Tool Steel Market Size was valued at USD 6,300.4 Billion in 2023. The Tool Steel industry is projected to grow from USD 6,600.9 Billion in 2024 to USD 10,500.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.0% during the forecast period (2024 - 2032). The expansion of tool steel manufacturers into emerging markets and the growth of the forging industry are the key market drivers incorporating the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The rising demand for high-speed tool steel drives the market CAGR. High-speed tool steel (HSS) has witnessed an increasing demand in recent years, driven by its superior properties and performance compared to conventional tool steels. HSS exhibits exceptional hardness, wear resistance, and high-temperature stability, making it ideal for high-speed cutting and machining applications. In particular, the automotive industry and aerospace industries have embraced HSS due to its ability to improve productivity and reduce machining time. Additionally, the rising trend of lightweight materials, such as aluminum and composites, necessitates advanced cutting tools that can handle higher cutting speeds. Consequently, the demand for HSS will continue its upward trajectory, driving carbon steels market growth.
In recent years, sustainability and environmental considerations have gained prominence across industries, prompting the tool steel market to adopt more eco-friendly practices. As tool steel production is energy-intensive and involves raw material extraction, manufacturers are exploring ways to reduce their environmental footprint. One emerging trend is the emphasis on recycling and reusing tool steel scraps and offcuts. By implementing efficient recycling processes, companies can conserve resources, minimize waste generation, and reduce the need for primary steel production. Additionally, using renewable energy sources and adopting cleaner manufacturing technologies contribute to a greener tool steel industry. Sustainability initiatives are driven by environmental concerns and the growing demand from end-users who prioritize working with suppliers committed to sustainable practices. Consequently, sustainability efforts are expected to influence the future trajectory of the Stainless steel market.
Powder metallurgy (PM) has emerged as a promising manufacturing technique in the tool steel industry. PM tool steels offer several advantages over traditional ingot metallurgy steels, including improved homogeneity, higher purity, and enhanced mechanical properties. Manufacturers can achieve precise control over the alloy composition by utilizing powder metallurgy, resulting in tool steels with superior toughness, wear resistance, and dimensional stability. Moreover, PM technology enables the production of complex-shaped tools, enhancing design flexibility and reducing machining requirements. The aerospace and defense sectors have been early adopters of PM tool steels due to their ability to meet stringent performance requirements. As PM techniques advance and gain wider acceptance, the tool steel market will shift significantly towards PM tool steels.
For instance, sustainability initiatives are gaining traction, leading to increased recycling efforts and the adoption of cleaner manufacturing practices. Understanding and capitalizing on these trends will be crucial for tool steel manufacturers to stay competitive and meet the evolving demands of various industries, driving the High Speed Steel market revenue.
The Tool Steel market segmentation, based on type, includes the round format, square format, and another format. The round format segment dominated the market. They are used for applications that require forging, machining, or heat treatment.
The Alloy Steels market segmentation, based on application, includes automotive and machinery, and shipbuilding. The automotive category generated the most income. It is used to produce dies, punches, cutting tools, and other components used in manufacturing processes.
The Tool Steel market segmentation, based on process, includes forged and rolled. The rolled category generated the most income. Rolled tool steel offers excellent strength, toughness, and wear resistance, making it suitable for various applications, including cutting tools, dies, and molds.
Figure 1: Tool Steel Market, by Process, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Carbon Alloy Steel market will grow significantly due to its robust industrial sector and high demand for cutting tools and molds. In addition, the automotive and aerospace sectors are major consumers of tool steel in this region, as they require high-quality cutting tools for precision machining and metalworking.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: TOOL STEEL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Tool Steel market accounts for the second-largest market share due to the well-established manufacturing sectors that heavily rely on cutting tools and dies. The automotive industry, in particular, drives the demand for tool steel in Europe, as it requires a wide range of cutting tools for various processes like milling, drilling, and turning. Further, the German Tool Steel market held the largest market share, and the UK Tool Steel Alloys market was the rapid-growing market in the European region.
