The market size of China's hard alloy cutting tools is expected to reach 28.5 billion yuan in 2025

November 10, 2023

The market size of China's hard alloy Cutting Tools is expected to reach 28.5 billion yuan in 2025. Hard alloy cutting tools are tools made of hard alloy, which have excellent properties such as high hardness, high strength, good toughness, wear resistance, heat resistance, and corrosion resistance. They are widely used in cutting and processing high-hardness materials. With the continuous maturity of science and technology, the hard alloy industry systems of many countries are becoming increasingly mature. By continuously optimizing materials, coatings, and tool structures, the efficient processing performance of hard alloy cutting tools is improved, expanding their application range. It is understood that hard alloy cutting tools dominate the global cutting tool market, accounting for more than 60%.

As we all know, the consumption of cutting tools in the Chinese market is closely related to the level of manufacturing industry development and structural adjustment. According to a research report by Zheshang Securities Research Institute, since the implementation of the "13th Five-Year Plan," the continuous deepening of supply-side structural reform in China has led to a 30.95% increase in the market size of the cutting tool industry, reaching 42.1 billion yuan in 2018 compared to 2016. In 2019, affected by the China-US trade friction and the downturn in downstream industries such as automobiles, the market size of cutting tools in China decreased to 39.3 billion yuan. However, it is expected to reach 47.7 billion yuan in 2021. It is estimated that the consumption of the Chinese cutting tool market will reach 63.1 billion yuan by 2030, with an estimated annual compound growth rate of 3% from 2021 to 2030.

In recent years, with the continuous improvement of domestic cutting tool companies' technological levels in materials, processes, and production equipment, domestic cutting tools have gradually extended to the high-end market, gradually replacing imported cutting tool products, and accelerating the localization of cutting tools. According to statistics from the China Machine Tool Industry Association, the scale of imported cutting tools in China in 2022 was 12.6 billion yuan, a decrease of 8.7% from 13.8 billion yuan in 2021. The proportion of imported cutting tools in total tool consumption decreased from 37.26% in 2016 to 28.57% in 2022.

As a typical tool product, the market size of hard alloy cutting tools will continue to expand with the development of the manufacturing industry. According to a research report by Huatai Securities Research Institute, the use of hard alloy cutting tools in China's mechanical processing industry currently accounts for about 53%. Based on the market size of 47.7 billion yuan in 2021 and an annual compound growth rate of 3% from 2021 to 2030, it is estimated that the market size of China's hard alloy cutting tools will be approximately 26 billion yuan to 28.5 billion yuan from 2022 to 2025.

Author:

Ms. Crystal Yuan (Carbide Inserts Department)

E-mail:

crystalyuan@zrzhirong.com

Phone/WhatsApp:

8613873367635