Cutting Tool and Machine Tool Accessory Market Report 2026

The cutting tool and machine tool accessory market size has grown strongly in recent years. It will grow from $82.37 billion in 2025 to $87.98 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to expansion of automotive manufacturing activities, growth in industrial machining operations, increasing demand for precision tools, availability of advanced machine tools, rising investments in manufacturing capacity.

The cutting tool and machine tool accessory market size is expected to see strong growth in the next few years. It will grow to $118.64 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to increasing adoption of smart machining systems, rising demand for high-precision components, expansion of aerospace and defense manufacturing, growing use of advanced tool coatings, increasing automation in workshops. Major trends in the forecast period include increasing adoption of advanced cutting tool materials, rising demand for precision measuring accessories, growing use of high-speed machining tools, expansion of tool customization capabilities, enhanced focus on tool longevity.

The growth in the cutting tool and machine tool accessory market is being driven by the increasing industrial production. The Industrial Production Index is a valuable metric for monitoring the physical output of various industrial sectors within an economy. As industrial production expands, there is a greater demand for cutting tools and machine tool accessories because these tools are indispensable for machining, shaping, and processing raw materials into finished products. For example, in July 2023, according to Eurostat, a UK-based government statistical agency, industrial output in the euro area increased by 0.2%. Additionally, there was a 0.1% increase reported in the European Union between May and April 2023. Hence, the growth in industrial production across various industries is expected to be a driving force behind the future expansion of the cutting tool and machine tool accessory market.

The rapid advancements in technology are anticipated to stimulate innovation within the cutting tool and machine tool accessory manufacturing sector, ultimately boosting the market in the forecast period. Moreover, technologies like 3D printing, artificial intelligence, and big data analytics are finding applications in the manufacturing industry, resulting in increased productivity, reduced operational expenses, and improved profit margins. For example, a global survey conducted by The Economist Intelligence Unit revealed that approximately 90% of corporate executives believed that artificial intelligence (AI) would positively impact their company's growth, and 86% of respondents considered AI as a means to enhance productivity. Lower operational costs contribute to improved profit margins, allowing companies to diversify their product offerings and expand into new markets by reinvesting cost savings. These devices are also incorporating IoT applications to enable services such as remote monitoring and centralized feedback systems, offering additional benefits. The utilization of mobile applications, advanced sensors, and embedded software is creating fresh opportunities for companies in this market. These factors are expected to be key drivers of the cutting tool and machine tool accessory manufacturing market in the forecast period.

Leading companies in the cutting tool and machine tool accessory market are actively pursuing strategies to enhance their global presence, thereby gaining access to new markets, broadening their customer base, and mitigating supply chain risks. This expansion strategy involves physical expansion of their manufacturing facilities to boost production capacity. For instance, in June 2023, Nidec Machine Tool Corporation, a Japanese manufacturer of machinery and cutting tools, disclosed its plans to construct a new facility in Ranipet, Tamil Nadu, India. This facility is intended for Nidec India Precision Tools Ltd. (NMTI), a subsidiary specializing in the manufacturing and distribution of cutting tools. The expanded plant will offer 1.5 times the production capacity of the company's existing capabilities and will primarily focus on producing items like hob cutters and pinion cutters. This expansion aims to serve the needs of the company's Indian clientele more efficiently, particularly in the thriving sectors of automotive, construction, and agriculture machinery.

Major companies operating in the cutting tool and machine tool accessory market are Sandvik AB, Kennametal, Okuma, Asahi Diamond, Stanley Black & Decker, Snap-On, Apex Tool Group, Makita, Bosch, Hitachi Koki, Hilti, Techtronic Industries, Atlas Copco, Ingersoll-Rand, Walter AG, Kyocera, Nachi-Fujikoshi, OSG, Sumitomo, Tungaloy, Iscar, Seco Tools, Guhring, Dormer Pramet, Emuge, Regal Cutting Tools, Niagara Cutter, Allied Machine.

Western Europe was the largest region in the cutting tool and machine tool accessory market in 2025. Asia-Pacific was the second largest region of cutting tool and machine tool accessory market. The regions covered in the cutting tool and machine tool accessory market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cutting tool and machine tool accessory market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The cutting tool and machine tool accessory market consists of sales of carbon tool steel, high speed steel tool (HSS), cemented carbide, ceramics tool, cubic boron nitride tool (CBN), and diamond tool. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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