The Asia-Pacific Tool Steel Market will dominate the CAGR from 2023 to 2032. This growth can be attributed to various countries' rapid industrialization and infrastructure development. These countries have witnessed significant growth in the manufacturing, construction, and automotive sectors, which has led to increased demand for tool steel. Moreover, China’s Tool Steel industry held the largest market share, and the Indian Tool Steel Alloys market was the rapid-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Tool & high speed steel market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Tool Steel industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Tool Steel industry to benefit clients and increase the market sector. In recent years, the Tool Steel industry has offered some of the most significant advantages to medicine. Major players in the Tool Steel market, including Nachi-Fujikoshi Corp (Japan), Voestalpine AG (Austria), Sandvik (Sweden), Baosteel Group (China), Samuel Son & Co (Canada), Hitachi Metal (Japan), Eramet SA (France), Schmiedewerke Gröditz (Germany), Universal Stainless (US), QiLu Special Steel Co. Ltd. (China), Hudson Tool Steel Corporation (US), GERDAU S.A. (Brazil), Pennsylvania Steel Company (US), and others, are attempting to rise market demand by investing in research and development operations.
Hitachi Ltd., founded in 1910, located in Chiyoda, Tokyo, Japan, is a Japanese international corporation and is the parent company of Hitachi Group. In July 2019, Hitachi Metals will increase its manufacturing capability in Vietnam and Thailand, while Furukawa Electric also increases its production capacity in Vietnam. Japanese wire makers are ready to explore sales anywhere in Asia as automotive electrification begins and automotive parts suppliers in Japan are changing their operating fields.
Pennsylvania Steel Company, founded in 1865 and 1972, is located in Huntingdon Valley, Pennsylvania machines and manufactures steel and aluminum products. Later it moved its production to Bensalem Township, Pennsylvania. In September 2022, Pennsylvania Steel Company, Inc. acquired Nivert Metal Supply to expand its global customer base by providing its services for metals in the northeast.
January 2021 Hitachi Metals, Ltd. announced that it had completed the acquisition of Teikuro Inc., a manufacturer of tool steel and other specialty steel products based in Japan. The purchase is part of Hitachi Metal's strategy to spread its product portfolio and strengthen its tool steel market position.
April 2022 JFE Steel Corporation and ThyssenKrupp Steel Europe jointly launched new 980 and 1180 MPa-class-high-strength steel sheets capable of cold forming for the production of automobile frame components.
February 2023 Syntagma Capital announced that it had agreed with Eramet to acquire Erasteel. It is to be finished by the end of the first half of 2023.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 6,300.4 Billion |
| Market Size 2024 | USD 6,600.9 Billion |
| Market Size 2032 | USD 10,500.1 Billion |
| Compound Annual Growth Rate (CAGR) | 6.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Format Type, Application, Process, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Nachi-Fujikoshi Corp (Japan), Voestalpine AG (Austria), Sandvik (Sweden), Baosteel Group (China), Samuel Son & Co (Canada), Hitachi Metal (Japan), Eramet SA (France), Schmiedewerke Gröditz (Germany), Universal Stainless (US), QiLu Special Steel Co. Ltd. (China), Hudson Tool Steel Corporation (US), GERDAU S.A. (Brazil), Pennsylvania Steel Company (US). |
| Key Market Opportunities | Broader scope in developing nations. |
| Key Market Dynamics | The growing automotive industry will accelerate the market. |
Frequently Asked Questions (FAQ) :
The global market is projected to grow at a CAGR of
6.0% during the forecast period, 2024-2032
The global Tool Steel market size was valued at USD 6,300.4 Billion in 2023.
Asia-Pacific held the largest share of the global market
The key players in the market are Nachi-Fujikoshi Corp (Japan), Voestalpine AG (Austria), Sandvik (Sweden), Baosteel Group (China), Hitachi Metal (Japan), Eramet SA (France), QiLu Special Steel Co. Ltd. (China), Hudson Tool Steel Corporation (US), GERDAU S.A. (Brazil), Pennsylvania Steel Company (US).
The round format category dominated the market in 2022.
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Research Analyst Level II I have about two years of experience working in the consumer goods and retail industries and i am a biotech graduate.a tech-savvy analytically focused professional with a strong capabilities in identification, concept generation, and strategy evaluation. i can produce data-driven solutions while fusing unusual viewpoints with original concepts. i have been extensively working on business case studies, competitive & comparative analyses, and strategic reports. my primary areas of experience include client management, financial analysis, supply chain evaluation, market entry strategy evaluation, and estimating and forecasting market size.
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