Precision Tool Market - Forecast(2024 - 2030)

Report Code: AIR 0249 Report Format: PDF + Excel

Precision Tool Market Overview

The Precision Tool Market size is forecast to reach US$ 102 billion by 2027, growing at a CAGR of 13.6 % from 2022 to 2027. 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. In March 2020, Mapal, an international supplier of precision tools for the machining of almost all materials, has optimized the conventionally manufactured bell tool by means of the laser melting process.

Precision Tool Market Report Coverage

The report: “Precision Tool Industry Outlook – Forecast (2022-2027)”, 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 Mechanism: Mechanical Tools, Electronic Equipment, Pneumatic Instruments, Hydraulic Instruments, 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)

Key Takeaways

  • The CNC (Computerized Numerical Control) segment held the largest market share in the Precision Tool Market  segmented by technology, in 2021. 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 2021. 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 2021. 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.

Precision Tool Market Value Share, By Geography, 2021 (%)


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Precision Tool Market Segment Analysis- By Technology

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 2021. 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.

Precision Tool Market Segment Analysis - By End User

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 2021. 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 December 2021, The Volz Group manufactures HVAC filters for commercial and industrial applications as well as making the machinery. They have announced the investment in a new CMM, two 3-axis machining centers, a turning center and most recently, a Mistubishi MV2400S wire EDM machine from the Engineering Technology Group (ETG). It is expected the machine will perform 50% faster than previous machinery and boost the profitability for the company. Thus, rising adoption of precision tools in manufacturing sector by critical component producers is boosting the market growth.

Precision Tool Market Segment Analysis - By Geography

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%. In April 2019, Sandvik announced acquisition of Kunshan Ousike Precision Tools Co., Ltd (OSK), a supplier of solid carbide round tools based in Kunshan, Jiangsu, China. This will boost the market share of company in precision tools market of India. Thus, growing research in innovative and precise manufacturing in Asian countries is leading to the growth of Precision Tool Market.

Precision Tool Market Drivers

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. In April 2021, -Bosch Power Tools, a global leader for power tools and power tool accessories, announced the release of the newest generation of its BLAZE™ Laser Measures, equipped with 11 different measuring functions and a range up to 65 feet. The laser measures include user interface with advanced HMI and higher contrast to improve visibility in all environments and many other features. In September 2021, Dasqua Technology Ltd. has introduced portable light weight plastic calliper which is a cost-effective digital calliper. These innovative products with advanced technologies in Precision Tool Market is leading the growth of this market

The rise in 3D precision tools and additive manufacturing technologies is fueling the growth of Precision Tool 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. In November 2021, Researchers at the University of Bath have been awarded a £1.5 million funding package for the development of nano sensors and cutting tools that will enable the machining of high precision aerospace components. The 3-year SENSYCUT project, funded by the Engineering and Physical Sciences Research Council, aims to increase precision, lower costs and prevent manufacturing errors in the aerospace industry. Hence, many such growing research in Precision Tool Market is driving the market growth.

Precision Tool Market Challenges

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, 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.

Precision Tool Market Landscape

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:

  1. Bosch GmbH
  2. Komatsu Ltd. 
  3. Schuler AG
  4. Hitachi Ltd
  5. JTEKT Corporation
  6. Yamazaki Mazak Corporation
  7. Index Group
  8. Merrill Tool & Machine
  9. Ridium Manufacturing
  10. Trelleborg AB

Recent Developments:

  • 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.
  •  In December 2021, CORE portfolio company CGI Automated Manufacturing (CGI), announced the acquisitions of Precision Metal Fab and Precision Tool & Die (PMF Company), a provider of metal cutting and forming solutions. PMF specializes in CNC laser cutting, stamping, metal die formation, welding, and assembly for various end-market applications, including warehouse automation, food equipment, HVAC and utilities. Thus, this acquisition will assist in entrance of CGI in Precision Tool Market.
  •  In March 2021, Merill Tool & Machine announced the launch of RONIN 400 horizontal milling machine brings versatility and new technology to MERRILL’s large machining facility. As a staple for the aerospace industry, the RONIN can accommodate a wide range of intricate product configurations with its numerous milling accessories and rotary tables. Hence, with this product the company can gain a significant market share from aerospace vertical in Precision Tool Market.

