The global Indexable Inserts Market is estimated to be valued at US$ 6.10 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Indexable inserts are cutting tools used extensively in the machining of metal parts in various end-use industries such as automotive, aerospace & defense, electrical & electronics and Others. Indexable inserts aid in reducing machining time and increasing production output through the use of geometrically precise cutting edges that are reversible or replaceable as they wear out. Indexable carbide inserts provide longer tool life, better surface finish, higher productivity and material removal rates as compared to solid carbide tools. The automotive sector is increasingly adopting indexable inserts for production of engine parts, gears and transmission components which is driving the growth of this market.
Market key trends:
The global indexable inserts market is witnessing significant growth which can be attributed to rising demand from the automotive sector. Manufacturing activities are growing at a rapid pace in the automotive industry to cater to the rising vehicle demand worldwide. Indexable inserts find widespread application in automotive component machining like engine blocks, cylinder heads, transmission parts etc. due to their advantages of high precision, better surface finish and tool life. Rising automotive production especially in Asia Pacific region is a major factor fueling the demand for indexable inserts. Additionally, increasing R&D investments by manufacturers to develop new carbide grades and geometries suitable for difficult-to-cut materials is also boosting the market growth.
Porter’s Analysis
Threat of new entrants: New companies entering the indexable inserts market have to invest highly in R&D, machining and grinding facilities to develop new cutting inserts.
Bargaining power of buyers: Large OEMs have significant bargaining power due to their bulk purchasing power. They can negotiate on price with manufacturers.
Bargaining power of suppliers: Key manufacturers have control over raw material supplies and few specialized suppliers exist. This gives them negotiating power over prices of raw materials.
Threat of new substitutes: With advancement in material removal technologies, new substitute technologies like laser cladding/welding pose potential threat to indexable inserts.
Competitive rivalry: Market is consolidated with top players occupying majority share.
Key Takeaways
The Global Indexable Inserts Market Size is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing demand from automotive and transportation industry. Major automakers are increasing production volumes that require metal cutting tools like indexable inserts.
Regional analysis indicates that Asia Pacific dominates the global indexable inserts market owing to the large manufacturing industry in countries like China, India and Japan. China is the largest producer and consumer of indexable inserts due to presence of a huge automotive manufacturing industry. Europe is another major region driven by developed markets of Germany, France, UK and Italy.
Key players operating in the indexable inserts market include Sandvik Coromant, Kennametal Inc., Iscar Ltd., Mitsubishi Materials Corporation, Seco Tools, Walter AG, Kyocera Corporation, Tungaloy Corporation, Sumitomo Electric Industries, Â Ltd., Ceratizit Group, Ingersoll Cutting Tool Company, TaeguTec Ltd., Valenite LLC (Kennametal). These players are focusing on new product launches to expand their product portfolio and also adopting strategies like mergers, acquisitions and collaborations for long-term growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
