INDEXABLE INSERTS MARKET ANALYSIS

Market Challenges And Opportunities

Global Indexable Inserts Market Drivers:

• Enhanced machining efficiency: Indexable inserts offer multiple cutting edges that can be rotated or replaced without the need for complete tool changeovers. This feature significantly reduces machine downtime, thereby allowing for continuous and efficient machining operations. Manufacturers seek such efficiency gains to optimize production cycles and improve overall productivity. In 2021, According to data from the International Air Transport Association, aeroplane manufacturers delivered over 800 new commercial planes, rebounding from the pandemic lows. With lightweight aluminium alloys being the primary material of choice for planemaking globally, there is massive demand for specially formulated indexable inserts According to the European Aluminum Association, demand for aluminum is predicted to grow 50% by 2024 due to its increased use in transportation manufacturing. As aluminum requires more sophisticated tools than traditional metals, indexable inserts that can efficiently machine tough alloys will be critical to supporting this material demand. If projections hold true, greater aluminum usage will spur further indexable insert implementation that continues the market's positive trajectory.
• Cost-effectiveness: Indexable inserts provide a cost-effective solution for high-volume production environments. Their replaceable nature reduces the need for frequent tool changes, thus lowering operational costs and enhancing the overall cost-effectiveness of machining processes. In 2019, According to statistics from OICA (Organisation Internationale des Constructeurs d'Automobiles), global automobile production crossed 65 million units. With rising vehicle outputs, automakers rely heavily on indexable inserts to achieve the necessary precision and productivity levels on their assembly lines. Their cost effectiveness helps automotive part producers maximize cost savings per component. The U.N. Industrial Development Organization forecasts global manufacturing value addition to grow at an average annual rate of 3.9% between 2020-2030.This growing outputs will drive up demand for cost-cutting technologies like indexable inserts from metalworking industries worldwide. With their cost-effectiveness established, indexable inserts are projected to gain wider acceptance and push the growth of the global market.
• Precision machining: Industries like aerospace, automotive, and medical devices demand high-precision components. Indexable inserts which is known for their consistent performance and accurate machining results, align with these industries' requirements for tight tolerances and quality outcomes. According to statistics provided by the International Air Transport Association, the global commercial aircraft fleet is projected to double over the next 20 years which will expand the requirement for indexable tooling from aerospace Original Equipment Manufacturer (OEMs) and parts suppliers. Similarly, the automotive industry's shift towards electric vehicles and autonomous driving will spur demand for sophisticated milling of new components. All these trends are anticipated to drive significant and sustained growth in the global indexable inserts market during the forecast period from 2020 to 2023, estimated to be around 5-7% CAGR annually. in 2021 According to the International Energy Agency, electric car stock across major global markets increased by 43% ,alone compared to 2020 levels.The machining of sophisticated auto parts is crucial to the manufacturing of electric vehicles, spurring further purchase of indexable inserts.
• Advancements in cutting materials and coatings: Ongoing research and development efforts have led to the creation of cutting-edge materials and coatings for indexable inserts. These innovations enhance wear resistance, tool life, and thermal stability, thus making inserts suitable for various materials and machining conditions. According to the UNIDO report, in 2019, the annual global machining market grew by over 3% from 2017 to 2019 driven by growth in manufacturing output across major economies like U.S., China, Germany, and others. Countries are investing in advanced manufacturing to gain competitiveness. For example, the Chinese government's "Made in China 2025" policy aims to enhance automation, Computerized Numerical Control (CNC) machining capabilities and reduce reliance on imports. This creates huge demand for technologically advanced indexable inserts with longer life, accuracy and sustainability.

• Initial investment costs: While indexable inserts offer long-term cost savings, the upfront investment that are required for high-quality inserts, as well as toolholders and associated equipment, can be a barrier for some manufacturers, especially smaller businesses with limited budgets. By saving on tool replacement costs and offering improved productivity through quick changeovers and longer tool life, indexable inserts can ultimately lead to significant Suppliers can offer financing options, small-scale entry packages or discounts for bulk purchases that can help mitigate the initial investment hurdle. Lastly, promoting the versatility and diverse applications of indexable inserts can showcase their value across a range of machining tasks, further justifying the initial expenditure for budget-conscious businesses.
• Complexity of selection: Choosing the right indexable insert for a specific machining operation can be complex due to the wide range of materials, coatings, geometries, and cutting conditions available. This complexity can lead to suboptimal tool choices, thus affecting machining efficiency and tool life. Manufacturers must navigate a complex array of options to select the right insert for specific cutting conditions, thereby balancing performance with cost-effectiveness. Advanced materials and coatings continue to evolve, presenting new opportunities and challenges for market growth. Finally, the need for precision in applications across industries such as automotive, aerospace, and manufacturing fuels the continuous innovation and expansion of the indexable inserts market.
• Training and skill gap: Effectively utilizing indexable inserts requires skilled operators who understand the nuances of tool selection, insert replacement, and machining parameters. The shortage of skilled operators can hinder the proper implementation of these tools, thus affecting machining quality. Proper utilization of indexable inserts depends crucially on selecting the right tool, timely insert replacement, and accurate machining parameters. A deficit in such skilled labor could compromise machining quality, potentially affecting market growth. Consequently, this could place an emphasis on training and education as critical components for market expansion.
• Counterbalance: Proper training should be given by the market players to operators to help them in utilizing indexable insets effectively. 

