Converting Equipment Blades Market Size, Share & Trends Analysis Report By Product (Straight Blades, Utility Blades, Pointed Tip Blades, Circular Blades, Semi-Circular Blades, Others), By End-User (Automotive, Healthcare/Medical, Aerospace/Defense, Personal Protective Equipment, Construction, Pulp and Paper, Consumer Goods/Retail, Renewable Energy, Textile, Packaging, Geosynthetics, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global converting equipment blades market size was valued at USD 41,317.4 million in 2022. It is estimated to reach USD 49,815.5 million by 2031, growing at a CAGR of 2.1% during the forecast period (2023–2031). Several packaging firms are adjusting their sustainability objectives, taking into account product expenses, integrating e-commerce practices, and adopting enhanced hygiene measures. This is anticipated to generate prospects for makers of conversion equipment.

The converting equipment takes continuous rolls with slender, flat qualities. It feeds them through processing machines (including laminators, printing presses, slitting, and coating machines) to transform or convert them into an intermediate shape or the final output. Converting equipment might be improved for managing sustainable packaging materials, and manufacturing partners could help with the transition to new, sustainable bendy films. Common conversion processes include laminating, printing, and coating.

Coating processes include gravure coating, hot soften coating, slot-die coating, and curtain coating. These printing methods include rotogravure and flexo printing. Both of these printing methods are suitable for efficient and rapid processing. The roll-slitting apparatus is incapable of cutting rolls made from various materials. As a result, working with varied materials such as paper, plastic, and cloth requires specialist slitting machines and blades.

Market Dynamics

Market drivers

Rising demand for nonwovens

The nonwoven industry has made an ecosystem driven by automation, which, in turn, has reduced the demand for labor. Hence, nonwoven manufacturing companies do not have to set their manufacturing plants in regions that offer cheap labor, thereby minimizing shipping costs. In addition, the nonwoven industry has adopted technologies from the extrusion and pulp and paper industries. Automated conversion has played a significant role in the nonwoven supply chain for an extended period. Therefore, the sector has achieved the capability to manufacture more than 1,000 diapers each minute.

Additionally, the nonwoven industry includes roll goods producers, raw material suppliers, and fabricators or converters of end-user products. Winding and slitting are a few of the machines used in this industry. Recent advances in printing technology and the need to offer unique fabrics at low costs that offer high efficiency are expected to augment the demand for nonwovens, thereby creating opportunities for converting equipment manufacturers over the forecast period.

Rising demand for packaging products

The company manufacturing confectionery, beverage, and cosmetic products has started producing masstige products to allow brands to target a wider consumer base. CPG companies believe that increasing the luxury/premium feel and look of their packaging will be a significant move over the coming years. Rising demand for packaging machinery in chemical, pharmaceutical, beverage, and food sectors, technological innovations and developments, and the growing sales market for multifunctional, fully integrated, and automated systems are expected to drive the demand for converting equipment over the forecast period.

Many manufacturers, such as Catbridge Machinery, are focused on developing high-throughput, innovative, and 24/7 converting machines for various films, including film laminations and primary films used in consumer and industrial packaging. These printing and converting machines can be used in various industries, including pharmaceutical, paper, and food packaging. Before the COVID-19 pandemic, companies were progressively opting for sustainable packaging solutions; however, COVID-19 negatively affected various industries around the globe, especially the packaging industry. However, many packaging companies are rebalancing sustainability goals, considering product cost, normalizing e-commerce, and incorporating heightened hygiene. This is expected to create opportunities for converting equipment manufacturers over the forecast period.

Market restraint

High operational and maintenance costs

Rising demand for customized and premium labels is surging the need for automated machines, which come with greater cost restraints. The high cost of converting machines is predicted to hinder market growth. Most label-converting machines are linked with flexographic printing for conversion; the printing plates used for this step are essential and very costly, resulting in high operational and maintenance costs.

Moreover, the material used for manufacturing converting equipment is obtained through mining. Factors such as increasing regulations and norms regarding metal mining, growing environmental concerns, and the depletion of natural resources from various sites are expected to hamper the raw material supply. An insufficient supply of raw materials will likely hinder the growth of the converting equipment market.

Market opportunities

Rising demand for converting machines in manufacturing ppe and medical devices

Medical tourism is an integral part of economic diversification plans as Abu Dhabi and Dubai are at the forefront among the GCC nations in attracting medical tourists. PPE for healthcare workers is in higher demand due to existing hospitals looking to grow their physician practices, market shares, and medical skills. The need for healthcare services is driven by shifting demographic and epidemiological trends, which is expected to drive PPE demand throughout the forecast period. This, in turn, is expected to augment the growth of the converting equipment market in the coming years.

Furthermore, the spread of the COVID-19 pandemic across the globe dramatically increased the demand for healthcare PPE, such as surgical masks, gloves, gowns, and goggles, which has further resulted in an insufficient supply of PPE. As a result, a wide range of manufacturers started producing PPE for frontline workers, which created a surge in the demand for converting machines.

Regional Analysis

Based on region, the global converting equipment blades market is bifurcated into North America, Europe, Asia-Pacific and the Middle East, South America, and the Rest of the World.

