Precision Tools

Precision Tools

Precision tools are a category of tools that are designed to provide accurate and precise measurements. These tools are commonly used in various industries such as manufacturing, engineering, construction, and woodworking.

The precision tools market is growing at steady rate of 12.78% in the forecast period owing to the increasing demand for miniaturization. The precision tools market is greatly influenced by the increasing demand for miniaturized products, particularly in industries like electronics, medical devices, and automotive. Modern consumers have high expectations for smaller and more compact devices that offer advanced functionalities. The manufacturing of these miniature products with utmost accuracy and precision heavily relies on the utilization of precision tools. In the field of electronics, precision tools play a crucial role in the production of miniaturized electronic components like microchips and circuit boards. These tools ensure that the dimensions, tolerances, and surface finishes are accurate and precise. Similarly, the medical device industry heavily relies on precision tools to manufacture small-scale medical implants and instruments.

Moreover, the automotive industry is also witnessing a rising demand for miniaturized components such as fuel injectors, turbochargers, and sensors. To meet the requirements of efficient and accurate manufacturing, precision tools are indispensable. Manufacturers must adhere to strict quality standards and dimensional specifications, which can only be achieved through the utilization of precision tools. For instance, Molex Solutions help underscore the various ways that miniaturization is redefining innovation by reducing size, weight and placement of components and connectors including,

• Quad-Row Board-to-Board Connectors. The world’s smallest board-to-board connectors have staggered-circuit layout for 30% space savings to support smartphones, smartwatches, wearables, game consoles and Augmented Reality/Virtual Reality (AR/VR) devices.
• Next-Generation Vehicle Architectures. Molex is driving development of zonal architectures, which replace traditional wiring harnesses with zonal gateways that group vehicle functions by location using fewer, smaller, more powerful and ruggedized connectors.
• Flex-to-Board RF mmWave 5G25 Connectors. Micro-connectors combine compact size and superior signal integrity to deliver step-changes in performance to meet demanding 5G mmWave applications up to 25 GHz

The significance of miniaturization and its impact on precision tools is the advent of microscale 3D printing. This cutting-edge technology allows for the creation of tiny components and intricate structures with exceptional precision, catering to the increasing need for miniaturization across various industries.

• Based on machine, the market is divided into lathe machines, milling machines, drilling machines, boring machines, and gear cutters. The milling machine segment dominated the market in 2022 and is expected to show the same trend in the forecast period. The major factors contributing for the growth due to its versatility and wide range of applications. Milling machines can perform various functions such as cutting, drilling, chamfering, and gear cutting, making them essential tools in industries like automotive, aerospace, and medical device manufacturing. The dominance of milling machines is also influenced by the presence of various manufacturing industries in different regions. Technological advancements also play a vital role in the expansion of the milling machine market. Manufacturers are continuously innovating and introducing new features and capabilities in milling machines to meet the changing requirements of industries. For example, the integration of computer numerical control (CNC) technology in milling machines has revolutionized the manufacturing sector. CNC milling machines offer superior precision and efficiency compared to traditional manual milling machines, allowing manufacturers to produce intricate parts and components with accuracy and consistency.
• Based on technology, the market is bifurcated into conventional and computerized numerical control. The computerized numerical control segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. The major factors contributing for the growth of the segment as it becomes more sophisticated, incorporating features such as multi-axis capabilities, improved spindle speeds, advanced tooling options, and real-time monitoring systems. Moreover, the integration of Internet of Things (IoT) technology and Artificial Intelligence (AI) further enhances their capabilities, enabling predictive maintenance, adaptive machining, and data-driven optimizations. Notably, the sub-industry of metal cutting machine tools, particularly high-end CNC lathe machine tools, has witnessed substantial growth, indicating a rising demand for such equipment. The increasing global market size also contributes to the demand for CNC technology, as it is projected to experience steady growth in the coming years, driven by advancements in technology and the need for efficient operations. The current outlook for the lathe centers market is positive, with significant growth expected in the near future, further supporting the escalating demand for CNC technology in the precision tool industry.
• Based on end user, the market is segmented into automotive, general engineering, aerospace and defence, power and energy, construction equipment, and others. The automotive segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. The major factors contributing for the growth of the segment due to rising automotive industry worldwide and the adoption of electric vehicles. The growth in vehicle production globally, especially in countries like the USA, China, India, and Brazil, has fueled the demand for high precision machine tools as it requires precise and accurate components for manufacturing vehicles. The substantial demand for precision tools in automotive manufacturing can be attributed to the industry's continuous advancement, which necessitates the development of lightweight and fuel-efficient vehicles. Additionally, the increasing global trend towards electric mobility has significantly boosted the need for precision tools. For instance, in 2023, according to the report published by International Energy Agency, passenger electric cars are surging in popularity and estimated that 18% of new cars sold in 2023 will be electric. Moreover, electric car markets are seeing exponential growth as sales exceeded 10 million in 2022, and the share of electric cars in total sales has more than tripled in three years, from around 4% in 2020 to 14% in 2022.
• For a better understanding of the market adoption of the precision tools industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific precision tools market dominated the market and is expected to behave in the same fashion in the forecast period. Over the past few years, the automobile market in the Asia Pacific region has experienced remarkable growth. This growth can be attributed to several factors including the rising population, increasing demand for transportation, advancements in technology, growing electronics industry, and manufacturing industry. This region is the largest manufacturing hub with countries such as China, Indonesia, Malaysia, and Japan. Moreover, major automobile manufacturers such as Honda, Suzuki, Hyundai, Mahindra, KIA, and Changan, who have introduced a range of models that have significantly boosted the sales of electric vehicles in the area which requires precision tools for their assembly and manufacturing. For instance, in 2023, according to the report published by Bloomberg Finance L.P in 2021, the total number of EVs sold was 3.2 million, which then doubled to reach 6.4 million units in 2022. Moreover, Vietnam is now one of the key destinations for electronics manufacturers / assemblers, with a number of recent announcements indicating this trend is accelerating. For instance, Foxconn announced in June 2023 its plans to invest USD 250 million in Vietnam to manufacture electric vehicle and telecoms parts.
• Some of the major players operating in the market include Bosch GmbH, Schuler AG, Komatsu Ltd., Hitachi Ltd., JTEKT Corporation, Yamazaki Mazak Corporation, Haas Automation, Inc., Merrill Tool & Machine, Trelleborg Group, and TEC Tools.