Tool Steel Market Research Report 2024
Tool Steel Market Global Industry Analysis and Forecast (2024-2032) By Material (Tungsten, Chromium, Vanadium, Molybdenum), Product Type (Water-Hardening, Cold-Work, Shock-Resisting, High Speed, Hot Working, And Special Purpose), Format Type (Round Format, Square Format), Application (Injection Molding, Die Work, Forging), End-User (General Manufacturing, Automotive, Defence and Aerospace, Electronic and Electrical, Ship Building, And End-Userf), And Region
Tool Steel Market Synopsis
Tool Steel Market Size Was Valued at USD 6.64 Billion in 2023 and is Projected to Reach USD 13.84 Billion by 2032, Growing at a CAGR of 8.5% From 2024-2032.
Tool steel refers to different types of carbon steel and alloy steel that are ideal for creating tools such as cutting tools, dies, hand tools, knives, and other tooling. Tool steel is well known for its high hardness, ability to resist abrasion, and capacity to retain a sharp edge when exposed to high temperatures, making it suitable for a wide variety of industries and uses. Its important characteristics make it the preferred material for producing tools and parts that need to endure heavy loads and prevent distortion in high-stress situations. Tool steel is utilized in the production of a variety of cutting tools including drills, saws, taps, dies, and end mills. These tools are vital in manufacturing processes for chopping metals and plastics. Tool steel dies and punches are utilized in stamping and forming operations to mold metals and plastics into the desired shapes. This involves manufacturing complex components for the automotive, aerospace, and electronics sectors.
Extrusion Tool steels are utilized in the process of extruding plastics to form products like pipes and vinyl window frames. The durability and resistance to wear of the steel guarantee a consistent level of product quality. Cutting Tools made of steel are utilized for shearing large metal sheets into smaller sections. The blades' sharpness and effectiveness are definite by the hardness of the steel. Tool steels are utilized in creating molds for plastic injection molding, die casting, and various molding techniques. The durability of the steel against wear and high temperatures guarantees extended mold lifespan and superior product results. Tool steels are used in molds for shaping metal powders, like gears, through pressing. The capacity of the steel to endure high pressure and uphold dimensional precision is vital in this procedure. It is also utilized in the production of hand tools like chisels, hammers, and screwdrivers.
Top Active Players Involved Are:
“ArcelorMittal (Luxembourg), Voestalpine AG (Austria), SSAB AB (Sweden), Nippon Steel Corporation (Japan), Hitachi Metals, Ltd. (Japan), Thyssenkrupp AG (Germany), POSCO (South Korea), Carpenter Technology Corporation (USA), Crucible Industries LLC (USA), Daido Steel Co., Ltd. (Japan), Bohler-Uddeholm Corporation (Austria), Sanyo Special Steel Co., Ltd. (Japan), Hudson Tool Steel Corporation (USA), Sandvik AB (Sweden), Dongbei Special Steel Group Co., Ltd. (China), Schmiedewerke Gröditz GmbH (Germany), Voestalpine High-Performance Metals Corp. (USA), Finkl Steel (USA), Ellwood Specialty Steel (USA), Erasteel (France), ASSAB Global (Singapore), Heye Special Steel Co., Ltd. (China), Universal Stainless & Alloy Products, Inc. (USA), SeAH Changwon Integrated Special Steel Corp. (South Korea), Griggs Steel Company (USA) and Other Active Players.”
Tool Steel Market Trend Analysis
Growing Demand for High-Speed Tool Steel
- The increasing need for high-speed tool steel (HSS) greatly drives the tool steel industry, mainly because of its better properties and performance in comparison to traditional tool steels. HSS is known for its sharpness retention at elevated temperatures, which is key in multiple manufacturing industries. This particular strength allows for its application in high-temperature scenarios, like cutting tools and drills, where it is crucial to preserve edge sharpness and material integrity.
- The automotive sector, a major user of tool steels, experiences significant advantages from HSS. This is because HSS is utilized in manufacturing parts like gears and engine components that need to be precise and long-lasting. The tool steel market has seen growth due to the adoption of high-strength steel (HSS) driven by the need for more efficient production processes in the automotive industry.
