China's Tool Industry has Grown Steadily, and Technological Innovation and Domestic Substitution have Become Development Highlights
With the rapid development and transformation and upgrading of the manufacturing industry, China's tool industry has ushered in new development opportunities in 2024. According to the latest market analysis report, the market size of China's tool industry reached 53.8 billion yuan in 2023, showing the steady growth of the industry.
Technological innovation is a key factor in promoting the development of the industry. At present, the tool industry is facing profound changes brought about by technological innovation, and high precision, high efficiency and high reliability have become the main development direction of tool products. The application of new cutting technologies such as high-speed cutting, superhard material cutting, and composite processing has not only improved processing efficiency, but also greatly reduced production costs. At the same time, the integration of intelligent and automated technologies has significantly improved the accuracy and stability of tools in the manufacturing process.
The continuous growth of market demand is also an important driving force for the development of the industry. The continuous development of the global manufacturing industry, especially in high-end manufacturing fields such as automobiles, aerospace, and electronic information, has made the demand for high-performance tools more urgent. In addition, with the rapid development of new energy, new materials and other fields, the tool industry is also facing new market opportunities.
The continuous optimization of the industrial structure is another major feature of the development of the industry. Enterprises improve product added value and market competitiveness through technological innovation and brand building; at the same time, mergers and acquisitions and resource integration within the industry have concentrated high-quality resources on advantageous enterprises, promoting the scale and intensive development of the industry.
In terms of domestic substitution, China's tool industry has shown a strong growth momentum. In recent years, on the basis of continuously introducing, digesting and absorbing foreign advanced technologies, domestic tool companies have greatly improved their research results and development and production capabilities. Domestic tools have extended to the high-end market. With the advantages of product cost performance, they have gradually achieved import substitution for high-end imported tool products, accelerating the localization process of CNC tools. In 2021, the total consumption scale of my country's tool market was about 47.7 billion yuan, and the scale of imported tools was 13.8 billion yuan, most of which were high-end tools required by modern manufacturing. From 2016 to 2021, the proportion of imported tools in total consumption decreased from 37.2% to 28.9%, indicating that my country's self-sufficiency in CNC tools is gradually increasing and the speed of import substitution is accelerating.
In terms of exports, China's tool exports have covered major manufacturing countries, and exports to India, Turkey, Serbia and other regions have grown rapidly. Among the top ten export destinations in 2021, the fastest year-on-year growth was in India (73.40%), South Korea (70.18%) and Turkey (60.47%), while the fastest export CAGR in the past five years was in Serbia (76.75%), Turkey (34.20%) and South Korea (21.40%).
Overall, China's tool industry is standing at a new starting point for development. Technological innovation, market demand growth, industrial structure optimization, domestic substitution and export expansion will become important forces to promote the high-quality development of the industry. With the advancement of technology and the expansion of the market, China's tool industry is expected to occupy a more important position in the global market.
