Carbide Cutting Tool Market Report 2025

The carbide cutting tool market size has grown strongly in recent years. It will grow from $11.54 billion in 2024 to $12.28 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to the expansion of drill bit production capacity, a rise in aerospace component manufacturing, growing demand for precision machining, an increase in infrastructure and construction activities, and the surge in medical device manufacturing.

The carbide cutting tool market size is expected to see strong growth in the next few years. It will grow to $15.51 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to the rise in industrial activities, increasing demand for automation, a growing need for high precision and improved efficiency in manufacturing, ongoing global infrastructure development, and the expanding use of hard-to-machine materials. Major trends in the forecast period include the adoption of automation technologies and smart manufacturing, ongoing technological advancements, innovations in cutting tool technology, developments in precision machining techniques, and industry shifts driven by technological progress.

The rapid growth of the automotive industry is anticipated to drive the expansion of the carbide-cutting tools market in the coming years. This sector encompasses the full ecosystem related to the manufacturing, sales, and servicing of motor vehicles and their components. The industry's expansion is largely attributed to increasing urbanization and consumer demand, which are boosting vehicle production and innovation to meet evolving mobility requirements. Carbide-cutting tools are essential in this sector for precision machining of tough materials like steel and aluminum, allowing for the efficient creation of key components such as engine blocks, brake systems, suspension parts, and transmission components. For example, in 2024, the UK’s Department for Transport (DfT) reported that around 83,000 zero-emission cars were registered, marking an 8% increase compared to 2023. As a result, the rapid growth of the automotive industry is fueling demand in the carbide-cutting tools market.

Leading companies in the carbide-cutting tool industry are increasingly developing advanced products such as coated-carbide grades to boost machining performance, extend tool longevity, and improve overall efficiency in high-speed applications. Coated-carbide grades are carbide cutting tools enhanced with wear-resistant layers applied through methods like physical vapor deposition or chemical vapor deposition, increasing their hardness and thermal stability. These coatings allow for sustained performance under high-speed or heavy-duty machining conditions. For instance, in January 2025, Sumitomo Electric Industries Ltd., a Japan-based manufacturer, introduced the ACS1000 coated carbide grade specifically designed for high-speed milling of stainless steel and exotic alloys. The product includes an ultra-fine Absotech physical vapor deposition coating on a tough carbide substrate, offering outstanding strength, durability, and tool life. The ACS1000 is available in 46 catalog variants compatible with popular milling systems, helping to improve productivity and reduce costs in industries such as semiconductors, energy, and aerospace.

In February 2023, Arch Cutting Tools Corporation, a U.S.-based manufacturer, acquired Custom Carbide Cutter Inc. for an undisclosed amount. The purpose of this acquisition was to expand Arch’s custom tooling capabilities and solidify its position in the precision cutting tool market by leveraging the specialized expertise of Custom Carbide Cutter in carbide tooling. Custom Carbide Cutter Inc. is a U.S.-based company known for producing customized carbide cutting tools used across various industries.

Major players in the carbide cutting tool market are Sandvik Coromant AB, Knight Carbide Inc., Ceratizit Group, Kennametal Inc., OSG Corporation, Walter AG, Tiangong International Company Limited, Gleason Corporation, Dormer Pramet, Taegutec Ltd., Ingersoll Cutting Tool Company, Forbes & Company Limited, Tungaloy Corporation, Fullerton Tool Company Inc, Sumitomo Electric Industries Ltd, Birla Precision Technologies Limited, Ultra-Met Co, Okazaki Seiko Co Ltd., Accusharp Cutting Tools Pvt. Ltd., AB Tools Inc., Schwanog LLC, Hittco Tools Limited, Penn Tool Co, P.L. Schmitt Carbide Tooling LLC.

North America was the largest region in the carbide cutting tool market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in carbide cutting tool report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the carbide cutting tool market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

A carbide cutting tool is a cutting instrument made from tungsten carbide or a composite material containing carbide particles bonded with a metallic binder, typically cobalt. These tools are widely used in machining operations because of their exceptional hardness, resistance to wear, and ability to retain a sharp edge at high temperatures.

The primary types of carbide cutting tools include turning tools, milling tools, drilling tools, hole-making tools, threading tools, and others. Turning tools are used to shape cylindrical or round parts by removing material from a rotating workpiece, often on machines such as lathes. The materials commonly used include tantalum carbide, titanium carbide, and tungsten carbide, with coatings classified as either coated or non-coated. The various configurations encompass both hand-operated and machine-based tools, and they are utilized across multiple industries such as automotive, aerospace, construction, oil and gas, heavy machinery, medical, electronics, and others.

The carbide cutting tools market research report is one of a series of new reports that provides carbide cutting tools market statistics, including carbide cutting tools industry global market size, regional shares, competitors with a carbide cutting tools market share, detailed carbide cutting tools market segments, market trends and opportunities, and any further data you may need to thrive in the carbide cutting tools industry. The carbide cutting tools market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbide cutting tool market consists of sales of tungsten carbide powder, titanium carbide, niobium carbide, tool holders, and shanks. 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.

This product will be delivered within 1-3 business days.