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1. Precision Tool Market Overview
    1.1 Definitions and Scope
2. Precision Tool Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Product Type
    2.3 Key trends segmented by Geography
3. Precision Tool Market– Market Landscape
    3.1 Comparative Analysis
    3.1.1 Product/Company Benchmarking-Top 5 Companies
    3.1.2 Top 5 Financial Analysis
    3.1.3 Market Value Split by Top 5 Companies
    3.1.4 Patent Analysis
    3.1.5 Pricing Analysis(Comparison of General Price Offerings in the Market)
4. Precision Tool Market– Startup Company Scenario (Premium)
    4.1 Venture Capital and Funding Scenario
    4.2 Startup Company Analysis
5. Precision Tool Market– Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Scenario
    5.2 Ease of Doing Business Index
    5.3 Case Studies
    5.4 Customer Analysis
6. Precision Tool Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Precision Tool Market– By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
    7.4 Suppliers and Distributors
8. Precision Tool Market – By Offering
    8.1 Hardware
    8.2 Software
    8.3 Services
        8.3.1 Installation service
        8.3.2 Maintenance service
9. Precision Tool Market – By Raw Material
    9.1 Metal
        9.1.1 Stainless Steel
        9.1.2 Steel
        9.1.3 Aluminium
        9.1.4 Brass
        9.1.5 Copper
        9.1.6 Titanium
        9.1.7 Others
    9.2 Plastics
    9.3 Composites
    9.4 Ceramics
    9.5 Others
10. Precision Tool Market – By Scale
    10.1 Nominal scale
    10.2 Ordinal scale
    10.3 Interval scale
    10.4 Ratio scale
    10.5 Others
11. Precision Tool Market – By Technology
    11.1 Conventional
    11.2 CNC (Computerized Numerical Control)
12. Precision Tool Market – By Machines
    12.1 Lathe Machines
    12.2 Milling Machines
    12.3 Electrical Discharge Machining (EDM)
    12.4 Drilling Machines
    12.5 Boring Machines
    12.6 Gear Cutters
    12.7 Saws and Grinders
    12.8 Others
13. Precision Tool Market – By Mechanism
    13.1 Mechanical Tools
    13.2 Electronic Equipment
    13.3 Pneumatic Instruments
    13.4 Hydraulic Instruments
    13.5 Others
14. Precision Tool Market – By Devices
    14.1 Meters
        14.1.1 Micrometers.
        14.1.2 Durometers.
        14.1.3 Others
    14.2 Measurement
        14.2.1 Calipers
        14.2.2 Edge and Center Finders
        14.2.3 Adjustable Parallel
        14.2.4 Laser Measures
        14.2.5 Setup and V blocks
        14.2.6 Others
    14.3 Gauges
        14.3.1 Height Gauges.
        14.3.2 Precision Depth Gauges
        14.3.3 Feeler Gauges
        14.3.4 Screw pitch Gauges
        14.3.5 Radius Gauges
        14.3.6 Bore Gauges
        14.3.7 Hole, drill and wire Gauges
        14.3.8 Others
    14.4 Testers
        14.4.1 Hardness Tester
        14.4.2 Roughness Tester
        14.4.3 Others
    14.5 Balances and Weights
    14.6 Others
15. Precision Tool Market– By End user
    15.1 Automotive
    15.2 Manufacturing & Industrial machinery
    15.3 Aerospace
    15.4 Power & Energy
    15.5 Oil & Gas
    15.6 Metal & Mining
    15.7 Medical
    15.8 Infrastructure
    15.9 Others
16. Precision Tool Market- By Geography (Market Size -$Million/Billion)
    16.1 North America
        16.1.1 U.S
        16.1.2 Canada
        16.1.3 Mexico
    16.2 Europe
        16.2.1 Germany
        16.2.2 France
        16.2.3 UK
        16.2.4 Italy
        16.2.5 Spain
        16.2.6 Russia
        16.2.7 Others
    16.3 APAC
        16.3.1 China
        16.3.2 Japan
        16.3.3 South Korea
        16.3.4 India
        16.3.5 Australia
        16.3.6 Others
    16.4 South America
        16.4.1 Brazil
        16.4.2 Argentina
        16.4.3 Others
    16.5 RoW
        16.5.1 Middle East
        16.5.2 Africa
17. Precision Tool Market- Market Entropy
    17.1 New product launches
    17.2 M&A's, collaborations, JVs and partnerships
18. Precision Tool Market– Industry Competition Landscape (Premium)
    18.1 Market Share Global
    18.2 Market Share by Region
    18.3 Market Share By Product Type
19. Precision Tool Market– Key Company List by Country Premium (Premium)
20. Precision Tool Market- Company Analysis
    20.1 Bosch GmbH 
    20.2 Komatsu Ltd.
    20.3 Schuler AG
    20.4 Hitachi Ltd
    20.5 JTEKT Corporation
    20.6 Yamazaki Mazak Corporation
    20.7 Index Group
    20.8 Merrill Tool & Machine
    20.9 Ridium Manufacturing
    20.10 Trelleborg AB
    20.11 Others
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