Asia-Pacific is the most significant global converting equipment blades market shareholder and is estimated to exhibit a CAGR of 6.8% over the forecast period. Several manufacturing units representing automobile, aerospace, construction, textile, medical, electrical and electronics, and consumer goods industries offer a wide scope to the converting blades market. Moreover, increasing investments by multinational companies to establish regional production and transportation units will likely increase the demand for converting blades. India's construction and automobile manufacturing sectors are growing at a higher rate as consumer spending capacities have grown in the past few years. The growing trend of a luxurious lifestyle is creating a wide scope for the automotive and construction industries. Similar trends are being followed in the country's textile manufacturing industry. These factors are expected to increase converting blades' consumption for construction materials and automobile parts.

The Asia-Pacific and the Middle East regions consist of major economies such as China, India, the U.A.E., Saudi Arabia, Japan, and others. A pool of players engaged in manufacturing activities in Asia-Pacific will likely increase the utilization of packaging items and the demand for converting blades. In addition, the demand for materials used in the packaging sector is expected to increase due to the rapid industrialization in emerging nations such as China and India. The packaged food in Asia-Pacific is expected to reach USD 365 billion in the next two years, which will positively impact the growth of the packaging industry.

North America is expected to exhibit a CAGR of 4.8% over the forecast period. The converting blades market in North America is witnessing high demand due to growth in the automotive, pulp and paper, consumer goods, textile, and healthcare industries. The pulp and paper industries are witnessing growth due to the high demand for paper products, including specialty papers, packaging papers, tissues, etc. Consumer preferences for textiles have changed, impacting the textile sector. Suitable regulatory reforms, feasible taxation policies, and trade policies support the textile businesses in the region, especially in the U.S. and Mexico.

Moreover, automotive, aerospace manufacturing, construction, consumer goods, and other industries are anticipated to gain growth in the estimated time owing to the rise in consumer demands. The construction industry in the region is likely to accelerate due to increasing demand for single-family homes and commercial complexes in public utility space, which is expected to increase the consumption of converting blades in the projected time.

Europe is a large market for converting machinery blades, with nations such as Germany, France, Italy, and the United Kingdom enjoying rapid expansion. Paper and packaging, food and beverage, and renewable energy industries all contribute to the demand for specialty blades used in conversion machinery. Europe's paper and packaging business has grown steadily, owing to increased e-commerce and retail packaging. With the continuous expansion of these industries, the usage of specialized blades in converting machinery for paper and packaging is projected to expand. The renewable energy industry is another important user of conversion equipment blades in Europe. Renewable energy sources have grown steadily in the region, owing to favorable regulatory rules and the need to cut carbon emissions. This has raised the demand for wind turbine blades and blades used in solar energy conversion.

Segmental Analysis

The global converting equipment blades market is bifurcated into product and end-user.

Based on the product, the global converting equipment blades market is bifurcated into straight, utility, pointed tip, circular, semi-circular, and others.

The utility blades segment dominates the global market and is projected to exhibit a CAGR of 6.01% over the forecast period. The utility blades segment includes flat-edge, serrated, and scalloped blades. A rise in the demand for small-sized pocket blades is expected to drive the growth of the utility blades segment. These utility blades are mainly used for trimming operations and can be accessed for cutting and slicing activities. These blades are made from high-carbon steel and can be easily replaced in the blade's assembly. The growing utilization of handheld tools for trimming and cutting operations is expected to provide growth opportunities for the utility blades segment. Moreover, the rise in DIY applications for household items will likely augment the segment's growth.

Based on end-users, the global converting equipment blades market is divided into automotive, healthcare/medical, aerospace/defense, personal protective equipment, construction, pulp and paper, consumer goods/retail, renewable energy, textile, packaging, geosynthetics, and others.

The packaging segment is the most significant contributor to the market and is expected to exhibit a CAGR of 5.5% over the forecast period. Rising awareness about the circular economy and design has forced packaging manufacturers to adapt to the changing consumer needs. The rising popularity of convenience foods and food deliveries has further encouraged manufacturers to invest more in packaging technologies. Rising industry consolidation, the economic boom in emerging markets, and growing private-equity ownership since the past decade have augmented the demand for packaging machinery such as converting blades in recent years.

Furthermore, trends such as digitalization/internet of things, sustainability, FMCG and retail margin compression, changing consumer preferences, and increasing penetration of e-commerce in the retail sector are expected to boost the demand for automated converting blades in the packaging industry over the forecast period. Moreover, the rising demand for paper and board, ideal for integrating IoT solutions using near-field communication protocols, radio-frequency ID tags, and quick-response codes, is expected to propel the demand for converting blades in the packaging sector over the coming years.

Recent Developments

• March 2023- The Israeli toolmaker Iscar announced the debut of a new series of conversion equipment blades for the packaging sector. "Iscar Packaging" is the name of the new line, which is intended to fulfill the special needs of the packaging sector.
• January 2023- Seco Tools, a Swedish toolmaker, announced the acquisition of Widia's conversion equipment blades business. The transaction is scheduled to be completed in the second quarter of 2023.