The Broaching Tools Market is estimated to be valued at US$ 1.26 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Broaching tools are used to remove metal from a work piece through pushing or pulling linear motions to achieve a final desired finished surface. Broaching tools provide high accuracy and precision which makes them suitable for various industries such as automotive, aerospace, construction, industrial machinery, etc. Broaching tools gives flatness and straightness with close tolerances.

Market key trends:

The broaching tools market is witnessing high growth owing to increasing demand from automotive industry. The broaching tools are widely used in automotive industry for machining of internal spline, external gear or spline on transmission components, body panels, crankshafts, axles, and other drivetrain components. With rising vehicle production across the globe, demand for broaching tools is also increasing from automotive sector. Furthermore, ongoing trend of vehicle electrification is augmenting the use of broaching tools for electric vehicle components such as electric motors and gears. Also, growing industrialization and manufacturing activities in emerging economies of Asia Pacific and Latin America is propelling the broaching tools market growth over the forecast period.

Porter's Analysis

Threat of new entrants: Low capital requirements and presence of established players make threat of new entrants low in the broaching tools market.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitutes and possibility of replacing broaching tools with other tools such as milling and etching.
Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of wide range of raw materials and high dependence of suppliers on major broaching tools manufacturers.
Threat of new substitutes: Threat of substitutes is moderate as broaching tools can be replaced by milling, grinding and etching in certain industrial applications.
Competitive rivalry: High as major players compete on the basis of product innovation, quality and pricing.

SWOT Analysis

Strengths: Dominance of established players, wide product portfolio, ability to provide customized solutions as per industry requirements.
Weaknesses: High capital investment requirements, vulnerability to changes in demand from end-use industries, technology advancements reducing reliance on broaching tools.
Opportunities: Growth in automotive and aerospace industries, development of new alloys requiring broaching, expansion in developing regions.
Threats: Increase in automation and adoption of alternative machining processes, economic slowdowns impacting manufacturing output.

Key Takeaways

The Global Broaching Tools Market Size is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing demand from automotive and aerospace industries. The automotive industry accounts for over 35% of the global broaching tools consumption.

Regional analysis The Asia Pacific region dominates the global broaching tools market, with China and India being the key markets. Asia Pacific accounts for more than 40% of the global market share due to extensive manufacturing activities in the region. Western Europe and North America are established markets for broaching tools while demand is witnessing rapid growth from Eastern Europe and Middle East & Africa regions.

Key players operating in the Broaching Tools market are Mitsubishi Heavy Industries, Nachi-Fujikoshi, LMT Tools, Vermont Tap & Tool, Pioneer Broach Company, Hoffman Broach, Accu-Cut Diamond Tool, Forst Technologie, Axisco Precision Machinery, Arthur Klink GmbH, Maheen Broaches, Apex Broaching Systems, Techcellence India, Lakshmi Machine Works, Skyline Broach Company, Colonial Tool Group, Broaching Machine Specialties, Steelmans Broaches, American Broach & Machine Company, Galway Tool & Gage.

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