- The shipbuilding and aerospace sectors, require materials that can endure severe conditions. HSS is employed in creating custom tools and equipment designed for extreme temperatures and stress, guaranteeing the safety and productivity of various industries.
- The machinery industry, also a significant user of HSS, employs it in making cutting tools, dies, and molds. The increased demand for HSS is due to the requirement for these parts to remain efficient in tough conditions for extended periods. As businesses aim to improve efficiency and productivity, incorporating high-speed tooling is vital for performing efficiently at high speeds. Hence, in this way Growing Demand for High-Speed Tool Steel acts as a Driver in Tool Steel Market.
Rise in Sustainability and Recycling
- The steel industry, which has been known for heavy industrial operations, is experiencing a significant shift as sustainability and recycling become more important. The steel industry is under mounting pressure from authorities, stakeholders, and customers to implement eco-friendly measures, due to escalating worldwide worries about climate change.
- The steel industry can lessen waste and lower its carbon footprint thanks to progress in recycling technologies. Advanced techniques in recycling now go beyond simply melting scrap metal to more complex methods that assure improved quality and efficiency in steel production. These methods aid in both preserving natural resources and promoting a circular economy by utilizing materials in a continuous loop, thereby lessening the reliance on new raw materials.
- The steel industry's dedication to sustainability is shown through its implementation of cleaner technologies and enhanced water management practices, to decrease environmental impact. Steel producers are now being recognized more and more for their role in promoting a sustainable future, rather than just being noted for their high levels of greenhouse gas emissions. The sector's focus on decarbonization pathways is not just a reaction to regulations, but also a strategic decision to meet changing customer needs, especially the increasing desire for environmentally friendly steel products.
- The environmentally friendly steel industry offers great chances for creativity, employment generation, and economic advancement. It allows companies to stand out by implementing ethical and socially responsible strategies, giving them a competitive edge in a market focused on environmental sustainability. As the steel industry transitions to a circular economy, recycling will be essential in decreasing greenhouse gas emissions. Hence, in this way Rise in Sustainability and Recycling acts as an Opportunity in Tool Steel Market.
Tool Steel Market Segment Analysis:
Tool Steel market is segmented on the basis of Material, Product Type, Format Type, Application, and End-User.
By Format Type, Round Format Segment Is Expected to Dominate the Market During the Forecast Period
- The circular shape section in the tool steel industry is positioned to be at the forefront because of its flexible uses and ability to work well with different manufacturing methods. Tool steels are known for their hardness, dimensional stability, and wear resistance, and are crucial for making cutting, forming, and stamping tools. The round format is notable for its consistency and user-friendliness, making it a popular option in various industries.
- Round tool steels can be readily machined and formed, making them ideal for producing drills, taps, and reamers that demand accurate dimensions. The round shape ensures steady functionality and minimizes the chances of damage or distortion when facing tough conditions like high stress and temperatures commonly found in industrial environments. The strong and long-lasting nature of this format is ideal for tough uses in industries like automotive, machinery, and shipbuilding.
- The circular format tool steel enjoys effective material utilization. Manufacturers can create components with very little waste, which improves cost efficiency and sustainability. The importance of this efficiency increases as industries work to minimize their environmental impact and improve production expenses. The round format has a competitive advantage due to its ability to manufacture accurate and high-quality tooling with minimal material wastage.
- The round format segment's versatility is also credited for its dominance. It can be easily incorporated into various manufacturing methods, such as forging and rolling, which are essential for attaining the desired characteristics in tool steels. These procedures can enhance the microstructure of the material, enhancing its mechanical characteristics and increasing its suitability for specific uses. Hence, in this way By Format Type, Round Format Segment Is Expected to Dominate the Tool Steel Market.
By End-User, Automotive Segment Held the Largest Share In 2023
- The crucial role of the automotive industry in global economies is evident through its strong presence in multiple markets and continuous focus on technological progress. The large portion of this sector in various fields, such as car transport, battery separators, and automated guided vehicles, can be mainly credited to the need for specialized products and services that meet its specific needs.