Recent Developments

New product launches

• In March 2023, Iscar is an Israeli multinational metal cutting tools company, launched a new line of indexable inserts called "Iscar NEXXT". These inserts are designed for high-speed machining and offer improved chip breaking and longer tool life.
• In February 2023, Kennametal is an American supplier of tooling and industrial materials, launched a new line of indexable inserts called "Intelligent Inserts". These inserts are equipped with sensors that collect data on cutting conditions and send it to the machine control system. The data can be used to optimize the machining process and improve tool life.
• In January 2023 Sandvik Coromant that supplies cutting tools and services to the metal cutting industry, launched a new line of indexable inserts called "CoroTurn® 880". These inserts are designed for high-performance milling applications and offer improved chip breaking and longer tool life.

Acquisition and partnerships

• In 2023, a Taiwan-based CB-CERATIZIT, a joint venture of the company by the same name, part of the Plansee Group specializes in the powder metallurgical production of materials, has acquired 70% of all shares of Changzhou CW Toolmaker Inc. The privately owned company based in Changzhou, China, specializes in the design, production and sales of tungsten carbide cutting tools for the electronic industry, and a variety of industries including aviation, railway, as well as mold and die industries.

• Innovative material and coating development: Continued research into cutting-edge materials and coatings presents an opportunity to enhance the performance and durability of indexable inserts. Developing materials that excel in wear resistance, heat dissipation, and toughness can lead to longer tool life and improved machining outcomes across a wider range of materials. For instance in 2022 According to Science direct Research Published , nanocomposite and alloyed coatings containing titanium, aluminum and carbon are 2-3 times harder than conventional Titanium Nitride(TiN) or Aluminum Titanium Nitride (AlTiN) They have higher resistance to crack propagation, thus drastically improving tool life. The automotive industry adopted these advanced coated inserts which helped machinists achieve greater fuel efficiency through lightweight vehicle components. Widespread industrialization in developing countries and recovering global economy post-pandemic will surely augment the demand for innovative indexable inserts.
• Customization for specific applications: The ability to tailor indexable inserts for specific machining applications, materials, and geometries offers a significant opportunity. Manufacturers can develop specialized inserts that optimize performance in niche industries such as aerospace, medical devices, and energy production. In 2022, according to the World Economic Forum report on "Readiness for the future of production”, Germany ranked highest in the world when it comes to readiness for Industry 4.0 technologies and applications like custom manufacturing. The International Federation of Robotics reported Germany and Japan invested heavily in flexible automation technologies between 2020-2021. This point to increased demand for customized indexable inserts to support such customized, flexible manufacturing applications globally going forward.
• Advanced geometries and chip control: Designing indexable inserts with innovative cutting geometries and chip control features can lead to better chip evacuation, reduced tool wear, and improved surface finishes. Developing inserts that excel in high-speed machining and challenging materials can significantly boost efficiency. For instance,in 2023, YG2025 is offered with optimized chip breakers for enhanced chip control and machining efficiency this specialized chip breakers and optimized clearances in multi-tooth indexable inserts aid precise micromachining of micro-electromechanical systems (MEMS) and integrated circuits. The International Energy Agency predicts global consumption of electronics to grow annually by 2% till 2025 primarily due to higher demand from developing economies. This exerts pressure on electronic manufacturers to produce more complex products at faster rates, thus boosting requirements for automated machining with controlled chip evacuation.
• Integration with industry 4.0 technologies: Integration of indexable inserts with smart machining systems and data analytics presents an opportunity to monitor tool wear, predict maintenance needs, and optimize cutting parameters in real time. This can lead to more informed decision-making and improved overall machining processes. According to the United Nations Industrial Development Organization (UNIDO), digital transformation of manufacturing Small and medium-sized enterprises (SMEs) can lead to productivity increases of 15-35%. Smart connected solutions like sensor-enabled indexable inserts are playing a major role in this transformation. As global manufacturing output continues transitioning towards Industry 4.0 practices, real-time process optimization through digital tools will be crucial for remaining competitive. This scenario will surely drive major growth opportunities for indexable insert manufacturers offering integrated smart systems.