INDEXABLE INSERTS MARKET ANALYSIS

Indexable Inserts MarketSize and Trends

Global indexable inserts market size is estimated to be valued at US$ 6.4 Bn in 2024 and is expected to reach US$ 9.27 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

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.

Global Indexable Inserts Market Trends:

• Advanced coatings and materials: Ongoing research and development efforts are focused on creating cutting-edge coatings and materials that enhance the wear resistance and performance of indexable inserts. Innovations in nanotechnology and surface engineering are resulting in coatings that improve tool life, reduce friction, and enhance heat resistance, thereby extending machining tool capabilities. Coatings such as titanium aluminum nitride (TiAlN), titanium chromium carbonitride (TiCrCN), and aluminum titanium nitride (AlTiN) are being extensively utilized to provide indexable inserts with properties like hardness, heat resistance, wear resistance and corrosion protection. These advanced coating technologies allow indexable inserts to machine tougher alloys and materials at high speeds while maintaining dimensional accuracy and reducing tool wear. According to a survey conducted by the German Machine Tool Builders' Association (VDW), in 2021, the intake of new machine tool orders by German manufacturers grew by 22% year-on-year due to increasing adoption of advanced coating solutions in manufacturing industries like automotive, aerospace, and Rising consumption of highly coated indexable inserts by precision manufacturers is having a significant positive influence on the increasing demand and revenue growth of the global indexable inserts market.
• Digitalization and industry 4.0 integration: Integration of indexable inserts into digitally controlled and monitored machining processes is gaining momentum. With sensors, data analytics, and machine learning, manufacturers can optimize tool usage, predict maintenance needs, and achieve higher efficiency and precision in machining operations. According to Prima Power in 2022, a Finland based machine builder, customers leveraging their digital monitoring solutions experienced up to 30% higher machine utilization through automatic tool breakdown detection and optimized replacement. According to a study by the U.S. Department of Energy (2021) found that predictive maintenance in milling applications helped reduce unscheduled downtime by over 20% and double tool life at several manufacturers. Data from individual companies also points towards energy savings, higher throughput, reduced manufacturing costs, and greater precision with digitally-optimized tool performance enabled by industry 4.0 technologies. These trends strongly indicate higher demand for indexable inserts that can operate effectively alongside sensors and data analytics for smart machining.
• Customization for niche applications: The trend towards niche manufacturing industries is driving the demand for specialized indexable inserts tailored to specific applications. Industries such as medical devices, aerospace, and electronics require inserts that are designed for intricate and precise machining processes. According to data provided by the European Commission, expenditure on research and innovation by European cutting tool manufacturers grew by over 15% from 2018 to 2021. A significant portion of this R&D investment has been channeled into developing highly customized indexable insert solutions for specialized sectors ranging from medical devices to energy equipment manufacturing. The deepening focus on co-creation with end use industries is allowing indexable insert brands to better understand application nuances and roll out innovative, tailored solutions to accelerate machining productivity. This rising practice of customization for niche segments is expected to open up new market opportunities and drive future growth of the global indexable inserts industry.
• Sustainability and green machining: Eco-friendly machining practices are becoming a priority for many industries. Indexable inserts that promote sustainable machining by reducing energy consumption, minimizing waste, and extending tool life align with these environmental goals. For instance, Volkswagen is a German automobile manufacturer has committed to reducing supply chain emissions 25% by 2025 as part of the automaker's larger carbon neutrality pledge. With sustainable inserts helping lower the carbon footprint of machining processes, their manufacturers can more easily satisfy customer demand and qualify for lucrative contracts with sustainability-driven brands. While the sustainable insert market remains nascent, expanding activity in climate policy and corporate environmental initiatives have opened a sizable growth avenue. By leveraging data on energy savings and waste reductions, insert makers aligned with broader sustainability goals stand to gain market share as green machining practices become best practice worldwide.