Tool Holder Collets Market size is estimated to reach USD 2 Billion by the end of 2036, growing at a CAGR of 4% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of tool holder collets was USD 1 Billion. The growth of the market can be attributed to the rising adoption of automation in manufacturing facilities. With the growing integration of automation in the factories, the cost of labor is reduced and productivity is improved followed by greater accuracy in the production, which has increased the demand for tool holder collets. Moreover, it plays an important role in the automation machining by holding the cutting tools in place. Currently, around 67% of businesses employ business process automation to improve efficiency and automate their day-to-day routine tasks. Moreover, nearly 31% of businesses have completely computerized at least one major function.
In addition to these, factors that are believed to fuel the growth of tool holder collets market include the rising demand for new commercial aircraft, since the air traffic has drastically increased since the pandemic. In 2022, around the world air traffic demand for travelers surged by over sixty percent over the same period last year, while passenger demand grew by almost twenty-two percent over the previous year. According to the International Air Transport Association, worldwide air traffic will reach more than 95% of pre-pandemic levels by the end of 2023, with approximately 4.35 billion people scheduled to travel in 2023, up from 4 billion in 2019. Precision measurements and tight tolerances guarantee that parts are made to exact requirements lowering the chance of failure and improving overall safety in aerospace applications.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~4% |
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Base Year Market Size (2023) |
~ USD 1 Billion |
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Forecast Year Market Size (2036) |
~ USD 2 Billion |
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Regional Scope |
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Product Type (Solid Collet, Spring Collet)
The spring collet segment in the tool holder collets market is estimated to gain the largest revenue share of about 60% in the year 2036. The growth of the segment can be attributed to the higher precision of the spring collets. For holding a cutting tool, the spring collets provide great accuracy. This accuracy is hugely important for several applications, such as precision manufacturing and manufacturing that need high tolerance. With the evolution of things such as electronic devices, autos, and medical devices, their sizes are becoming smaller and more sophisticated, and the need for precision parts is rising. With the evolution of things such as electronic devices, autos, and medical devices, their sizes are becoming smaller and more sophisticated. As firms build more products with intricate shapes or even tiny details that are impossible to assemble together, many are resorting to precision manufacturing's capabilities and benefits.
End User (Residential, Commercial, Industrial, Automotive & Transportation, Oil & Gas, Energy & Power, Consumer Goods, Electronics, Defense & Aerospace)
The automotive & transportation segment is expected to hold 30% share of the global tool holder collets market by 2036. The growth of the segment is majorly attributed to the growing demand for vehicles in the world and the growing production of electric vehicles. As people's incomes rise, so does their fondness for automobiles. The greater the availability and efficacy of public transport, the lesser the demand for private vehicles. Petrol and automotive demand are linked. Furthermore, in the electric car category, over 10 million electric cars were sold worldwide in 2022, with sales predicted to increase by 35% this year to 14 million as per the data released by the International Energy Agency.
Our in-depth analysis of the global market includes the following segments:
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Product Type |
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Configurations |
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Application |
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End User |
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North American Market Forecast
The tool holder collets market in North America is projected to be the largest with a share of about 35% by the end of 2036. The growth of the market can be attributed majorly to the expanding base of manufacturing and higher adoption of advanced manufacturing in the region. As of 2022, there were around 630,000 manufacturing enterprises in the United States, a 1% increase from 2021. Moreover, the overall number of enterprises in the manufacturing industry in the United States increased by 1.0% each year during the period between 2017 and 2022.
European Market Statistics
The European tool holder collets market is estimated to be the second largest, registering a share of about 28% by the end of 2036. The growth of the tool holder collets market can be attributed majorly to the increasing production of machine tools. The most recent data indicate that the machinery and equipment sector has shown a strong rebound, estimating a 12% growth in 2021 over 2020 levels. Furthermore, amid the rebound in overseas orders, Europe anticipates an upsurge in machinery tools (MT) exports, with our first prediction indicating around a 9% rise by 2022. MT imports are predicted to expand at a somewhat quicker rate, of roughly 12% in 2022.
Author Credits: Rushikesh, Richa Gupta
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