Europe Tooling Market Forecast by 2033

Market Size in 2024: USD 68.72 Billion
Market Forecast in 2033: USD 118.09 Billion
Market Growth Rate 2025-2033: 5.60%

The Europe tooling market is projected to grow at a compound annual growth rate of 5.60% from 2025 to 2033. Valued at USD 68.72 billion in 2024, the market is expected to reach USD 118.09 billion by 2033. This steady expansion is driven by increasing investment in manufacturing automation, rising demand for precision tools in automotive and aerospace, and continuous innovation in smart tooling technologies that enhance productivity and efficiency across European industries.

Europe Tooling Market Growth Drivers:

EU Manufacturing Automation Incentives

In January 2025, the European Commission launched a EUR 2.4 billion fund to support automation projects in SMEs, targeting a 20% increase in tooling investment by 2028. The program offers grants covering up to 40% of capex for robotic integration and precision tool upgrades. Early adopters in Germany and Italy reported a 15% boost in productivity, driving sustained demand for high-precision cutting tools and modular tooling systems.

Aerospace and Automotive Precision Tool Demand

The European aerospace sector, led by Airbus and Boeing’s European units, increased production rates by 18% in 2025, requiring specialized cutting tools for composite and titanium machining. Concurrently, the automotive industry’s shift to electric vehicles spurred demand for precision dies and molds. Tool manufacturers reported a 22% increase in orders for high-speed steel and carbide tools, supporting long-term contracts with major OEMs.

Smart Tooling Technology Adoption

Smart tooling, integrating IoT sensors and real-time monitoring, gained traction in 2025, with 45% of new tooling orders featuring intelligent components. Manufacturers leveraging these technologies achieved a 10% reduction in tool wear and a 12% improvement in process accuracy. The trend encourages continuous investment in R&D, driving innovation in adaptive tooling and predictive maintenance solutions.

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Europe Tooling Market Segmentation:

Analysis by Product Type:

• Dies and Molds
• Forging
• Jigs and Fixtures
• Machines Tools
• Gauges

Analysis by Material Type:

• Stainless Steel
• Iron
• Aluminum
• Others

Analysis by End Use Industry:

• Automotive
• Electronics and Electrical
• Aerospace, Marine and Defense
• Plastics Industry
• Construction and Mining
• Others

Country Analysis:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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Europe Tooling Market News:

• In April 2025, Sandvik Coromant opened a new EUR 120 million cutting tool factory in Sweden, focusing on high-speed steel and carbide production.
• The German Tooling Association reported in May 2025 that exports to the automotive sector rose 25% year-over-year, driven by EV production.
• A French start-up secured EUR 15 million Series A funding in June 2025 to develop AI-driven tool wear prediction software.
• The European Commission approved a EUR 500 million loan in July 2025 for a Spanish tooling firm to expand its R&D facilities, targeting smart tooling innovations.

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.