Precision Tool Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

The Precision Tool Market size is forecast to reach US$ 149.5 billion by 2030, growing at a CAGR of 13.6 % from 2024 to 2030. Precision Tool is significant in machining products used for industrial automation equipment, automotive parts, medical implant accessories and consumer goods. The precision tools mainly include use of machines such as Lathe Machines, Milling Machines, Electrical Discharge Machining (EDM), Drilling Machines, Boring Machines, Gear Cutters, Saws, Grinders and Others. Lathe machines are popularly used in various industries based on Computer Numerical Control technology as it is accurate and cost-effective. Precision tools are used as metal cutting tool, measurement tools, metal forming, and other operations. Factors such as industry 4.0 technologies and automation, increasing development of CNC (Computerized Numerical Control) based precision tools and rise in demand of mass customization for production boosts the market growth. However, the inaccessibility of small and medium scale industries due to high costs restricts the growth of this market.

Precision tool trends include the adoption of advanced materials for tool construction, enhancing durability and performance. Automation integration in precision machining processes improves efficiency and reduces production times, driven by multifunctional CNC machines. Additionally, there's a focus on sustainability, with manufacturers implementing eco-friendly practices in tool production and usage. Furthermore, the customization of precision tools to meet specific industry requirements is gaining traction, allowing for more tailored solutions to diverse manufacturing needs.

The report: “Precision Tool Industry Outlook – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Precision Tool industry.

                                             

By Offering: Hardware, Software, Services (Installation service, Maintenance service).

By Raw Material: Metal (Stainless Steel, Steel, Aluminum, Brass, Copper, Titanium, Others) Plastics, Composites, Ceramics, Others.

By Scale: Nominal scale, Ordinal scale, Interval scale, Ratio scale, Others.

By Technology: Conventional, CNC (Computerized Numerical Control).

By Machines: Lathe Machines, Milling Machines, Electrical Discharge Machining (EDM), Drilling Machines, Boring Machines, Gear Cutters, Saws and Grinders, Others.

By Devices: Meters (Micrometers, Durometers, Others), Measurement (Calipers, Edge and Center Finders, Adjustable Parallel, Laser Measures, Setup and V blocks, Others), Gauges (Height Gauges, Precision Depth Gauges, Feeler Gauges, Screw pitch Gauges, Radius Gauges, Bore Gauges, Hole, drill and wire Gauges, Others), Testers (Hardness tester, Roughness tester, Others), Balances and weights, Others.

By End User: Automotive, Manufacturing and Industrial Machinery, Aerospace, Power & Energy, Oil & Gas, Metal & Mining, Medical, Infrastructure, Others.

By Geography: North America (U.S, Canada, Mexico), Europe (U.K, Germany, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

• The CNC (Computerized Numerical Control) segment held the largest market share in the Precision Tool Market segmented by technology, in 2023. This is owing to more precise results with 3D system than 2D system, along with shorter debugging time and increased resolution of the defects.

• The Manufacturing and Industrial machinery segment held the largest share in Precision Tool Market by end user, in 2023. This is attributed to miniaturization of circuit boards and need for precision quality in critical applications of printed circuit boards (PCBs).

• APAC (Asia-Pacific) market held the largest market share of 36%, in 2023. This is due to growing industry 4.0 technologies and automation, increasing development of CNC (Computerized Numerical Control) based precision tools and rise in government initiatives promoting manufacturing industries in Asian countries

• Growing demand of mass customization for production, rise in development automated precision tools, government initiatives for boosting manufacturing and growing research in 3D precision tools and additive manufacturing are the contributing factors in the growth of Precision Tool Market.

                                                

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The Precision Tool Market by technology has been segmented into Conventional, CNC (Computerized Numerical Control). The CNC (Computerized Numerical Control) segment held the largest share of 75%, in 2023. This is owing to the rising demand for accuracy in complex machining products, need for low operating costs for mass production, programmable automated machining and ability to work on wide range of materials, boosting the demand of CNC technology-based precision tools. CNC machine allows programming of the manufacturing instruction in less time with accuracy. These CNC machines provide automation of machine tools leading to the elimination of human errors. Hence, they are used for manufacturing critical and complex components in industries such as automotive, aerospace, and in electronics production. CNC lathe machines are extensively used in industries and manufacturing owing to multiple functions offered, time efficient and cost-effective production. In February 2022, Saber Diamond Tools Inc., a diamond tooling company, has announced large investment in the cutting-edge (Electrical discharge machining) EDM and CNC machines, in its fully robotic DMG Mori Lasertech50 machining center. Thus, growing adoption of CNC machines in precision tools on large scale is promoting the growth of precision tools market.