- Car manufacturers and service providers are always looking for ways to improve logistics, streamline production, and boost vehicle performance. The car carrier industry, for example, experiences substantial involvement from the automotive industry because there is a demand for effective and safe transportation of vehicles from factories to shops and other places. This growth is driven by specialized carriers and strong infrastructure.
- The automotive industry's increasing focus on electric vehicles (EVs) is leading to a rise in demand for battery separators in the market. The demand for top-notch battery components in EV batteries has increased due to the growing emphasis on sustainable transportation options, as they must guarantee safety, efficiency, and durability. Consequently, car makers make significant investments in obtaining top-quality separators to fulfill these requirements, thus boosting the market share of the industry.
- In the domain of automated guided vehicles (AGVs), it is clear that the automotive industry heavily depends on automation to improve efficiency and accuracy in manufacturing procedures. AGVs are essential in material handling, assembly lines, and intra-plant logistics, guaranteeing efficient and cost-effective operations. This continued dependence on automation solidifies the automotive sector's role as a significant customer in the AGV market.
- The automotive sector is embracing functional coatings, automotive software, and profilometry services to enhance vehicle longevity, integrate state-of-the-art capabilities, and uphold strict quality control measures. Hence, in this way By End-User, the Automotive Segment Held the Largest in the Tool Steel Market.
Tool Steel Market Regional Insights:
North America is Expected to Dominate the Market Over the Forecast Period
- North America's leading position in the tool steel market is due to a combination of economic, industrial, and strategic factors that are interconnected. To start with, the area has a strong and varied industrial foundation, especially in industries like automotive, aerospace, and manufacturing that heavily rely on tool steel. These industries require top-notch steel for accurate tools and machinery, establishing a significant market for tool steel products.
- North American steel manufacturers have been leaders in technological progress and creativity. This technological advantage enables them to manufacture tool steel with superior qualities, like improved durability and strength, necessary for industrial uses. Effective placement in the international market is extremely important. North American manufacturers frequently hold a large portion of the local market and also ship products to other areas.
- strong infrastructure for producing and distributing steel, along with a skilled workforce, gives a stable base for the tool steel sector. The infrastructure enables smooth production processes and ensures products are delivered on time to different industries, while the experienced workforce upholds high levels of quality and productivity.
- The enforcement of trade policies and regulations, like tariffs, can shield local producers from international competition, thus preserving the market dominance of tool steel manufacturers in North America. These measures promote the utilization of steel made within the country, creating a favorable climate for the growth of domestic tool steel sectors. Hence, in this way, North America is Expected to Dominate the Tool Steel Market.
Source: Company Database
- This statistic shows the revenue of the industry “iron and steel pipe and tube manufacturing from purchased steel “in the U.S. from 2019 to 2023. It is projected that the revenue of iron and steel pipe and tube manufacturing from purchased steel in 2023 amounts to 12.39 billion U.S. Dollars.
Tool Steel Market Active Players
- Arcelormittal (Luxembourg)
- Voestalpine Ag (Austria)
- Ssab Ab (Sweden)
- Nippon Steel Corporation (Japan)
- Hitachi Metals, Ltd. (Japan)
- Thyssenkrupp Ag (Germany)
- Posco (South Korea)
- Carpenter Technology Corporation (USA)
- Crucible Industries LLC (USA)
- Daido Steel Co., Ltd. (Japan)
- Bohler-Uddeholm Corporation (Austria)
- Sanyo Special Steel Co., Ltd. (Japan)
- Hudson Tool Steel Corporation (USA)
- Sandvik Ab (Sweden)
- Dongbei Special Steel Group Co., Ltd. (China)
- Schmiedewerke Groditz Gmbh (Germany)
- Voestalpine High-Performance Metals Corp. (USA)
- Finkl Steel (USA)
- Ellwood Specialty Steel (USA)
- Erasteel (France)
- Assab Global (Singapore)
- Heye Special Steel Co., Ltd. (China)
- Universal Stainless & Alloy Products, Inc. (USA)
- Seah Changwon Integrated Special Steel Corp. (South Korea)
- Griggs Steel Company (USA) and Other Active Players
Key Industry Developments in the Tool Steel Market:
- In March 2024, Mantle, San Francisco, California, the leader in metal 3D printing technology for toolmaking, announced today the release of its 420 Stainless Steel material. This new material enhances toolmaking processes by speeding up operations and cutting down on labor needs, particularly advantageous for industries like medical that need tools resistant to corrosion. Mantle’s 420 Stainless Steel is chemically equivalent to traditional 420 stainless steel, which is renowned for its high strength, hardness, corrosion resistance, and polish ability.
