVs) are increasingly being utilized alongside precision tools to carry out repetitive tasks with a high level of accuracy. These robots can perform intricate operations, including material handling, picking, and placing, which reduces the need for human involvement and improves overall process efficiency.

Moreover, the rise of smart factories and Industry 4.0 has further accelerated automation in the precision tools market. By integrating precision tools with data-driven technologies like artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), real-time monitoring and control of machining processes become possible. This integration leads to enhanced productivity, predictive maintenance, and improved product quality. The aerospace industry has recently witnessed the influence of automation on the precision tools market through the implementation of robotic machining cells. These cells integrate robotics, precision tools, and advanced software to automate intricate machining tasks, leading to decreased lead times and enhanced machining accuracy.

Some of the major players operating in the market include Bosch GmbH, Schuler AG, Komatsu Ltd., Hitachi Ltd., JTEKT Corporation, Yamazaki Mazak Corporation, Haas Automation, Inc., Merrill Tool & Machine, Trelleborg Group, and TEC Tools. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

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Insights Presented in the Report

“Amongst machine, the milling machine segment dominated the market in 2022.”

Based on machines, the market is divided into lathe machines, milling machines, drilling machines, boring machines, and gear cutters. The milling machine segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. The major factors contributing to the growth are due to its versatility and wide range of applications. Milling machines can perform various functions such as cutting, drilling, chamfering, and gear cutting, making them essential tools in industries like automotive, aerospace, and medical device manufacturing. The dominance of milling machines is also influenced by the presence of various manufacturing industries in different regions. Technological advancements also play a vital role in the expansion of the milling machine market. Manufacturers are continuously innovating and introducing new features and capabilities in milling machines to meet the changing requirements of industries. For example, the integration of computer numerical control (CNC) technology in milling machines has revolutionized the manufacturing sector. CNC milling machines offer superior precision and efficiency compared to traditional manual milling machines, allowing manufacturers to produce intricate parts and components with accuracy and consistency.

“Amongst technology, the computerized numerical control segment generated the highest revenue in 2022.”

Based on technology, the market is bifurcated into conventional and computerized numerical control. The computerized numerical control segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. The major factors contributing for the growth of the segment as it become more sophisticated, incorporating features such as multi-axis capabilities, improved spindle speeds, advanced tooling options, and real-time monitoring systems. Moreover, the integration of Internet of Things (IoT) technology and Artificial Intelligence (AI) further enhances their capabilities, enabling predictive maintenance, adaptive machining, and data-driven optimizations. Notably, the sub-industry of metal cutting machine tools, particularly high-end CNC lathe machine tools, has witnessed substantial growth, indicating a rising demand for such equipment. The increasing global market size also contributes to the demand for CNC technology, as it is projected to experience steady growth in the coming years, driven by advancements in technology and the need for efficient operations. The current outlook for the lathe centers market is positive, with significant growth expected soon, further supporting the escalating demand for CNC technology in the precision tool industry.

Precision Tools Market Report Coverage

“Asia Pacific dominated the market for Precision Tools market in 2022.”

The Asia Pacific automotive traction control systems market dominated the market and is expected to behave in the same fashion in the forecast period. Over the past few years, the automobile market in the Asia Pacific region has experienced remarkable growth. This growth can be attributed to several factors including the rising population, increasing demand for transportation, advancements in technology, growing electronics industry, and manufacturing industry. This region is the largest manufacturing hub with countries such as China, Indonesia, Malaysia, and Japan. Moreover, major automobile manufacturers such as Honda, Suzuki, Hyundai, Mahindra, KIA, and Changan, who have introduced a range of models that have significantly boosted the sales of electric vehicles in the area which requires precision tools for their assembly and manufacturing. For instance, in 2023, according to the report published by Bloomberg Finance L.P in 2021, the total number of EVs sold was 3.2 million, which then doubled to reach 6.4 million units in 2022. Moreover, Vietnam is now one of the key destinations for electronics manufacturers / assemblers, with several recent announcements indicating this trend is accelerating. For instance, Foxconn announced in June 2023 its plans to invest USD 250 million in Vietnam to manufacture electric vehicle and telecoms parts. Major automobile manufacturers lie in the same region such as Honda, Suzuki, Hyubdai, Mahindra, KIA, and Changan. These companies accelerated sales demand and increased the market for traction control system in the region. For instance, according to the report published by Organisation Internationale des Constructeurs d’Automobiles, the total number of passenger vehicles sold was 28.29 million units in the year 2021 from the five major countries increased to 31.08 million units in 2022.

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Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Precision Tools market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Precision Tools Market Analysis (2023-2030)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Precision Tools market were the three major steps undertaken to create and analyze the adoption of precision tools in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global precision tools market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Precision Tools market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the precision tools market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report such as machines, technology, and end user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the precision tools market. Further, we conducted factor analysis using dependent and independent variables such as machine, technology, and end user of the precision tools market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Precision Tools market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Precision Tools market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Precision Tools market across the major markets domestically.
• All percentage shares, splits, and breakdowns of market segments and sub-segments.
• Key players in the global precision tools market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Precision Tools market, data was split into several segments & sub-segments after studying various parameters and trends in the areas of machine, technology, and end user in the global precision tools market.

The main objective of the Precision Tools Market Study

The current & future market trends of the global Precision Tools market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the precision tools market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of machine, technology, and end user.
• Define and analyze the regulatory framework for the precision tools
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the precision tools market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profile of the precision tools market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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