Increasing Adoption of Industry 4.0 Solutions to Create Lucrative Opportunities for Portugal Cutting Tools Market during 2021–2028
According to our latest market study on “Portugal Cutting Tools Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Material, and End User,” the market is projected to reach US$ 119.24 million by 2028 from US$ 90.90 million in 2021; it is expected to grow at a CAGR of 4.2% from 2022 to 2028.
The desire for factory automation drives the integration of smart manufacturing technologies in the manufacturing process and product development. Manufacturing is being driven by Industry 4.0 and the Industrial Internet of Things (IIoT), which combine physical production and operations with smart digital technologies. Industry 4.0 is associated with high-tech industries such as medical devices, aircraft, and information technology because of its emphasis on interconnectivity, automation, machine learning, real-time data use, and artificial intelligence (AI). Smart tooling and smart machining are gaining tremendous attention as significant next-generation precision machining technologies, especially in Industry 4.0, thus accelerating the growth in the Portugal cutting tools market.
Industry 4.0 is increasing the need for networked machinery, which is driving the demand for devices that can perform predictive maintenance. The general trend is driven by increased demand for metal cutting tools from several industries, such as food processing, construction, and packaging. Quality assurance plays a vital role in the manufacturing industry, and it depends on the equipment used. The introduction of real-time quality assurance through automated metrology (AVM) systems is possible by using Industry 4.0 solutions. Further, the greater penetration of cutting machine tools is projected due to real-time quality assurance. Thus, the rise in the adoption of Industry 4.0 solutions will provide growth opportunities for the Portugal cutting tools market.
Based on type, the Portugal cutting tools market is segmented into turning tools, drilling tools, milling tools, threading & grooving tools, and others. In 2021, the turning tools segment led the Portugal cutting tools market and accounted for the largest market share. Based on material, the Portugal cutting tools market is segmented into high-speed steels, carbides, ceramics, and others. In 2021, the Carbides segment accounted for the largest market share. Based on end user, the Portugal cutting tools market is segmented into manufacturing, automotive, aerospace & defense, marine, metal & wood, and others. In 2021, the automotive segment led the market and accounted for the largest market share.
Impact of COVID-19 Pandemic on Portugal Cutting Tools Market
The COVID-19 pandemic has severely affected the Portugal cutting tools market. In 2020, the Portuguese economy dropped by 7.6%, the largest annual loss since 1928. The pandemic boosted public debt by over ~€20 billion, bringing it to 133.7% of the national GDP in 2020, up from 117.7% in 2019. The Portuguese government had expected a budget deficit of 7.3% in 2020 and 4.3% in 2021. However, the government contained the rising unemployment rates due to the labor market recovery after the onset of the COVID-19 pandemic. The unemployment rate accounted for over ~6.5% in 2019, a drop of 8.7% in 2020, below the government projection for October 2020. Moreover, the government enforced a second lockdown in January 2021 to combat rising COVID-19 cases, adversely affecting the tourism, hospitality, and retail industries. The influence of the pandemic on the banking & tourist industries will be largely determined by the duration of global travel restrictions and retail closures.
The mold-making and plastics sectors are crucial when it comes to new inventions. During the COVID-19 pandemic, the cluster's companies strengthened their capacity by developing an extended action plan based on innovation and people qualification, enabling new design, product development, and production solutions. The companies invested a total of €50 million in R&D initiatives. However, the companies in Portugal are increasingly experiencing challenges with reduced availability and growing costs for raw materials," Markus Horn, President of the European Cutting Tools Association (Ecta), stated at the Ecta Rendezvous — Spotlight (European) Portugal Cutting Tools Market. In 2022, GDP is expected to expand by 4.3%.
DANOBATGROUP; HS TOOLS Europa, Lda; Ingersoll Werkzeuge GmbH; IZAR CUTTING TOOLS S.A.L; KYOCERA Portugal; MEFexport.com; Palbit; Seco Tools AB; Tungaloy Corporation; and UT Austin Portugal are key players operating in the Portugal cutting tools market. Several other market players have been analyzed to understand the Portugal cutting tools market.
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