Malaysia Tooling Market is Expected to Reach $5.2 Billion by 2032-Allied Market Research

According to a new report published by Allied Market Research, titled, “Malaysia Tooling Market by Product Type and End User: Country Opportunity Analysis and Industry Forecast, 2023–2032,” The Malaysia tooling market size was valued at $2,619.27 million in 2020 and is projected to reach $5,260.55million by 2032, registering a CAGR of 6.1% from 2023 to 2032.

Commonly, the product types found in the tooling market are dies and molds, forging, jigs and fixtures, machine tools, and gauges. Among these, the dies and molds segment registered a higher share of the market in terms of total revenue generated in 2022. The die casting process is mainly utilized for dying & molding of metals. In die casting, molten metal is forced under high pressure into a mold, which takes the shape of the mold after cooling. The die casting and molding processes are inter-related. The molten metal needs to be placed into a mold and then pressure is applied using dies. The molding process also includes injection molding, which is mainly used for molding polymers such as plastic, rubber, or powder mixtures. Moreover, the same segment is expected to grow with the highest CAGR during the forecast period.

Furthermore, the market is also segmented on the basis of end users of tooling products. The end users includes, into automotive, electronics and electrical, aerospace, marine and defense, plastics, construction and mining, and others. In 2022, the automotive segment accounted for the highest market share in terms of revenue by the market. However, the electronics and electrical segment is expected to grow with the highest CAGR during the forecast period. The Malaysia tooling market has witnessed an unprecedented growth in the recent years, owing to expanding manufacturing facilities in the country.

The product developments and continuous customizations in automotive and aerospace industry lead to improvement in the tools required for their production. In addition, the dependency of consumers on machines for household chores boosts the growth of the electronics industry, demanding for large scale manufacturing for the electronics and electrical products; thereby, increasing the need for tooling facilities to assist the production process.

Moreover, the Malaysian industrial sector is growing rapidly, owing to various supportive policies devised by the government. Along with this, the electronics industry in Malaysia is growing, attributed to the shift of demand for semiconductors from China to Malaysia after the U.S. and China trade war.

In addition, the government is encouraging the shift of energy production from conventional sources to renewable sources, this is driving the malaysia tooling market growth. The systems used for harnessing this energy are made with high precision to ensure a longer life and higher efficiency. Thus, high precision tooling is used for the manufacturing these systems. Moreover, in addition, IRENA and ASEAN center for energy webinar brings more than 160 participants together to discuss the opportunity low-cost renewable offer the region. Hence, IRENA’s global renewable outlook report shows that Southeast Asia may fulfil roughly 41% of its total energy demands with renewable energy by 2030, and 6.7 million more green employment by 2050.

This leads to the creation of employment and the development of tool production units, driving the growth of the tooling sector. Nonetheless, the Malaysia tooling market is anticipated to face restraints due to fluctuations in the process of raw materials, primarily steel, which is a major metal used for manufacturing tools. Contrarily, the advancements in manufacturing technology, introduction of automation and various other industry 4.0 technologies are expected to be major growth opportunities for the market growth.

However, various businesses in the Malaysia tooling market are expected to witness a slow growth rate in the coming year, owing to the looming recession in major countries driven by the Ukraine-Russia war. The inflation has already led to higher prices of raw materials used in the construction sector, which has led to slow and delayed construction of new buildings, eventually leading to reduced demand for tool products from the construction sector. In addition, the semiconductor shortage is also expected to negatively affect the market growth.

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging Malaysia tooling market trends and dynamics. 
• Depending on the product type, the dies and molds segment dominated the Malaysia tooling market, in terms of revenue in 2020, and the machine tools segment is projected to grow at a significant CAGR during the forecast period.
• By end user, the automotive segment dominated the Malaysia tooling market share in terms of revenue generated in 2020, and the electronics and electrical segment is anticipated to grow with a higher CAGR during the forecast period.
• The key players within the Malaysia tooling market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the Malaysia tooling industry.
• The report provides an extensive analysis of the current trends and emerging opportunities of the market. 
• In-depth Malaysia tooling market analysis is conducted by constructing estimations for the key segments between 2023 and 2032.