The Precision Tool Market by end user has been segmented into automotive, manufacturing and industrial machinery, aerospace, power & energy, oil & gas, metal & mining, medical, infrastructure, others. The manufacturing and industrial machinery segment held the largest share of 40%, in 2023. This is attributed to growing industry 4.0 technologies in precision tools, increasing development of 3D and additive manufacturing and demand for customized and programmable machining precision tools. These precision tools are increasingly becoming important for critical parts and complex geometry manufacturing. The significant use of lathe machines in industries with CNC technology and advanced integration is driving the demand of precision tools. In August 2022, Sandvik strategically acquires Sphinx Tools, a Swiss-based precision tool manufacturer specializing in solid round and surgical cutting tools, to bolster its position in the micro tools market and expand its product portfolio. The acquisition aligns with Sandvik's growth strategy, aiming to strengthen its presence in round tools and enter the surgical tools segment. Thus, rising adoption of precision tools in manufacturing sector by critical component producers is boosting the market growth.

The Precision Tool Market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). APAC (Asia-Pacific) held the largest Precision Tool Market share with 36% of total market size. This is due to factors such as large scale manufacturing industries, government initiatives to promote precision tools, and rise in development of 3D and additive manufacturing. The growing production of critical components like medical implants, automotive and aerospace parts as well as growing infrastructure in Asian countries is leading to a rising in demand of precision tools. Government initiatives to boost manufacturing such as Make in India and Made in China 2025 are also fueling the need for precise and efficient production using precision tools. According to Gardner’s World Machine Tools Output Survey, India occupies 10th position in global machine tools production. Its share in global production is about 0.9%. Thus, growing research in innovative and precise manufacturing in Asian countries is leading to the growth of Precision Tool Market.

There is an increasing demand for digital callipers and laser technology based precision tools which act as a driver for the growth of this market.

Precision tools are continuously evolving with latest technologies of 3D, laser and digital precision tools to offer maximum accuracy. Laser scanner in measuring precision tools is increasingly used owing to their rapid and accurate results with the least error factor. Along with this its easy-to-use interfaces and optimal accuracy is also leading to rise in demand. Laser scanners are capable of capturing the point cloud data of extremely contoured models, thus emerging as an efficient precision measuring tool. Rising focus on reverse engineering and faultless precision measuring across multiple industries leads to the growth of laser scanners in Precision Tool Market. Digital calipers are also trending due to its simplified interface which is easy to access, use and read. The growing need for elimination of errors and accuracy in measurement which are the drawbacks of vernier calliper, boosts the demand of digital callipers. Moreover, innovative products with advanced technologies in Precision Tool Market is leading the growth of this market.

The precision tools market has a high demand of portable, easy-to-use and 3D precision measuring technologies and increasing additive manufacturing has boosted the demand of precision tools. Many leading manufacturers in the precision manufacturing tools market space are developing 3D precision measuring tools to improve their product quality, reduce turnaround times and cut operating costs. Additive manufacturing (AM) is the industrial production name for 3D printing, a computer controlled process that creates three dimensional objects by depositing materials, usually in layers. It is mainly used for complex geometrical parts or critical components requiring high accuracy. These additive manufacturing machines require precision tools to obtain accurate results. Thus, both these technologies spur the demand of precision tools. 

They are feasible for mass production in terms of cost and processing time limiting the market for large scale industries only and restrict market growth in small and medium industries.

Precision tools require programming and high initial cost which is not affordable in terms of time and costing for small and medium scale industries. There is also large number of manufacturing industries with the help of Precision Tools as a service provider which is feasible for small batch orders. In case of CNC machines, it requires customized programming for each component and hence it is suitable only for mass production in large industries. The Precision Tools mainly resolve the quality checks in large quantity which is not required in small scale industries. Lathe machines, callipers, counters and scales use sensor technology and involve expensive components which raise its costs. Hence, in order to run the industry profitably small and medium scale industries prefer outsourcing the quality checks instead of large investment in Precision Tools. According to Gardner’s World Machine Tools Output Survey 2022, around 25% in the large scale sector account for about 70% of the turnover and the rest are in the micro, small and medium enterprises sector. Some of latest feature such as portable Precision Tools is making effort to expand the market. However, the profitability constraint hinders the market growth in small and medium industries.

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Precision Tool industry. The Precision Tool top 10 companies include:

• In May 2022, Sy Bridge Technologies, a global industrial technology company, announced the acquisition of Wachusett Precision Tool (WPT). WPT is a fast-growing manufacturer of high precision prototype, pilot and production molds for medical and consumer packaging customers. This transaction further expands SyBridge's customer base and footprint in the life sciences and consumer end-markets. Thus, it will help increase the market share of Sybridge technologies in Precision Tool Market.

• In February 2022, Starrag USA Inc. announced their new turbine blade machining center in their kentucky lab. The LX021 is a six-axis machining center designed to optimize the lights out machining of complex blades from raw stock to finished form in a single operation. This new efficient installation shall help in boosting the market share of the company.