Portugal Cutting Tools Market Forecast to 2028 - COVID-19 Impact and Country Analysis By Type, Material and End User

The Portugal cutting tools market is expected to grow from US$ 90.90 million in 2021 to US$ 119.24 million by 2028; it is estimated to grow at a CAGR of 4.2% from 2022 to 2028.

The increasing demand from the automobile industry is a primary driver of the Portugal cutting tools market growth. Cutting tools are used for milling, grinding, and broaching automotive car parts and have a large market share in the automotive industry. With their high precision, durability, and repeatability throughout manufacturing activities, the cutting tools market is an efficient and cost-effective way to boost total productivity. The latest techniques such as high-speed cutting, dry machining, hard machining, and new cutting technology have modified the traditional approach. The vehicle industry covers various professional tool applications. In the automotive industry, carbide cutters are now commonly employed.

Portugal's economy is completely integrated with the European Union (EU). The automotive industry is a major contributor to the Portuguese economy. The automotive sector in Portugal consists of 32,200 firms that manufacture automobiles and components, employ 152,000 people directly, and generates €33.7 billion in sales, accounting for 21% of the country's total tax revenue. According to ACAP, the automotive industry accounts for 11% of Portugal's overall exports and contributes 4.8% to the manufacturing sector. Over ~220 automotive suppliers and four major automobile manufacturers - Toyota/Salvador Caetano, PSA Peugeot Citroen, Mitsubishi Trucks, and Volkswagen AutoEuropa - are all based in Portugal. Interface and Industry 4.0 are two public programs that provide incentives to encourage industry innovation. Due to this scenario, cutting tools and other production equipment are projected to be in high demand. Moreover, with 1,360 electric vehicles (BEV - Battery Electric Vehicle) sold in June 2021 - the month set an absolute record for monthly sales of 100% electric vehicles, indicating a growing interest among buyers for electric vehicles, which offer greater autonomy, efficiency, and coverage across all market segments. Compared to May 2021, sales of 100% electric vehicles (BEV) increased by 53% and by 168% in May 2021. Thus, increasing usage of cutting tools in the automotive industry will drive the demand for cutting tools in Portugal.

The market for cutting tools market in Portugal is predicted to develop during 2020-2028. The country's industrial production is growing at 3.5%, and the industry accounts for ~22% of the national GDP. Portugal is located between the Atlantic Ocean and its land border with Spain, making it a great location for trade. Moreover, the World Bank Doing Business Dataset ranks Portugal first for ease of cross-border trading. Various cutting tools, including saw blades, taps, reamers, hobs, chasers, broaches, rolling dies, drills, end mills, cutters, burrs, gear cutting tools, tool bits, and tips/inserts, are produced in Portugal. Construction, automotive, railway network, engineering, and defense industries have bolstered cutting tools market. Further, the diamond cutting tools market is the one of the fastest growing consumer of cutting tools.

In the machining sector, a cutting tool or cutter is a hardened metal tool used to cut, shape, and remove material from a workpiece using machining tools and abrasive tools via shear deformation. The majority of these instruments are made specifically for working with metals. Cutting tools are used in several industries, such as construction, carpentry, automotive, and manufacturing, to perform various material cutting operations. There is a wider range of cutting tools in the market with new and unique supplied standards. These tools are frequently packaged in improved formats that incorporate additional technical and application information, making tool selection simple and intuitive. Cutting tools and clamping devices are widely used in boring operations and manufacturing multiple pieces with geometrically complex surfaces, which requires expert explanation. The increased use of cutting tools in various industries has profoundly altered market dynamics.

The automotive manufacturing industry is the primary user of cutting tools. With the changing market situation, cutting tool manufacturers have boosted their efforts to develop and manufacture more innovative designs to meet rising client needs. Technological advancements drive the cutting tools market with workpiece production technologies such as metal injection molding, 3D printing, investment casting, and close-tolerance forging. The Portugal cutting tools market appears to be quite promising, owing to the constantly developing manufacturing industries around the country. Cutting tool usage is predicted to increase tremendously as industrial sectors grow, meeting the changing needs of clients. As a result, the share of the Portugal cutting tools market is expected to grow during the forecast period.

The overall Portugal cutting tools market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Portugal cutting tools market. The process also serves the purpose of obtaining an overview and forecast for the Portugal cutting tools market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers - along with external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the Portugal cutting tools market.