- In January 2024, AddUp’s Tooling Competence Centre is excited to launch 2024AMIM – 2024 Additive Manufacturing for Injection Molding, a new project focused on developing and implementing innovations using additive manufacturing for injection molding applications. The year-long project includes 17 industrial companies and is supported by a consortium of AddUp’s AM experts and partners. The project will focus on seven areas of importance for tooling manufacturers. AddUp and one of their partners will present challenges and innovations for one of these focus areas each month. AddUp will create samples, benchmarking parts, and production molds to develop solutions for these areas.
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Tool Steel Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
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Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 6.64 Bn. |
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Forecast Period 2024-32 CAGR: |
8.5 % |
Market Size in 2032: |
USD 13.84 Bn. |
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Segments Covered: |
By Material |
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By Product Type |
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By Format Type |
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By Application |
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By End-User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Tool Steel Market by By Material
4.1 Tool Steel Market Snapshot and Growth Engine
4.2 Tool Steel Market Overview
4.3 Tungsten
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market Size in Value USD
Frequently Asked Questions
What would be the forecast period in the Tool Steel Market research report?
The forecast period in the Tool Steel Market research report is 2024-2032.
Who are the key players in the Tool Steel Market?
ArcelorMittal (Luxembourg), Voestalpine AG (Austria), SSAB AB (Sweden), Nippon Steel Corporation (Japan), Hitachi Metals, Ltd. (Japan), Thyssenkrupp AG (Germany), POSCO (South Korea), Carpenter Technology Corporation (USA), Crucible Industries LLC (USA), Daido Steel Co., Ltd. (Japan), Bohler-Uddeholm Corporation (Austria), Sanyo Special Steel Co., Ltd. (Japan), Hudson Tool Steel Corporation (USA), Sandvik AB (Sweden), Dongbei Special Steel Group Co., Ltd. (China), Schmiedewerke Gröditz GmbH (Germany), Voestalpine High Performance Metals Corp. (USA), Finkl Steel (USA), Ellwood Specialty Steel (USA), Erasteel (France), ASSAB Global (Singapore), Heye Special Steel Co., Ltd. (China), Universal Stainless & Alloy Products, Inc. (USA), SeAH Changwon Integrated Special Steel Corp. (South Korea), Griggs Steel Company (USA) and Other Active Players.
What are the segments of the Tool Steel Market?
The Tool Steel Market is segmented into Material, Product Type, Format Type, Application, End-User, Segment6, and region. By Material, the market is categorized into Tungsten, Chromium, Vanadium, and Molybdenum. By Product Type, the market is categorized into Water-Hardening, Cold-Work, Shock-Resisting, High Speed, Hot Working, And Special Purpose. By Format Type, the market is categorized into Round Format and square Format. By Application, the market is categorized into Injection Molding, Die Work, and Forging. By End-User, The Market Is Categorized into General Manufacturing, Automotive, Defence and Aerospace, Electronic and Electrical, Ship Building, And End-Userf. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
What is the Tool Steel Market?
Tool steel refers to different types of carbon steel and alloy steel that are ideal for creating tools such as cutting tools, dies, hand tools, knives, and other tooling.
How big is the Tool Steel Market?
Tool Steel Market Size Was Valued at USD 6.64 Billion in 2023 and is Projected to Reach USD 13.84 Billion by 2032, Growing at a CAGR of 8.5% From 2024-2032.
